Holding

A requisition under Section 23 of the Defence and Internal Security of India Act, 1971 must be for an emergent, temporary purpose; a permanent handloom‑showroom purpose and a continuation of more than two decades render the order ultra vires, colourable, and invalid.

Summary

The Supreme Court examined a 1976 order that requisitioned two Nazul land parcels belonging to Rajendra Kumar Gupta and another, ostensibly to enable the U.P. State Handloom and Powerloom Finance and Development Corporation to set up a handloom showroom. The appellants argued that the Defence and Internal Security of India Act, 1971 (D&ISIA) is a temporary emergency statute and that Section 23 authorises requisition only for emergent, temporary purposes, not for a permanent commercial showroom. The Court held that the purpose was outside the scope of Section 23, that the order’s continuation for over two decades was unreasonable and amounted to a colourable exercise of power, and that the appellants, as lease‑holders, had locus standi. Consequently, the requisition order was declared ultra vires, set aside and the respondents were ordered to restore possession. The appeal was allowed.

Issues considered

Whether the requisition order dated 29‑10‑1976 was validly passed under Section 23 of the Defence and Internal Security of India Act, 1971.
Whether the appellants had locus standi to challenge the requisition order.
Whether the requisition order had outlived its statutory purpose and its continued operation amounted to a colourable and unreasonable exercise of power.

Legislation cited

Bombay Land Requisition Act, 1948

Subjects

RequisitionEmergency powersDefence and Internal Security of India ActSection 23Ultra viresLocus standiColourable exercise of powerNazul landLeasehold rightsAdministrative law

Judgment

).-.
,

A RAJENDRA KUMAR GUPTA AND ANR.
),-.
v.

B
STATE OF U.P. AND ORS.

FEBRUARY 10, 1997

[DR. A.S. ANAND AND S.B. MAJMUDAR, JJ.]
-
Defence and Internal Security of India Act, 1971: Section 23. ......
"t'
Immovable property-Requisitioning of-Order requisitioning land is-
c sued for U.P. ·State Handloom and Powerloom Finance and Development
Corporation. Ltd. to enable it to nm a handloom showroom for promoting
sale of handloom products manufactured by weavers working in rnral
areas-Held: Requisitioning power could be exercised only in emergent situa-
tions for the purposes set out in S.23--0rder of requisitioning could be issued
if it was found that but for such order the community would be deprived of
D supplies and services essential for its life---/n the circumstances of the case, )..
order ultra vires S.23.

. lmmovable property--Requisitioning of-Order requisitioning land is-
'sued for U.P. State Handloom and Powerloom Finance Development Car-
E poration Ltd. for opening handloom showroom--Held.· Could not be resorted
to for any permanent public purpose but must be of limited duration com-
mensurate with continuance of the emergent situation-After a passage of
more than two decades such indefinite requisitioning was contrary to the
scheme of S.23-lmmovable property-Requisitioning of-Order requisi-
tioning land issued in 1976-Such order continued for more than two decades ...
F when the Act ceased to operate and emergency withdrawn-Held: Such order '
amounted to acquisition by colourable exercise of power-Order had lost its
efficacy and had become a dead letter-Administrative Law.

Immovable property-Order requisitioning land-Challenge of--Effect
of saving provision under S.1 (3 }--Held: Validity of the order could be '
G
examined by Court.

The respondent requisitioned the land belonging to the appellants y
by an order dated 29-10-1976 under Section 23 of the Defence and Internal
Security of India Act, 1971. The requisition order merely mentioned that
H it was necessary and expedient to requisition the appellants' property for
1056
R.K. GUPTAv. STATE 1057
· maintaining supplies and services essential to the life of the community. A
The requisition order was issued with a view to seeing that the' State
Handloom and Powerloom Finance and Development Corporation Ltd.
could construct shops and showrooms in the land in question for exhibit·
ing its handloom products which were manufactured by handloom
weavers. The appellants filed a writ petition before the High Court chat- .B
lenging the aforesaid requisition order, which was dismissed. Hence this
appeal •
...,
'f On behalf of the appellants it was contended that the Act itself was
a temporary Statute having limited existence being enacted during emer-
gency, both external and internal; that the Act had already ceased to c
operate since long; that the purpose for which the requisition was resorted
to was dehors the provisions of Section 23 of the Act, as providing a
showroom for exhibiting the wares manufactured by the weavers could not
have any nexus with the maintenance of supplies and services essential to
the life of the community; that the purpose of requisition being of a
D
...: permanent nature could not have been made the subject matttr of an order
of requisition under Section 23 of the Act; that sirice the requisition order
was as old as of 1976 such indefinite requisition of premises was contrary
to the very scheme of Section 2'.3 of the Act; that the appellants had locus
standi to challenge the order of requisition when they were having unex-
pired lease period; and that even though the lands were Nazul lands, since E
the leases were not legally terminated, the leasehold interest of the appel-
Iants remained intact.

.i On behalf of the respondents it was contended that the requisition
} order was within the four corners of the Act; that requisition co~ld be F
made for subserving even a permanent purpose; that the lands under
requisition were Nazul lands and were leased to the appellants; that the
period of lease had expired; that since no renewal of the lease was effected
by the appellants the ownership of the lands under requisition stood
. reverted to the respondents; that the requisition order was passed during
the currency of proclamation of emergency, both external and internal, and G
it sought its efficacy through the parent Act which had sh1ce !ong expir~d;
'f
and that as laid do~ by Section 1 (3) of the Act despite the· expiry of the
Act after six months from the cessation of the operation of proclamation
of emergency and which event had taken place since long, the previous
operation of the Act which was holding the field at the relevant time was H
1058 SUPREME COURT REPORTS (1997) 1 S.C.R.
A not affected.
The following questions arose for determination by this Court:

1. Whether the impugned requisition order dated 29·10· 1976 was
validly passea under Section 23 of the Act.
B
2. Whether the appellants have got locus siandi to challenge the said
order.
' .
3. Whether the requisition order bad outlived its existence and its
C continuance any further would amount to colourable exercise of power and
would be unreasonable.

Allowing the appeal, this Court

HELD: 1.1. A conjoint reading of Sections 23, 24 and 30 of the
D Defence and Internal Security of India Act, 1971 indicates that the requi-
sitioning of immovable property under the Act is with a view to cater to
the emergent situations arising out of the currency of external and/or
internal emergency for which the President of India might have issued
relevant proclamations under the provisions of the Constitution of India.
Obviously, therefore, the powers conferred on the authorities functioning
E under the Act. are emergency powers. By their very nature they pertain to
emergent situations of a temporary nature and not of a permanent nature.
Under such emergent situations when power to requisition immovable
property is to be exercised under Section 23 of the Act the Legislature in
its wisdom has clearly indicated the limited sphere in which and purposes
F for which such power could be exercised. An order under Section 23(1)
during such ~mergent situations can be passed • (a) either for securing
defence of India; (b) civil defence; (c) public safety; (d) maintenance of
public order; (e) for efficient conduct of military purposes or for maintain-
ing the supplies and services essential to the community. [1068-E-H]

G 1.2. A competent authority exercising powers under Section 23(1) can
requisition any immovable property for the purpose of maintaining sup·
plies and services essential to the life of the community if it is found that
but for such an order the community would be deprived of the concerned
supplies and services essential for its life. The impugned requisition order
H only recites that the respondent was of the opinion that it was necessary
R.K. GUPTAv. STATE 1059
and expedient to requisition the appellants' property, of which they were A
in possession, for maintaining supplies and services essential to the life of
the community. But the impugned order saw the light of the day because the
State Handloom and Powerloom Finance and Development Corporation Ltd.
wanted to have a showroom for exhibiting the wares manufactured by weavers
with a view to giving a fdlip to the sale of these articles so that weavers working B
in rural areas could get an assured market for their goods. However, even if
the said Corporation does not run any showroom for exhibiting handloom
wares manufactured by rural weavers, all that may perhaps happen is that
the weavers may not be able to get their goods easily sold in the market or
may not have a good deal of customers. But that would not mean that the
community or any part of it would be deprived of essential supplies and
c
services. It cannot be urged with any emphasis that if the goods manufactured
by rural weavers are not properly marketed the community, as a whole would
be deprived of essential supplies and services. Section 23 is not enacted for
gnaranteeing or providing any continuously lucrative market for the hand·
loom wares manufactured by rural weavers. The impugned order has to be D
judged in the light of the express provisions of Section 23 and not dehors
them. However laudable the object may be, of seeing that the economic
condition of rural weavers in handloom industry is improved, the said
object for which a showroom has to be constructed on the lands in question
would not justify the respondent-~uthority to invoke the powers under E
Section 23 as the said object would fall short of the requirement envisaged
by the said Section for exercise of such power. Provisions for such
showroom or its absence will have no impact on the maintenance of
supplies and services essential to the life of the community as such. Even
assuming that the weaving community is a part of the. community as a p
whole, in the absence of such showrooms the weaving community cannot
be said to have been deprived of any essential supplies or services. Nothing
was required to be supplied to them by having such a showroom. On the
contrary the showroom was to enable the weaving community to supply
their goods more effectively and lucratively to their customers being other G
part of the community. It must, therefore, be held that such an object
underlying the impugned requisition order had no nexus with the main-
tenance of supplies and services essential to the life of the community and
was totally dehors the provisions of Section 23. Consequently the im·
pugned requisition order must be held to be ultra vires of Section 23,
H
1060 SUPREME COURT REPORTS [1997) 1 S.C.R.
A unauthorised and incompetent. (1069-B-F, 1071-F-H, 1072-A-E]

Pwvej Aktar & Ors. v. Union of India & Ors., (1993) 2 SCC 221, held
inapplicable.

2. Orders under Section 23 (1) of thl! Act could be passed only for
B emergent purposes contemplated by the provisions and they are by their
.very nature expected to be of a limited duration. A perpetual emergency is
not contemplated by the Act or the Presidential notification under which
it got its birth. Section 30 of the Act is also relevant in this connection. It
must, therefore, be held that in the scheme of Section 23 of the Act the
C orders of requisition of immovable properties must necessarily be not of
a permanent nature but must be of a limited duration commensurate with
the continuance of the emergent situations and the needs which require
such orders to be passed and continued for the requisite period of such
•.emergent need for which such orders are passed. As the impugned order
ii~ requisition is as old as of 1976 and the respondents have persisted with
D thi' said order for all these years spread, by now, over more than two
decades it has to be held that such indefinite requisition ·or premises is
contrary to the very scheme of Section 23 and even on that grou~d the
order would fall foul on the touchstone of Section 23 itself. [1073-D-G]

E Mis. Speedcrafts Pvt. Ltd. v. The Dist. Magistrate & Ors., AIR (1976)
Pat 129, approved.
-
Grahak Sanstha Manch & Ors. v. State of Maharashtra, [1994) 4 SCC
192, held inapplicable.

p 3. The efficacy of the impugned order has to be examined in the light
of the fact situation that obtained on the date of the impugned order. By
that time the original lessee had sufficient interest in the leases which
could be validly transferred to the present appellants and that is exactly
what has been done by the original lessee. It could not be said, therefore,
that the appellants had no locus standi to challenge the impugned order of
G requisition when they were having unexpired lease period with them enti-
tling them to remain as lessees under validly subsisting leases of these two
Nazul lands. Even though the lands were Nazul lands till the leases were
Y'
legally terminated by the authorities, the leasehold interest of the original
lessee and the appellants who were successors in interest of the original
H lessee remained intact. Whether the respondents can validly terminate the
R.K. GUPTAv. STATE 1061.

leases during their extended periods or whether these Nazul lands which A
were subject- matter of leases could be resumed by the authorities is a ·
question with which the present case is not concerned and, therefore, no
opinion need be expressed. (1074-G-H, 1075-A]

4.1. The contention that as laid down by Section 1 (3) of the Act
despite the expiry of the Act after six months from the cessation of the
B
operation of proclamation of emergency and which event had taken place
since long, the previous operation of the Act which was holding the field
at the relevant time was not affected cannot be of any avail to the respon-
dents. All that this provision shows is that if a valid order has been passed
under Section 23 at the time when the Act along with the said Section was C
operative, merely because the parent Act expired by emux of time the
efficacy of such a valid order would not get whittled down only on that
score. But that does not mean that the validity of the said order could not
be examined on its own with a view to finding out whether the said
requisition order under Section 23 was validly passed or was a still-born D
one and whether in any case such an order can be permitted to continue
indefmitely and is to be treated as almost immortal. It is this question
which ·is on the anvil of scrutiny before this Court and it cannot be
effectively answered by the respondents in the light of the aforesaid saving
clause. (1076-C-E]
E
4.2. In the context of the emergency provisions of the Act in question
the powers which could be exercised for requisitioning properties under
Section 23 by their very nature could not be utilised for requisitioning
immovable properties for an indefinite period. Such requisition virtually
amounts to acquisition. In the facts and circumstances of this case it must F
be held that when years back the parent Act had ceased to operate and the
internal and external emergency declarations had stood withdrawn, now
obviously there is no rhyme or reason why such a requisition order, which
by effiux of time has become stale and its very purpose has become
obsolete, should be permitted to be continued any further and the
appellants' properties should be still permitted to remain requisitioned G
and in possession of the respondents. In the facts and circumstances of
the case, therefore, it must be held that continued requisition of the ·
appellants' leasehold premises by now at least must be treated to have ·
become unreasonable and it would necessarily indicate abuse .of power and
a colourable exercise thereof. It must be held that the impugned requisi- H
1062 SUPREME COURT REPORTS [1997) 1 S.C.R.

A tion order even assuming that it was valid and kicking and was not
still-born when it was passed in 1976, by now it has lost its efficacy and
has become a dead letter, in the present set of circumstances obtaining ·
today. Even on this ground the continuance of the impugned requisition
order cannot be sustained and has to be put an end to. [1078-B-E]

B Grahak Sanstha Manch & Ors. v. State of Maharashtra, [1994) 4 SCC
192, relied on.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 373 of
1987.

C From the Judgment and Order dated 25.84 of the Allahabad High
Court in C.M.W.P. No. 2538 of 1977.

Kapil Sibal, Ranjeet Kumar, Ramesh Singh, Ms. Bina Gupta and Ms.
Rakhi S. Ray for the Appellants.
D Altaf Ahmed, Additional Solicitor General, K.J. John, R.C. Verma
and R.B. Misra for the Respondents.

The Judgment of the Court was delivered by :

S.B. MAJMUDAR, J. : The appellants in this appeal by special leave
E have brought in challenge the order of a Division Bench of the High Court
of Judicature at Allahabad dismissing the writ petition moved by the
appellants before that Court. The appellants had challenged an order
dated 29th October 1976 passed by the second respondent, District
Magistrate-cum-Competent Authority, Kanpur, requisitioning 777 sq. yards _'.
F and 7- 1/3 sq. ft. of lands comprising of plot Nos. 36 and 36-A situated on
The Mall, Kanpur in exercise of the powers of the second respondent
under Section 23 of Defence and Internal Security of India Act, 1971
(hereinafter referred to as 'the Act'). The impugned order of second
respondent merely mentioned that the said order of requisition was issued
as it was .necessary and expedient to requisition the property in question
G for maintaining supplies and services essential to the life of the community.
The appellants were called upon by the said order to deliver by 15th
November 1976 possession of the said immovable property to the Director,
Handlooms and Managing Director of U.P. State Handloom and Power-
loom Finance and Development Corporation Ltd., Kanpur, U.P., respon-
H dent no. 3 herein. During the writ proceedings it transpired that the said
R.K GUPTAv. STATE (S.B. MAJMUDAR,J.] 1063
requisition order was issued with a view to seeing that the concerned A
respondent-Corporation could construct shops and showrooms in the land
in question for exhibiting its handloom products which were manufact\ll'ed
by handloom weavers. The appellants contended before the High Court
that the aforesaid ptirpose of requisition was dehors the provisions of
Section 23 of the Act. It was next submitted that as it was a permanent
B
purpose power of requisition under the Act would not be invoked for
fructifying the said purpose and in any case such a requisition order could
not continue indefinitely and hence the continued enforcement of the said
order resulted in unreasonable exercise of power on the part of the second
respondent. The Division Bench of the High Court was not persuaded to
accept the aforesaid contentions raised on behalf of the appellants and c
dismissed the writ petition. That is how the appellants are before us in this
appeal.

Rival Contentions

Shri Sibal, learned senior counsel for the appellants vehemently D
contended that the Act itself was a temporary Statute having the limited
existence being enacted during emergency, both external and internal, and
had already ceased to operate since long and that the purpose for which
the requisition was resorted to was dehors the provisions of Section 23 of
the Act as providing a showroom for exhibiting the wares manufactured by E
weavers could not be said to have any nexus with the maintenance of
supplies and services essential to the life of the community. He also
submitted that in any case the purpose being of the permanent nature could
not have been the subject-matter of an order of requisition under Section
23 of the Act.
F
He lastly submitted that in any view of the matter the continued
enforcement of the impugned order for all these years till date has become
totally unreasonable and even on that ground the requisition order which
had outlived its existence and legal efficacy deserves to be quashed .

• On the other hand learned counsel for respondent No. 2 and Shri G
Altaf Ahmed, learned Additional Solicitor General appearing for respon-
dent no. 3 contended that the impugned requisition order was within the
forecorners of Section 23 of the Act and that it was not as if the requisition
could be resorted to only for a limited period or only for a temporary
purpose. That requisition can be made for subserving even a permanent H
1064 SUPREME COURT REPORTS (1997] 1 S.C.R.

A purpose.
It was next contended that the lands under requisition belonged to
the State. They were Nazul lands. They were earlier leased out by two
separate Lease Deeds in favour of one J.N. Mehrotra in the years 1920
and 1932 respectively. That the initial period of 30 years in respect of
B each of the leases had already expired and there had been no renewal
in respect of plot no. 36 whereas renewal in respect of plot no. 36-A
was effected in 1948 for a further period of 30 years which had also
...
admittedly' expired in 1978 and thereafter no further renewal was ef- .,......
(

fected by respondent no. 1 - State of U .P. It was, therefore, contended
that on the expiry of one year from the date of the impugned requisition
c order there remained no occasion for the State to acquire these lands
and their possession stood reverted to the State authorities in their
ownership and consequently the appellants cannot have any grievance
in connection with the lands in question. In Rejoinder it was submitted
by learned senior counsel for the appellants that both these leases
D contained clauses giving absolute option to the lessees to get renewal of
leases for further periods of 30 years subject to the maximum period of
90 years from the date of the original leases. That the appellants had
legally acquired right, title and interest of the original lessee in these
lands and that they had exercised their option under the Lease Deeds
to get the leases renewed for a further period of 30 years. That even the.
E Municipal authorities at Kanpur had accepted Nazul rent from the
appellants from time to time and there was nothing on the record to
indicate that the State had resumed these Nazul lands at any time or
had te-rminated the leasehold interest of the appellants in the lands.
Consequently it could not be said that the appellants had no locus standi
to put forward their grievance in the present proceedings. ~
F
In view of the aforesaid rival contentions the following points arise
for our determination :

Points for detennination
G
1. Whether the impugned requisition order dated 29th October
1976 was validly passed under Section 23 of the Act
y
2. Whether the appellants have got locus standi to challenge the
H said order.
R.K. GUPTAv. STATE [S.B. MAJMUDAR, J.] 1065
3. Whether the requisition order had outlived its existence and its A
continuance any further would amount to colourable exercise of
power and would be unreasonable.

We shall deal with these points seriatim.

Point No. 1 B

While considering the efficacy of the impugned requisition order
under Section 23 of the Act it is necessary to note a few relevant statutory
provisions in the light of which the said order will have to be scrutinised.

The Defence of India Act, 1971 was enacted in 1971 with a view to
c
providing for special measures to ensure the public safety an interest; the
defence of India and civil defence and for the trial of certain offences and
for matters connected therewith. The Preamble of the Act laid do"Wn that
whereas the President has declared by Proclamation under clause (1) of
article 352 of the Constitution that a grave emergency exists whereby the D
security of India is threatened by external aggression; and whereas it is
necessary to provide for special measures to ensure the public safety and
interest, the defence of India and civil defence, and for the trial of certain
offences and for matters connected therewith that the Act was enacted by
the Parliament in the twenty second year of the Republic of India. The said
Act was subsequently amended by Defence of India (Amendment) Act,
E
1975 being Act 32 of 1975 whereby concept of internal security was also
introduced in the said Act for enabling the authorities to exercise powers
under the said Act as amended and that is how the Act was thereafter
.~ known as Defence and Internal Security of India Act, 1971. Section 23 of
} the Act as amended, with, which we are concerned reads as under : F

"23. Requisitioning of immovable ,property. ~. (i) Notwithstanding
anything. contained in any other law for the time being in force, if
in the opinion of the Central Government or the State Government
it is necessary or expedient so to do for securing the defence of
India, Civil Defence, (internal security), public safety, maintenance G
of public order or efficient conduct of military operations, or for
maintaining supplies and services essential to the life of the com-
munity, that Government may by order in writing requisition any
immovable property and may make such further orders as appear
to that Government to be necessary or expedient in connection H
1066 SUPREME COURT REPORTS (1997) 1 S.C.R.

A with the requisitioning :

Provided that no property or part thereof which is exclusively
used by the public for religious worship shall be requisitioned.

(2) The requisition shall be effected by an order in writing ad-
B dressed to lhe person deemed by the Central Government or the
State Government, as· the case may be, to be the owner or person
in possession of the property, and such order shall be served in
the prescribed manner on the person to whom it is addressed.

(3) Whenever any property is requisitioned under sub- section (1),
c the period of such requisition shall not extend beyond the period
for which such property is required for any of the purposes
mentioned in that sub-section."

Section 24 deals with 'Payment of Compensation'. It reads as under:
D
"24. Payment of compensation. - Whenever in pursuances of Sec-
tion 23, the Central Government or the State Government, as
the case may be, requisitions any immovable property, there
shall be paid to the persons interested compensation the amount
of which shall be determined by taking into consideration the
E following, namely :

(i) the rent payable in respect of the property or if no rent is
payable, the rent payable in respect of similar property in the .
locality ? ·

F (ii) if in consequence of the requisition of the property the
person interested is compelled to change his residence or
place of business, the reasonable expenses (if any) incidental
to such change :

(iii) such sum or sums, if any as may be found necessary to
G compensate the person interested for damage caused to the
property on entry after requisition or during the period of
requisition, other than normal wear and tear :

Provided that where any person interested being aggrieved by
H the amount of compensation so determined makes an application
\

>-
1068 SUPREME COURT REPORTS (1997] 1 S.C.R.
A excessive having regard to the value of the property at that
time, the property may be acquired by that Government.

(2) When any Government as aforesaid decides to acquire any
immovable property, it shall serve on the owner thereof or where
the owner is not readily traceable or the ownership is in dispute,
B by publishing in the Office Gazette, a notice stating that the
Government has decided to acquire it in pursuance of this section. ·

(3) Where a notice of acquisition is served on the owner of the
property or is published in the Official Gazette under sub-section
c (2}, then, at the beginning of the day on which the notice is so
served or published the property shall vest in the Government free
from any mortgage, pledge, lien or other siniilar encumbrances and
the period of requisition thereof shall come to an end.

(4) Any decision or determinatio11 of a Government y,nder sub-
D section (1) shall be final, and shall not be called in question in any
court.
!-
(5) For the purposes of this section, "works" includt<s every descrip-
tion of buildings, structures and improvemel),ts of the property."

E A conjoint reading of the aforesaid provisions indicates that the requisi-
tioning of immovable property under the Act is with a view to cater to the
emergent situations arising out of the currency of external and/or internal
emergency fer which the President of India might have issued relevant
proclamations under the provisions of the Constitution of India. Obviously,
F therefore, the powers conferred on the authorities functioning under the
Act are emergency powers. By their very nature they pertain to emergent
situations of a temporary nature and not of a permanent nature. Under
such emergent situations when power to requisition immovable property is
to be exercised under Section 23 of the Act the Legislature in its wisdom
·has clearly indicated the limited sphere in which and purposes for which
G such power could be exercised. An order under Section 23(1) during su<;h
emergent situations can be passed- (a) either for securing defence of India;
(b) civil defence; (c) public safety; (d) maintenance of public orders; (e) y
for efficient conduct of military purposes or for maintaining the supplies
and services essential to the life of the community. In the context in which
H the power of requisition for maintaining supplies and services essential to
)--
R.K GUPTAv. STATE [S.B. MAJMUDAR,J.] 1069
the life of the community is conferred by the Section leaves no room for A
doubt that an order in exercise of such power can be passed only under
circumstances of grave urgency as contemplated by other similar types of
orders which could be passed under this very Section. It must, therefore,
,, be ·held that a competent authority exercising powers under Section
23(1) can requisition any immovable property for the purpose of main-
B
taining supplies and services essential to the life of the community if it
is found that but for such an order the community would be deprived
,. of the concerned supplies and services essential for its life. It is per-
--,.
tinent to note that the impugned requisition order only recites that the
second respondent was of the opinion that it was necessary and ex-
pedient to requisition the appellants' property, of which they were in c
possession for maintaining supplies and services essential to the life of
the community. By a mere reading of the said order it is difficult to find
out as to what supplies and services were required to be maintained
being essential for the life of the community which necessitated the
passing of the said order. In the last paragraph of the order it is .
D
-·( mentioned that possession of the said property was to be delivered by
15th November 1976 to Director, Handlooms and Managing Director of
the U.P. State Handloom and Powerloom Finance and Development
Corporation Ltd., Kanpur, U.P. The affidavit filed by respondent no. 3
before the High Court indicated that the said order was issued for the
benefit of the third respondent-Corporation to enable it to run a hand- E
loom showroom, which purpose was considered expedient for maintain-
ing essential supplies and service to the life of the community. In the
counter affidavit filed in the present proceedings the third respondent
has averred that the Corporation aims only to give ,commercial and
"'> material help and guidance to the poor weavers and to provide a ready F
market to them so as to protect them from unscrupulous middlemen.
Paragraphs 6 and 7 of this counter deserve to be noted in extenso in
this connection :

"6. I state that handloom cloth is manufactured by over 15 lakh
poor weavers in the State, with the Government and on a small G
scale basis. The Corporation has the twin objective of providing
''y' jobs to the maximum number or rural poor since the manufacture
of handloom clothes is a labour-oriented process and also to make
cheap cloth available to the poor consumers. To this end the
Corporation has extended loans to the weavers to the tune of Rs H
1070 SUPREME COURT REPORTS [1997] 1 S.C.R.
A 80 lakhs and also supplied Yarn of the v:llue of approx. Rs. 12
crores annually to them. The Corporation purchases the finished
product to the tune of Rs. 30 crore annually which is _sold through
selling-cum-display shops and through exhibitions.

7. That it was only after examining the pressing necessity for a
B Handloom Showroom an being satisfied that· it was an essential
requirement for the community, the Respondent 1 and 2 requisi-
tioned the disputed plot and handed it over to Respondent No. 3. .
I state that the Respondent 1 and 2 were acting within the scope
of the power conferred under Sec. 23 of the Act and such a
c requisition falls squarely within objectives specified in that Sec-
tion."

The learned counsel for the second respondent has broadly supported the
aforesaid contention put forward on behalf of respondent no. 3.

D In the lig!:it of t!:ie aforesaid stand of the contesting respondents it
becomes clear that the impugned order saw the light of the day because .
the third respondent-Corporation wanted to have a showroom for exhibit-
ing the wares manufactured by weavers with a view to giving a fillip to the
sales of these articles so that weavers working in rural areas could get an
E assured market for their goods. Shri Sibal, learned seilior counsel for the
appellants fairly stated that the said purpose may be treated as a public
purpose but the question is whether for such a purpose emergency powers
under Section 23 of the Act could be exercised. So far as this question is
concerned, in our view, the impugned order cannot be supported under
F Section 23. If requisition order is said to have been justifiably issued by the
second respondent for maintaining supplies and services essential to the
life of the community it must be shown that but for passing of such an order
that community would be deprive of essential supplies and services and its
very life would get adversely affected. Even if the third respondent-Cor-
poration does not run any showroom for exhibiting handloom wares
G manufactured by rural weavers, all that may perhaps happen is that the
weavers may not be able to get thi::ir gciods easily sold in the market or may
not have a good deal of customers. But that would not mean that com-
munity or any part of it would be deprived of essential supplies and
services. It cannot be urged with any emphasis that if the goods manufac-
H tured by rural weavers are not property marketed the community as a
R.K. GUPTAv. STATE [S.B. MAfMUDAR, J.] 1071

whole would be deprived of essential supplies and services. Without the A
use of such goods manufactured by rural weavers the community can
comfortably exist and survive or in any case its existence would not come
in any jeopardy. Reliance was placed by Shri Altaf Ahmed, learned Addi-
tional Solicitor General, on a decision of this Court in the case of Parvej
Aktar and Others v. Union of India and Others, [1993] 2 SCC 221. But the B
said decision is l\lso of no help to him for the simple reason that this Court
in the said decision had to consider entirely a different question as to
whether the reservation of articles for exclusive production by handlocim
industry under the provisions of Handlooms (Reservation of Articles for
Production) Act, 1985 was violative of Article 14 of the Constitution of
India. It was held that reservation of articles under the Act does not create c
any monopoly in favour of handloom industry. It was also observed that
handloom industry is the biggest cottage industry in the country and is
next only to agricultural sector in providing rural employment. The Ac(
of 1985 was enacted for the protection of tht; interests of the handloom
weavers, mostly concentrated in rural areas. They are pitted against a D
powerful s·ector, namely, the mills and the powerlooni. As such, they face
unequal competition. The protection has been given by the Government
to handloom weavers because the livelihood of handloom weavers is
threatened due to the production of all types of items and varieties by the
powerloom industry. The handloom weavers are economically very poor
E
and will have no alternative employment in the rural areas unless
protected through reservation of varieties for them. The reservation or-
ders are for the continued employment of the handloom industry and are
in the larger public interest. The restrictions are not only reasonable but
also fully justified. We fail to appreciate how the said decision can be
pressed in service for supporting the impugned requisition order under F
Section 23 of the Act. Section 23 is. not enacted for guaranteeing or
providing any continuously lucrative market for the handloom wares
manufactured by rural weavers. The impugI!ed order has to be judged in
the light of the express provisions of Section 23 and not dehors them. In
the light of the stand taken by the respondents for justifying the impugned G
order, it has, therefore, to be held that however laudable the object may
be, of seeing that the economic condition of rural weavers in handloom
industry is improved, the said object for which a showroom has to be
constructed on the lands in question would not justify the respondent-
authority to invoke powers under Section 23 as the said object would fall H
1072 SUPREME COURT REPORTS (1997] 1 S.C.R.
A short for the requirement envisaged by the said Section for exercise of such
power. Provision for such showroom or its absence will have no impact on·
the· maintenance of supplies and services essential to the life of the com-
munity as such. It is difficult to appreciate the reasoning adopted by the
Division Bench of the High Court in the impugned judgment that these
B shops and showrooms are intended to be used by the State obviously for
extending help to a particular class of ~mall and cottage industry of U .P.
involving poor weavers by protecting them from exploitation by middle
traders and by marketing their products directly to the public through these ...
shops and showrooms and therefore, establishment of such shops and
showrooms had a nexus with the maintenance of supplies and services
C essential to the life of the weaving community. Even assuming that weaving
community is a part of the community as a whole in the absence of such
showrooms the weaving community cannot be said to have been deprived
of any essential supplies or services. Nothing was required to be supplied
to them by having such a showroom. On the contrary the showroom was
D to enable the weaving community to supply their goods more effectively
and lucratively to their customers being other part of the community. It
must, therefore, be held that such an object underlying the impugned
requisition order had no nexus with the maintenance of supplies and
services essential to the life of the community and was totally dehors the
E provisions of Section 23. Consequently the impugned requisition order
must be held to be ultra vires of Section 23, unauthorised and incompetent.

One additional aspect for challenging the said order was pressed in
service by Shri Sibal, learned senior counsel for the appellants. He sub-
mitted that in any case the impugned requisition order was for a purpose
F which was of a permanent nature, namely, to have showrooms and shops
for respondent no. 3 Corporation for being located on the land. That for
such a permanent or quasi-permanent purpose even assuming it to be a
public purpose, requisitioning of premises could not be resorted to and the
said authorities if at all could have resorted to the power of acquisition of
G the premises. In short it was contended that requisition of premises could
be done only for a temporary purpose for a temporary period and not for
a permanent purpose requiring a prolonged existence of such an order. We
shall now deal with the said additional contention.

It is no doubt true as laid down by a Constitution Bench of this Court
H in the case of Grahak Sanstha Manch and Others v. State of Maharashtra,
R.K GUPTAv. STATE [S.B. MATMUDAR, J.) 1073
(1994) 4 SCC 192 that the requisition of premises under Bombay Land A
Requisition Act, 1948 could be made even for a permanent .public purpose.
~
However the said decision was rendered in the light of the express
provisions of Bombay Land Requisition Act, 1948 which death with rcqui-
... sitioning of a premises for a public purpose while in the present case the
requisition of premises is contemplated to be resorted to during the
internal and external emergency which resulted in the enactment of the B
· Act. Therefore, by the very nature of the parent Act under which this
power is being exercised situations must be of such grave and urgent nature
that they would compel exercise of such emergent powers. Consequently it
...,., could not be said that power to requisition under Section 23(1) of the Act
c
for maintaining supplies and services essential to the life of the community
could be resorted to for catering to any permanent public purpose con-
templated by the said provision. Sub-section (3) of Section 23 also is a
pointer in the same direction. It has clearly enjoined that period of such
requisition shall not extend beyond the period for which such property
is required for any of the purposes mentioned in sub- section (1).
Conse.quently it must be held that orders under Section 23(1) of the Act D
could be passed only for emergent purposes contemplated by the
-.(
provision and they are by their very nature expected to be of limited
duration. A perpetual emergency is not contemplated by that Act or the
Presidential notification under which it got its birth. Section 30 of the
Act is also relevant in this connection. It clearly lays down that even
during emergency when such temporary requisition orders are passed if E
the requisitioning authority is shown to have spent large amounts on the
requisitioned property under circumstances mentioned in the said st!c-
tion the said property may be acquired by the Government. It must,
therefore, be held that in the scheme of Section 23 of the Act the orders
.J
of requisition of immovable properties must necessarily be not of a F
~ permanent nature but must be of limited duration commensurate. with
the continuance of the emergent situations and the needs which requires
such orders to be passed and continued for the requisite period of such
emergent need for which such orders arc passed. As the impugned
order of requisition is as old as of 1976 and the respondents have
persisted with the said order for all these years spread by now, over G
more than two decades it has to be held that such indefinite requisition
of premises is contrary to the very scheme of Section 23 and even on
=>\ that ground the order would fall foul on the touchstone of Section 23 ·
'r itself. Before parting with this discussion we may refer to a decision of
a Division Bench of the Patna High Court in the case of Mis. Speed.crafts
H
1074 SUPREME COURT REPORTS [1997] 1 S.C.R.

A Pvt. Ltd. v. The Dist. Magistrate and Others, AIR (1976) Patna 129. Inter-
preting these very provisions of the Act it was held by the Division Bench
Jr.
in the said case that if the public purpose for which a property is acquired
is not of a temporary character resort cannot be had to the provision of
the Section 23. In the context and the settings of the relevant provisions of

B
the Act the.. aforesaid view of the Patna High Court is well sustained. We
have perused the departmental file and find that the Collector had agreed
1
with the opinion that the property could be acquired for the purpose of
constructing the showroom and not requisitioned, as the purpose is "outside
the ambit o_f Section 23". Why then did the department still proceed to
"requisition" and not take recourse to "acquisition" proceedings is not
C mtelligible. The first point is answered in the negative by holding that the
impugned order of requisition was not validly made under section 23 of
the Act.

Point No. 2

D So far as this point is concerned we have to keep in view the fact that
the original Lease Deeds gave absolute option to the lessee to get the leases
renewed for a further period of 30 years each time till the maximum ceiling
of 90 years of the duration of the original lease was reached. As noted
earlier both the leases had come into force from 1920 and 1932 respective-
ly. Therefore, both these leases could validly be extended at the absolute
E option of the lessee up to 2010 and 2022 AD. respectively. There is nothing
on the record to show that extension of leases was ever refused by the
respondents or the leased premises were resumed, being Nazul lands. On
the contrary there is evidence on the record to show that the Nazul rent
was being demanded and recovered from the appellants by the Municipal
p authorities Of Kanpur from time to time. In any case the date on which
the impugned requisition order was passed, that is, on 29th October 1976,
both the leases were current. The efficacy of the impugned order has to be
examined in the light of the fact situation that obtained on the date of the
impugned order. By that time the original lessee had sufficient interest in
the leases which could be validly transferred to the present appellants and
G that is exactly what has been done by the original lessee. It could not be
said, therefore, that the appellants had no locus standi to challenge the
impugned order of requisition when they were having un-expired lease
period with them entitling them to remain as lessees under validly subsist-
ing leases of these two Nazul lands. Even though the lands were Nazul
H lands till the leases were legally terminated by the authorities, the leasehold
R.K. GUPTAv. STATE [S.B. MAJMUDAR, J.] 1075

interest of the original lessee and the appellants who are successor-in-in- A
terest of the original lessee remained in tact. Whether the respondents can
validly terminate the leases during their extended periods or whether these
Nazul lands which were subject-matter of leases cold be resumed by the
authorities is a question with which we are not concerned and, therefore,
we do not express any opinion one way or the other on this question. For
B
the present purpose, it is sufficient to indicate that the appellants at the
time when the impugned order of requisition was passed and even till have
sufficient locus standi to challenge the said order and to claim restoration
of their leasehold rights in the said lands and the possession thereof. Point
No. 2 is answered in the affirmative in favour of the appellants and against
the respondents. c
Point No. 3

So far this point is concerned it has to be noticed that the impugned
order_ was passed during the currency of proclamation of emergency, both
internal and external, and it sought its efficacy through the parent Act D
which has since long expired. Shri Altaf Ahmed, learned Additional
Solicitor General, however, vehemently submitted that as laid down by
Section 1 sub-Section (3) of the Act despite the expiry of the Act after six
months from the cessation of the operation of proclamation of emergency
and which event has taken place since long, the previous operation of the E
Act which was holding the field at the relevant time was not affected. The
said provision reads as under :

"l. (3) ·It shall come into force at once and shall remain in force
during the period of operation of the Proclamation of Emergency
and for a period of Six months thereafter, but its expiry under the F
operation of this sub-section shall not affect -

(a) the previous operation of, or anything duly done or
suffered under, this Act or any rule made thereunder or any
order made under any such rule, or G

(b) any right, privilege, obligation or liability acquired, ac-
crued or incurred under this Act or any rule made there-
under or any order made under any such rule, or

( c) any penalty, forfeiture or, punishment incurred in respect H
1076 SUPREME COURT REPORTS [1997] 1 S.C.R.

A of any offence under this Act or any contravention of any rule
made under this Act or of any order made under ani sliCh
rule, or

( d) any investigation, legal proceeding or remedy in respect
of any such right, privilege, obligation, liability, penalty, f~
B feiture or punishment as aforesaid.

and any such investigation, legal proceeding or remedy may be
instituted, continued or enforced and any such penalty, forfeiture
or punishment may be imposed as if this Act had not expired."

C It is difficult to appreciate how this contention can be of any avail to
the contesting respondents. All that this provision shows is that if a valid
order has been passed under Section 23 at the time when the Act along
with the said Section was operative, merely because the parent Act
. expired by efflux of time the efficacy of such a: valid order would not
D get whittled down only on that score. But that does not mean that the
validity of the said order could not be examined on its own with a view
to finding out whether the said requisition order under Section 23 was
validity passed or was a still-born one and whether in any case such an
order can be permitted to continue indefinitely and is to be treated as
E alm~st immortal. It is this question which is on the anvil of scrutiny
before us and it cannot be effectively answered by the respondents in
the light of the aforesaid saving clause.

We, therefore, will have to examine the efficacy of the impugned
order from the point of view of its prolonged duration uptill now which
F as seen earlier had been spread over more than two decades from the
date on which it got its birth on 29th October 1976. For deciding this
question we will assume with the respondents, for the sake of argument,
that on the day on which it was passed it was validly passed under the
provisions of Section 23. Even then the moot question still remains
whether such an emergency order of requisition which might be justified
G in those days when it was passed could now be permitted to continue
indefinitely. For 'answering this question we may. usefully refer to the
decision of the Constitution Bench of this Court in the case of Grahak
Sanstha Manch (supra). The Constitution Bench has. in terms laid down
that even though a requisition order can be issued for a permanent
.
H public purpose under the provisions of Bombay Land Requisition Act,
R.K GUPTAv. STATE [S.B. MATMUDAR, J.] 1077
1948 it cannot be continued indefinitely. We may usefully refer to the A
relevant observations made in this connection by Bharucha, J. Speaking for
the majority of the Constitution Bench, in paragraphs 16 and 17 of the
Report:

We find ourselves in agreement with the view taken in the cases B
of Collector of Ako/a and Jiwani Kumar Paraki that the purpose of
requisitiOJ!. order may be permanent. But that is not to say that an
order of requisitioning can be continued indefinitely or for a period
of time longer than that which is, in the facts and circumstances
of the.particular case, reasonable. We note and approve in this
regard, as did this Court in jiwani Kumar Paraki case, the obser- c
vations of the Nagpur High Court in the case of Mangilal Karwa
v. State of M.P., which have been reproduced above. That the
concept of requisitioning is temporary is also indicated by the Law
Commission in its Tenth Report and, as pointed out earlier, by the
terms of the said Act itself, as it originally stood and as amended D
from time to time. There, is no contradiction in concluding that
while a requisition order <;an be issued for a permanent public
purpose, it cann~t be contffiued indefinitely. Requisitioning might
have to be resorted to for a permanent public purpose to give an
example, to tide over the period of time required for making E
permanent premises available for it. The concepts of acquisition
and requisition are altogether different as are the consequences
that flow therefrom. A landlord cannot, in effect and substance,
be deprived of his rights and title to property without being paid
1. due compensation, and this is the effect of prolonged requisi-
) F
tioning. Requisitioning may be continued only for a reasonable
period; what that period should be would depend upon the facts
and circumstances of each case and it would ordinarily, be for the
Government to decide.

For the aforesaid reasons, we hold that the decision in H.D. G
Vora case does not require reconsideration. We, however, do not
approve the observations therein that requisition orders under the
said Act cannot be made for a permanent purpose. We make it
clear that the said decision does not lay down, as has been argued,
a period 30 years as the outer limit for which a requisition order H
1078 SUPREME COURT REPORTS [1997) 1 S.C.R.

A may continue, The period of 30 years was mentioned in the
decision only in context of the date of the requisition .order there
concerned. An order of requisition can continue for a reasonable
period of time and it was held, as we hold, that the continuance
of an order of requisition for as long as 30 years was unreasonable."

B We have already shown that in the context of the emergency
provision of the Act in question the powers which,could be exercised for
requisitioning properties under Section 23 by their very nature could not
be utilised for requisitioning immovable properties for an indefmite period.
Such requisition virtually amounts to acquisition. In the facts and cir-
C cumstances of this case it must be held that when years back the parent
Act had ceased to operate and the internal and external emergency decla-
rations had stood withdrawn, now obviously there is no rhyme or reason
why such a requisition order, which by efflux of time has become stale and
its very purpose has become obsolete, should be permitted to be continued
D any further and the appellants' properties should be still permitted to
remain requisitioned and in possession of the respondents. In the facts and
cir.cumstances of the case, therefore, it must be held that continued requi-
sition of the appellants' leasehold premises by now at least must be treated
to have become unreasonable and it would necessarily indicate abuse of
power and a colourable exercise thereof. It must be held that the impugned
E requisition order even assuming that it was valid and kicking and was not
still-born when it was passed in 1976, by now it has lost its efficacy and has
become a dead letter, in the prese ; set of circumstances obtaining today.
Even on this ground the continuance of the impugned requisition order
cannot be sustained and has to be put an end to. The third point is also,
F therefore, answered in the affirmative in favour of the appellants and
against the respondents.

In this connection we may also note that it is not the case of the
respondents that now they require to acquisition the requisitioned pr~~es
on a permanent basis for the purpose for which they were initially requi~
G sitioned, by exercise of powers under Section 30 of the Act. In fact the said
provision could have been pressed in service by respondent no. 3, if at all,
during the currency of the Act which provision is obviously not available
to them now. Non-exercise of powe(s under Section 30 for acquiring these
requisitioned properties during the time the Act was in force itself shows
H that even according to the respondents the Government did not require
I

~-
R.K GUPTAv. STATE [S.B. MAJMUDAR, J.] 1079

the said requisitioned land to be acquired for its purposes or that it was A
felt that the cost of restoration of the requisitioned property by the Govern-
ment would be excessive. During the pendency of these proceedings this
Court had earlier directed by order dated 21st September 1984 that status
quo will remain so far as the construction in any part of the open space is
concerned. That status quo was continued by an order of 29th October
B
1984. However by a latter order dated 9th February 1987 while granting
special leave this Court had refused to grant stay but had made it clear
that the respondents will not be entitled to claim the benefit of Section 30
of the Defence and Internal Security of India Act, 1971 in the event of the
appeal being allowed. Any further construction effected by the respondents
will not be pleaded as defence during the hearing of the appeal. Under c
these circumstances, therefore, there cannot remain any valid defence for
the respondents against the restoration of possession of the requisitioned
premises to the appellants once the impugned order of requisition is found
to be invalid in view of our findings on the aforesaid points for determina-
ti on.
D
-"".
In the result the appeal is allowed. The judgment and order of the
High Court are set aside. The writ petition filed by the appellants before
the High Court is allowed. The impugned order of requisition of the
premises in question dated 29th October 1976 is quashed and set aside.
The respondents are directed to restore the possession of these requisi- E
tioned properties forthwith to the appellants by clearing off whatever
construction may be existing on spot and making available the requisitioned
properties in their original form and shape to the appellants. The respon-
dents are directed to comply with this order within eight weeks from the
j
} date of receipt of copy of this order at their end. In the facts and
circumstances of the case there will be no order as to costs. F

V.S.S. Appeal allowed.