Full Judgment Text
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PETITIONER:
R. L. ARORA
Vs.
RESPONDENT:
STATE OF UTTAR PRADESH AND OTHERS
DATE OF JUDGMENT:
14/02/1964
BENCH:
WANCHOO, K.N.
BENCH:
WANCHOO, K.N.
SINHA, BHUVNESHWAR P.(CJ)
GUPTA, K.C. DAS
SHAH, J.C.
AYYANGAR, N. RAJAGOPALA
CITATION:
1964 AIR 1230 1964 SCR (6) 784
CITATOR INFO :
RF 1965 SC 646 (10)
R 1965 SC 995 (11,12)
RF 1978 SC1675 (40)
F 1980 SC1118 (5,14)
F 1980 SC1316 (8,11,15)
RF 1988 SC 151 (10)
R 1989 SC 501 (15)
E 1991 SC 100 (29,70,210,227,278)
ACT:
Land Acquisition Act-Acquisition for company engaged in
industry for public purpose-Provision it hit by Art. 31(2)
and Art. 19(1) of the Constitution-interpretation-
Distinction made between Government companies, Public
companies and Private companies
785
if hit by Art. 14-Constitution of India, Arts. 14, 19(1),
31(2)Land Acquisition (Amendment) Act, 1962 (Act 31 of
1962). ss. 7, 40 and 41.
HEADNOTE:
The petitioner is the owner of certain land in Kanpur, U.P.
On a previous occasion land acquisition proceedings were
taken regarding this land for acquiring it for an
industrialist. The petitioner questioned’ the validity of
these proceedings and this Court by its judgment reported as
R. L. Arora v. State of U.P; [1962] Supp. 2 S.C.R. 149,
quashed the notification made under s. 6 of Land Acquisition
Act, 1894. Thereafter certain amendments were made to ss.
40 and 41 of that Act by the Land Acquisition (Amendment)
Act, 1961. The petitioner thereupon filed before this Court
a petition under Art. 32 of the Constitution challenging the
validity of the amended ss. 40, 41 and s. 7 of the amending
Act. The petitioner contended that the said sections
violated Art. 31(2) and Art. 19(1)(f) of the Constitution
inasmuch as cl. (aa) of the amended s. 40 provided that all
acquisitions made for a company for construction of some
building are permissible even though the building may not be
for a public purpose. The validity of s. 7 of the amending
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Act was challenged on the ground’ that it contravened Art.
31(2) inasmuch as it makes acquisition for a company before
July 20, 1962 as being for a public purpose even though it
may not be so in fact. Section 7 was also challenged on the
ground that it contravenes Art. 14 inasmuch as it makes an
unreasonable discrimination in the matter of acquisition for
a company before July 20, 1962 and after that date insofar
as the former acquisitions are validated on the basis of
their being deemed to be for a public purpose while the
latter acquisitions are not so deemed and have to satisfy
the test of public purpose.
Held (per P. B. GAJENDRAGADKAR, C.J., K. N. WANCHOO, K. C.
DAS GUPTA and J. C. SHAH JJ.): (i) If the language of a
provision of law is capable of only one construction and if
according to that construction the provision contravenes a
constitutional provision it must be struck down. A literal
interpretation is not always the only interpretation of a
provision in a statute and the court has to look at the
setting in which the words are used and the circumstances in
which the law came to be passed to decide whether there is
something implicit behind the words actually used which
would control the literal meaning of the words used.
The Mysore State Electricity Board v. Bangalore Woollen,
Cotton ,and Silk Mills, [1963] Supp. 2 S.C.R. 127; followed.
(ii) It is well settled that if certain provisions of law
construed in one way will be consistent with the
Constitution and if another interpretation would render them
unconstitutional the court would bear in favour of the
former construction.
Kedar Nath Singh v. State of Bihar, [1962] Supp. 2 S.C.R.
769, followed.
134-159 S.C.-50
786
(iii) Applying the above principles of construction it
cannot be paid that s. 40(aa) contravenes Art. 31(2) for
the public purpose required therein is present where land is
acquired for the construction of a building or work which
must subserve the public purpose of the industry or work in
which a company is engaged or is about to be engaged. Nor
can it be said that the provision is hit by Art. 19(1)(f) or
it would be a reasonable restriction on the right to hold
property. The amendments to s. 41 are only consequential to
the insertion of c.l (aa) in s. 40(1) and would therefore be
equally valid.
(IV) The first of the two fictions introduced by s. 7 of the
Amendment Act merely lays down that where a notification
under s. 6 of the Act cannot be justified under cl. (a)1
and cl. (b) of s. 40(1) it will be juded in accordance
with the provisions contained in cl. (aa) and it
satisfies those provisions the acquisition will be deemed
for the purpose of that clause as if that clause existed
at the relevant time,though in actual fact it did not. The
first fiction does not provide that even though the purpose
of the acquisition does not fall within cl. (aa) it will
still be deemed to be a public purpose. Therefore a. 7 does
not violate Art. 31(2).
(v) The acquisition made before July 20, 1962 as well as
the acquisitions made thereafter have to satisfy the
conditions of cl. (aa) of s. 40 and s. 7 of the Amendment
Act validates only acquisitions before July 20, 1962 which
actually satisfy the provisions in cl. (aa). Therefore it
cannot be said that s. 7 violates Art. 14.
(vi) Section 7 specifically validates acquisition made
before July 20. 1962 "notwithstanding any judgment, decree
or orders of any court’ and therefore the petitioner’s
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contention that the acquisition of the petitioners land
declared to be invalid by reason of the judgment of this
Court reported as R. L. Arora v. State of U.P., [1962] Supp.
2 S.C.R. 149 is bad is rejected.
(vii) The various provisions in the agreement between
the Government and the industrialist for whom the land in
question has been acquired conclusively establish that the
acquisition is for a public purpose within the meaning of
cl. (aa) of s. 40.
Province of Bombay v. Kusaldas s. Advant, [1950] S.C.R. 621,
distinguished.
(viii) A distinction in the matter of acquisition of land
between public companies and Government companies on the one
hand and private individuals and private companies on the
other is justified considering the object behind cl. (aa) of
s. 40 of the Act and therefore It does not violate Art. 14.
Per Ayyangar J. (dissenting) (i) The wording of cl. (aa) of
s. 40 is not capable of two interpretations and there is
no ambiguity in the wording- It is a well established
principle of construction that it is only when there is an
ambiguity and the words are capable of
787
more than one construction that any extrinsic aid in the
shape of the purpose of the legislature or the object of the
legislation come in for consideration Where the language of
an Act is clear and explicit the court must give effect to
it whatever may be the consequence for in that case the
words of the statute speak the intention of the legislature. The
intention of the legislature is not a matter to be
speculated upon. Interpretation or construction cannot
mean that a court first reaches a conclusion as to what in
its opinion the legislature intended, even though this
involves attributing a meaning divorced from the words used
and then adjust the meaning to the conclusion it has
reached.
Warburton v. Loveland, 2 D. & Cl. (H.L.) 480. Salomon v. A.
Salomon & Co., [1897] A.C. 22 and Cox v. Hakes, 15 App. cas.
506,followed.
(iv) The only way cl. (aa) could be read is to relate the
words "public purpose" to the nature of the industry carried
on by the company and by no rule of construction with or
without extrinsic aide or with reference to the context, not
to speak of rules of grammer, can the reference to public
purpose be related to the building or work for which the
acquisition is permitted to be made-
(v) Where the provisions, as in the present case, gives a
case blanche to Government to acquire land for any purpose
it Is not possible to sustain the validity of such law and
strike down merely the particular acquisition where land is
acquired for a purpose which is not a public purpose, for
here the vice is in the law itself and not merely in its
application.
Clause (aa) of s. 40 is violative of Art. 21(2) of the
Constitution.
JUDGMENT:
ORIGINAL JURISDICTION: Writ Petition No. 137 of 1962.
Petition under Art. 32 of the Constitution of India for the
enforcement of Fundamental Rights.
C. B. Agarwala and Naunit Lal, for the petitioner.
M. C. Setalvad and C. P. Lal, for respondent No. 1.
C. K. Daphtary, Attorney-General, N. S. Bindra and R. H.
Dhebar, for respondent No. 2.
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M. C. Setalvad, M. S. Devendra Swarup and J. P. Goyal, for
respondent No. 3.
I. M. Nanavati, O. C. Mathur, J. B. Dadachanji and
Ravinder Narain. for Intervener No. 1.
788
Rajani Patel and 1. N. Shroff, for Intervener No. 2.
February 14, 1964. The Judgment of P. B. Gajendragadkar,
C.J., K. N. Wanchoo, Das Gupta and Shah JJ. was delivered by
Wanchoo J. Rajagopala Ayyangar J. delivered a dissenting
Opinion.
WANCHOO J.-This petition under Art. 32 of the Constitution
is a sequel to the judgment of this Court in R. L. Arora v.
State of U.P. (1). The petitioner is the owner of certain
lands in village Nauraiya Khera, in the district of Kanpur.
He got information in May 1956 that steps were being taken
to acquire nine acres of his land for an industrialist in
Kanpur. He therefore wrote to the Collector of Kanpur,in
that connection. On June 25, 1956, however, a notification
was issued under s. 4 of the Land Acquisition Act, No. 1 of
1894 (hereinafter called the Act), stating that the land in
dispute was required for a company for the construction of
textile machinery parts factory by Lakshmi Ratan Engineering
Works Limited, Kanpur. This order was followed on July 5,
1956, by a notification under s. 6 of the Act, which was in
similar terms. This notification also provided for the
Collector to take possession of any waste or parade land
forming part of the land in the Schedule to the notification
immediately under the powers conferred by s. 17(1) of the
Act. On July 31, 1956, the Collector took possession of the
land and handed it over to the company along with some
constructions standing on it. In the meantime, the
petitioner filed a writ petition in the High Court on July
31, 1956, praying that the notification under s. 6 of July
1956 be quashed and also applied for interim stay. As
however possession had already been taken on July 31. 1956,
the application for interim stay became in fructuous. One
of the main grounds in support of the writ petition of July
31, 1956 was that ss. 38 to 42 of the Act had not been
complied with. Thereafter steps were taken by the State
Government to comply with the provisions of ss. 38 to 42 of
the Act and an agreement was entered into between the
Government and the company in August 1956 and was
(1) [1962] Supp. 2 S.C.R. 149.
789
published in the Government gazette on August 11, 1956.
This was done without making any enquiry either under s. 5-A
or s. 40 of the Act. Therefore on September 14, 1956 an
inquiry was ordered by the Government under s. 40. The
inquiry was accordingly made and the inquiry officer
submitted a report on October 3, 1956. This was followed by
a fresh agreement between the Government and the company on
December 6, 1956. On December 7, 1956, a fresh notification
was issued under s. 6 of the Act after the formalities
provided under ss. 38 to 42 had been complied with.
Thereafter a fresh notice was issued under s. 9 of the Act
and it appears that possession was formally taken again
after January 2, 1957.
A fresh writ petition was filed by the petitioner before the
High Court on January 29, 1957 in view of the fresh action
taken by the State Government and the main ground taken in
this petition was that the notification was invalid as it
was not in compliance with s. 40 (1) (b) of the Act read
with the fifth clause of the matters to be provided in the
agreement under s. 41. The petitioner failed in the High
Court. Thereafter he came by special leave to this Court.
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This Court decided on a construction of s. 40 (1 ) (b) read
with the fifth clause of the matters to be provided in the
agreement under s. 41 that these provisions had to be read
together and required that the work should be directly
useful to the public and that the agreement should contain a
term as to how the public will have the right to use the
work directly. The provision as to access to land or works
for those having business with the company or the fact that
the product would be useful to public was not considered
sufficient to bring the acquisition for a company within the
meaning of the relevant words in ss. 40 and 41. The appeal
therefore was allowed on December 1, 1961 and the last
notification under s. 6 was quashed: see R. L. Arora’s
case(1).
On July 20, 1962, the Land Acquisition (Amendment)
Ordinance, 1962 (No. 3 of 1962) was promulgated by the
President of India. By that Ordinance, ss. 40 and 41 of the
Act were amended and certain acquisitions of land
(1) [1962] Supp. S.C.R. 149.
790
made before the date of the Ordinance were validated
notwithstanding any judgment, decree or order of any court.
The Ordinance was replaced by the Land Acquisition
(Amendment) Act, No. 31 of 1962, (hereinafter referred to as
the Amendment Act), which was made retrospective from July
20, 1962, the date on which the Ordinance was promulgated.
This Act made certain amendments in ss. 40 and 41 of the Act
and validated certain acquisitions. The present petition
challenges the validity of the amendments to ss. 40 and 41
and also the validity of s. 7 of the Amendment Act by which
certain acquisitions made before July 20, 1962 were
validated. It is therefore necessary to read the amendments
made in ss. 40 and 41 of the Act as well as s. 7 of the
Amendment Act. In s. 40(1) of the Act a new clause was
inserted in these terms:-
"(aa) that such acquisition is needed for the
construction of some building or work for a
company which is engaged or is taking steps
for engaging itself in any industry or work
which is for a public purpose;"
Section 41 was amended to read as below:-
"41. If the appropriate Government is
satisfied after considering the report, if
any, of the Collector, under section 5A, sub-
section (2), or on the report of the officer
making an inquiry under section 40 that the
proposed acquisition is for any of the
purposes referred to in clause (a) or clause
(aa) or clause (b) of sub-section (1) of
section 40, it shall require the company to
enter into an agreement with the appropriate
Government providing to the satisfaction of
the appropriate Government for the following
matters, namely:
(1)
(2)
(3)
(4)
(4A) Where the acquisition is for the
construction of any building or work for a
corn.
791
pany which is engaged or is taking steps for
engaging itself ’in any industry or work which
is for a public purpose, the time within
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which, and the conditions on which, the
building or work shall be constructed or
executed; and
(5)
section 7 of the Amendment Act, which
validated certain acquisitions reads as
follows:-
"Notwithstanding any judgment, decree or order
of any court, every acquisition of land for a
company made or purporting to have been made
under Part VII of the principal Act before
20th day of July 1962, shall, insofar as such
acquisition is not for any of the purposes
mentioned in clause (a) or clause (b) of sub-
section (1) of section 40 of the principal
Act, be deemed to have been made for the
purpose mentioned in clause (aa) of the said
sub-section. and accordingly every such
acquisition and any proceeding, order,
agreement or action in connection with such
acquisition shall be, and shall be deemed
always to have been, as valid as if the
provisions of sections 40 and 41 of the
principal Act, as amended by this Act, were in
force at all material times when such
acquisition was made or proceeding was held or
order was made or agreement was entered into
or action was taken.
Explanation
Besides these amendments which require consideration in the prese
nt
petition, ss. 44A and 44B were also inserted in
the Act providing for restriction on transfer, etc. (s.
44A) and making certain provisions forbidding acquisition
of land
for a private company other than a government company (s. 44B).
It is however not necessary to set out the terms
of these new sections.
792
The present petition challenges the validity of the
amendments to ss. 40 and 41 of the Act and also of s. 7 of
the Amendment Act, and the challenge is made in this way.
It is submitted that the amendments made to ss. 40 and 41 of
the Act are ultra vires, as they contravene Art. 31(2) and
Art. 19(1)(f) of the Constitution. The argu ment is that on
a construction of the amendment to s. 40 by which cl. (aa)
has been introduced therein, it is provided that all
acquisitions made for a company for construction of some
building or work are permissible even though the building or
work for the construction of which the acquisition is made
may not be for a public purpose, as the new cl. (aa) merely
requires that the company which is applying for acquisition
is engaged or is taking steps for engaging itself in any
industry or work, which is for a public purpose. It is
urged that all that this clause requires is that the company
for which the acquisition is being, made should be engaged
in any industry or work which is for a public purpose and in
that case it can acquire land under this clause even though
the particular building or work for the construction of
which land is acquired may not be for a public purpose.
Therefore the new clause (ad) which permits such acquisition
contravenes Art. 31(2) which lays down that no property
shall be compulsorily acquired save for a public purpose,
and also Art. 19(1)(f), as such acquisition would amount ;to
an unreasonable restriction on the fundamental right to hold
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property.
The validity of s. 7 of the Amendment Act is attacked on the
ground that it contravenes Art. 31(2) and Art. 14 of the
Constitution inasmuch as it makes, acquisition for a company
before July 20, 1962 as being for a public purpose even
though it may not be so in fact and thus raises an
irrebuttable presumption of public purpose by fiction of law
and so contravenes Art. 31(2) which requires that there must
be an actual public purpose before land can be compulsorily
acquired. And it also contravenes Art. 14 inasmuch as it
makes a discrimination in the matter of acquisitions for a
company before July 20, 1962 and after July 20, 1962 insofar
as the former acquisitions are validated on the basis of
their being deemed to be for a public
793
purpose while the latter acquisitions are not so deemed and
have to satisfy the test of public purpose.
Besides the attack as to the vires of these provisions in
the Amendment Act, it is urged that the rights of the
petitioner cannot be affected by the validating provision in
the Amendment Act as s. 7 of the Amendment Act does not re-
open decided cases and does not revive notifications or
acquisitions struck down by courts. Lastly, it is urged
that the, acquisition in the present case cannot be said to
be for a public purpose inasmuch as (firstly) the agreement
between the company and the Government does not regulate or
control the products of the company in the interest of the
public, and (secondly) the petitioner’s land which was
intended to be used for one public purpose is being taken
away for another such purpose. We shall deal with these
contentions seriatim.
The first question that falls for consideration is the
construction of cl. (aa) of sub-s. (1) of s. 40 of the Act.
The amendments to s. 41 are consequential and will stand or
fall with cl. (aa) inserted in s. 40(1). It is contended on
behalf of the petitioner that on a literal construction of
this clause (which, it is urged, is the only possible
construction) it requires that the company which is acquir-
ing :the land should be engaged or should be takincg steps
for engaging itself in any industry or work, which is for a
public purpose. If a company satisfies that requirement it
can acquire land for the construction of some building or
work, even though that building or work may not itself
subserve such public purpose. Therefore, the argument runs
that cl. (aa) permits compulsory acquisition of land for a
purpose other than a public purpose and is hit by Art. 31(2)
of the Constitution, whereunder land can be compulsorily
acquired only for a public purpose. It may be conceded that
on a literal construction the adjectival clause, namely,
"which is engaged or is taking steps for engaging itself in
any industry or work which is for a public purpose",
qualifies the word "company" and not the words "building or
work" for the construction of which the land is needed, So
prima facie it can be argued with some force that all that
cl. (aa) requires is that the company for which land,
794
is being acquired should be engaged or about to be engaged
in any industry or work which is for a public purpose and it
is not required that the building or work, for the construc-
tion of which land is acquired should be for such public
purpose.
In approaching the question of construction of this clause,
it cannot be forgotten that the amendment was made in
consequence of the decision of this Court in R. L. Arora’s
case(1) and the intention of Parliament was to fill the
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lacuna, which, according to that decision, existed in the
Act in the matter of acquisitions for a company; nor can it
be forgotten that Parliament when it enacted the Amendment
Act was aware of Art. 31(2) of the Constitution which
provides that land can only be acquired compulsorily for a
public purpose and not otherwise. It could not therefore be
the intention of Parliament to make a provision which would
be in contravention of Art. 31(2), though it may be admitted
that if the language used is capable of only one
construction and fails to carry out the intention of
Parliament when making the amendment, the amendment may have
to be struck down if it contravenes a constitutional
provision. Further, a literal interpretation is not always
the only interpretation of a provision in a statute and the
court has to look at the setting in which the words are used
and the circumstances in which the law came to be passed to
decide whether there is something implicit behind the words
actually used which would control the literal meaning ,of
the words used in a provision of the statute. It is per-
missible to control the wide language used in a statute if
that is possible by the setting in which the words are used
and the intention of the law-making body which may be
apparent from the circumstances in which the particular
provision came to be made. Therefore, a literal and
mechanical interpretation is not the only interpretation
which courts are bound to give to the words of a statute;
and it may be possible to control the wide ’language in
which a provision is made by taking into account what is
implicit in it in view of the setting in which the provision
appears and the circumstances in which it might have been
enacted.
(1) [1962] Supp. 2 S.C.R. 149.
795
We may in this connection, refer to a decision of this Court
in ’The Mysore State Electricity Board v. The Bangalore
Woollen, Cotton and Silk Mills Ltd.(1), where the wide Words
used in s. 76(1) of the Electricity (Supply) Act of 1948
fell for interpretation, and this Court held that even
though the words used were of wide amplitude, it was
implicit in the sub-section that the question arising there-
under was one which arose under the Electricity (Supply)
Act. Therefore, we have to see whether the provision in cl.
(aa) bears another construction also in the setting in which
it appears and in the circumstances in which it was put on
the statute book and also in view of the language used in
the clause. The circumstances in which the amendment came
to be made have already been mentioned by us and the
intention of Parliament clearly was to fill up the lacuna in
the Act which became evident on the decision of this court
in R. L. Arora’s case(2). Parliament must also be well
aware of the provision of Art. 31(2) which lays down that
compulsory acquisition of property can only be made for a
public purpose. Clause (aa) was inserted between cl. (a)
and cl. (b) of s. 40(1). Section 40(1) as it stood before
the amendment prohibited consent being given to acquisition
of land by a company unless the acquisition was for one of
the two reasons mentioned in cls. (a) and (b). Those two
clauses clearly showed that acquisition for a company was
for a public purpose and such acquisition could not be made
for any purpose other than public purpose. Between the
existing cl. (a) and cl. (b) of s. 40 (1), we find cl. (aa)
being inserted. We also find that cl. (aa) specifically
uses the words "public purpose" and indicates that the
company for which land is required should be engaged or
about to be engaged in so-me industry or work of a public
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purpose. It was only for such a company that land was to be
acquired compulsorily and the acquisition was for the
construction of some building or work for such a company,
i.e. a company engaged or about to be engaged in so-me
industry or work which is for a public purpose. In this
setting it seems to us reasonable to hold that the intention
of Parliament could only have
(1) [1963] Supp. 2 S.C.R. 127. (2) (1962) Supp. 2 S.C.R.
149.
796
been that land should be acquired for such building or work
for a company as would subserve the public purpose of the
company; it could not have been intended, considering the
setting in which cl. (aa) was introduced, that land could be
acquired for a building or work which would not subserve the
public purpose of the company. In the circumstances it
seems to us clear that the literal construction of the
clause based on rules of grammar is not the only
construction of it and it is in our opinion legitimate to
hold that the public purpose of the industry of the company,
which is imperative under the clause, also attaches to the
building or work for the construction of which land is to be
acquired. Further, acquisition is for the construction of
some building or work for a company and the nature of that
company is that it is engaged or is taking steps for
encaging itself in any industry or work which is for a
public purpose. When therefore the building or work is for
such a company it seems to us that it is reasonable to hold
that the nature of the building or work to be constructed
takes colour from the nature of the company for which it is
to be constructed. We are therefore of opinion that the
literal and mechanical construction for which the petitioner
contends is neither the only nor the true construction of
cl. (aa) and that when cl. (aa) provides for acquisition of
land needed for construction of some building or work it
implicitly intends that the building or work which is to be
constructed must be such as to subserve the public purpose
of the industry or work in which the company is engaged or
is about to be engaged. In short, the words "building or
work" used in cl. (aa) take their colour from the adjectival
clause which governs the company for which the building or
work is being constructed and acquisition under this clause
can only be made where the company is engaged or is taking
steps to engage itself in any industry or work which is for
a public purpose, and the building or work which the company
is intending to construct is of the same nature, namely,
that it is a building or work which is meant to subserve the
public purpose of the industry or work for which it is being
constructed. It is only in these cases where the company is
engaged in an industry or work of that kind and where the
building or work is also constructed for a purpose of
797
that kind, which is a public purpose, that acquisition can
be made under cl. (aa). As we read the clause we are of
opinion that the public purpose of the company for which
acquisition is to be made cannot be divorced from the
purpose of the building or work and it is not open for such
a company to acquire land under cl. (aa) for a building or
work which will not subserve the public purpose of the
company. We are therefore of opinion that in the setting in
which cl, (aa) appears and in the circumstances in which it
came to be enacted, a literal and mechanical construction
for which the petitioner contends is not the only
construction of this clause and that there is another
construction which in our opinion is a better construction,
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and which is that the public purpose of the company is also
implicit in the purpose of the building or work which is to
be constructed for the company and it is only for such work
or building which subserves the public purpose of the
company that acquisition under cl. (aa) can be made. Thus
there are two possible constructions of this clause, one a
mere mechanical and literal construction based on rules of
grammar and the other which emerges from the setting in
which the clause appears and the circumstances in which it
came to be enacted and also from the words used therein,
namely, acquisition being for a company which has a public
purpose behind it, and therefore the building or work which
is to be constructed and for which land is required must
also have the same public purpose behind it, that animates
the company making the construction. We are therefore
clearly of opinion that two constructions are possible of
this clause of which the second construction which is other
than literal is the better one. It is well settled that if
certain provisions of law construed in one way will be
consistent with the Constitution, and if another interpreta-
tion would render them unconstitutional, the Court would
lean in favour of the former construction: [see Kedar Nath
Singh v. State of Bihar(1)]. We are therefore of opinion
that cl. (aa) does not permit acquisition of land for
Construction of some building or work for a company ,engaged
or to be engaged in an industry or work, which
(1) [1962] Supp. 2 S.C.R. 769
798
is for a public purpose unless the building or work for
which the land is acquired also subserves the public purpose
of the industry or work in which the company is engaged.
This is in our opinion the better construction of cl. (aa)
taking into account the setting in which it appears and the
circumstances in which it came to be enacted and the words
used therein. If that is the true construction of cl. (aa)
it cannot be said to contravene Art. 31(2), for the public
purpose required therein is present where land is required
for the construction of a building or work which must
subserve the public purpose of the industry or work in which
a company is engaged or is about to be engaged. Nor can it
be said that the provision is hit by Art. 19 (1 ) (f ), for
it would in our opinion be a reasonable restriction on the
right to hold property. We hold therefore that the clause
so interpreted is not unconstitutional. We have already
said that the amendments in s. 41 are only consequential to
the insertion of cl. (aa) in s. 40(1) and would therefore be
equally valid and constitutional.
We now come to the constitutionality of s. 7 of the
Amendment Act, which is attacked on the ground that it
contravenes Art. 31(2) and Art. 14 of the Constitution. Let
us therefore see what exactly s. 7 validates and under what
conditions. It first provides that the acquisition to be
validated must have been made before July 20, 1962.
Secondly it provides where such acquisition is not for any
of the purposes mentioned in cl. (a) or cl. (b) of s. 40(1)
of the Act, it shall be deemed to be for the purpose
mentioned in cl. (aa) introduced by the Amendment Act.
Thirdly it provides that every such acquisition shall be,
and shall be deemed always to have been as valid as if the
provisions of ss. 40 and 41 of the Act, as amended by the
Amendment Act, were in force at all material times when such
acquisition was made or proceeding was held or order was
made or agreement was entered into or action was taken.
Lastly, it provides that such acquisition shall be valid
notwithstanding any judgment, decree or order of any court.
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Terefore before s. 7 can validate an acquisition made before
July 20, 1962, it must first be shown that the acquisition
is complete and the land acquired has vested in Government.
This
799
means that the land acquired has vested in Government either
under s. 16 or s. 17(1) of the Act. Thus s. 7 of the
Amendment Act validates such acquisitions in which property
has vested absolutely in Government either under s. 16 or s.
17 (1). Secondly s. 7 of the Amendment Act provides that
where acquisition has been made for a company before July
20, 1962 or purported to have been made under cl. (a) or cl.
(b) of s. 40(1) and those clauses do not apply in view of
the interpretation put thereon in R. L. Arora’s case(1), it
shall be deemed that the acquisition was for the purpose
mentioned in cl. (aa) as inserted in s. 40(1) of the Act by
the Amendment Act. Thirdly s. 7 of the Amendment Act
provides that every such acquisition and any proceeding,
order, agreement or action in connection with such
acquisition shall be, and shall be deemed always to have
been, as valid as if the provisions of ss. 40 and 41 of the
Act as amended by the Amendment Act were in force at all
material times when any action was taken for such
acquisition. Finally, this validity is given to such
acquisitions and to all actions taken in connection
therewith notwithstanding any judgment, decree or order of
any court.
This is what s. 7 of the Amendment Act provides. The attack
on it on the basis of Art. 31(2) is that it makes an
irrebuttable presumption that the acquisition was for a
public purpose, though it may not be actually so and there-
fore contravenes Art. 31(2) inasmuch as the result of this
irrebuttable presumption is that acquisition which may not
have been for a public purpose, is validated. We do not
think that there is any force in this contention in view of
the interpretation we have given to cl. (aa) introduced in
s. 40 (1). The first fiction in s. 7 is that it shall be
presumed that acquisitions before July 20, 1962, if they do
not fall within cl. (a) or cl. (b) of s. 40(1), shall be
deemed to fall within cl. (aa). That means that building or
work for which acquisition was made was required for a
public purpose of the kind indicated in cl. (aa). It does
not however follow from this that if the purpose was not of
the kind indicated in cl. (aa) it will still be presumed
that the acquisition was for the purpose mentioned in cl.
(aa). All
(1) (19521 Supp. 2 S.C.R. 149.
800
that the first deeming provision lays down is that where the
public purpose does not come within cl. (a) or cl. (b) it
should be deemed to come within cl. (aa), provided it is of
a kind which can come within this clause. The intention
behind this deeming provision clearly is to make the purpose
of an acquisition made before July 20, 1962 which does not
fall within cl. (a) or cl. (b) of s. 40(1) to be judged in
accordance with the provisions contained in cl. (aa). On a
reasonable interpretation, this deeming provision therefore
only provides that where the purpose does not fall within
cls. (a) and (b), it shall be deemed to fall under cl. (aa)
and to be judged in accordance therewith. If in fact the
purpose of any acquisition made before July 20, 1962, is
such as does not fall within cl. (aa), the deeming provision
would be of no avail. Thus the first of the two fictions
introduced by s. 7 of the Amendment Act merely lays down
that where a notification under s. 6 of the Act cannot be
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justified under cl. (a) and cl. (b) of s. 40(1), it will be
judged in accordance with the provisions contained in cl.
(aa) and if it satisfies those provisions, the acquisition
will be deemed for the purpose of that clause, as if that
clause existed at the relevant time, though in actual fact
it did not. The first fiction therefore in our opinion goes
no further than this and does not provide that even though
the purpose of acquisition does not fall within cl. (aa), it
will still be deemed to be a public purpose. In this view
of the matter, we are of opinion that the attack on s. 7 on
the basis of Art. 31(2) must fail.
Next it is urged that s. 7 of the Amendment Act is hit by
Art. 14 inasmuch as it discriminates between acquisition for
a company before July 20, 1962 and after that date. We do
not think that there is any force in this contention either.
In the view we have taken of the meaning of cl. (aa) land
the meaning of the first fiction introduced in s. 7 of the
Amendment Act, all that the second fiction in s. 7 of the
Amendment Act says is that when the first fiction is
satisfied the second fiction will come into force and every
such acquisition and any proceeding, order, agreement or
action in connection with such acquisition shall be, and
&hall be deemed always to have been, as valid as if the
provisions
801
of ss. 40 and 41 of the Act, as amended by the Amendment
Act, were in force at all material times. In effect
therefore s. 7 provides that even though acquisitions made
before July 20, 1962 do not satisfy the conditions of cl.
(a) and cl. (b) of s. 40(1), they will be valid if they
satisfy the conditions of cl. (aa) as introduced by the
Amendment Act, as if that clause was in existence when the
acquisition was made before July 20, 1962. In this view we
are of opinion that there is no discrimination in the matter
of acquisition for a company before July 20, 1962 and after
that date because in either case the conditions of cl. (aa)
have to be actually satisfied whether the acquisition was
before July 20, 1962 or thereafter, as the validation by s.
7 of the Amendment Act is only of such acquisition before
July 20, 1962 which actually satisfy the provisions in cl.
(aa).
We may in this connection refer to the words "as valid as
if" appearing in s. 7 of the Amendment Act, because they are
in our opinion the key words for the purpose of interpreting
the extent of the validity conferred on acquisitions before
July 20, 1962. What the second fiction provides is that an
acquisition made before that date shall be as valid as if
the provisions of ss. 40 and 41 of the Act as amended by the
Amendment Act were in force at all material times. The
force of the words "as valid as if" clearly is that the
validity of acquisitions made before July 20, 1962, has to
be judged on the basis that cl. (aa) was in force at the
material time and in accordance therewith. The validity
therefore is not absolute; it is conditioned by the fact
that it will be as valid as if cl. (aa) was in force; so
that if it could not be valid even if cl. (aa) was in force
and could not be justified under the terms of that clause,
the validity conferred by s. 7 of the Amendment Act will not
attach to it. This in our opinion is the force of the words
"as valid as if" and the validity it has conferred is not
absolute as contended on behalf of the petitioner and will
not apply to those acquisitions which would not be valid if
they could not be justified on the basis of cl. (aa)
assuming it to be in force at the material time. In this
view the attack under Art. 14 as well as Art. 31(2) fails,
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for in neither case can acquisition be valid whether made
before July 20, 1962 or thereafter unless the conditions of
cl. (aa) are satisfied.
134-159 S.C.-51
802
Next it is urged that even if s. 7 is intra vires, it does
not reopen decided cases and does not revive notifications
and acquisitions actually struck down by courts. We see no
force in this contention. Section 7 opens with the words
"notwithstanding any judgment, decree or order of any court"
and the validity conferred by it on acquisitions made before
July 20, 1962 is thus notwithstanding any judgment, decree
or order of any court. These are the usual words to be
found in validating legislation where the intention is to
validate some action which would otherwise be invalid and
which may have been declared invalid by any court. The
purpose of such words in a validating legislation is to
declare valid what has been held invalid by courts and once
the legislature declares such action valid all steps taken
in connection therewith are validated to the extent of
validation. The result of the validation is that
notifications or other steps taken which may otherwise have
been invalid become valid. Further an acquisition also even
though it may have been struck down by a court would be
validated if it has been made in the sense that property in
the land to be acquired has vested in Government either
under s. 16 or s. 17 (1) of the Act. It is not in dispute
in this case that the property has vested in Government
under s. 17(1) or the Act. It is also not in dispute that
the purpose of the company was a public purpose, namely,
manufacture of textile machinery parts and that the
acquisition was also for the construction of works for that
purpose. In the circumstances we fail to see how it can be
said that the rights of the petitioner have not been
affected at all by the validating provision in s. 7 of the
Act. The contention under his head also fails.
Then it is urged that the acquisition in the present case
cannot be said to be for a public purpose inasmuch as the
agreement between the company and the Government does not
regulate or control the products of the company in the
interest of the public. We have not been able to understand
exactly what is meant by this. As we have already said, it
is not in dispute that the purpose of the company is a
public purpose, namely, production of textile machinery
parts, and the land is acquired for the construction of
works
803
for that purpose. The agreement shows that the land is
required for the construction of a work, namely, a factory
for the manufacture of textile machinery and parts’ and that
such work is likely to prove useful to the public. One term
of the agreement is that the company, its successors and
assignees will use the said land for the aforesaid purpose
and for no other purpose without the previous sanction in
writing of the State Government. Another term provides that
if the said land or any part or parts thereof shall no
longer be required by the company, then the company will
forthwith relinquish and restore the same, after removing
all buildings and structures, to the Governor at a price
equal to the amount paid by it under the Act. It is clear
therefore that the land cannot be used for any other purpose
and it will have to be restored to the Government if it is
not used for the purpose for which it was acquired. In this
connection reference may be made to s. 44-A introduced by
the Amendment Act which lays down that "no company for which
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any land is acquired under this Part shall be entitled to
transfer the said land or any part thereof by sale, mort-
gage, gift, lease or otherwise except with the previous
sanction of the appropriate Government". ’This provision
also provides a safeguard that the land will only be used
for the public purpose for which it is acquired and not
otherwise. The aforesaid terms in the agreement in our
opinion satisfy the condition that the land will be used for
the public purpose for which it was being acquired and for
no other. Therefore the acquisition is for a public purpose
as provided in cl. (aa). We do not think it is the purpose
of the Act that the agreement should provide for regulation
or control of the products of a company, which probably
means that Government should control the quantum of
production and distribution or the price of the produced
articles. This in our opinion is foreign to the purpose of
the Act. All that the Act requires is that before land is
transferred to the company by the Government, the agreement
should provide that land would be used for the purpose for
which it was acquired and for no other. The Act has nothing
to do with the control or regulation of the products of the
company and gives no power to Government in that behalf.
Nor do we think it was necessary in order that the public
purpose
804
mentioned in cl. (aa) is carried out to have any further
term in the agreement besides those which have been provided
in the agreement in this case. The contention that the
acquisition in the present case was not for a public purpose
as the agreement does not provide for the control and
regulation of the product of the company must therefore
fail.
Lastly it is urged that the petitioner who was a businessman
was intending to use the land for erecting a factory. He
could not do so because certain rules did not permit him to
build a factory adjacent to the military installations which
had been put up by the Defence Department on adjoining land.
It is urged that it could not be the purpose of the Act that
land which was intended to be used for one public purpose
should be acquired for ’another public purpose. We see no
force in this contention either. All that the Act requires
is that the land should be required for a public purpose.
The intention of the previous owner whatever it may be does
not in our opinion enter into the question at all, so far as
:the validity of the acquisition is concerned provided the
acquisition is for a public purpose. Whether the land
should be acquired or not is a matter which may be urged
under s. 5-A of the Act, which gives the owner of the land
the right to object to the acquisition, and it is for
Government to decide whether the objection should be allowed
or rejected. Once the Government decides that the objection
should be rejected and that the acquisition is needed for a
public purpose the validity of the notification under s. 6
and the subsequent action thereafter cannot be challenged on
the ground that the-previous owner himself intended to use
the land for some public purpose. In this connection our
attention is invited to the observations of this Court in
Province of Bombay v. Kusaldas S. Advani(1), where it was
observed that "under certain circumstances even securing a
house for an individual may be in the interests of the
community, but it cannot be to the general interest of the
community to requisition the property of one refugee for the
benefit of another refugee". These observations in our
opinion have no
(1) [1950] S.C.R. 621. 687.
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805
relevance to the matter under consideration. We are con-
cerned here with acquisition for a public purpose, which is
undisputed. This is not a case of a house of one person
being requisitioned for another; this is a case of
constructing some work which will be useful to the public
and will subserve the public purpose of the production of
textile machinery and its parts for the use of the general
public. In these circumstances we are of opinion that there
being a definite public purpose behind the acquisition in
the present case, the acquisition would be justified under
the Act irrespective of the intention of the previous owner
of the land to use it for some other public purpose. The
contention under this head must also fail.
It now remains only to consider the argument on behalf of
the intervener that cl. (aa) violates Art. 14 inasmuch as it
permits acquisition of land for a company but not for an
individual or a private company, though the individual or
the private company may also be engaged in or taking steps
to engage himself or itself in an industry or work which is
for a public purpose. Reference was also made to s. 44-B,
introduced by the Amendment Act, which lays down that
"notwithstanding anything contained in this Act, no land
shall be acquired under this Part, except for the purpose
mentioned in clause (a) of sub-section (1) of section 40,
for a private company which is not a Government company".
It is said that there is discrimination between a public
company and a Government company for which land can be
acquired under cl. (aa) on the one hand and a private
company or an individual on the other. It is true that
acquisition for the purpose of cl. (aa) can only be made for
a Government company or a public company and cannot be made
for a private company or an individual; but there is in our
opinion a clear classification between a public company and
a Government company on the one hand and a private company
and an individual on the other, which has a reasonable nexus
with the objects to be achieved under the law. The
intention of the legislature clearly is that private
individuals and private companies which really consist of a
few private individuals banded together should not have the
advantage of acquiring land even though they
806
may be intending to engage in some industry or work which
may be for a public purpose inasmuch as the enrichment
consequent on such work goes to private individuals or to a
group of them who have formed themselves into a private
company. Public companies on the other hand are broad based
and Government companies are really in a sense no different
from Government, though for convenience of administration a
Government company may be formed, which thus becomes a
separate legal entity. Thus in one case the acquisition
results in private enrichment while in the other it is the
public which gains in every way. Therefore a distinction in
the matter of acquisition of land between public companies
and Government companies on the one hand and private
individuals and private companies on the other is in our
opinion justified, considering the object behind cl. (aa) as
introduced into the Act. The contention under this head
must therefore also fail.
The petition therefore fails and is hereby dismissed. In
the circumstances we pass no order as to costs.
AYYANGAR J. I have had the advantage of perusing the
judgment prepared by Wanchoo, J. but regret my inability to
agree with it. In my opinion this writ petition has to be
allowed.
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The facts of the case and the relevant statutory provisions
whose construction is involved in the petition, have been
set out in full in the judgment just now pronounced and it
is therefore unnecessary for me to recapitulate them. The
principal points on which learned counsel for the petitioner
rested his case were mainly two: (1) that s. 40(1)(aa)
introduced by s. 3 of the Land Acquisition Amending Act (Act
XXXI of 1962) which I shall hereafter refer to as the Act,
was unconstitutional, in that it authorised the compulsory
acquisition of land for purposes which might not at all be
public purposes and was therefore violative of Art. 31(2) of
the Constitution, and (2) that s. 7 of the Act by which
acquisitions of land made prior to July 20, 1962 for the
purposes mentioned in s. 40(1)(aa) were purported to be
validated did not on its proper construction cover the
present case and further, even if it did that the said
provision was
807
invalid as ultra vires for the very same reason for which
cl. (aa) was.
I shall first take up the submission made to us by Mr.
Agarwal about the amendment effected to s. 40(1) by the
introduction of the new clause (aa). That clause reads
"that such acquisition is needed for the construction of
some building or work for a company which is engaged or is
taking steps for engaging itself in any industry or work
which is for a public purpose", so that after the amendment
land may be compulsorily acquired by the State for a company
for being utilised for the purpose above set out. It was
not disputed by Mr. Setalvad who, appearing for the first
and 3rd respondents, addressed to us the main arguments on
behalf of the respondent, nor by the learned Attorney-
General appearing for the Union of India that if on a proper
construction of cl. (aa) power was reserved to compulsorily
acquire land for a purpose other than a public purpose, the
same would infringe Art. 31(2) of the Constitution and
would, therefore, be void. The scope of the inquiry in the
petition is therefore narrowed down and it would be
sufficient to consider merely the construction of this
clause and ascertain whether the purpose for which authority
is conferred by it for making an acquisition, is a public
purpose.
The clause starts with the words that the acquisition is
needed for the construction of a building or work. It goes
without saying that if the power to acquire here conferred
is related to the construction of a building or work which
is essential for starting an industry or for carrying on an
industry which is necessary to be carried on in the public
interest. the acquisition would be for a public purpose and
undoubtedly the provision would be valid. The question is
whether the words of the clause are capable of this
construction. The words of the clause may be thus split up:
(1) the land is needed for the construction of "a building"
or "work", and (2) that "building" or "work" is for a
company which is engaged (omitting the immaterial words) in
an industry or work which is for a public purpose.
Therefore, if a company which is engaged in an industry
which industry is invested with a public purpose i.e., if
the industry itself serves a public purpose, that the land
is needed for the construction of a building or work for
such a company is made sufficient
808
to enable the acquisition to be made. In other words, the
criterion of the justification for the acquisition is, that
it is for a company of a designated nature, not that the
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land acquired is needed for a building or work which is
essential for the carrying on of an industry which serves a
public purpose. The company might be engaged in an industry
which might be informed by a public purpose or whose
products might be essential for the needs of the community.
but under the clause as enacted it is not necessary that the
land acquired is needed for being used for the purpose of
that industry but may be needed for any purpose of the
company, the only qualification being that the company
answers the description set down in the clause. Thus, to
take the present case, the third respondent-company intends
to start a factory for the manufacture of textile machinery,
in the present state of the country’s industrial
development. There could be no dispute that the industry in
which the third respondent is engaged or would be engaged,
would serve a national need and therefore a public purpose.
But, as was put during the course of the argument, the land
acquired might be needed not for the putting up of the
factory premises or essential buildings connected with it
for its operational needs, if one might use that expression,
but say for a swimming pool or a tennis court in the
compound of the Directors’ residence for whom the company
might consider it proper to provide accommodation. To take
a more extreme case, the company’s factory may be in city A,
and if the company wants to provide a guest house, a holiday
home or accommodation for its Directors at city B, the
clause will enable the acquisition to be made for the
purpose. It cannot be contended that the use of the land
for such a purpose was invested with a public purpose so as
to permit compulsory acquisition of land having regard to
the terms of Art. 31 (2).
The question, therefore, arises whether an acquisition for a
purpose of this type is or is not permitted on cl. (aa) as
it now stands. I am clearly of the opinion that an acquisi-
tion for such a purpose would be covered, for the only two
tests that are prescribed in it as conditions to be
satisfied before an acquisition could be made under this
clause are (1) that the land is needed for the construction
of a building or
809
work for a company i.e., the acquisition of the land and the
construction are intra vires of the memorandum of associa-
tion of the company, and (2) that company for which the
acquisition is being made is one engaged or is to be engaged
in an industry which is for a public purpose.
The first, and I would say the primary submission of Mr.
Setalvad was that the words "for a public purpose" at the
end of the clause ought to be read as governing and
qualifying the words "building or work for a company" which
occur earlier, so that under the clause not merely has the
company to be one of the type described i.e. engaging in an
industry which serves a public purpose but such a company
needs the land for the construction of a building or work
which is essential for that industry to be commenced or
carried on. I feel unable to accept this as a possible
construction of the words used. For that construction to be
adopted even the transposition of the words "for a public
purpose" to an earlier point after the words "for a company"
would not be sufficient assuming the rules of grimmer per-
mitted such a course; for, then it would leave out the des-
cription or categorisation of the company for which the land
is needed, and in such a situation the entire object of the
amendment would be frustrated, as- it would not be a con-
dition that the industry in which the company is engaged is
one which is required in public interest. Even if the
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clause were rewritten so as to introduce the words "for a
public purpose" earlier and also retain them where it occurs
now, the construction for which Mr. Setalvad contends cannot
result, for then it would not make much sense, for the words
"for a public purpose" if transposed earlier would not
convey the meaning which Mr. Setalvad says they convey,
because the construction which learned counsel suggests is
that the clause means that the land is needed for the con-
struction of the factory and other essential buildings for a
company engaged in an industry which serves the national
interest. By no transposition of the words actually used in
the clause can such a transformation be achieved.
The position as regards the construction of cl. (aa) is not
improved when one turns to the consequential amendment
effected in s. 41 of the Land Acquisition Act where a new
cl. 4(a) has been introduced by s. 4 of the Act. If in this
810
provision at least, which deals with the agreements which
the Government is directed to enter info. it is clear that
the acquisition could be made only for a public purpose and
not for what one might term "the private purposes" of a
company engaged in an industry which is essential for the
public, then one could read cl. (aa) together with this
provision and use the terms of s. 41 for construing the
scope and purpose of s. 40(1)(aa). Clause 4(a) reads:
"Where the acquisition is for the construction
of any building or work for a company which is
engaged or is taking steps for engaging itself
in any industry or work which is for a public
purpose the time within which, and the
conditions on which the building or work shall
be constructed or executed;
If anything, therefore, cl. 4(a) emphasizes that what
Parliament considered essential was the nature of the
company for whose benefit the acquisition was being made and
not the nature of the use to which the property acquired may
be put and that it would not matter if a company of the type
described used the land acquired for the pleasure of its
Directors or for its private purposes unrelated to the
purpose of the industry in which it was engaged. Lastly,
some attempt was made to show that the rules framed under
the Land Acquisition Act themselves threw light on the
purpose for which the acquisition was to be made but it was,
however, conceded that the rules afforded no assistance
either way on the matter.
It was then submitted that there is a presumption in favour
of constitutionality and that the clause ought to be so
read, if that were possible so as to sustain its validity.
I quite agree that if the language were flexible in the
sense that it could be read so as to make it refer only to
cases of acquisition for a public purpose, this could and
ought to be done. But this assumes that the clause is
reasonably capable of two interpretations: one which would
render it unconstitutional and the other which even though
it be a little strained, would make it constitutional. then
the Court would lean in favour of the latter construction.
811
The question therefore is whether the clause is capable of
more than one interpretation. I would be stating only a
truism if I said that there is no scope for interpretation
here. With profound respect for my learned brethren, I
consider that the words are capable only of one meaning.
Rules of construction are merely aids to resolving
ambiguity. if any exists. The first and primary rule, if
those rules have to be invoked, is to take the words
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themselves and then arrive at their true meaning. for if
they disclose an intelligible meaning, then the process of
interpretation stops unless the words are reasonably capable
of being understood in more than one way and rules of
interpretation are then invoked to resolve that ambiguity.
It was not suggested that the words do not, as they stand,
make sense. They do, only the sense which they convey makes
the clause unconstitutional. No doubt, the meaning of a
word may vary with the setting or context, but that is not
the position here. One asks in vain which is the word which
is said to bear a different meaning from the natural normal,
dictionary sense, because of the context or setting"?
It was, however, urged that it could not have been the
intention of Parliament to have intended the clause to mean
what appears to be meaning which I have said the words bore.
But this argument ignores the basic principle underlying all
rules of statutory construction that the intention of the
legislature has to be gathered only from the meaning of the
words used, for they are the only means by which the
intention of the law-maker could be gathered. It is only
where there is an ambiguity and the words are capable of
more than one construction that any extrinsic aid in the
shape of the purpose of the legislature, or the object of
the legislation come in for consideration. "Were the
language of an Act is clear and explicit," said Tindal, C.J.
in Warburton v. Loveland(1), "we must give effect to it,
whatever be the Consequences, for in that case the words of
the statute speak the intention of the legislature".
Authority is not needed for the proposition that the
intention of the legislature is not a matter to be
speculated upon. Interpretation or construction cannot mean
that a Court first reaches a conclusion as to what in its
opinion the legislature intended,
(1) 2 D. & Cl. (H.L.) 480 at p. 489.
812
even though this involves attributing a meaning divorced
from the words used, and then adjust the meaning to the
conclusion it has reached. As was observed by Lord Watson
in an oft quoted passage in Salomon v. A. Salomon & Co. (1):
"Intention of the legislature is a common but
very slippery phrase, which, popularly
understood, may signify anything from
intention embodied in positive enactment to
speculative opinion as to what the legislature
probably would have meant, although there has
been an omission to enact it. In a court of
law or equity, what the legislature intended
to be done or not to be done can only be
legitimately ascertained from what it has
chosen to enact, either in express words or by
reasonable and necessary implication.’
It was the same principle that was explained
by Lord Herschell in Cox v. Hakes(2) when he
said:
".....It must be admitted that if the language
of the legislature interpreted according to
the recognised canons of construction involves
this result, your Lordships must frankly yield
to it even if you should be satisfied that it
was not in the contemplation of the
legislature."
The only way in which I am able to read the clause is to
relate the words "public purpose" to the nature of the
industry carried on by the company and by no rule of
construction with or without extrinsic aids or with
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 20 of 20
reference to the context, not to speak of rules of grammar,
can the reference to public purpose be related to the
building or work for which the acquisition is permitted to
be made.
The learned Attorney-General submitted that the provision
could and ought to be read down and confined in its
operation to acquisition for public purposes as properly
understood; in other words, to sever the constitutional from
the unconstitutional portions and uphold the former. I do
not find it possible to adopt this approach in a clause
worded like the one before us. On the construction of the
clause which I hold is the only possible one to adopt, it
means the
(2) 15 A.C. 506 at p. 528.
(1) [1897] A.C. 22 at p. 38.
813
State is empowered to compulsorily acquire land for com-
panies which satisfy the description of being engaged in an
industry which is essential for the life of the community
whether or not the purpose for which the company proposes to
use the land. acquired is a public purpose. Where the
purpose for which the acquisition could be made is indicated
by the enactment and that purpose is one which is primarily
constitutionally permissible, but the words employed for
indicating the purposes might possibly include some outside
the power of the legislature, an argument about reading down
would require consideration. But in the clause now
impugned, there is no purpose indicated at all, except that
it is needed for a company which falls within a particular
category. For such a situation I consider that there is no
scope at all for invoking the principle of reading down.
Again, where the provision gives a carte blanche to Gov-
ernment to acquire land for any purpose it is not possible
to sustain the validity of such a law and strike down merely
the particular acquisition where land is acquired for a
purpose which is not a public purpose, for here the vice is
in the law itself and not merely in the application.
I am, therefore, clearly of the opinion that cl. (aa) intro-
duced by the Amending Act XXXI of 1962 is unconstitutional
as violative of Art. 31(2).
In this view it is unnecessary for me to consider the proper
construction of s. 7 of the Amending Act. Under the terms
of s. 7 of the Act, all acquisitions of land made prior to
June 20, 1962, even accepting the construction which Mr.
Setalvad pressed upon us, are deemed to have been made for a
purpose falling within cl. (aa). If, as I have held, cl.
(aa) is unconstitutional and void, it was not contended that
s. 7 would of any assistance to the respondents to sustain
the acquisition of the petitioner’s land. I would,
therefore, allow the petition and grant the reliefs prayed
for therein.
ORDER
In accordance with the opinion of the majority the petition
fails and is dismissed. There will be no order at the
costs.
Petition dismissed
814