1
| IN THE SUPREME COURT OF INDIA | |
|---|
| CIVIL ORIGINAL JURISDICTION | | |
| CIVIL APPEAL NO. OF 2021 | |
|---|
| (Arising out of SLP(C)No.1361 OF 2021) | |
WITH
CIVIL APPEAL NOS.7011-7013, 9002-9003
AND 7017-7019 OF 2013
J U D G M E N T
C.T.RAVIKUMAR, J.
Leave granted in SLP(C) No.1361 of 2021 and on
1.
Signature Not Verified
Digitally signed by
DEEPAK SINGH
Date: 2022.07.29
17:51:36 IST
Reason:
consent taken up for hearing along with connected Civil
2
Appeals. In all these Appeals a common question arises
for consideration viz., “whether initiation of
proceedings for acquisition of land for the purposes
of the Karnataka Housing Board, invoking the power
under Section 33(2) of the Karnataka Housing Board Act,
1962, without the housing scheme being in existence or
the housing scheme not having been sanctioned under
Section 24(2) thereof, would render such acquisition
proceedings void and non-est”. Certain allied questions
may also call for consideration. We may hasten to state
that we do not propose to dispose of the appeals on
merits under this judgment and it would only resolve
the stated common question and cognate issues.
Nonetheless, if nothing survives for consideration in
any appeal, upon answering the moot question and allied
3
issues, then its fate would depend upon the nature of
their answers.
2. The Karnataka Housing Board Act, (hereinafter for
short “the KHB Act”) was enacted with an object to
provide for measures to be taken to deal with and
satisfy the need for housing accommodation. For
effectuating the said object, under Section 3 thereof,
the Karnataka Housing Board (for short “KHB”), was
constituted. Different modes for acquisition of
properties for the purposes of KHB are provided under
the KHB Act, including the power for compulsory
acquisition under Section 33(2). With this short
prelude we will proceed to consider the moot question
and the allied issues, for which it is proper and
profitable to state succinctly the situation occurring
4
in the appeals from which they stem for consideration.
We refer to the rival contentions raised in the appeals
solely for the said purpose.
Civil Appeal arising out of Special Leave Petition
(Civil) No. 1361 of 2021
3. This appeal is preferred by ‘KHB’ and its Special
Land Acquisition Officer against the judgment and final
order dated 01.12.2020 of a Division Bench of the High
Court of Karnataka at Bengaluru in WA No. 5712 of 2012
(LA-KHB) filed against the order in WP No.25184 of 2011
dated 29.05.2012. The Government of Karnataka as per
Annexure ‘A’ Notification dated 15.12.1998, (marked
thus in the appeal) issued under Clause(c) of Section
3 of the Land Acquisition Act, 1894 (for short “L.A.
Act”), appointed the Housing Commissioner of KHB to
perform the functions of Deputy Commissioner under
5
Section 4 of the L.A. Act in respect of the lands to
be acquired for the purposes of KHB in Bengaluru and
Mysore Revenue Divisions, namely, Bengaluru Urban and
Bengaluru Rural, etc. S.3(c) itself makes it clear
that the appropriate Government is empowered to appoint
any officer to perform the functions of a collector
under the L.A. Act. In exercise of the powers thus
conferred, the Housing Commissioner, KHB, issued
Annexure ‘B’ Preliminary Notification dated 18.4.2007
under Section 4(1) of the L.A. Act in respect of two
places, namely, Kowdenahalli village and K.R. Puram
village in Bengaluru District for acquisition of a
total extent of 56 acres and 37 guntas of land, for the
housing projects of KHB. The said Notification was
published in the official Gazette on 12.07.2007 and
6
thereafter, in two daily newspapers on 18.08.2007 and
local offices during the period from 13.08.2007 to
24.08.2007. Subsequently, the State Government issued
the declaration and final Notification Annexure ‘C’
under Section 6(1) of the L.A. Act, dated 26.3.2009
declaring that the notified properties are required for
public purpose, i.e., for construction of different
categories of houses by KHB. It was also duly published
in the official Gazette and in two local newspapers.
Mrs. Dawn D’souza, the mother of Respondents 2 and 3
in this Appeal, filed WP No.25184/2011 challenging the
afore-mentioned preliminary and final Notifications
before the High Court of Karnataka. An interim order
was granted in the said petition on 28.7.2011. Earlier,
three other writ petitions, viz., WP Nos.25435/2010,
7
23002/2010 and 23083/2010, were filed by some other
land owners challenging the very same Notifications.
Obviously, only one point was raised in all the four
cases, viz., ‘whether acquisition Notifications could
be issued until and unless scheme is finalized as per
the provisions of the KHB Act’. They were heard
together and allowed by a Learned Single Judge as per
the order dated 29.05.2012, upholding the contention
of the petitioners therein that sanction of the housing
scheme concerned is sine qua non for initiation of
acquisition proceedings therefor, following his own
judgment in WP No.9593/2007 in respect of acquisitions
of the year 1991 for a different area. As a matter of
fact, the said relied upon judgment in WP No.9593/2007
was rendered, relying mainly on the decision of this
8
Court in State of Tamil Nadu & Anr. Vs. Mohammed Yousef
& Ors. (AIR 1992 SC 1827) . Later, on 29.06.2012, a
proposal for 53 housing schemes, including for the
aforesaid two places, namely, Kowdenahalli village and
K.R. Puram village, were submitted to the Government
for approval by KHB. On 04.09.2012, the State
Government accorded sanction for all the said 53
housing schemes as per Annexure ‘H’ dated 4.9.2012. In
respect of 30 acres and 3½ guntas out of 56 acres and
37 guntas in the said villages, awards were passed and
according to the appellants, in respect of the
remaining extent, awards were not passed in view of the
interim orders of the High Court. KHB filed four writ
appeals against the aforesaid common order dated
29.05.2012. The Division Bench vide judgment dated
9
| 01.12.2020 dismissed Writ Appeal No.5712/2012 | | |
|---|
| rejecting the contention that initiation of process for | | |
| acquiring land for the purposes of KHB prior to the | | |
| framing and sanctioning of the scheme for which | | |
| acquisition is required will not invalidate the | | |
| acquisition proceedings and holding thus:- | | |
| “In the circumstances, we are of the view that | |
| the sanction of a scheme by the State | |
| Government under sub-Section (2) of Section 24 | |
| of the Act is a condition precedent and a | |
| mandatory requirement before the Housing Board | |
| would execute any housing scheme, land | |
| development scheme or labour housing scheme. | |
| This is irrespective of whether any housing | |
| scheme would entail acquisition of land or not | |
| as opposed to a scheme entrusted by Board under | |
| Section 32 of the Act.” | |
| | |
| | |
| It is the said judgment that is impugned in this | | |
| appeal arising out of SLP(C)No.1361/2021. | | |
| | |
| 4. It is contended by the appellants that the power | | |
| of acquisition conferred under Section 33(2) of the KHB | | |
10
Act is an independent power and it could not be
conditioned on prior approval of the scheme by the
Government. According to them, schemes could be framed
simultaneously or even subsequently and acquisition
could be initiated for a contemplated scheme. It
confers the power to acquire land required for
execution of a housing scheme. The expression ‘required
for execution of a housing scheme’ denotes the
‘purpose’ for which the land could be acquired and not
the ‘stage’ at which it could be acquired, it is also
contended on their behalf. The further contentions
raised on their behalf are as follows: -
It is illogical to infer that a scheme of KHB should
obtain two successive sanctions; one under Section 20
and the other under Section 24(2) of the KHB Act. Such
11
an interpretation would be nothing but misconstruction
of the provisions of the KHB Act. In exercise of the
delegated powers, if Notification is issued by the
Commissioner, it could only be construed that
acquisition is by the Government. The fact that the
acquisition is for the KHB and that the acquired land
would be handed over to KHB for its purpose(s) would
not and could not invalidate the said acquisition. KHB
Act received the assent of the President of India on
the ninth day of March, 1993 and Section 33(2) of the
KHB Act modifies L.A. Act and declares that acquisition
for the purposes of KHB Act be deemed to be for ‘public
purpose’ within the meaning of L.A. Act. The decision
of this Court in Mohammed Yousef’s case (supra) is not
applicable to the cases on hand falling within the
12
purview of KHB Act as the said decision dealt only with
the provisions under the Tamil Nadu Housing Board Act
(TNHB Act) and further that the provisions and scheme
of both the said Acts are different and distinct. The
provisions under Section 49(1)(b) of the TNHB Act,
virtually, persuaded this Court in Mohammed Yousef’s
case (supra) to hold that acquisition of land is part
of the housing scheme and therefore, Notification for
the acquisition of land for the housing scheme
concerned could be issued only on finalization of the
scheme and its sanction by the Government. However, a
provision pari materia to the same is conspicuously
absent in KHB Act.
5. Respondents 2 and 3 in this appeal filed a synopsis,
pursuant to the permission granted to the parties to
13
file written submissions along with relevant
documents/compilation, whereunder they have raised
various contentions to resist the claims and
contentions of KHB. We may hasten to add here that we
will not advert to all the contentions advanced by them
and in view of the nature of the order we propose to
pass, as stated hereinbefore, we need only to deal with
those contentions which are relevant for the
consideration of the stated common question posed for
resolution and also to the allied issues. In that view
of the matter, it is relevant to refer to the following
contentions: -
When Section 4(1) Notification under the L.A. Act
was issued prior to the finalization of the scheme
concerned it would be vague and, in such circumstances,
14
the land owners would be deprived of the benefit of
filing effective objections under Section 5A of the
L.A. Act. (As a matter of fact the impugned judgment
itself would reveal that their deceased mother had
filed objections on 17.09.2007 and later, an enquiry
under Section 5A of the L.A. Act was held). If the
housing scheme involves acquisition of land, prior
sanction under Section 24(2) of the KHB Act is
mandatory and framing and finalizing the scheme is a
pre-requisite for acquiring land for the purpose of KHB
under Section 33(2) of KHB Act. Issuance of
Notification under Section 6 (1) of the L.A. Act by the
State Government could not be construed as sanction as
contemplated under Section 24(2) of the KHB Act. Any
such construction, as canvassed by the appellants, if
15
accepted would offend the language of Sections 24(2)
and 33(2) of the KHB Act. In terms of sub-Section (4)
of Section 3 of the KHB Act, KHB shall be deemed to be
a local authority for its purpose and also for the
purpose of L.A. Act. Ergo, by virtue of Section 3(f)
of L.A. Act, prior approval of the Government for the
housing scheme concerned is necessary in order to make
acquisition as the one for ‘public purpose’. They have
also referred to sections 17 to 24 of the KHB Act to
buttress the contention that without prior sanction
under section 24(2) of the KHB Act, KHB could not
execute any scheme by acquiring land. To drive home the
point, they rely on the decisions of this Court in
Mohammed Yousef’s case(supra) and in
State of T.N. &
16
others Vs. L. Krishnan’s & Others reported in (1996) 1
SCC 250 .
Civil Appeal Nos. 7011-7013 of 2013, 7017-7019 of 2013
& 9002-9003 of 2013
These companion appeals are filed by persons whose
6.
properties are sought to be acquired for the purposes
of KHB under Notifications prior to the one involved
in the appeal arising from SLP(C) No.1361/2021,
substantially raising contentions similar to that of
the party respondents in the said appeal. Their core
contention is that absence of sanction for the building
scheme concerned prior to the initiation of acquisition
proceedings would vitiate the entire acquisition
proceedings and would render it null and void.
17
| 6.1 The relevant details, as regards the companion | | | | |
|---|
| appeals, are stated infra in a tabulated form for | | | | |
| convenience. | | | | |
| Relevant<br>Dates | B.N. Byregowda<br>& Ors. Vs.<br>State of<br>Karnataka &<br>Ors. (CA Nos.<br>7017-7019 of<br>2013) | M. Nagaraju &<br>Anr. Vs. Govt.<br>of Karnataka &<br>Ors. (CA Nos.<br>9002-9003 of<br>2013) | S. Udaya Shankar<br>Vs. State of<br>Karnataka and<br>Ors. (CA Nos.<br>7011-7013 of<br>2013) | |
| Name of the<br>scheme | 100 housing<br>scheme | 225 housing<br>scheme | 100 housing<br>scheme | |
| Framing of<br>the scheme by<br>KHB | 06.10.2000 | 2009<br>(modified<br>scheme) | 06.10.2000 | |
| Sanctioning<br>of the scheme<br>by the Govt. | 25.01.2001 | 18.05.2010<br>(modified<br>scheme) | 25.01.2001 | |
| S.4(1)<br>Notification | 31.03.2001 | 12.04.2005 | 31.03.2001 | |
| S.6<br>declaration | 10.05.2002 | 02.11.2006 | 10.05.2002 | |
| Date of<br>publication<br>of final<br>notification<br>in the<br>official<br>gazette | 17.05.2002 | 09.11.2006 | 17.05.2002 | |
| | | | |
| 6.2 The tabulated details would go to show that in | | | | |
| these cases either the framing or sanctioning or | | | | |
| publication or all such processes relating to the | | | | |
18
Housing Scheme concerned was/were effected only
subsequent to the initiation of acquisition proceedings
therefor. The Appellant in C.A. Nos.7011-7013 of 2013
(S. Udaya Shankar) filed W.P.No.46250/2004 and the
Appellants in C.A.Nos.7017-7019 of 2013 (B.N. Byregowda
& Ors.) filed W.P.No.47616/2004 challenging the
selfsame Notifications, viz., preliminary Notification
under Section 4 dated 31.03.2001 and Section 6
declaration and final Notification dated 10.5.2002 of
the L.A. Act. During the pendency of the said Writ
Petitions the Appellants in C.A. Nos. 9002-9003 of 2013
approached the High Court by filing W.P. Nos.
18596/2006 and 11568/2008 respectively challenging a
subsequent preliminary Notification under Section 4
dated 01.04.2005 and Section 6 declaration dated
19
02.11.2006 in respect of another area for the purpose
of KHB. A Learned Single Judge of the High Court, as
per judgment dated 06.02.2009, dismissed them holding
that prior sanction of the housing scheme concerned is
not necessary for initiating acquisition for the
purposes of the KHB under the KHB Act by placing
reliance on the decision of this Court in L. Krishnan’s
case (supra). The said common judgment dated 06.02.2009
was taken in appeal as W.A. Nos. 1244-45/2009 (LB-KHB).
During its pendency, another learned Single Judge of
the High Court vide judgment dated 28.06.2012 in
W.P.No.9593/2007 and connected cases held that a
sanctioned housing scheme is condition precedent, for
initiation of acquisition proceedings under the KHB Act
for its purpose. When W.P No.46250/2004 filed by the
20
Appellant in Civil Appeal Nos.7011-7013 of 2013 came
up for consideration, taking note of the pendency of
Writ Appeal Nos.1244-45 of 2009 and also of the
conflicting decisions of two learned Single Judges in
WP No.18596/2006 and WP No.9593/2007 and connected
matters, it was referred to a Division Bench. On the
same grounds the learned Single Judge referred WP
No.47616/2004 also to a Division Bench.
In the judgment in Writ Appeal Nos.1244-45 of 2009
7.
the Division Bench took note of the fact that the land
involved therein was notified for acquisition by
invoking Section 33 of the Act read with Section 4(2)
of the L.A. Act and identified the point to be answered,
as can be seen from paragraph 6 of the judgment passed
thereon dated 26.04.2013, thus: -
21
| “6. The only point to be answered by us in | |
|---|
| these appeals is whether the Housing Board is | |
| required to obtain sanction of a Housing Scheme | |
| u/s 24 of the Act before initiation of the | |
| acquisition of the land or not in order to | |
| implement the Housing Scheme.” | |
| | |
| Paragraph 7 therein also assumes relevance, in this | | |
| regard. It reads thus:- | | |
| | |
| “7. It is the contention of the appellants that | |
| without their being a Scheme sanctioned as | |
| required u/s 24 of the Act, lands of the | |
| appellants could not have been acquired.” | |
| | |
| | |
| 8. After referring to Sections 18 to 24 of the Act, | | |
| vide paragraphs 14, 15 and 18 the Division Bench held | | |
| thus: - | | |
| “14. A reading of Sections-18 to 24, it is | |
| clear that there is no necessity for obtaining | |
| the sanction of the Housing scheme or the Land | |
| Development scheme in order to acquire the | |
| property for the aforesaid projects. But | |
| without their being a sanction from the | |
| Government under Section 24, no scheme shall | |
| be executed by the Housing Board. Therefore, | |
| it is clear that obtaining of sanction under | |
| the Housing Scheme or Land Development Scheme | |
| would arise only after preparation of all | |
| preliminary preparation of the scheme, | |
| preparation of the Housing project, Land | |
| Development Project, Budgetary provision, | |
| identifying the lands or acquiring the lands | |
22
| and the staff required and estimation and other | |
|---|
| things as contemplated under sections-18 to 23. | |
| Only after strict compliances of Sections-18 | |
| to 23, before actual execution of the Housing | |
| Scheme or Land Development Scheme, obtaining | |
| of the sanction u/s 24 would arise. | |
| | |
| 15. In this background, after considering the | |
| Judgment of the Learned Single Judge, we cannot | |
| find fault with his order because he has | |
| clearly ruled that no prior permission is | |
| required u/s 24 of the Act, in order to | |
| identify the lands or to acquire the lands. | |
| Accordingly, we answer the said point, agreeing | |
| with the findings of the Learned Single Judge. | |
| | |
| 16… | |
| | |
| 17… | |
| | |
| 18. With the above observations, the appeals | |
| are allowed confirming the finding of the | |
| Learned Single Judge on the question of | |
| section-24 of the Housing Board Act, the matter | |
| is remanded to the Learned Single Judge with a | |
| request to reconsider the matter afresh as | |
| observed above.” | |
| | |
| 9. Thus, obviously, the Division Bench, as per | | |
| judgment dated 26.04.2013 in Writ Appeal Nos.1244- | | |
| 45/2009 affirmed the decision of the learned Single | | |
| Judge in W.P. Nos.18596/2006 and 11568/2008 that | | |
| existence of a sanctioned housing scheme is not | | |
23
required for initiation of compulsory acquisition under
the KHB Act. Civil Appeal Nos.9002-9003/2013 were filed
challenging the judgment and final order dated
26.04.2013 in Writ Appeal Nos.1244-45 of 2009. It is a
fact that on the same day, the Division Bench,
obviously relying on the decision in Writ Appeal
Nos.1244-45/2009, dismissed W.P. Nos.46250 and 47616
of 2004 vide separate judgments. Civil Appeal Nos.7011-
7013/2013 and 7017-7019/2013 were filed in the
circumstances challenging the judgment and final Order
dated 26.04.2013 in the respective writ petitions and
also against the relied upon judgment and final Order
in Writ Appeal Nos.1244-45/2009, dated 26.04.2013.
10. The pleadings in the captioned Civil Appeals and
the submissions made by the respective learned counsel
24
for the appellants would reveal the common contention
of the parties in C.A.Nos.7011-7013, 9002-9003 and
7017-7019 of 2013 that acquisition of land for the
purposes of KHB under the KHB Act is part of the housing
scheme to be prepared in terms of Sections 18-23 of the
KHB Act and, therefore, acquisition proceedings could
not have been initiated before the sanctioning of the
housing scheme concerned. Since, acquisition
proceedings preceded the sanction of the housing
scheme(s) concerned, they are to be deemed as null and
void and as such, liable to be set aside, they would
further contend. It is to support the said contentions
that they are relying on the decision in Mohammed
Yousef’s case (supra). The KHB, which is the appellant
in the appeal by Special Leave arising from
25
SLP(C)No.1361/2021 would contend that acquisition
proceedings for its purposes invoking the power under
Section 33(2) of the KHB Act could not be said to be
part of the housing scheme to be prepared in terms of
Sections 18-23 of the Act by the KHB and the only
condition for executing the scheme would be that prior
to its execution Governmental sanction should be
obtained therefor.
On perusal of the relevant provisions and hearing
11.
the rival contentions in all the above appeals we think
that construction of Section 33 (2) of the KHB Act
would be a pointer to answer the stated common question
involved in the appeals. In that pursuit, it is also
to be ascertained, with reference to the relevant
provisions under the Act, as to whether acquisition
26
proceedings by KHB invoking the power thereunder would
form part of a housing scheme, as defined under the KHB
Act. Subject to its answer, the question whether
‘acquisition forming part of housing scheme’ by itself
is decisive as to the validity of the initiation of
acquisition proceeding prior to the sanction of the
scheme concerned, may also have to be considered in
this pursuit.
The case of the Appellants, (other than the KHB
12.
and its co-appellant) who canvass the position that
sanctioning of the scheme is a pre-condition for
compulsory acquisition for KHB under Section 33 (2) of
the Act, is founded on the decision of this Court in
Mohammed Yousef’s case (supra) and other judicial
pronouncements rendered relying on/referring to the
27
said decision. In that regard they also contend that
the provisions in the TNHB Act (then referred to as
Madras State Housing Board Act, 1961), that persuaded
this Court to lay down law as mentioned hereinbefore
have pari materia provisions in the KHB Act. We may
hasten to state at this juncture that the learned
counsel for KHB resisted the contention. He submitted
that the claim of existence of provisions in the KHB
Act pari materia to the provisions under the TNHB Act,
1961 that formed the ground for laying the law in the
decision in Mohammed Yousef’s case (supra), is
absolutely incorrect and baseless. It is further
submitted on behalf of KHB that the said decision is
inapplicable to the instant cases. Still, the learned
counsel for KHB relied on L. Krishnan’s case, which
28
again was rendered with reference to acquisition for
the purpose of Tamil Nadu Housing Board. In that
context learned counsel for KHB would submit that
reliance is placed on the decision in L. Krishnan’s
case solely to fortify the contention that the decision
in Mohammed Yousef’s case is not applicable to the
appeals on hand. Furthermore, it is contended on behalf
of KHB that the embargo under Section 24 (2) of the KHB
Act would not stand against initiation of acquisition
proceedings under Section 33(2) of the KHB Act without
waiting for formation, sanctioning or publication of a
housing scheme. According to the learned counsel what
is legally required in terms of the provisions under
Section 33 (2) of the KHB Act is that before execution
of the scheme viz., implementation of the scheme,
29
sanction should be obtained.
13. In the light of the rival contentions referred to
hereinbefore it is apropos to consider, at first, the
applicability of decision of this Court in Mohammed
Yousef’s case (supra) in the matter of resolution of
the stated question and the allied issues. In view of
the scanned analysis of the decision in Mohammed
Yousef’s case by a three-Judge Bench of this Court in
the decision in L. Krishnan’s case (supra), from
paragraphs 23 onwards, we need only to refer to the
relevant recitals and conclusions/findings from the
decision in L. Krishnan’s case in our pursuit to answer
the applicability of the decision in Mohammed Yousef’s
case. The three-Judge Bench was called upon to consider
the correctness of the law laid down in Mohammed
30
Yousef’s case while considering the questions that
arose in Civil Appeal Nos.1865-66 and 1868-70 of 1992.
Those appeals were directed against a judgment of the
Madras High Court in a batch of Writ Petitions
whereunder it quashed three Notifications issued under
Section 4(1) of the L.A. Act for the implementation of
housing schemes, relying mainly on the decisions of
this court in Mohammed Yousef’s case (supra) and in
Munshi Singh Vs. Union of India [(1973) 2 SCC 337]. In
paragraph 22 of L. Krishnan’s case this Court observed:
“But before we refer to them, it would be
appropriate to deal with the decision of a
two-Judge Bench of this Court in State of
T.N. Vs. A Mohd. Yusuf, affirming the
decision of the Madras High Court, upon
which strong reliance is placed by the
respondents. In this decision, it has been
held that a proceeding under the Land
Acquisition Act read with Section 70 of the
Housing Board Act can be commenced only
after the framing of the scheme for which
the land is required, but not before.”
(Emphasis added)
31
In this context, it is also worthy to note the
first question posed for consideration before the
three-Judge Bench in L. Krishnan’s case (supra), which
was mentioned in paragraph 7 thereof thus:-
“The first question that arises in
these appeals is whether a final and
effective scheme prepared and published
under the provisions of the Housing Board
Act is a precondition to the issuance of
notification under Section 4. This question
has to be answered with reference to the
provisions of the Land Acquisition act as
well as the Housing Board Act.”
(Underline supplied)
14 . The three-Judge Bench in L. Krishnan’s case
further mentioned thus:-
“We may mention, at the outset, that these
appeals have been referred to a three-Judge
Bench by a Bench of two learned judges
because they doubted the correctness of the
decision in Mohd. Yusuf, vide order dated
16.09.1993.”
15. Paragraphs 24 to 33 of the decision in L.
Krishnan’s case are worthy to be extracted to decide
32
on the applicability of the decision in Mohammed
Yousef’s case to decide the stated mooted question
involved in these appeals. Paragraphs 24 to 28 read
thus:-
“24. The facts in Mohammed Yousef are
these: the notification under Section 4 of
the Land Acquisition Act was issued stating
the public purpose as construction of
houses by the Tamil Nadu Housing Board.
Admittedly not even a draft scheme was
framed by the Housing Board by the date of
the said notification. On the contrary, the
contention of the State was that only after
the acquisition proceedings are completed
and possession of the land taken, would
they frame a scheme. Alternately, it was
contended by the State that framing of a
scheme is not a precondition for issuance
of a valid notification under Section 4 of
the Land Acquisition Act proposing to
acquire the land for construction of houses
by the Housing Board. The High Court had
struck down the notification on the ground
that the public purpose mentioned therein
was too vague in the absence of details
relating to the scheme for which the
acquisition was sought to be made. The High
Court opined that in the absence of such a
scheme with necessary particulars the land-
owners cannot effectively avail of the
opportunity given by Section 5-A. In this
Court, however, the main contention of the
respondents-land-owners was that the
framing of a scheme by the Housing Board
under the provisions of the Housing Board
Act is a precondition to a valid
notification under Section 4 where the land
is proposed to be acquired for the purpose
of the Housing Board. In view of the said
33
contention, this Court examined the scheme
of the Act and held that inasmuch as
acquisition of the land is a part and parcel
of the execution of a scheme framed by the
Board under the Act, the acquisition must
follow the scheme and cannot precede it.
The Bench further observed that unless such
a scheme with requisite particulars is duly
published, it may not be possible for the
land-owners to object to the proposed
acquisition on the ground that the land is
not suitable for the scheme at all and/or
that it does not serve the stated public
purpose. The Bench observed that the power
of the Board to frame a scheme is regulated
by the provisions of the Act which, inter
alia, provide a full opportunity to the
affected persons to object to the scheme.
Even after the final publication of the
scheme and after its coming into force, it
was pointed out, the scheme can yet be
altered or cancelled as provided under
Section 56 of the Act. For all these
reasons, the Bench held that: (SCC p. 229,
para 11)
"a proceeding under the Land Acquisition
Act read with Section 70 of the Madras
Housing Board Act, can be commenced only
after framing the scheme for which the land
is required".
25. Unfortunately, the provisions in sub-
Sections (2) and (3) of Section 35 and
Section 36 were not brought to the notice
of the Bench nor were the earlier
Constitution Bench decisions of this Court
brought to its notice, to which decisions
we may now turn. But one more relevant
aspect before we refer to them.
26. After, and in the light of, the impugned
judgment, the Tamil Nadu Legislature has
amended the Housing Board Act with
34
retrospective effect with a view to remove
the basis of the said judgment and
providing expressly that existence of a
scheme framed by the Housing Board is not
a pre-condition for acquiring land for the
purpose of the Board. The validity of the
said Amendment Act has also been questioned
in the connected matters but the necessity
to go into that question will arise only if
we agree with the reasoning and conclusions
in the decision under appeal. Indeed, Shri
Salve's argument was that the decision of
the High Court is unsustainable even
without reference to the said Amendment Act
and it is on that basis that he made his
submissions.
27. In Arnold Rodricks v. State of
Maharashtra , the Constitution Bench dealt
with the question whether the statement in
the notification under Section 4 that the
land was required for "development and
utilisation of the said lands as an
industrial and residential area" cannot be
said to be a public purpose within the
meaning of Section 4 of the Land
Acquisition Act. The Court held, relying
upon the decisions of this Court in Babu
Barkya Thakur v. State of Bombay (SCR at p.
137) and Pandit Jhandu Lai v. State of
Punjab — as well as the statement in the
counter-affidavit filed on behalf of the
State Government — that the purpose stated
in the notification is indeed a public
purpose. The Constitution Bench pointed out
that in Babu Barkya Thakur , this Court had
relied upon the decision in State of Bombay
v. Bhanji Munji to the effect that
"providing housing accommodation to the
homeless is a public purpose (and that)
where a larger section of the community is
concerned, its welfare is a matter of
public concern".
35
The counter-affidavit filed on behalf of
the Government explained that the pressure
of housing in Bombay is acute and that there
was any amount of need for fresh housing.
The Court (majority) observed:
"In our view the welfare of a large
proportion of persons living in Bombay is
a matter of public concern and the
notifications served to enhance the welfare
of this section of the community and this
is public purpose."
28. Another contention urged for the
petitioners was that the Government had not
prepared any scheme before issuing the
notification under Section 4. This argument
was also negatived in the following words:
"This is true that the Government has not
uptil now prepared any scheme for the
utilisation of the developed sites. But the
notification itself shows that the sites
would be used as residential and industrial
sites. There is no law that requires a
scheme to be prepared before issuing a
notification under Section 4 or Section 6
of the Act . We have, however, no doubt that
the Government will, before disposing of
the sites, have a scheme for their
disposal."
(Emphasis added)
16. After making such reference in L.
Krishnan’s case it was further held in paragraphs
29 to 33 thus:-
“29. We have held hereinbefore that merely
because the Housing Board Act contemplates
acquisition of land as part of a housing or
improvement scheme, it does not follow that
no land needed for the purpose of the
36
Housing Board Act can be acquired until and
unless a scheme is prepared and finalised
by the Board and becomes effective under
the provisions contained in Chapter VII.
30. In Aflatoon v. Lt. Governor of Delhi ,
another Constitution Bench dealt with a
similar contention, viz., that before
publishing the notification under Section
4, the Government had not declared any area
in Delhi as a development area under
Section 12(1) of the Delhi Development Act
nor was there a master plan drawn up in
accordance with Section 7 of that Act. The
notification under Section 4 was attacked
on that basis. It was argued that under
Section 12(3) of the Delhi Development Act,
no development of land can be undertaken or
carried out except as provided in that sub-
Section. This argument was negatived by the
Constitution Bench holding that: (SCC pp.
294-95, para 23)
"The planned development of Delhi had
been decided upon by the Government before
1959, viz., even before the Delhi
Development Act came into force. It is true
that there could be no planned development
of Delhi except in accordance with the
provisions of Delhi Development Act after
that Act came into force, but there was no
inhibition in acquiring land for planned
development of Delhi under the Act before
the Master Plan was ready ( See the decision
in Patna Improvement Trust v. Lakshmi
Devi). In other words, the fact that actual
development is permissible in an area other
than a development area with the approval
or sanction of the local authority did not
preclude the Central Government from
acquiring the land for planned development
under the Act. Section 12 is concerned only
with the planned development. It has
nothing to do with acquisition of property;
acquisition generally precedes
37
development. For planned development in an
area other than a development area, it is
only necessary to obtain the sanction or
approval of the local authority as provided
in Section 12(3). The Central Government
could acquire any property under the Act
and develop it after obtaining the approval
of the local authority."
(emphasis added)
31. It is significant to notice that
Section 12 of the Delhi Development Act,
1957 provided for declaration of any area
as development area by the Central
Government and it further provided that
except as otherwise provided by the said
Act, the Delhi Development Authority shall
not undertake or carry out any development
of land in any area which is not a
development area. Sub-Section (3) of
Section 12, however, provided that after
the commencement of the said Act, no
development of land shall be undertaken or
carried out in any area by anyone unless
(i) where that area is a development area,
permission for such development has been
obtained in writing from the Authority in
accordance with the provisions of the Act
and (ii) where the area is an area other
than a development area, approval of the
local authority or other authority
concerned is obtained according to law.
Section 15 of the said Act provided for
acquisition of any land required for the
purpose of development under the Act.
32. In our opinion, the observations quoted
and emphasised hereinabove, and the broad
similarity between the provisions of the
Delhi Act and the Tamil Nadu Housing Board
Act, establish that the acquisition of the
land is not dependent upon the preparation
and approval of a scheme under Sections 37
to 56 and that the Government's power of
38
acquisition extends to other purposes of
the Board and the Housing Board Act
referred to in Sections 35 and 36.
Moreover, under Tamil Nadu Housing Board
too, there is no inhibition against
acquisition of land for the purpose of the
Board except in accordance with and as a
part of the scheme.
33. For all the above reasons, we find it
difficult to read the holding in Mohammed
Yousef as saying that in no event can the
land be acquired for the purpose of the
Act/Board unless a final and effective
scheme is framed by the Housing Board under
the provisions of Sections 37 to 56. The
said limitation applies only where the land
is sought to be acquired avowedly for the
purpose of execution of a housing or
improvement scheme prepared by the Housing
Board under Chapter VII of the Tamil Nadu
Housing Board Act. In other words, unless
the notification under Section 4 of the
Land Acquisition Act expressly states that
land proposed to be acquired is required
for executing a housing or improvement
scheme (i.e., a final and effective scheme)
framed by the Housing Board under the
provisions of the Tamil Nadu Housing Board
Act, the principle and ratio of Mohammed
Yousef is not attracted. Mere statement in
the notification that land is required for
the purpose of the Housing Board would not
by itself attract the said principle and
ratio. In the instant appeals, the
notifications do not even state that the
land proposed to be acquired is meant for
the purpose of the Housing Board.”
(Emphasis added)
39
17 . Thus, a perusal of the decisions in Mohammed
Yousef’s case and L. Krishnan’s case (supra) would
disclose that both the decisions were rendered with
reference to the provisions under the L.A. Act and the
TNHB Act. It is true that a two-Judge Bench of this
Court in Mohammed Yousef’s case, after referring to the
provisions under the Madras State Housing Board Act,
1961, which was later renamed as ‘TNHB Act’, held that
a proceeding under the Land Acquisition Act read with
Section 70 of the Housing Board Act could be commenced
only after the framing of the scheme for which the land
is required, and not before. But then, upon doubting
the correctness of the decision in Mohammed Yousef’s
case, two learned judges of this Court referred the
appeals (decided under L. Krishnan’s case) to a three-
Judge Bench. It is in those appeals that the three-
Judge Bench in L. Krishnan’s case observed that
unfortunately neither the provisions in sub-Sections
(2) and (3) of Section 25 and Section 36 of Act 17 of
1961 nor earlier Constitution Bench decisions of this
Court, were brought to the notice of the Bench which
rendered the decision in Mohammed Yousef’s case.
40
Thereafter, upon considering all the relevant
provisions under Act 17 of 1961, the provisions of the
very Act which were dealt with or not dealt with in the
decision in Mohammed Yousef’s case and also various
decisions of this Court the three-Judge Bench in L.
Krishnan’s case held :-
“For all the above reasons, we find it
difficult to read the holding in Mohd.
Yusuf as saying that in no event can the
land be acquired for the purposes of the
Act/Board unless a final and effective
scheme is framed by the Housing Board under
the provisions of Sections 37 to 56.”
18. The afore-extracted recitals in L. Krishnan’s case
would reveal that the position held as above holding
in Mohammed Yousef’s case was held applicable only
where the land is sought to be acquired avowedly for
the purpose of execution of a housing or improvement
scheme prepared by the Housing Board under Chapter VII
of the Tamil Nadu Housing Board Act. Further it was
clarified in paragraph 33 itself thus:-
“In other words unless the notification
under Section 4 of the Land Acquisition
Act expressly states that the land
proposed to be acquired is required for
41
executing a housing or improvement scheme
(i.e., a final and effective scheme)
framed by the Housing Board under the Tamil
Nadu Housing Board Act, the principle and
ratio of Mohd. Yusuf is not attracted.”
19. The contention of vagueness in the matter of public
purpose in the Notifications and its impact was
considered and negated in view of the Constitution
Bench decisions of this Court in Aflatoon Vs. Lt.
Governor of Delhi [(1975) 4 SCC 285] and in Arnold
Rodricks Vs. State of Maharashtra [AIR 1966 SC 1788] .
The decision in Pt. Lila Ram Vs. Union of India [(1975)
2 SCC 547] was also referred to in that regard. It was
observed that the decision in Munshi Singh’s case
(supra) would not come to the rescue of the Writ
Petitioners – Respondents. Based on such conclusions
and findings and those made in paragraphs 24-33 this
Court allowed Civil Appeal Nos.1865-66, 1868-70 of 1992
and set aside the judgment of the Madras High Court
under Appeal and dismissed the Writ Petitions from
which those appeals arose. It is also relevant to note
that the Civil Appeals filed against the judgments of
the Madras High Court upholding the validity of the
42
Tamil Nadu Housing Board Amendment Act 5 of 1992 were
also dismissed by the three-Judge Bench following the
judgment in Civil Appeal Nos.1865-66, 1868-70 of 1992.
20. Decision in L. Krishnan’s case would thus reveal
that the three-Judge Bench after careful consideration
held that merely because the TNHB Act contemplates
acquisition of land as part of a housing or improvement
scheme, it could not be said that no land needed for
the purpose of the Housing Board could be acquired
until and unless the scheme was prepared and finalized
by the board and became effective under the provisions
contained in chapter VII of the TNHB Act that deals
with acquisition and disposal of land. The three-Judge
Bench further found it difficult to read the dictum in
Mohammed Yousef’s case (supra) as saying that in no
event land could be acquired for the purpose of the
Act/Board unless a final and effective scheme is framed
by the Housing Board under the provisions of Sections
37 to 56. We have already noted the further conclusions
and findings of the three-Judge Bench in L. Krishnan’s
43
case and the outcome of such consideration, conclusions
and findings.
21. The long and short of the above discussion is
that the contention that initiation of acquisition for
the purposes of KHB/the KHB Act, prior to the sanction
and/or the publication of housing scheme concerned/land
development scheme concerned, is null and void in view
of the decision in Mohammed Yousef’s case is untenable.
So also, the contention that in view of the decision
in Mohammed Yousef’s case acquisition proceedings form
part of housing scheme/land development scheme and
hence, acquisition for the purposes of KHB/the KHB Act
prior to the sanction and/or the publication of housing
scheme concerned/land acquisition scheme concerned, is
null and void cannot be countenanced. Suffice it to say
that the moot question and allied issues are to be
considered and answered independently without
reference to the decision in Mohammed Yousef’s case,
but with reference to the L.A. Act as well as KHB Act.
In that view of the matter, we will now proceed to
44
consider them with reference to the L.A. Act and the
KHB Act and not with reference to other authorities
pronounced under different enactments. We are fortified
in that view by a Constitution Bench decision of this
Court in Offshore Holdings Pvt. Ltd. vs. Bangalore
. It, in
Development Authority & Ors. (2011) 3 SCC 139
so far as relevant, reads thus:-
“85…… the dictum stated in every
judgment should be applied with
reference to the facts of the case as
well as its cumulative impact.
Similarly, a statute should be construed
with reference to the context and its
provisions to make a consistent
enactment i.e. ex visceribus actus .”
We may also add that a judgment rendered with
22.
respect to the position obtained under a particular
provision(s) in one enactment cannot be applied while
dealing with a similar situation falling under a
different enactment, unless pari materia provision(s)
exist in that enactment, without looking into the facts
and law.
45
23. Now, we will refer to the various relevant
provisions to have panorama on the scheme of the KHB
Act for answering the moot question. Section 2 of KHB
Act carries such definitions and the relevant among
them are extracted hereunder:-
“S.2 :- In this Act, unless the
DEFINTIONS
context otherwise requires.-
(a) “ Board ” means the Housing Board
constituted under Section 3’
(f) “ Competent Authority ” means any person
authorized by the State Government, by
notification to perform the functions of
the Competent Authority under Chapter VI
for such area as may be specified in the
notification;
(h) “ Housing Scheme ” means a housing scheme
under this Act;
(i) “ Land ” includes benefits to arise out
of land and things attached to the earth or
permanently fastened to anything attached
to the earth;
(i-1) “ Land Development Scheme ” means a
scheme framed under this Act for the
purpose of providing house sites in any
Area;
(n) “ Programme ” means the annual housing
programme and land development programme
prepared by the Board under Section 19;
24. Chapter III (Sections 17 to 32A) provides for and
deals with housing schemes and land development
46
schemes. The relevant provisions for the purpose of
these cases are extracted infra:-
“ 17. Duty of Board to undertake housing
schemes and land development schemes .-
Subject to the provisions of this Act and
subject to the control of the state
Government, the Board may incur expenditure
and undertake works in any area for the
framing and execution of such housing
schemes and land development schemes as it
may consider necessary from time to time,
or as may be entrusted to it by the State
Government.
18. Matter to be provided for by housing
schemes .- Notwithstanding anything
contained in any other law for the time
being in force, a housing scheme may
provide for all or any of the following
matters, namely.-
(a) the acquisition by purchase, exchange
or otherwise of any property necessary
for or affected by the execution of the
scheme;
(b) the laying or relaying out of any land
comprised in the scheme;
(c) the distribution or redistribution of
sites belonging to owners of property
comprised in the scheme;
(d) the closure or demolition of dwellings
unfit for human habitation;
(e) the demolition of obstructive buildings
or portions of buildings;
(f) the construction and reconstruction of
buildings, their maintenance and
preservation;
(g) the sale, letting or exchange of any
property comprised in the scheme;
47
(h) the construction and alteration of
streets and back lanes;
(i) provision for the draining, water-
supply and lighting of the area included
in the scheme and carrying out by the
Board in such area, drainage, sewerage
and water supply works;
(j) the provision of parks, playing-fields
and open spaces for the benefit of any
area comprised in the scheme and the
enlargement of existing parks, playing
fields, open spaces and approaches;
(k) the provision of sanitary arrangements
required for the area comprised in the
scheme, including the conservation and
prevention of any injury or
contamination to rivers or other sources
and means of water-supply;
(l) the provision of accommodation for any
class of inhabitants;
(m) the advance of money for the purpose of
the scheme;
(n) the provision of facilities for
communication and transport;
(o) the collection of such information and
statistics as may be necessary for the
purposes of this Act;
(p) any other matter for which, in the
opinion of the State Government, it is
expedient to make provision with a view
to provide housing accommodation and to
the improvement or development of any
area comprised in the scheme or the
general efficiency of the scheme.
18-A. Matters to be provided for by Land
Development Schemes .- Notwithstanding
anything contained in any other law for the
48
time being in force, a land development
scheme may within the limits of the area
comprised in the scheme, provide for all or
any of the following matters, namely:-
(a) the acquisition by purchase, exchange
or otherwise, of any land which in the
opinion of the Board will be necessary
for or affected by the execution of
scheme;
(b) laying or re-laying of all or any land
comprised in the scheme and formation
and alteration of streets;
(c) drainage, water supply and electricity
and carrying out by the Board in the
area included in the scheme, drainage
sewerage and water supply works;
(d) the distribution or redistribution of
sites comprised in the scheme;
(e) raising the level of any land which the
Board may consider expedient to raise
to facilitate better drainage;
(f) forming open space for the better
ventilation of the area comprised in the
scheme or any adjoining area;
(g) sanitary arrangements required;
(h) sites for Parks, Playgrounds, Stadium,
recreation grounds, School buildings,
Markets, Motor Vehicle Stands,
Theaters, Police Stations, Post
Offices, Co-operative Societies, Public
Urinals and Latrines, Petrol Service
Stations, Hospitals, Dispensaries,
Banks, Burial and Cremation Grounds and
Sites for public purposes of other
kinds.
19. Preparation and submission of annual
housing programme and land development
49
programme budget and establishment
schedule .- (1) Before the first day of
December in each year, the Board shall
prepare and forward,-
(i) a programme,
(ii) a budget for the next year,
(iii) a schedule of the staff of Officers
and servants already employed and to be
employed during the next year;
To the State Government in such form as may
be prescribed.
(2) The programme shall contain.-
(a) such particulars of housing schemes,
land development schemes and labour
housing schemes which the Board
proposes to execute whether in part or
whole during the next year as may be
prescribed;
(b) the particulars of any undertaking
which the Board proposes to organize
or execute during the next year for
the purpose of the production of
building materials; and
(c) such other particulars as may be
prescribed.
(3) The budget shall contain a statement
showing the estimated receipts and
expenditure on capital and revenue accounts
for the next year.
20. Sanction to programme, budget and
establishment schedule .- The State
Government may sanction the programme, the
budget and the schedule of the staff of
Officers and servants forwarded to it with
such modifications as it deems fit.
50
21. Publication of sanctioned programme .-
The State Government shall publish the
programme sanctioned by it under Section 20
in the official Gazette.
22. Supplementary programme and budget .-
The Board may, at any time, during the year,
in respect of which a programme has been
sanctioned under Section 20 submit a
supplementary programme and budget and the
additional schedule of the staff, if any,
to the State Government and the provisions
of Sections 20 and 21 shall apply to such
supplementary programme.
23. Variation of programme by Board after
it is sanctioned .- The Board may, at any
time, vary any programme or any part
thereof included in the programme
sanctioned by the State Government;
Provided that no such variation shall be
made if it involves an expenditure in
excess of twenty per cent of the amount as
originally sanctioned for the execution of
any housing scheme or land development
scheme included in such programme or
affects its scope or purpose.
24. Sanctioned housing schemes and land
.—(1)
development schemes to be executed
After the programme has been sanctioned and
published by the State Government under
sections 20 and 21, the Board shall,
subject to the provisions of Section 23,
proceed to execute the housing scheme, land
development scheme or labour housing scheme
included in the programme.
(2) The Board shall not execute any
housing scheme, land development scheme or
labour housing scheme unless the same has
been sanctioned by the State Government.
32. Schemes entrusted to Board by
.—(1) The provisions of
Government, etc
51
sections 18 to 24 (both inclusive) shall
not be applicable to any housing scheme,
land development scheme or labour housing
scheme entrusted to the Board by the State
Government except to such extent and
subject to such modifications as may be
specified in any general or special order
made by the State Government, and every
such order shall be published in the
Official Gazette.
(2) Notwithstanding anything contained in
this Act, the Board shall not be competent
to carry on any trading or financing
activity for profit, whether in the
execution of any scheme undertaken by, or
entrusted to it, or otherwise.”
25. A conjoint reading of the afore-extracted
provisions of KHB Act will unfold the duties of the KHB
as to undertake housing schemes and land development
schemes as it may consider necessary from time to time
or as may be entrusted to it by the State Government.
What are the matters to be provided for by housing
schemes and land development schemes are mentioned
respectively under Sections 18 and 18A. Going by
Section 2(n) ‘programme’ means the annual housing
programme and land development programme prepared by
KHB under Section 19. Section 19 mandates that before
the first day of December in each year, KHB shall
52
prepare and forward a programme, a budget for the next
year and a schedule of the staff of officers and
servants already employed and to be employed during the
next year, to the State Government. As per the said
section, the said programme shall contain such
particulars of the housing schemes, land development
schemes and labour housing schemes which it proposes to
execute whether in part or whole during the next year
as may be prescribed. Under Section 20 the State
Government may sanction the programme, the budget and
the schedule of the staff of officers and servants
forwarded to it with such modifications as it deems
fit. As per Section 21, the State Government shall
publish the programme sanctioned by it under Section 20
in the official Gazette. Section 22 permits submission
of supplementary programme and budget in respect of
which a programme and budget had been sanctioned under
Section 20 and in the eventuality of submission of such
a supplementary programme and budget the provisions of
Sections 20 and 21 would apply.
53
26 . Section 23 confers power on the board to vary any
programme or any part thereof included in the programme
sanctioned by the State Government, at any time. The
bare perusal of the proviso thereunder would reveal
that it is not an unfettered power. Going by the
proviso, no such variation shall be made if it involves
an expenditure in excess of 20 per cent of the amount
as originally sanctioned for the execution of any
housing scheme or land development scheme included in
such programme or affects its scope or purpose. Thus a
bare perusal of the provisions under Sections 17 to 23,
contained in Chapter-III of the KBH Act, would reveal
that they deal with duties of KHB to undertake housing
schemes and land development schemes, matters to be
included in such schemes, preparation and submission of
annual housing programme and land development
programme, budget and establishment schedule and such
other procedures to be followed ultimately unto the
sanctioning of the programme and also the power of KHB
to make variance of sanctioned programme and its limit.
54
27 . Going by the scheme of the KHB Act, it deals with
the subject of execution of housing schemes, land
development schemes and labour housing schemes under
Section 24. Bearing in mind the provisions under
Sections 18-23 we will consider the scope and purport
of Section 24 of the KHB Act. A careful scrutiny of
sub-Sections (1) and (2) of Section 24 would bring forth
their distinct differences. Section 24(1) prescribes
that after the programme has been sanctioned and
published by the State Government the board shall,
subject to the provisions of Section 23, proceed to
execute the housing scheme, land development scheme and
labour housing scheme included in the programme. Thus,
Section 24(1) states in unequivocal terms as to when
the KHB shall proceed to execute the housing schemes,
land development schemes and labour housing schemes
included in the programme. Indisputably, in terms of
the said statutory mandate KHB could proceed to execute
any of the aforesaid schemes included in the programme
only after the sanction and publication of the
programme wherein the scheme concerned is included.
55
28 . Now, we will consider the question of executability
or otherwise of housing schemes, land development
schemes and labour housing schemes other than those
included in a programme, by the KHB. As noticed
earlier, the unambiguous terms in Section 24(1) would
reveal that it speaks only of such schemes included in a
programme and thereby make such ‘housing schemes, land
development schemes and labour housing schemes’ a
definite category. The further question is whether any
other category containing such schemes is contemplated
in the KHB Act and if so, when such scheme(s) would
become executable? The word ‘any’ that qualifies the
words ‘housing scheme, land development scheme and
labour housing scheme’ employed in sub-Section (2)
thereof in contradistinction to the words ‘included in
the programme’ employed under sub-Section, positively
indicates the executability of scheme(s) other than
those included in the sanctioned programme. Indeed it
is couched in a negative form, as can be seen from sub-
Section (2) thereof, extracted hereinbefore. As per the
said provision KHB shall not execute any housing
scheme, land development scheme or labour housing
56
scheme unless the same has been sanctioned by the State
Government.
29 . As noted earlier, what sub-Section (2) proscribes
is execution of such a scheme, be it a housing scheme
or land development scheme or labour housing scheme,
evidently not included in the programme for any
particular year unless the same has been sanctioned by
the State Government. Pithily put, the schemes falling
under sub-Sections (1) and (2) are different. If they
are one and the same in view of the positive mandate
under sub-Section (1) of Section 24 with respect to the
time of executability of such schemes included in the
programme, viz., only after their sanction and
publication by the State Government, there was
absolutely no necessity for incorporating sub-Section
(2) under Section 24 in the negative form. Certainly,
the legislative intention under sub-Section (2) can be
taken only as one to enable KHB to undertake such
schemes which were not included in the programme, as
exception, but subject to the condition of obtainment
of sanction of the State Government before execution.
57
In short, as a whole, the purport of Section 24 is that
no housing scheme or land development scheme or labour
housing scheme, undertaken by the KHB shall be executed
sans sanction from the State Government. Sub-Section
(2) of Section 24 cannot be interpreted as one requiring
obtainment of a second sanction for executing such
schemes included in the programme. On the contrary,
the provision under Section 24(2) has to be interpreted
as one enabling KHB to undertake such schemes which
were not included in the programme, but became
necessary to undertake, subject to sanction from the
Government. According to us, such a construction will
only sub-serve the purpose of constitution of KHB.
30 . There can be no doubt that for executing a housing
scheme, land development scheme and labour housing
scheme, be it included or not included in the programme,
necessary extent of land has to be acquired. For,
without the required extent of land, construction of
houses under housing and labour housing schemes or
development of land under land development schemes
could not be effected. It is a fact that, the expression
58
‘execution’ is not defined in the KHB Act. Therefore,
the question is how the expressions ‘execute/execution’
employed in sub-Sections (1) and (2) of Section 24 and
Section 33(2) are to be understood. In that regard
bearing in mind the object and purpose of Constitution
of KHB and its duties the dictionary meaning of the
said expression has to be looked into. Accordingly,
the following meanings given for the word ‘execution’
in the Black’s Law Dictionary, Tenth Edition, are
ascribable to the expressions ‘execution’ or ‘execute’
employed in Sections 24(2) and 33(2) of the KHB Act:
(1) To perform or complete (a contract or duty);
(2) The performance or completion of a thing;
(3) The final process of an action.
31. Chapter-IV of the KHB Act deals with the
acquisition and disposal of land. Section 33 reads
thus:-
“S.33. Power to purchase or lease by
agreement.- (1) The Board may enter into an
agreement with any person for the
acquisition form him by purchase, lease or
59
exchange, or any land which is needed for
the purposes of a housing scheme or land
development scheme or any interest in such
land or for compensating the owners of any
such right in respect of any deprivation
thereof or interference therewith:
Provided that the previous approval
of the State Government shall be obtained
in case of purchase or exchange involving
land worth more than rupees ten lakhs or
lease for more than five years.
(2) The Board may also take steps for the
compulsory acquisition of any land or any
interest therein required for the execution
of a housing scheme or land development
scheme in the manner provided in the Land
Acquisition Act, 1894, as modified by this
Act and the acquisition of any land or any
interest therein for the purposes of this
Act shall be deemed to be acquisition for
a public purpose within the meaning of the
Land Acquisition Act,1894,"
Section 33 was subsequently substituted in the year
2016 as per Act 24 of 2016. Taking into account the
fact that the substitution took place subsequent to the
notifications impugned in these proceedings it is
unnecessary for us to look into the said substituted
provision. In fact, no serious argument was advanced by
any one with reference to the said provision.
60
32. Section 33 in Chapter-IV actually deals with the
power of KHB to acquire land. Sub-sections (1) and (2)
thereof envisage different modes of acquisition which
are different in nature. To put it succinctly, in the
matter of acquisition under Section 33(1), ‘consent’ is
required and in respect of unwilling owners acquisition
may be effected under sub-Section (2) thereof. What is
relevant to be noted is that Section 33 deals with
acquisition of land or interest thereon and it is not
dealing with sanction of the schemes. Obviously, for
acquiring land or interest thereon, upon entering into
an agreement with any person, by following anyone of
the three modes prescribed under Section 33(1) prior
approval of the State Government is mandatory, subject
to its proviso.
33. Under sub-section (1) of Section 33, the KHB may
enter into agreement with any person for the
acquisition from him by purchase, lease or exchange of
any land which is needed for the purposes of housing
scheme or land development scheme or any interest in
such land or for compensating the owners of any such
right in respect of any deprivation thereof or
61
interference therewith. The proviso to sub-section (1)
makes it mandatory to obtain previous approval of the
State Government in case of purchase or exchange,
involving land worth more than Rs.10 lakhs. For lease
such previous approval is mandatory if it is for more
than 5 years. The necessary corollary is that even in
respect of acquisition of land needed for the purposes
of such schemes either by purchase, lease or exchange
previous approval of the State Government need not be
obtained in case purchase or exchange, involved land
worth Rs.10 lakhs or less and in the case of lease if
it is for 5 years or lesser period.
34 . Sub-section (2) of Section 33 permits KHB to take
steps for compulsory acquisition of any land or any
interest therein required for the execution of a
housing scheme or land development scheme.
35. In the case of compulsory acquisition of land
required for the execution of a housing scheme or land
development scheme obtainment of no such prior approval
is prescribed under sub-Section (2) thereof. The reason
is obvious. A perusal of the sub-Section (2) would
62
reveal that what is permissible thereunder is
compulsory acquisition of any land or interest thereon
in the manner provided in the L.A. Act as modified by
the KHB Act. Section 4(1) of the L.A. Act is worthy for
reference in this context and it reads thus:-
“S.4
Publication of preliminary
notification and power of officers
thereupon.-
(1) Whenever it appears to the
[appropriate Government] the land in
any locality [is needed or] is likely
to be needed for any public purpose [or
for a company], a notification to that
effect shall be published in the
Official Gazette [and in two daily
newspapers circulating in that locality
of which at least one shall be in the
regional language], and the Collector
shall cause public notice of the
substance of such notification to be
given at convenient places in the said
locality [(the last of the dates of such
publication and the giving of such
public notice, being hereinafter
referred to as the date of the
publication of the notification)].”
36. But then, Section 4 (1) in its application to the
State of Karnataka reads as hereunder:-
In Section 4 of the principal Act,-
(1) In sub-section (1),-
63
(a) after the words “the appropriate
Government”, the words “or the Deputy
Commissioner” shall be inserted;
(b) for the words “notification to that
effect”, the words “notification
stating the purpose for which the
land is needed, or likely to be
needed, and describing the land by
its survey number, if any, and also
by its boundaries and its approximate
area” shall be substituted;
(c) after the words “the said locality”,
the following sentence and
explanation shall be added, namely,-
“the Deputy Commissioner may also cause a
copy of such notification to be served on
the owner, or where the owner is not the
occupier, of the land.”
Explanation . - The expression “convenient
places” includes, in the case of land
situated in a village, the office of the
Panchayat within whose jurisdiction the
land lies.
This State amendment was brought vide Land
Acquisition (Mysore Extension and Amendment Act) Act 17
of 1961. We have already noted that the Government of
Karnataka as per Annexure-‘A’ Notification dated
15.12.1998 (marked thus in the appeal arising from SLP
64
(C)No.1361 of 2021), which was issued under Clause
(c)of Section 3 of the L.A. Act, appointed the Housing
Commissioner of KHB to perform the functions of Deputy
Commissioner under Section 4 of the L.A. Act in respect
of lands to be acquired for the purpose of KHB in
Bengaluru and Mysore Revenue Divisions. In such
circumstances, no error or defect can be attributed
against his issuing preliminary notification under
Section 4(1) of the L.A. Act.
37 . A bare perusal of L.A. Act would reveal that the
acquisition proceedings begin with issuance of a
notification under Section 4(1) thereof that land in
any locality is needed or is likely to be needed for
any public purpose. The Notification under Section
4(1) is a formal expression of the decision to start
acquisition proceedings for a public purpose. The said
notification takes the concrete shape and form by
publication in the official Gazette of the appropriate
Government, when that be mandatory procedures and when
they are strictly complied with it would be without
rhyme or reason to prescribe obtainment of a further
approval of the Government for such compulsory
65
acquisition by KHB. It is also to be noted that in the
cases on hand subsequently, Government had issued
declaration and final Notification as prescribed under
Section 6 of the L.A. Act.
38. As noted earlier in L. Krishnan’s case a three-
Judge Bench of this Court clearly found that there is
nothing in Section 4(1) of the L.A. Act which insists
for availability/existence of a sanctioned and
published scheme for initiation of land acquisition
under L.A. Act. In paragraph 9 of L. Krishnan’s
decision this Court held and observed thus:
“Section 4 of the Land Acquisition Act
does not state expressly or by necessary
intendment that before a Notification is
issued/published thereunder proposing to
acquire land for the purposes of a body
like the Tamil Nadu Housing Board, a duly
published final scheme prepared in
accordance with the relevant Act should
be in force. The respondents/writ
petitioners, however, seek to deduce such
a requirement from the provisions of the
TNHB Act.”
In view of the provisions under Section 4 of the
L.A. Act and the decision in L. Krishnan’s case as
66
extracted above, it cannot be said that for initiation
of land acquisition proceedings under Section 4(1) of
the L.A. Act proposing to acquire any particular land
for the purpose of KHB a duly published final scheme
prepared in accordance with the provisions of KHB Act
should be in force. Despite the said position obtained
from Section 4 of the L.A. Act and the decision in L.
Krishnan’s case the attempt herein is to deduce such a
mandate from the provisions under the KHB Act. The
scanning of Section 33(2) of the KHB Act, as above would
clearly show that it contains no condition, either
expressly or by necessary implication, that before a
Notification under Section 4(1) of the L.A. Act is
issued proposing to acquire land or interest therein,
for the purpose of KHB, a sanctioned and published
housing scheme/land development scheme/labour housing
scheme should be in force. In the said circumstances,
the said contention cannot be sustained.
39. Unlike the provisions under TNHB Act, which mandate
for acquisition of land for the purpose of TNHB Act and
Tamil Nadu Housing Board only in accordance with the
provisions of L.A. Act, Section 33(2) of the KHB Act
67
empowers the KHB to take steps for compulsory
acquisition of any land or any interest therein,
required for the execution of a housing scheme in the
manner provided in the L.A. Act, as modified by KHB
Act.
Therefore, the next question is whether L.A.
40.
Act stands modified in any manner by the KHB Act in
respect any particular aspect or procedure. A bare
perusal of sub-Section (2) of Section 33 itself would
answer this question. Its latter limb contains ‘a
deeming provision’. Certainly, that is attracted only
on establishing the foundational fact that the
acquisition of land or interest therein is for the
purposes of KHB Act. The said provision, extracted
hereinbefore, would go to show that upon establishing
the same the acquisition of land concerned or interest
therein, as the case may be, shall have to be deemed as
an acquisition for the purpose within the meaning of
L.A. Act, viz., Section 3(f) of the L.A. Act that
defines “public purpose”. Therefore, in terms of the
same L.A. Act stands modified by KHB Act to the extent
mentioned above. Hence, it would be suffice if the
68
Notification specifies that the acquisition is for the
purpose of KHB. It is a fact that in the TNHB Act no
provision pari materia to Section 33(2) of the KHB Act
enabling the Housing Board to take steps for compulsory
acquisition for the purposes of the Act/the Board as
also a deeming provision relating ‘public purpose’, as
mentioned hereinbefore, is available.
41. Another allied question arises for consideration
is whether non-particularisation with sufficient
specificity of the land to be acquired can be a reason
for annulling acquisition proceedings initiated under
the L.A. Act as modified by KHB Act for the purpose of
KHB Act. The contention raised is to the effect that
owing to such vagueness in the Notification the
holders/land owners would be deprived of the
opportunity to file an effective objection under
Section 5A of the L.A. Act. In that context, it is
worthy to refer to the Constitution Bench decision of
this Court in Aflatoon’s case (supra). That was a case
where the question was whether before publishing the
Notification under Section 4 of the L.A. Act the
Government had not declared any area in Delhi as a
69
development area under Section 12(1) of the Delhi
Development Act nor was there a Master Plan drawn up in
accordance with Section 7 of the Act. On that basis
Notification under Section 4 was attacked. The
contention that no development of land could be
undertaken or carried out in such circumstances in
terms of Section 12(3) of the said Act was negatived by
the Constitution Bench. In the said case, it was held
that the wording of Section 5A of the L.A. Act would
make it clear that all that is necessary to be specified
in a Notification under Section 4 is that the land is
needed for a public purpose. It is true that the
specific purpose is also to be mentioned. In L.
Krishnan’s case the decision in Aflatoon was referred
to. It was held that whether a particular Notification
is vague or not is a question of fact to be decided in
the facts and circumstances of each case. In the cases
falling under the provisions of KHB Act mentioning of
the fact that the acquisition is required for the
purposes of the KHB would make it one for public purpose
within the meaning of L.A. Act and a further mentioning
of the locality in which acquisition would be effected,
70
would save it from the attack based on Section 5A. At
the stage of Section 4 Notification to enable persons
interested to file objection, especially in the light
of the provisions under Section 33(2) carrying the
aforesaid deeming provision, a mention on the aforesaid
lines would be sufficient. As already noted that in
the appeal arising from SLP(C)No.1361/2021, the
deceased mother of Respondent Nos.2 and 3 had filed
objections under Section 5A. It is also relevant to
note that the High Court had also noted the fact that
in some of the cases acquisition based on the selfsame
Notification were effected and awards were also passed.
We have already noted the provisions under Section
42.
24 of the KHB Act and held that Section 24(1) speaks of
the question as to when KHB could proceed to execute
the housing schemes, land development schemes and
labour housing schemes included in the programme. That
apart, we have also held that Section 24(2) pertains to
executability of such a scheme not included in the
programme and in respect of such a scheme falling within
71
the sweep of Section 24(2) the mandate thereunder is
that it shall not be executed unless the same has been
sanctioned by the State Government. In such
circumstances, a conjoint reading of Section 33(2) and
Section 24(2), of the KHB Act would make it clear that
prior approval or sanction of any scheme is not required
for compulsory acquisition invoking the power under
Section 33(2). This is because in terms of the State
amendment of Section 4(1), notification marking
initiation of acquisition proceedings under L.A. Act,
is issued by the appropriate Government or by the Deputy
Commissioner and thereafter, the said formal expression
of the decision to start acquisition proceedings gets
into concrete shape and form by publication in the
Official Gazette of Government of Karnataka. In such
circumstances, if it is for the purposes of KHB, in
other words, for implementation of a scheme of the KHB,
what is statutorily required is to wait for its
execution till the same is sanctioned by the State
Government. In other words, the mere factum of non-
existence of a sanctioned and published scheme prior to
the initiation of acquisition proceedings, by itself,
72
will not make the notifications and the initiated
acquisition proceedings null and void.
43. One another aspect also requires reference in the
context of the rival contentions and situation. The
scheme of the Act reveals that KHB has also a duty to
undertake the schemes entrusted to it by the State
Government. Section 32(1) of the KHB Act exclusively
make it clear that in respect of scheme entrusted to
KHB by Government, provisions under Sections 18-24
(both inclusive) shall not be applicable, except to
such an extent and subject to such modifications as may
be specified in general or special order made by the
State Government. It is also to be noted that in
respect of housing schemes, land development schemes or
labour housing schemes entrusted to the Board by the
Government, sometimes such entrustment takes place only
after acquisition of the necessary extent of land by
the State Government. All the above mentioned
provisions and situations would reveal that the
contention of the appellants other than the appellants
73
in the appeal arising from SLP(C)No.1361/2021 and
Respondent Nos.2 and 3 therein that existence of a
finally sanctioned scheme is a pre-condition for
initiation of acquisition of any land or any interest
therein is a pre-condition and its non-existence must
invariably make the acquisition proceedings null and
void, are unsustainable and liable to be rejected.
Hence, on a careful perusal of Sections 18 to 24 (both
inclusive) and Section 33(2) we have no hesitation to
hold that KHB Act carry no statutory insistence that
for initiation of acquisition invoking the power under
Section 33(2), for the purposes of the KHB Act/KHB,
framing, finalization and publication of a housing
scheme or land development scheme or labour housing
scheme, is a pre-condition.
44 . For all the above reasons we answer the mooted
question in the negative and to the effect that
initiation of proceedings for acquisition invoking the
power under Section 33(2) of the KHB Act without the
housing scheme being in existence or the housing scheme
not having been sanctioned under Section 24(2) thereof,
74
would not render such proceedings null and void. We
also hold that unless sanction is obtained from the
State Government for execution of any scheme therein,
in terms of Section 24(2) of KHB Act, the actual act to
complete the process, viz., execution shall not be
effected thereon.
45 . In view of the answers to the moot question and the
other allied issues we pass the following orders:
(i) In the appeal arising from SLP(C) No.1361/2021
no question other than the moot question (decided as
per this judgment) was considered. In view of our clear
conclusions and findings the judgment and order dated
01.12.2020 in Writ Appeal No.5712/2012, where the law
on the question was exposited to the contrary, is liable
to be set aside. Accordingly, it is set aside. Nothing
further survives for consideration in this appeal.
Consequently, Writ Petition No.25184/2011 from which
Writ Appeal No.5712/2012 arose, stands dismissed.
(ii) In Civil Appeal Nos.7011-13/2013, 9002-
9003/2013 and 7017-19/2013 the position is that as per
75
the common judgment and orders respectively in Writ
Petition Nos.4625/2004, 18596/2006, 11568/2008 and
47616/2004 dated 26.4.2013 and also the judgment in
Writ Appeal Nos.1244-45/2009, the Division Bench
virtually decided that for initiation of acquisition
proceedings for the purposes of KHB, existence of a
sanctioned and published scheme is not a pre-condition.
Consequently, the Division Bench confirmed the decision
of the leaned Single Judge on that question and
thereupon, the Writ Petitions concerned/Writ Appeals
were disposed of with request to the learned Single
Judge to decide whether Sections 18-23 of the KHB Act
were complied with or not. Obviously, those Writ
Petitions are now pending. The issue is whether in view
of the facts involved in those cases, the question of
scrupulous adherence of Sections 18-23 of the KHB Act
survives or needs to be followed, requires
consideration depending upon the nature of acquisition
and other relevant facts. Hence, Civil Appeals shall
be listed before appropriate Bench for consideration on
their own merits, subject to this judgment.
76
....................,J.
(A.M. KHANWILKAR)
....................,J.
(DINESH MAHESHWARI)
....................,J.
(C.T. RAVIKUMAR)
NEW DELHI;
28 July, 2022