Full Judgment Text
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PETITIONER:
BAGH AMBERPET WELFARE SOCIETY
Vs.
RESPONDENT:
TULSI COOPERATIVE HOUSING SOCIETY AND ORS.
DATE OF JUDGMENT17/08/1990
BENCH:
MISRA RANGNATH
BENCH:
MISRA RANGNATH
KANIA, M.H.
VENKATACHALLIAH, M.N. (J)
CITATION:
1990 SCR (3) 782 1990 SCC (4) 468
JT 1990 (3) 497 1990 SCALE (2)253
ACT:
Land Acquisition Act, 1894: Sections 4, 5 and 6--Acqui-
sition of land in which two Societies claiming
interest--Settlement of disputes-Not forthcoming----Matter
remitted to High Court.
HEADNOTE:
For the purposes of a housing project, some land was
acquired by way of a notification under the Land Acquisition
Act. The Respondent Society claiming that it had entered
into a contract with the owners for purchasing the very
property, applied for exemption under the Urban Ceiling Act.
The exemption prayed for was refused initially, but was
granted later.
Both the Respondent Society and the owners of the said
land filed Writ Petitions before the High Court for quashing
of the acquisition proceedings. The acquisition was upheld
by Single Judge, but on appeal by Respondent Society, the
Full Bench held the acquisition proceedings to be inopera-
tive. Against these orders, the appellant Society which had
entered into an agreement with the Municipal Corporation,
and as such interested in the acquisition, has preferred the
appeals.
Meanwhile, the State Government withdrew the exemption
granted under the Urban Ceiling Act. One of the owners filed
a Writ Petition before the High Court challenging the with-
drawal. The High Court took note of the fact that the mat-
ters were pending in this Court and dismissed the petition.
Aggrieved against the order of dismissal, a petition for
special leave has been filed.
The Respondent Society also moved the High Court by way
of a Writ Petition challenging the withdrawal of exemption,
which was pending and this Court transferred the same to
itself, to be heard with the pending cases.
On 7.8.1985, this Court gave time to Counsel to consider
various compromise proposals. However, the desired compro-
mise did not come through. On 23.8.1988 this Court passed an
order holding that the
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acquisition proceedings have to be revived. However, no
formal disposal was recorded since a settlement was being
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negotiated. Even after about 2 yrs. the settlement did not
fructify.
Remitting the matters to the High Court,
HELD: 1. If the settlement does not fructify, the effect
of the decision that the acquisition proceedings are to
revive, would be that the claim to the land by Respondent
Society would come to an end. In that event, at the most
that Society would only be entitled to such compensation as
may be awardable in law. If the acquisition proceeds the
appellant Society and the Municipal Corporation would have
to workout their mutual rights. Apart from these, the two
writ petitions challenging the withdrawal of the exemption
by order dated 23.6.1983 would also have to be disposed of
on merits. In view of the fact that the owner’s writ peti-
tion was dismissed not on merits but on other considera-
tions, the said dismissal should be vacated and that writ
petition should be heard along with Writ Petition No.
6500/83 as a common question arises for determination. The
order of the High Court dated 13th of June, 1988, is set
aside and the High Court is directed to dispose of the Writ
Petition afresh on merits. [787B-D]
2. If the High Court is of the opinion that the matter
should be settled and the entire land of the owners amount-
ing to 18 acres and 3 gunthas should be divided between the
two Societies, it will be free to do so if Government also
agrees thereto. Since that arrangement would be with the
consent of the State Government it would in such an event be
open to the High Court to nullify the acquisition. The
observations made at different stages during the pendency of
the proceedings in this Court may not be taken to be expres-
sion of opinion on merits and the High Court would be free
to deal with the matter on its own discretion and in accord-
ance with law. [787F-G]
3. In the event of the settlement not coming through,
the acquisition proceedings would continue under the law and
be concluded by the Land Acquisition Officer in accordance
with law. In the event of the acquisition working out, the
two writ petitions against the withdrawal of exemption would
not be sustainable as the land would vest in Government as a
result of acquisition. It would be open to the Government or
the acquiring authority to take into account the effect of
the laws of urban ceiling. [787H; 788A]
4. The civil appeals are also remitted to the High Court
limited to
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the consideration of the proposals’ for settlement in the
light of the observations made in this Judgment. Otherwise,
they must be taken to have been concluded in this Court on
the finding that acquisition proceedings are valid and shall
be entitled to continue. The special leave petition is
disposed of with a direction that the writ petition in the
High Court shall be re-heard. The transferred writ petition
remitted to the High Court for disposal, [788B-C]
5. Money, if any, in deposit in the Registry of this
Court to the credit of the parties shall be transferred to
the High Court and shall be subject to such directions as
the High Court may issue upon a final decision of the rele-
vant issues arising in the proceedings. [788D]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 578485
of 1983.
From the Judgment and Order dated 2.3.1983 of the Andhra
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Pradesh High Court in W.A. Nos. 170 and 171 of 1982.
WITH
Special Leave Petition (Civil) No. 1679 of 1989 and
Transfer case No. 29 of 1989.
From the Judgment and Order dated 13.6.1988 of the
Andhra Pradesh High Court in Writ Petition No. 5498 of 1983.
T.S. Krishnamurthy lyer, Dr. V. Gouri Shankar, Meeraj
Khayyam, R.N. Keshwani. M. Qamaruddin, P.N. Mishra and Mrs
M. Qamaruddin for the Appellant.
Dr. L.M. Singhvi, S.K. Shashtri, D.N. Mishra and T.V.S.N
Chart for the Respondents.
C. Sitaramaiah and G. Prabhakar for the State of Andhra
Pradesh.
The Judgment of the Court was delivered by
RANGANATH MISRA, J. The appeals are by special leave 1he
transferred writ petition by respondent No. 1 in the Civil
Appeals is writ petition before the Andhra Pradesh High
Court being 6500 of 1983 in a connected proceedings. The
special leave petition is by the
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owner of some lands which form the subject-matter of acqui-
sition.
On 5.6.1975 21.10 acres of land located at Bagh Amberpet
in Hyderabad said to be belong to Syed Azam and members of
his family were notified to be acquired under S. 4(1) of the
Land Acquisition Act for a housing project undertaken by the
Hyderabad Municipal Corporation in collaboration with HUDCO.
Enquiry under s. 5A of the Act was dispensed with by a
separate notification issued along with the preliminary
notification. On 25.4.1978, notification under S. 6 of the
Land Acquisition Act was made. Tulsi Cooperative Housing
Society on the plea that it had entered into a contract of
purchasing the very property from the owners had applied for
exemption under the Urban Land Ceiling Act. On 17.10.1978,
prayer for exemption was refused. On 11.9.1980 exemption
was, however, granted. Thereupon two writ petitions were
filed before the High Court--one by Tulsi Cooperative Hous-
ing Society and the other by the owners of the property for
quashing of the acquisition proceedings. The learned Single
Judge upheld the acquisition but the writ appeal of Tulsi
Cooperative Housing Society were allowed by a Full Bench of
the High Court as a result of which the acquisition proceed-
ings were held to be inoperative.
Bagh Amberpet Welfare Society had entered into arrange-
ment with the Hyderabad Municipal Corporation for being
assigned land for construction and was, therefore, interest-
ed in the acquisition. The civil appeals are by that Society
challenging the decision of the Full Bench of the High Court
in the two writ appeals filed by Tulsi Cooperative Housing
Society.
On 23.6.1983, the exemption which had been granted on 11.9.
1980 was withdrawn by the State Government. Syed Azam, one
of the owners, challenged the withdrawal of the exemption by
filing a writ petition before the High Court. The High Court
took note of the position that the dispute was already
pending in this Court and, therefore, by its order dated
13.6.1988, dismissed the petition without entering into the
merits. That has led the owner to move this Court by special
leave.
Tulsi Cooperative Housing Society also moved the High
Court by filing Writ Petition No. 6500/83 against the with-
drawal or’ the exemption. That petition was pending adjudi-
cation before the High Court and at the instance of the
parties this Court directed transfer of that case to this
Court to be heard along with the pending matters. This is
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how Transferred Writ Petition No. 29/89 forms part of this
group of litigation.
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On 7.8.1985, this Court desired that the dispute should
be settled amicably and accordingly certain proposals were
examined. As already noticed, the acquisition was of 20.10
acres of land. 18 acres and 3 gunthas belonged to the Azam
family and at one stage each of the two Cooperative Socie-
ties had agreed to take 9 acres and 1-1/2 gunthas thereof.
The Secretary to Andhra Pradesh Government in the Urban
Development Department responded to the settlement by say-
ing:
"Since the compromise is arrived at between both the ag-
grieved parties before the Requisitioning Officer based upon
the opportunity given by the Supreme Court, the State Gov-
ernment need not intervene in regard to land acquisition.
Necessary and just orders under the circumstances of the
case may be passed on the basis of the compromise deed filed
by both the Societies at the earliest possible to enable
them to build houses."
This Court, however, gave time to the counsel for the State
of Andhra Pradesh to take instructions as to the application
of the Urban Land Ceiling Act as exemption granted under s.
20 had been withdrawn in June, 1983. The State of Andhra
Pradesh thereafter did not accept the compromise by taking
the stand that proceedings under the Urban Land Ceiling Act
were pending and in view of the fact that there was no
exemption, the property was liable to vest in Government
under the Act as surplus land.
This Court on August 23, 1988, made an order, the rele-
vant part of which is extracted:
"We are not impressed by the stand taken by the writ peti-
tioners that there was justification for their not approach-
ing the court for six years after the s. 4(1) notification,
when they wanted to challenge the denial of the hearing
under S. 5A of the Act and the proceedings itself otherwise.
We agree with the learned Single Judge that the explanation
not being acceptable, the writ petition has been rightly
dismissed. On this analysis the appellate judgment of the
High Court cannot be sustained and the acquisition proceed-
ings have to be revived."
This order virtually disposed of the appeals but as the
parties were negotiating a settlement the Court did not
record a formal disposal of the dispute.
787
If the settlement does not fructify, the effect of our
decision that the acquisition proceedings are to revive,
would be that the claim to the land by Tulsi Cooperative
Housing Society would come to an end. In that event, at the
most that Society would only be entitled to such compensa-
tion as may be awardable in law. If the acquisition proceeds
the Bagh Amberpet Welfare Society and the Municipal Corpora-
tion would have to work out their mutual rights. Apart from
these, the two writ petitions challenging the withdrawal of
the exemption by order dated 23.6.1983 would also have to be
disposed of on the merits. The owner’s application has been
dismissed upon the High Court taking the view that the
matter was before this Court and, therefore, the High Court
would not entertain the dispute. The challenge by Tulsi
Cooperative Housing Society against the said withdrawal was
before the High Court for adjudication. In view of the fact
that the owner’s writ petition was dismissed not on merits
but on other considerations, we are of the view that the
said dismissal should be vacated and that writ petition
should be heard along with Writ Petition No. 6500/83 as a
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common question arises for determination. We, therefore, set
aside the order of the High Court dated 13th of June, 1986,
and direct that the said writ petition shall be disposed of
afresh on merits.
We are of the view that the entire litigation should go
back to the High Court for appropriate disposal. The trans-
ferred writ petition, therefore, shall also go back to the
High Court and shall be dealt with as Writ Petition No. 6500
of 1983. The two petitions challenging the withdrawal of
exemption shall be clubbed together and be heard. The pro-
posals undertaken relating to a settlement in regard to the
18 acres and 3 gunthas of land may be considered by the High
Court in the light of all relevant material and circum-
stances. If the High Court is of the opinion that the matter
should be settled and the entire land of the owners amount-
ing to 18 acres and 3 gunthas should be divided between the
two Societies, it will be free to do so if Government also
agrees thereto. Since that arrangement would be with the
consent of the State Government it would in such an event be
open to the High Court to nullify the acquisition. The
observations which we have made at different stages during
the pendency of the proceedings in this Court may not be
taken to be expression of opinion on the merits and the High
Court would be free to deal with the matter in its own
discretion and in accordance with law.
In the event of the settlement not coming through the
acquisition proceedings would continue under the law and be
concluded by the Land Acquisition Officer in accordance with
law. In the event of the
788
acquisition working out, the two write petitions against the
withdrawal of exemption would not be sustainable as the land
would vest in Government as a result of acquisition. It
would be open to the Government or the acquiring authority
to take into account the effect of the laws of urban ceil-
ing.
The civil appeals are remitted to the High Court limited
to the consideration of the proposals for settlement in the
light of the observations hereinabove. Otherwise, they must
be taken to have been concluded in this Court on our finding
that acquisition proceedings are valid and shall be entitled
to continue. The special leave petition of Azam is disposed
of with a direction that the writ petition in the High Court
shall be re-heard. The transferred writ petition is remitted
to the High Court to be disposed of as Writ Petition No.
6500 of 1983. The hearing of the writ petitions would depend
upon the fate of the settlement as indicated above.
There would be no order for costs in this Court.
Money, if any, in deposit in the Registry of this Court
to the credit of the parties shall be transferred to the
High Court and shall be subject to such directions as the
High Court may issue upon a final decision of the relevant
issues arising in the proceedings.
G.N. Appeals and Petitions
disposed of.
789