RAMJI VEERJI PATEL & ORS.versusREVENUE DIVISIONAL OFFICER & ORS.
- Citation
- 2011 INSC 780
- Decided
- 2 November 2011
- Disposal
- Dismissed
- Bench
- RAJENDRA MAL LODHA
Holding
The acquisition of the appellants' land was valid; the government's satisfaction on suitability was not irrational, Part VII does not apply to the corporation, and the appeal is dismissed.
Summary
The appellants owned 1.45 acres of land on which they had raised the level, built a structure and operated a saw‑mill that was their sole livelihood. The Tamil Nadu Government, acting on a requisition by Cholan Roadways Corporation Ltd., issued a notification under Section 4(1) of the Land Acquisition Act, 1894 and later a declaration under Section 6 to acquire the land for expanding the corporation’s depot. The appellants objected, arguing that an alternative parcel belonging to the Tamil Nadu Evangelical Lutheran Church (TELC) was equally suitable and that the corporation, being a ‘company’, should have complied with Part VII of the Act. The Government rejected the objections, the High Court dismissed the writ petition and the appeal, and the Supreme Court examined whether the decision was irrational, whether Part VII applied, and whether Article 142 could be invoked. The Court held that the appellants’ land was demonstrably more suitable, that the corporation, as a government company, is excluded from the definition of ‘company’ in Section 3(e) and thus Part VII does not apply, and that there was no error of law or irrationality. Consequently, the appeal was dismissed.
Issues considered
- The suitability of the appellants' land versus the alternative TELC land for the intended public purpose.
- Whether the corporation qualifies as a ‘company’ under Section 3(e) of the Land Acquisition Act, thereby invoking Part VII procedural requirements.
- Whether the Government's decision under Sections 4(1) and 6 of the Act was arbitrary, irrational or violative of the appellants' rights under Section 5‑A.
- Whether the Supreme Court can invoke Article 142 of the Constitution to set aside the acquisition.
Legislation cited
- Land Acquisition Act, 1894s. 4(1), s. 5-A, s. 6
- Land Acquisition (Amendment) Act, 1984s. 3(cc), s. 3(e)
Subjects
Judgment
[2011) 14 (ADDL.) S.C.R. 821
RAMJI VEERJI PATEL & ORS. A
v.
REVENUE DIVISIONAL OFFICER & ORS.
(Civil Appeal No. 137 of 2003}
NOVEMBER 2, 2011
B·
[R.M. LODHA AND JAGDISH SINGH KHEHAR, JJ.]
Land Acquisition Act, 1894 - ss. 4(1) and 6 - Land
acquisition for expansion of depot of Roadways Corporation
- Notification uls .. 4(1) that land belonging to appellants was C
needed for public purpose - Objections raised by the
appellants that they had incurred expenditure in raising the
. level of the land; raised the building and installed a saw mill
·and their family was solely dependant upon the income from
the saw mill; and alternative land were available for expansion D
of the depot - Objections considered by the Government but
not convinced by the same - Issuance of declaration u/s. 6 -
Writ petition challenging the notification and declaration -
Dismissed by the High Court - Appeal also dismissed - On
appeal, held: Land suggested by the appellants was not found E
to be equally suitable - Government gave reasons as to why
the appellants',, land was found to be more suitable for
expansion of the depot - Appellants land is adjacent· to the
existing depot of the Corporation having easy access to the
main road - Thus, the decision taken by the Government is F
not vitiated by any errot of law nor it is irrational or founded
on the extraneous reasons - Corporation or its successor not
being a 'company' as defined in s. 3(e), Part VII of the Act is
not applicable and as such procedure contemplated in Part
VII having not followed, it cannot be said that acquisition is G
bad in law - No doubt appellants have been put to hardship
by compulsory acquisition of their land, they can suitably
compensated - The said litigation has taken about 22 years
and public purpose has been stalled for the said period -
821 H
.·
822 SUPREME COURT REPORTS [2011] 14 (ADDL.) S.C.R.
A Nothing should be done that would result in frustrating the
acquisition of land completed long back by following the
procedure under the Act and possession taken in 2001, by
giving full opportunity to the appellants u/s. 5-A - Thus, not a
case fit for exercise of power under Article 142 - Constitution
B of India, 1950 - Article 142.
Appellants and their family members purchased
agricultural land. They incurred expenditure in raising the
level of the land and made improvements; raised the
building and installed a saw mill. The Roadways
C Corporation made a requisition for making available land
for expansion of their depot for a workshop. The State
Government issued a notification under Section 4(1) of
the Land Acquisition Act, 1894 that the land of the
appellant's was needed for the public purpose. The said
D notification was also published. The appellants filed
objections. before the Revenue Divisional Officer (RDO)
that the other lands behind the existing depot of the
Corporation were available and could be used for the
purpose of expansion of the depot; and that their family
E was dependant upon the income from the saw mill
existing on the land and by compulsory acquisition of
their land, they would be deprived of the sole means of
livelihood. The RDO considered the objections and
submitted his report to the Government. Meanwhile, the
F appellants sent a representation to the Government that
the land just behind the existing depot which belonged
to TELC was advertised for sale and, therefore, instead
of resorting to the compulsory acquisition of the
appellants' land, the land of TELC may be acquired. The
G Government was not convinced by the objections and
issued a declaration under Section 6 and the same was
published in the Gazette as also by other modes. The
appellants filed a writ petition challenging the notification
and declaration under Section 6 of the Act. The Single
H Judge of the High Court dismissed the writ petition. The
RAMJI VEERJI PATEL & ORS. v. REVENUE 823
DIVISIONAL OFFICER & ORS.
appeal was also dismissed. Therefore, the appellants A
filed the instant appeals.
Dismissing the appeal, the Court
HELD: 1.1 The submission that the land ~elonging
to the TELC is suitable as that land is situated just behind B
the existing depot; the existing depot has already access
to the main road from Chidambaram to Cuddalore and on
acquisition of the land of TELC, the acquired land too
would have access to the main road through the existing
depot of the Corporation, thus, the suitability aspect was C
not at all been rationally considered by the Government,
cannot be accepted. In the counter affidavit filed by the
Government before the High Court, the averment that the
land acquired exists adjacent to the existing depot and
has easy access to the main road from Chidambaram to D
Cuddalore and it is found to be more suitable in all
aspects for the expansion of the depot remains
unrebutted and unchallenged by the appellants as no
rejoinder was filed. [Paras 21, 22) [833-F-H; 834-A-B]
E
1.2 If the land proposed to be acquired and the
alternative land suggested by the owners/persons
interested are equally suitable for the purpose for which
land is being acquired, the satisfaction of the
Government, if not actuated with ulterior motive, must get
primacy. In the judicial review, it is not open to the court F
to examine the aspect of suitability as a court of appeal
and substitute its opinion. The instant case is not a case
where the other lands suggested by the appellants have
been found to be equally suitable. The Government gave
reasons as to why the appellants' land was found to be G
more suitable for expansion of the depot. The appellants'
land is adjacent to the existing depot of the Corporation
having easy access to the main road. The manner in
which the decision was taken by the Government
regarding suitability of the appellants' land for expansion H
824 SUPREME COURT REPORTS [2011] 14 (ADDL.) S.C.R.
A of the depot of the Corporation is not vitiated by any error
of law nor it is irrational or founded on the extraneous
reasons. [Para 23) [834-C-F]
1.3 On consideration of and perusal of the site plan
referred there is no doubt that the land of the appellants
8
is more suitable than the land of TELC situate behind the
existing depot. TELC land has no direct access from the
Chidambaram to Cuddalore main road. It has access from
a different side road passing adjacent to the canal. The
size of the TELC's land is also awkward; it is a long piece
C of land of which width narrows down from 175 feet to 56
feet west to east. On the other hand, the appellants' land
is adjacent on the southern side to the existing depot and
has access from the Chidambaram to Cuddalore main
road. Having regard to the purpose for which the land is
D sought to be acquired, namely, expansion of existing
depot, particularly, for a workshop, the appellants' land
is definitely more suitable. Pertinently, in their objections,
the appellants did not challenge the public purpose for
the acquisition of their land. It cannot be said that
E suitability aspect was not been reasonably or rationally
considered by the Government. [Para 24) [834-G-H; 835-
A-C]
1.4 The Corporation and the TNSTC fall within the
F definition of Section 3(cc) of the Land Acquisition
(Amendment) Act, 1984. Both may not have been
divested of their character as a government company but
sub-clause (i) of Section 3(e) excludes a government
company from the definition of company. Part VII
(Sections 38 to 448) of the Act provides for acquisition
G of land for companies. In view of the definition of the
'company' in Section 3(e) which excludes government
company, the Corporation or for that matter its successor
TNSTC does not fall within the definition of the 'company'·
and, therefore, is not covered by Part VII of the Act at all.
H
I
RAMJI VEERJI PATEL & ORS. v. REVENUE 825
DIVISIONAL OFFiCER & ORS.
Thus, Part VII of the Act has no application to the instant · A
case as the acquisition of land is not for a 'company' as
defined in Section 3(e). [Paras 27 and 30] [836-G-H; 837-
A, G]
.
State of Punjab and Ors. v. Raja Ram and Ors. (1981) 2
B
SCC 66 : 1981 (2) SCR 712 - referred to.
1.5 There is no doubt that by compulsory acquisition
of their land, the appellants have been put to hardship.
As a matter of fact, the RDO was alive to this problem. In.
his report dated September 14, 1989, the RDO did observe C
that the land owners have spent considerable money to
raise the level of the land for constructing compound wall
and running saw mill. He was, however, of the opinion
that the appellants' land was very suitable for the
expansion of the depot and the suitable compensation D
can be paid to the land-owners to enable them to
purchase an alternative land. The appellants, however,
proceeded to challenge the acquisition. The litigation has
traversed upto this Court and taken about 22 years. The
public purpose has been stalled for more than two E
decades. Being the Highest Court, an extraordinary .
power has been conferred on this Court under Article 142
to pass any decree, order or direction in the matter to do
complete justice between the parties. The power is
plenary in nature and not inhibited by constraints or F
limitations. However, the power under Article 142 is not
exercised routinely. It is rather exercised sparingly and
very rarely. In the name of justice to the appellants, under
Article 142, nothing should be done that would result in
frustrating the acquisition of land which has been
completed long back by following the procedure under .G
the Act and after giving full opportunity to the appellants
under Section 5-A. The possession of the land has also
been taken as far back as on July 25, 2001. The
appellants made an application I.A. No. 2/2002 for
direction to the respondents not to interfere with the H
826 SUPREME COURT REPORTS [2011] 14 (ADDL.) S.C.R.
A functioning of the saw mill and permit them to use the
saw mill but this Court in its order dated May 8, 2002 only
said that the saw mill shall not be demolished till further
orders. No permission was granted to the appellants to
use the saw mill. In other words, for more than ten years
B the saw mill is closed after possession was taken over
from the appellants. In the circumstances, this is not a
case fit for exercise of power under Article 142 and
declare the acquisition of the appellants' land bad
although the acquisition proceedings have been
c completed in accordance with law. [Para 31) [838-B-H;
839-A)
1.6 In the application I.A. No. 4 the appellants offered .
for amicable settlement by expressing their readiness and
willingness to give an area of land admeasuring 13250
D square feet out of the total land of 1.45 acres (i.e. 1 acre
and 19445 sq. ft.) free of cost to the Corporation. However,
the same was not acceptable to the respondent since
such a small area was of no use for expansion of the
existing depot. There is no unreasonableness in the
E submission that an area of 13250 square feet would not
meet the purpose for which the appellants' land has been
acquired. [Para 32) [839-B-D]
Delhi Administration v. Gurdip Singh Uban and Ors.
F (2000) 7 SCC 296: 2000 .(2) Suppl. SCR 496; Hindustan
Petroleum Corpn. Ltd. v. Darius Shapur Chenai and Ors.
(2000) 7 SCC 627: 2005 (3) Suppl. SCR 388; Radhy Shyam
(Dead) Through LRs. and Ors. v. State of Uttar Pradesh and
Ors. (2011) 5 SCC 553; Munshi Singh and Ors. v. Union of
G India (1973) 2 SCC 337: 1973 (1) SCR 973; Union of India
v. Mukesh Hans (2004) 6 SCC 14 - referred to
Case Law Reference:
2000 (2) Suppl. SCR 496 Referred to Para 8
H 2005 (3) Suppl. SCR 388 Referred to Para 8
RAMJI VEERJI PATEL & ORS. v. REVENUE 827
DIVISIONAL OFFICER & ORS.
(2011) 5 SCC 553 Referred to Para 8 A
1981 (2) SCR 712 Referred to Para 9
1973 (1) SCR 973 Referred to Para 14
(2004) s sec 14 Referred to Para 16
B
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 137
of 2003.
From the Judgment & Order dated 25.07-2001 of the High
Court of Judicature at Madras in Writ Appeal No. 915 of 1999. c
Pallav Shishodia, T.R.B. Sivakumar, K.V. Vijaykumar for
the Appellants.
B. Balaji, Rakesh Sharma, Subramomium Prasad, T.
Harish Kumar for the Respondents. D
The Judgment of the Court was delivered by
R.M. LODHA, J. 1. The appellants were unsuccessful in
challenging the acquisition of their land before the Single Judge
as well as the Division Bench of the Madras High Court. They E
are in appeal, by special leave,
2. On the requisition of Cholan Roadways Corporation
Limited, Kurribakonam (for short, 'the Corporation') for making
available land for expansion of their depot, particularly for a F
workshop, at Chidambaram, the State Government of Tamil
Nadu (for short, 'the Government') issued a notification under
Section 4(1) of the Land Acquisition Act, 1894 (for short, 'the
Act') which was published in the Gazette on March 3, 1989
notifying for general information that the land mentioned therein, G
namely, land admeasuring 1.45 acres comprised in T.S. No.
14, classified as government wet land in Chidambaram
Municipal Town, South Arcot District was needed for the above
public purpose. The notification under Section 4(1) was also
published in the two newspapers on November 18, 1988 and H
828 SUPREME COURT REPORTS [2011] 14 (ADDL.) S.C.R.
A in the locality on March 27, 1989. The appellants filed objections ·
to the acquisition before the Revenue Divisional Officer (for
short, 'RDO'), Chidambaram. The diverse objections to the
acquisition were raised; one of such objections being that the
other lands behind the existing depot of the Corporation were
8 available and could be used for the purpose for which their land
was sought to be acquired. They stated that their family was
dependant upon the income from the saw mill exi.;ting on the
land and by compulsory acquisition of their land, they would be
deprived of the sole means of livelihood.
c 3. The RDO considered the objections put forth on behalf
of the appellants and submitted his report to the Government
on conclusion of the enquiry under Section 5-A of the Act.
4. It appears that when the report of the RDO was under
D consideration, the appellants sent a representation to the
Government bringing to its notice that the land belonging to
Tamil Nadu Evengelical Lutheran Church ('TELC') just behind
the existing depot has been advertised for sale and, therefore,
instead of resorting to the compulsory acquisition qf the
E appellants' land, the land of TELC may be acquired.
5. The Government was not persuaded by the appellants'
objections and the declaration under Section 6 of the Act was
issued which was published in the Gazette on March 21, 1990.
The publication of the Section 6 declaration was made by other
F modes as well.
6. The appellants challenged the notification under Section
4(1) and declaration under Section 6 of the Act in the writ
petition before the Madras High Court. In opposition to the writ
G petition, counter affidavit was filed on behalf of the Government.
The learned Single Judge of the High Court dismissed the writ
petition by his order dated November 18, 1998.
7. Against the order of the Single Judge, the appellants
H preferred intra-court appeal which has been dismissed by the
RAMJI VEERJI PATEL & ORS. v. REVENUE 829
DIVISIONAL OFFICER & ORS. [R.M. LODHA, J.]
impugned order on July 25, 2001. A
8. Mr. Pallav Shishodia, learned senior counsel for the
appellants raised two-fold contention. His first contention was
that the appellants' objections about the availability of land
belonging to TELC which is situated behind the existing depot 8
of the Corporation and was available for sale were not rationally
considered by the RDO and the Government. He submitted that
the livelihood of about 40 members of the family was directly
affected by the compulsory acquisition of their land and,
therefore, the objections ought to have been considered in a C
reasonable manner more so since the public purpose for which
the appellants' land was sought to be acquired could have been
easily met by the acquisition of the TELC's land. In this regard,
he referred to three decisions of this Court, namely, (i) Delhi
Administration v. Gurdip Singh Uban and Others!., (ii)
Hindustan Petroleum Corpn. Ltd. v. Darius Shapur-Chenai D
and others 2 and (iii) Radhy Shyam (Dead) Through LRs. and
others v. State of Uttar Pradesh and Others3.
/
9. The second contention of the learned senior counsel for
· the appellants was that the acquisition of the appellants' land E
by the Government was for the purposes of the Corporation and
the Corporation being a 'company' for the purposes of the Act,
the procedure contemplated in Part VII of the Act was required
to be mandatorily followed and since the said procedure has
not been followed, the acquisition is bad in law. In this regard, F
Mr. Pallav Shishodia placed reliance upon a decision of this
Court in State of Punjab and Others v. Raja Ram and others".
10. On the other hand, Mr. B. Balaji, learned counsel for
the State of Tamil Nadu supported the view taken by the Single
Judge and the Division Bench of the High Court. He submitted G
1. (2000) 1 sec 296.
2. (2005) 1 sec 627.
3. (2011) 5 sec 553.
4. (1981) 2 sec 66. H
830 SUPREME COURT REPORTS [2011) 14 (ADDL.) S.C.R.
A that the proceedings for acquisition of the appellants' land have
been initiated and concluded in accordance with the procedure
prescribed in the Act. There is no illegality in the acquisition of
the appellants' land. He referred to the counter affidavit filed on
behalf of the Government before the High Court in opposition
B to the writ petition.
11. The Act was enacted in 1894 for the acquisition of land
needed for public purposes and for companies and for
determining the amount of compensation to be made on such
C acquisition. The Act has undergone some amendments in
1919, 1921, 1923, 1933, 1962, 1967 and 1984; the last major
amendments being by the Land Acquisition (Amendment) Act,
1984 (Act 68 of 1984).
12. The provisions contained in the Act, of late, have been
D felt by all concerned, do not adequately protect the interest of
the land owners/persons interested in the land. The Act does
not provide for rehabilitation of persons displaced from their
land although by such compulsory acquisition, their livelihood
gets affected. For years, the acquired land remains unused and
E unutilised. To say the least, the Act has become outdated and
needs to be replaced at the earliest by fair, reasonable and
rational enactment in tune with the constitutional provisions,
particularly, Article 300A of the Constitution. We expect the law
making process for a comprehensive enactment with regard
F to acquisition of land being completed without any unnecessary
delay.
13. Reverting back to the Act, that Section 5-A of the Act
confers a valuable right on the person interested in any land
which has been notified under Section 4(1) as being needed
G for a public purpose or likely to be needed for public purpose
is beyond doubt. By this right, the owner/person iflterested may
put forth his objections not only in respect of public purpose but
also the suitability of the acquisition in respect of his land. The
objector gets an opportunity under Section 5-A to persuade the
H Collector that his land is not suitable for the purpose for which
RAMJI VEERJI PATEL & ORS. v. REVENUE 831
DIVISIONAL OFFICER & ORS. [R.M. LODHA, J.]
the acquisition is being made or the availability of other land A
suitable for that purpose. Section 5-A proceedings are two-tier
proceedings. In the first step, the objections by the owner/
person interested are heard by the Collector and a report is
submitted to the Government. In the second step, the final
decision is taken by the Government on the objections so B
furnished by the person interested and the consideration of the
report submitted by the Collector.
14. In Munshi Singh and others v. Union of lndia 5 , in
paragraph 7 of the Report, this Court stated as follows :
c
"7. Section 5-A embodies a very just and wholesome
principle that a person whose property is being or is
intended to be acquired should have a proper and
reasonable opportunity of persuading the authorities
concerned that acquisition of the property belonging to that D
person should not be made .... The legislature has,
therefore, made complete provisions for the persons
interested to file objections against the proposed
acquisition and for the disposal of their objections. It is only
in cases of urgency that special powers have been E
conferred on the appropriate Government to dispense with
the provisions of Section 5-A:"
15. The above legal position has been reiterated by this
Court in various decisions including the decisions of this Court
in Hindustan Petroleum Corpn. Ltd. 2 and Radhy Shyam3 cited
F
by Mr. Pallav Shishodia. In Hindustan Petroleum Corpn. Ltd. 2 ,
this Court in paragaraph 6 of the Report stated thus :
"6. It is not in dispute that Section 5-A of the Act confers
a valuable right in favour of a person whose lands are G
sought to be acquired. Having regard to the provisions
contained in Article 300-A of the Constitution, the State in
exercise of its power of "eminent domain" may interfere
s. (1973) 2 sec 337. H
832 SUPREME COURT REPORTS [2011] 14 (ADDL.) S.C.R.
A with the right of property of a person by acquiring the same
but the same must be for a public purpose and reasonable
compensation therefor must be paid."
16. In Union of India v. Mukesh Hans6, this Court referred
to Munshi Singh5 and in paragraph 35 of the Report stated
8
that the limited right given to the owner/person interested under
Section 5-A of the Act to object to the acquisition proceedings
is not an empty formality and is a substantive right.
17. As a matter of law, under the Act, the only right that
C the owner/person interested has, is to submit objections to the
compulsory acquisition of his land under Section 5-A. No
question, such right and the consideration of objections filed
by the land-owner/person interested in exercise of such right
must be given the importance it deserves. The question before
D us, is whether the consideration of the appellants' objections
to the acquisition of their land by the Government suffers from
any illegality or irrationality.
18. The appellants and their family members purchased
E the subject land admeasuring 1.45 acres on January 27, 1981.
The said land was agricultural at the time of purchase and was
depressed in as much as it was low in level than the main road.
The appellants incurred expenditure in raising the level of the
land and made improvements; raised the building thereon and
installed a saw mill somewhere in 1986. In their objections filed
F on May 24, 1989 before the RDO, the facts concerning the
expenditure incurred by them for converting the agricultural land
into building site; the deprivation of their sole means of livelihood
and the availability of other lands were stated. The objectors
also stated that the workshop of Thanthai Periyar Transport
G Corporation was originally put up in Anna Kalayaran1:1am land
owned by the Municipality. Later, they had purchased four acres
of land comprised in T.S. Nos. 133 and 151 at Lal Puram main
road, and constructed a workshop and that workshop was
H 6. (2004) s sec 14.
RAMJI VEERJI PATEL & ORS. v. REVENUE 833
DIVISIONAL OFFICER & ORS. [R.M. LODHA, J.]
functioning. The Corporation, the objectors submitted, can A
· acquire any extent of land next to them to construct a workshop.
19. The RDO considered the above objections raised by
the appellants and in the proceedings drawn on September 14,
1989 overruled the same. The RDO held that when the 8
requisitioning authority approached TELC for making available
their land, the TELC refused to sell the said land and informed
them that they required their land for their religious purposes.
The RDO, in this backdrop, observed that TELC's land cannot
be acquired for the purpose of expansion of depot. As regards C
the availability of lands near Thanthai Periyar Transport
Corporation, the RDO observed that these lands were one
kilometre away from the Corporation's depot and, thus, the lend
of the appellants alone was suitable for the expansion of depot.
The RDO, accordingly, forwarded its report to the Government.
D
20. On October 26, 1989, TELC issued a public notice in
a daily newspaper 'Dina Malhar' for sale of its land referred to
above. The appellants sent the copy of the said notice to the
Government. However, the Government was not persuaded to
accept the landowners' objections and on consideration of the E
RDO's report proceeded with the issuance and publication of
declaration under Section 6 of the Act.
21. Mr. Pallav Shishodia, learned senior counsel for the
appellants vehemently contended that the land belonging to the
F
TELC is suitable as that land is situated just behind the existing
depot; the existing depot has already access to the main road
from Chidambaram to Cuddalore and on acquisition of the land
of TELC, the acquired land too would have access to the main
road through the existing depot of the Corporation. He, thus,
submitted that suitability aspect has not at all been rationally G
considered by the Government.
22. It is difficult to accept the contention of the learned
senior counsel for more than one reason. In the first place, in
paragraph 5 of the counter affidavit filed by the Government H
834 SUPREME COURT REPORTS [2011) 14 (ADDL.) S.C.R.
A before the High Court, inter alia, following averment was made:
" ....... The land acquired exists adjacent to the existing
depot and it has easy access to the main road from
Chidambaram to Cuddalore and it is found to be more
suitable in all aspects for the expansion of the
B
depot.. ....... ."
The above averment remains unrebutted and unchallenged by
the appellants as no rejoinder was filed.
c 23. Secondly, if the land proposed to be acquired and the
alternative land suggested by the owners/persons interested are
equally suitable for the purpose for which land is being
acquired, the satisfaction of the Government, if not actuated with
ulterior motive, must get primacy. In the judiciai review, it is not
0 open to the court to examine the aspect of suitability as a court
of appeal and substitute its opinion. In any case the present
case is not a case where the other lands suggested by the
appellants have been found to be equally suitable. The
Government has given reasons as to why the appellants' land
E has been found to be more suitable for expansion of the depot.
The appellants' land is adjacent to the existing depot of the
Corporation having easy access to the main road. In our view,
the manner in which the decision has been taken by the
Government regarding suitability of the appellants' land for
F expansion of the depot of the Corporation is not vitiated by any
error of law nor it is irrational or founded on the extraneous
reasons.
24. Third and more important, at the insistence of the
learned senior counsel for the appellants, we considered the
G site plan referred to by him and from a perusal thereof no doubt
is left that the land of the appellants is more suitable than the
land of TELC situate behind the existing depot. TELC land has
no direct access from the Chidambaram to Cuddalore main
road. It has access from a different side road passing adjacent
H
RAMJI VEERJI PATEL & ORS. v. REVENUE 835
DIVISIONAL OFFICER & ORS. [R.M. LODHA, J.]
to the canal. The size of the TELC's land is also awkward; it is A
a long piece of land of which width narrows down from 175 feet
to 56 feet west to east. On the other hand, the appellants' land
is adjacent on the southern side to the existing depot and has
access from the Chidambaram to Cuddalore main road.
Having regard to the purpose for which the land is sought to B
be acquired, namely, expansion of existing depot, particularly,
for a workshop, the appellants' land is definitely more suitable.
Pertinently, in their objections, the appellants have not
challenged the public purpose for the acquisition of their land.
In what we have indicated above, it cannot be said that c
suitability aspect has not '1een reasonably or rationally
considered by the Government.
25. Then comes the second contention of Mr. Pallav
Shishodia. He relied upon the decision of this Court in the case
of Raja Ram4 and submitted that the erstwhile Corporation or D
the successor Tamil Nadu State Transport Corporation
(TNSTC) is a 'government company' for the purposes of the
Act and, therefore, compliance with the provisions of Part VII .
of the Act had to be made in order to lawfully acquire any land
for its purpose. In this regard, he referred to the averment made E
in the reply to I.A. No. 3 of 2003 that TNSTC was the beneficiary
of the acquisition; it is they who have remitted the extent of
compensation quantified by the authorities under the land
acquisition.
F
26. With regard to the above contention of Mr. Pallav
Shishodia, it is enough to say that it overlooks Section 3(cc)
and Section 3(e) of the Act, substituted by Act 68of1984. The
definition of 'company' in Section 3(e) after substitution in 1984
is as follows: G
"S.3(e).- the expression "company" means-
(i) a company as defined ·in section 3 of the
Companies Act, 1956 (1 of 1956), other than a
Government company referred to in clause (cc); H
836 SUPREME COURT REPORTS (2011) 14 (ADDL.) S.C.R.
A (ii) A society registered under. the Societies
Registratior. Act, 1860 (21 of 1860), or under any
corresponding law for the time being in force in a
State, other than a society referred to in clause
(cc);
B
(iii) A co-operative society within the meaning of any
law relating to co-operative societies for the time
being in force in any State, other than a co-
operative society referred to in clause (cc)".
C Section 3(cc) of the Act defines the expression "corporation
owned or controlled by the State" as follows :
"S.3(cc).- the expression "corporation owned or controlled
by the State" means any body corporate established by
D or under a Central, Provincial or State Act, and includes a
Government company as defined in section 617 of the
Companies Act, 1956 (1 of 1956), a society registered
under the Societies Registration Act, 1860 (21 of 1860),
or under any corresponding law for the time being in force
in a State, being a society established or administered by
E
Government and a co-operative society within the meaning
of any law relating to co-operative societies for the time
being in force in any State, being a co-operative society
in which not less than fifty-one per centum of the paid-up
share capital is held by the Central Government, or by any
F State Government or Governments or partly by the Central
Government and partly by one or more State
Governments;"
27. That Corporation and the TNSTC fall within the
G definition of Section 3(cc) is not in dispute. Both may not have
been divested of their character as a government company but
&ub-clause (i) of Section 3(e) excludes a government company
from the definition of company. Part VII (Sections 38 to 448)
of the Act provides for acquisition of land for companies. In view
H
RAMJI VEERJI PATEL & ORS. v. REVENUE 837
DIVISIONAL OFFICER & ORS. [R.M. !..ODHA, J.]
)fthe definition of the 'company' in Section 3(e) which excludes· A
_Jovernment company, the Corporation or for that matter its
-successor TNSTC does not fall within the definition of the
'company' and, therefore, is not covered by Part VII of the Act
mat all.
B
28. In Raja Ram4 , the definition of 'company' in Section 3
•(e) of the Act prior to its substitution fell for consideration. The
-definition of'company' under consideration read as folbws :
"the expression "company" means a company registered
under the Indian Companies Act, 1890 or under the C
(English) Companies Acts, 1862 to 1882 or incorporated
by an Act of Parliament of the United Kingdom or by an
Indian law, or by Royal Charter or Letters Patent and
includes a society registered under the Societies
Registration Act, 1860, an a registered society within the D
meaning of the Cooperative Societies Act, 1912, or any
other law relating to cooperative societies for the time
being in force in any State."
29. It was in the context of the above definition that this
E
Court held in Raj Ram4 that the Food Corporation of India was
not divested of its character as a company within the meaning
of definition of clause (e) of Section 3 of the Act. As noticed
above; the definition of 'company' has undergone complete
change and. the government company has been expressly
F
excluded from the expression 'company' for the purposes of the
Act.
30. For the above reasons, it has to be held that Part VII
of the Act has no application to the present case as the
acquisition of land is not for a 'company' as defined in Section G
3(e).
31. Mr. PaJlav Shishodia, learned senior counsel also urged
that the appellants are migrants from Gujarat. They have settled
in Chidambaram about thirty years back and the livelihood of H
838 SUPREME COURT REPORTS [2011] 14 (ADDL.) S.C.R.
A the entire family of the appellants which comprised of about 40
. members is dependant on the saw mill existing on the subject
land. Having regard to these facts, he would submit that we
invoke our jurisdiction under Article 142 of the Constitution and
declare the acquisition of the appellants' land bad in law to do
B complete justice. There is no doubt that by compulsory
acquisition of their land, the appellants have been put to
hardship. As a matter of fact, the RDO was alive to this
problem. In his report dated September 14, 1989, the RDO did
observe that the land owners have spent considerable money
c to raise the level of the land for constructing compound wall and
running saw mill. He was, however, of the opinion that the
appellants' land was very suitable for the expansion of the depot
and the suitable compensation can be paid to the land-owners
to enable them to purchase an alternative land. The appellants,
however, proceeded to challenge the acquisition. The litigation
0
has traversed upto this Court and taken about 22 years. The
public purpose has been stalled for more than two decades.
Being the Highest Court, an extraordinary power has been
conferred on this Court under Article 142 to pass any decree,
order or direction in the matter to do complete justice between
E the parties. The power is plenary in nature and not inhibited by
constraints or limitations. However, the power under Article 142
is not exercised routinely. It is' rather exercised sparingly and
very rarely. In the name of justice to the appellants, under Article
142, nothing should be done that would result in frustrating the
F acquisition of land which has been completed long back by
following the procedure under the Act and after giving full
opportunity to the appellants under Section 5-A. The possession
of the land has also been taken as far back as on July 25, 2001.
The appellants made an application (I.A. No. 2 of 2002) for
G direction to the respondents not to interfere with the functioning
of the saw mill and permit them to use the saw mill but this Court
in its order dated May 8, 2002 only said that the saw mill shall
not be demolished till further orders. No permission was
granted to the appellants to use the saw mill. In other words,
H for more than ten years the saw mill is closed·after possession
RAMJI VEERJI PATEL & ORS. v. REVENUE 839
DIVISIONAL OFFICER & ORS. [R.M. LODHA, J.]
was taken over from the appellants. In the circumstances, this A
is not a· case fit for exercise of power under Article 142 and
declare the acquisition of the appellants' land bad although the
acquisition proceedings have been completed in accordance
with law.
B
32. Lastly, the learned senior counsel invited our attention
to the application (I.A. No. 4) wherein the appellants offered for
amicable settlement by expressing their readiness and
willingness to. give an area of land admeasuring 13250 square
feet out of the total land of 1.45 acres (i.e. 1 acre and 19445
sq. ft.) free of cost to the Corporation. The offer is not acceptable C
to Mr. B. Balaji. He submitted that such a small area is of no
use for expansion of the existing depot. We do not find any
unreasonableness in the submission of the counsel that an area
of 13250 square feet would not meet the purpose for whi,ch the
appellants' land has been acquired. D .
33. In view of the above, there is no merit in the appeal
and it is dismissed. I.A. No. 4 and other pending applications,
if any, stand disposed of. No costs.
E
N.J. Appeal dismissed.
...
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