TMI Blog1985 (2) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... the 15th November, 1978 made an application under Chapter 7 of the Act for the acquisition of the said properties. The government issued on the 29th October, 1980 notification in respect of the land in question under section 4 of the Act which was published in the Government Gazette dated 30th October, 1980. The land owner being respondent No. 1 to this appeal objected to the said notification under section 4. Subsequently government held enquiry under section 5A of the Act and the Deputy Collector submitted the report to the Government in March, 1981. On or about 10th April, 1981 the Deputy Collector issued notice to respondent No. 1 that enquiry under rule 4 of the Rules would be held on 15th April, 1981. The respondent No. I filed his objections on merit by the letter dated 4th May, 1981. On 26th October, 1983, agreement was executed between the government and the acquiring company that the land in question was needed for the purpose of development of tourism. the government issued notification under section 6 of the Act which was published in the government Gazette dated 27th October, 1983. The petition under Article 226 out of which this appeal arises was filed in the Bomba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed that when the acquisition is for a Company the purpose has to be investigated under section . A or section 40 necessarily after the notification under section 4 of the Act. The land acquisition proceedings begin with the publication of the preliminary notification. Section 5A enjoins hearing of the objections and disposal of objections. Sections 6 of the Act provides that if the government is satisfied after considering the report, if any, made under section 5A, that any particular land was needed for public purpose, or for a Company, a declaration shall be made to that effect subject to certain conditions mentioned in the various sub-sections of section 6 of the Act. After declaration under section 6, section 7 enjoins the Collector to take order for acquisition of land. Various steps for the actual acquisition are enumerated in subsequent section of the Act which need not be set out in detail. Section 16 empowers taking of the possession after an award is made under section 11 and thereafter the land shall vest in the government free from all encumbrances. It is important to note that section 23 of the Act deals with the matters to be considered in determining compensation fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain Companies. It is not necessary to discuss these rules in detail for the present purpose. A conspectus of the provisions of the Act as well as the Rules indicate that there are two purposes of acquisition of land-one being for the public purpose and the other for the purpose of a Company. In case of acquisition for Company, the appropriate government has to satisfy itself that such acquisition is needed and would be useful also for public need. Rule 4 of the Rules provides for satisfaction of the appropriate government with regard to various matters before acquisition. The learned judges of the Bombay High Court were of the view that the enquiry under rule 4 was necessary for the initiation of the acquisition proceedings to be satisfied that acquisition was necessary for the Company. We are unable to accept this conclusion for the following reasons: (i) To complete the acquisition proceedings, notification under section 6 of the Act is required. Section 6 of the Act enjoins that the government has to be satisfied that the land is needed for public purpose or for a Company and after declaration is made the acquisition is complete after the award is made and possession ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade as the case may be unless the requirements mentioned in clauses (i) and (ii) of sub-rule (4) of lure 4 have been complied with. We find no warrant to do that. On the contrary, it will be contrary to the scheme and purpose of the acquisition proceedings because the compensation for the acquisition has to be fixed under section 23 of the Act keeping the market rate as on the date of the issuance of the notification under section 4 in view. If it be that the enquiry as contemplated by rule 4 should also precede issuance of notice under section 4 of the Act then that may upset the fixation of the market value and escalation of price with the passage of time between publication of the notifications under sections 4 and 6 would make acquisition difficult. An argument was sought to be built on the basis of the heading of rule 4 which stipulates that Appropriate Government to be satisfied with regard to certain matters before initiating acquisition proceedings . It is true that before the initiation of the acquisition proceedings, government had to be satisfied of certain matters mentioned in the various sub-rules of rule 4 as well as various provisions of the Act. Though prelimina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. It was urged, therefore, the section 6 notification was issued without complying with Part VII of the Act and without the valid consent of the State Government as required under section 39(iii), that the acquisition was made malafide and without application of mind to the relevant facts and the acquisition did not involve any public purpose and the State government was bound to give an opportunity Of being heard to the appellants before taking a decision under section 5A particularly when the report made by Master was against the acquisition. In this connection our attention was drawn to section 39 of the Act which provides that provisions of sections 6 to 37 (both inclusive) shall not be put into force in order to acquire land for any Company unless with the previous consent of the appropriate Government nor unless the Company shall have executed the agreement therein after mentioned. This section, in our opinion, has no relevance for determining whether to be a proper acquisition, enquiry contemplated under rule 4 must precede issuance of the notification under section 4 of the Act. In the decision of this Court referred to hereinbefore, this question did not really fall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action under section but we do not find reading the said decision of this Court in the context of the facts and circumstances and the contentions urged in that case that this Court laid down any proposition that enquiry under rule 4(1) must precede issuance of notification under section 4. Indeed as we have mentioned before, notification under section 4 would facilitate the matters to be inquired under rule 4(1). Reliance was also placed on certain observations in the case of General Govt. Servants Co-operative Housing Society Ltd Agra v. Wahab Uddin Ors. Etc. Etc. [1981] 3 S.C.R. 46. There the scheme of the Act was analysed and what were matters to be required under rule 4 of the Rules were mentioned. This Court observed at pages 53-54 of the report as follows: No declaration shall be made by the appropriate Government under section 6 of the Act unless the Committee has been consulted by the Government and has considered the report submitted by the Collector under section SA of the Act. In addition, under clause (ii) of sub-rule (4) of rule , the Company has to execute an agreement under section 41 of the Act. The above consideration shows that rule 4 is mandatory; its comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as in this case. Therefore, though there may be in certain cases compliance with rule 4(1) of the Rules it was not mandatory that before issuance of notification under section 4(1) of the Act there should be an enquiry in compliance with rule 4(1). In the premises in so far as the Bombay High Court held that non-compliance with rule 4 before the issuance of notification under section 4(1) of the Act is bad is set aside. As mentioned hereinbefore, since the issuance of the notifications was challenged on several other grounds and the High Court had not decided those grounds, we remit the matter back to the High Court to decide those grounds- We request the High Court to dispose of those grounds as early as possible. In a matter of this nature there several contentions factual and legal are urged and when there is scope of an appeal from the decision of the Court, it is desirable as was observed by the Privy Council long time ago to avoid delay and protraction of litigation that the court should, when dealing with any matter dispose of all the points and not merely rest its decision on one single point. In the facts and circumstances of the case, as the matter is being remit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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