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Supreme Court of India

RAMJI VEERJI PATEL & ORS.versusREVENUE DIVISIONAL OFFICER & ORS.

Citation
2011 INSC 780
Decided
2 November 2011
Disposal
Dismissed

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

Subjects

Land acquisitionPublic purposeSection 5-A objectionsSuitability of landPart VII of Land Acquisition ActGovernment companyArticle 142CompensationLivelihood

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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