Holding

The Supreme Court affirmed the Reference Court and High Court awards, finding no error in the compensation assessment, that the claimants had not accepted compensation without protest, and that no evidence showed they were unauthorized occupants, thus dismissing all appeals.

Summary

The Supreme Court examined appeals by the Uttar Pradesh State Industrial Development Corporation and the claimants concerning land acquired under the Land Acquisition Act, 1894. The Court upheld the Reference Court’s award of Rs.11 per square yard for land abutting the road and Rs.9 per square yard for other land, finding that the evidence, including sale deeds, was properly appreciated. It held that the claimants had not accepted the compensation without protest, as they filed objections and a reference under Section 18. The Court rejected the State’s contention that the claimants were unauthorized occupants of government land under the U.P. Zamindari Abolition Act, noting no evidence to support that claim and that such a plea cannot be raised in a Section 18 reference. Finally, the Court dismissed all appeals, affirming the lower courts’ determinations.

Issues considered

Whether the Reference Court’s award of compensation under the Land Acquisition Act should be altered.
Whether the claimants had accepted the compensation offered without protest, thereby precluding a reference under Section 18.
Whether the claimants were unauthorized occupants of land vested in the State under the U.P. Zamindari Abolition Act and thus ineligible for compensation.
Whether the validity of the Section 4 notification can be contested in a Section 18 reference.
Whether a low‑price sale deed dated shortly before the notification can be the sole basis for reducing compensation.

Legislation cited

Land Acquisition Act, 1894s. 17(4), s. 18, s. 25, s. 4, s. 48, s. 5-A, s. 6

Subjects

Land acquisitionCompensation assessmentSection 18 referenceUnauthorized occupationSale deed evidenceValidity of notification

Judgment

- U.P. STATE INDUSTRIAL DEVELOPMENT CORPORATION A
v.
RISHABH ISPA TLTD. AND ORS.

DECEMBER 15, 2006

[B.P. SINGH AND AL TAMAS KABIR, JJ.] B

Land Acquisition Act, 1894:

s.4-Award of compensation by reference court-Appeal by claimants
for enhancement of compensation-High Court affirmed the finding of C
Reference Court-On appeal, held, finding of reference court was based on
proper appreciation ofevidence on record and proper application ofprinciples
relating to determination of compensation under the Act and hence does not
call for interference.
D
s. I 8-Plea of State that land vested in the State Government and
claimants have no right to claim compensation for such land-Held, such
plea cannot be raised in proceedings under S.18-Land Acquisition Officer
himself had made offer of compensation to claimants-Having done so and
having made a reference to court under S.18, it could not be contended by
LA officer in a proceeding under S.18 that claimants to whom he had himself E
offered compensation were not owners of the lands.

In land acquisition case, a Notification dated August 25, 1981 was issued
under s.4 of Land Acquisition Act in respect of village Habibpur. Another
Notification dated September 14, 1981 under s.4 was issued in respect of F
village Gulsitapur. The third Notification was issued on May 30, 1985 also
in respect of village Gulsitapur.

Pursuant to Notification issued under s.4 on August 25, 1981, lands in
village Habibpur were sought to be acquired. The possession of lands in
question was taken September 25, 1981. G
The Land Acquisition Officer fixed compensation. The land owners were
not satisfied hence a reference was made under s.18 of the Act. The reference
Court enhanced the compensation offered by Land Acquisition officer and it
1129 H
1130 SUPREME COURT REPORTS [2006) SUPP. IO S.C.R..

A allowed compensation @ Rs.11 per: sq. yard for the lands abutting the road
and the compensation ofRs.6 per sq. yard for the other lands. On appeal,
High Court enhanced the compensation in respect of other lands from Rs. 6
to Rs. 9 per sq. yard while maintaining Rs. 11 per sq. yard for lands abutting
the road. Both State and Claimants filed appeals.

B The appellant-State contended that in the instant case there was a sale
deed wherein land was purchased by one 'A' @0.72 ps. per sq. yard and,
therefore, there could be no better evidence to prove that the value of the land
was much less, particularly when the aforesaid sale deed was executed only 4
days before the issuance of the Notification under s.4 of the Act; that the
C claimants having accepted the compensation offered to them without demur
or protest, they were not entitled to claim a reference under s.18 of the Act;
and that the lands vest.ed in the State Government and claimants had no right
to claim compensation for such lands.

Dismissing the appeals, the Court
D
HELD: 1.1. It cannot be disputed that the lands in question are valuable ·
lands and have become even more valuable on account of the development that
has taken place in the area. The lands are in the vicinity of the city of Delhi
and within 8-9 kilometers of Noida on Dadri - Noida - Delhi main road. It is
E not in dispute that villages Habibpur and Gulsitapur are adjacent villages.
Having regard to the location of these villages, compensation for lands
acquired have been awarded on the same basis and at the same rates by the
High Court. [1133-D-E]

1.2. Having regard to the fact that the Land Acquisition Collector himself
F offered compensation @ Rs. 3.92 ps; and Rs. 2.14 per sq. yard, the
compensation could not have been reduced to 0. 72 ps. per sq. yard in view of
the provision of Section 25 of the Act. The Reference Court relied upon a
sale deed executed on 25th July, 1981 which related to the sale of2 bighas of
land of village Habibpur@Rs. 21,600 per bigha. This sale deed was executed
G on 25th July, 1981 whereas the Notification under Section 4 was issued on
25th August, 1981. The Reference Court found this exemplar to be a reliable
piece of evidence and accordingly determined compensation @ Rs. 11 per sq.
yard for the lands abutting the road and Rs. 6 for the lands away from the
road. The High Court has affirmed the finding of the Reference Court. There
H is no reason to interfere with the finding which is based on proper appreciation
U.P. STATEINDUSTRIALDEVELOPMENTCORPN. 1•. RISHABHISPATLTD. 1131

of the evidence on record and the proper application of the principles relating A
to determination of compensation under the Act. (1134-C-E-F)

2. The question as to whether the compensation offered was accepted
without protest is essentially a question of fact to be determined on the basis
of the evidence on record. The High Court found that the Collector made his B
Award on 27th June, 1985 and an application for making a reference was
filed within time on 6th August, 1985. The claimants examined themselves
on oath, and it was not even suggested to them that they had accepted the
compensation without protest. No evidence was brought on record to establish
that the compensation was accepted by the claimants witltout protest. On the
other hand the fact that the claimants promptly filed their objections and sought C
reference under Section 18 of the Act established that the claimants had not
accepted the compensation without protest, but their acceptance was subject
to the order that the Reference Court or any other superior court may pass.
The High Court was, therefore, justified in holding that there was no material
to substantiate the contention that the compensation had been accepted without D
protest by the claimants. [1134-H; 1135-A-DI

3. The High Court was right in holding that there was no material on
record to prove that some of the claimants were unauthorized occupants of
Government lands and, therefore, not entitled to compensation for such lands.
The High Court was also right in holding that in a reference under Section E
18 of the Act such a contention could not be raised because matters that may
be_ considered by a court in a reference under s.18 of the Act are matters
enumerated in s.18 itself as also the following sections. This was not a case
where two claimants had claimed compensation in respect of the same land,
or there was any dispute as to the apportionment. [1136-E-G) p
Raghunath and Ors. v. State of Maharashtra and Ors., (1988) 3 SCC
294, held inapplicable.

Hindustan Oil Mills Ltd and Anr. v. Special Deputy Collector (Land
Acquisition) (1990) 1 sec 59, distinguished. G
Girdharilal Amratlal v. State of Gujarat, (1966) 3 SCR 437; State of
Gujarat v. Haider Bus Razvi, (1976) 3 SCC 536 and State v. Bhogilal Keshavlal,
(1980] 1 sec 308, referred to.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1330of1997. H
1132 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A From the Judgment and Order dated 2.4.1996 of the High Court of
Judicature at Allahabad in F.A. No. 86111991.

WITH

C.A. Nos. 1332-1382, 1383, 1384-1515, 1516-1535 and 1331 ofl997.
B
V.R. Reddy, P.P. Rao, Vivek Tankha, Ranjit Kumar (N.P.), Ameet Singh,
Pareena Swarup, Pramod Swarup, Manoj Swarup & Co., Dharam Bir Raj Vohra,
Jetendera Singh, Dr. Nafis A. Siddiqui, O.P. Gupta, R.K. Thakur, Rajinder
Mathur, Tarun MathlJi, Ranbir Singh Yadav, D.B. Vohra, B.K. Satija, E.C.
C Agrawala, R.C. Verma, B.B. Sinha, Joli Saxena, M.P. Shorawala, Ramesh Chandra
Pandey, Arvind Verma, V.K. Agrawal, Malvika Trivedi (for K.L. Mehta & Co.),
B.S. Nagar, K.L. Janjani, R.P. Sharma, Sandeep Singh, Arun Bhardwaj, Pannalal
Syngal, Rameshwar Prasad Goyal, N.S. Gahl~t, R.K. Singh, Rashmi Singh and
Karrilendra Mishra for the appearing parties.

D The Judgment of the Court was delivered by

B.P. SINGH, J. This batch of appeals has been preferred against the
common judgment and order of the High Court of Ju~icature at Allahabad
dated April 2, 1996 whereby a large number of appeals preferred by the U.P.
State Industrial Development Corporation (UPSIDC) as well as the claimants
E have been decided.

The lands acquired under the provisions of the Land Acquisition Act
measuring about 900 acrec; under three Notifications are located in two adjacent
villages, namely -'-Village Habibpur and village Gulsitapur. In respect of
p Habibpur a Notification under Section 4( 1) of the Land Acquisition Act
(hereinafter referred to as 'the Act') was issued on 25th August, 1981 in
respect of 225.75 acres of land. Another Notification under Section 4 was
issued on 14th September, 1981 which related to 173.5 acres ofland in village
Gulsitapur. The third notification was issued on May 30, 1985 which related
G to 501.48 acres of land of village Gulsitapur.

Civil Appeals Nos. 1330 of 1997, 1332 to 1382 of 1997 have been
preferred by UPSIDC and relate to village Habibpur. Similarly Civil Appeal
Nos. 1384 to 1515 of 1997 have been preferred by the UPSIDC. The remaining
appeals are by the land-owners/claimants.
H
... U.P.STATEINDUSTRIALDEVELOPMENTCORPN.1>. RISHABHISPATLTD.[B.P.SINGH,J.J 1133

Pursuant to the Notification issued under Section 4 of the Land A
Acquisition Act on 25th August, 1981 the lands in village Habibpur were
sought to be acquired for a public purpose. The possession of the lands in
question was taken on 25th September, 1981. The Special Land Acquisition
Officer offered compensation to the land owners on the basis of circle rates
of the lands in question and accordingly for the lands of which the circle rate B
was Rs.3.05 ps. the compensation was fixed @ Rs.6,486.49 ps. per bigha.
Similarly the lands which had the circle rate of Rs.6.25 per sq. yard, the
compensation offered was Rs.11,583.02 ps. The land- owners were not satisfied
with the offer of the Special Land Acquisition Office, hence a reference was
sought and made under Section 18 of the Act. The reference court enhanced
the compensation offered by the Special Land Acquisition Officer and it C
allowed compensation @ Rs. I l/- per sq. yard for the lands abutting the road
and a compensation of Rs.6/- per sq. yards for the other lands. The High
Court on appeal by its impugned judgment and order has maintained the
compensation awarded in respect of the lands abutting the road @ Rs. 11 per
sq. yard and enhanced the compensation in respect of other lands from D
Rs.6/- to Rs. 9 per sq. yard. It cannot be disputed that the lands in question
are valuable lands and have become even more vaiuable on account of the
development that has taken place in the area. The lands are in the vicinity
of the city of Delhi and within 8-9 kilometers ofNoida on Dadri-Noida-Delhi
main road. It is not in dispute that villages Habibpur and Gulsitapur are E
adjacent villages. Having regard to the location of these villages compensation
for lands acquired have been awarded on the same basis and at the same rates
by the High Court.

The High Court has undertaken a very detailed and meticulous
examination of the evidence on record to determine the compensation payable F
to the land-owners. It is well settled that having regard to the principles laid
down in the Act the Court must determine the compensation payable to the
land-owners, but all said and done as assessment of compensation to be
awarded does involve some rational guess work, having regard to all the facts
and circumstances of the case.
G
We have carefully perused the judgment of the High Court and so far
the quantum of compensation is concerned, we have not found any illegality
or irrationality in the reasoning of the High Court. On a very careful
consideration of the evidence on record, the High Court has recorded its
H
1134 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A finding and we, therefore, do not find any reason to interfere with the order
of the High Court.

We may however notice that counsel appearing on behalf of the appellant
-UPSIDC submitted that in the instant case there was a sale deed wherein land
B was purchased by Shri A.P. Sarin @ 0. 72 ps. per sq. yard. He, therefore,
submitted that there could be no better evidence to prove that the value of
the land was much less, particularly when the aforesaid sale deed was executed
only 4 days before the issuance of the Notification under Section 4 of the Act.
The submission appears to be attractive, but having regard to the fact that
the Land Acquisition Collector himself offered compensation @ Rs.3.92 ps.
C and Rs.2.14 per sq. yard, the compensation could not have been reduced to
0.72 ps. per sq. yard in view of the provision of Section 25 of the Act.
Moreover the sale deed does not appear to correctly represent the value of
land in that locality because the other exemplars gave a different picture. On
the other hand, the claimants had also produced a sale deed dated 19th
D August, 1981 which related to the sale of 0.5 bigha of land in village Habibpur
@ Rs.43,801/- per bigha. This exemplar was rejected by the Reference Court
observing that there was only one such sale deed which disclosed such high
value for the lands of village Habibpur. The Reference Court relied upon a
sale deed executed on 25th July, 1981 which related to the sale of 2 bighas
of land of village Habibpur@ Rs.21,600/- per bigha. This sale deed was
E executed on 25th July, 1981 whereas the Notification under Section 4 was
issued on 25th August, 1981. The Reference Court found this exemplar to
be a reliable piece of evidence and accordingly determined compensation @
Rs. 11 per sq. yard for the lands abutting the road and Rs. 6 for the lands
away from the road. The High Court has affirmed the finding of the Reference
F Court. We find no reason to interfere with the finding which is based on
proper appreciation of the evidence on record and the proper application of
the principles relating to determination of compensation under the Act.

Mr. Reddy then submitted that the claimants having accepted the
G compensation offered to them without demur or protest, they were not entitled
to claim a reference under Section 18 of the Act. On the other hand learned
counsel for the claimants contended that this submission was not founded
on correct factual basis since the claimants had filed their objections within
time and, therefore, there was no question of their accepting the compensation
without protest. The question as to whether the compensation offered was
H
U.P. STATEINDUSTRIALDEVELOPMENTCORPN. "· RISHABHISPATLTD.[B.P.SINGH,J.) 1135

A
accepted without protest is essentially a question of fact to be determined on
the basis of the evidence on record. We have perused the material on record
and the finding recorded by the High Court in this regard. The High Court
found that the Collector made his Award on 27th June, 1985 and an application
for making a reference was filed within time on 6th August, 1985. The B
claimants examined themselves on oath, and it was not even suggested to
them that they had accepted the compensation without protest. No evidence
was brought on record to establish that the compensation was accepted by
the claimants without protest. On the other hand the fact that the claimants
promptly filed their objections and sought reference under Section 18 of the
Act established that the claimants had not accepted the compensation without C
protest, but their acceptance was subject to the order that the Reference
Court or any other superior court may pass. The High Court was, therefore,
justified in holding that there was no material to substantiate the contention
that the compensation had been accepted without protest by the claimants.
D
Shri Reddy also contended that the claimants were not entitled to be
paid any compensation for lands which they possessed in violation of Section
154(1) read with Section 167(1) and (2) of the U.P. Zamindari Abolition Act
(U.P. Act No. l of 1951) since such lands vested in the State Government and
claimants had no right to claim compensation for such lands.
E
It appears from the record that the plea urged on behalf of the Land
Acquisition Officer was initially upheld by the Reference Court, but later that

- judgment was reviewed and it was held that there was no evidence on record
to prove that the claimants had acquired any land in violation of the aforesaid.
provisions. The High Court considered the provisions on which reliance was F
placed by the State particularly, Sections 154 and 167 of the U.P. Zamindari
Abolition Act. Section 167 of the U.P. Zamindari Abolition Act in terms
provides that where any land has vested in the State Government, it shall be
lawful for the Collector to take possession of such land and to direct that any
person occupying such land be evicted from such land. The Collector is also
• authorized to use or cause to be used such force as may be necessary for G
the purpose of taking over such possession or evicting such unauthorized
persons. The High Court found that there was no evidence whatsoever to
substantiate the plea that the claimants were in illegal and unauthorized
possession of lands which had vested in the State of Uttar Pradesh. It was
H
....
1136 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A not shown that at any stage any action was taken to evict and dispossess
the unauthorized occupants of such lands which had vested in the State of
Uttar Pradesh. On the contrary it was not disputed that the claimants were
in possession till the date the possession of the land was taken from them
pursuant to the Notifications issued under Section 4(1) and Section 6 of the
B Act. Till that time they were in possession and their possession was not
disturbed by any action taken by the Collector or the Gaon Sabha under any
law. Thus the High Court held that there was no evidence to substantiate
the contention of the State that the claimants/land-owners were in unauthorized
possession of Government lands for which they could not be compensated.
The High Court also noticed, and in our view rightly, that such a plea could
C not be raised in a proceeding under Section 18 of the Act. It is also not in
dispute that the Special Land Acquisition Officer offered compensation to the
claimants. That obviously was on the basis that the State recognized the
claimants as the owners of the lands which were sought to be acquired.
Having done so, and having made a reference to the Court under Section 18
D of the Act, it could not be contended by the Special Land Acquisition Officer
in the proceedings under Section 18 of the Act or in any proceedings arising
therefrom that the claimants, to whom he had himself offered compensation,
were not owners of the lands. The State ought to have taken appropriate
proceedings, if any, permissible in law, to deny compensation to such claimants,
E who according to the State were in occupation of lands which had vested in
the State of Uttar Pradesh. Having considered the material on record and the
reasoning of the High Court we are satisfied that the High Court was right
in holding that there was no material on record to prove that some of the
claimants were unauthorized occupants of Government lands and, therefore,
not entitled to compensation for such lands. The High Court was also right
F in holding that in a reference under Section 18 of the Act such a contention
could not be raised because matters that may be considered by a court in a
reference under Section 18 of the Act are matters enumerated in Section 18
itself as also the following sections. This was not a case where two claimants
had claimed compensation in respect of the same land, or there was any
G dispute as to the apportionment. The State wanted the Court to hold that
the persons to whom the compensation had been offered, and who the
'
Collector had reasons to believe were interested in the land, shouid not be
granted any compensation on the ground that they had no interest in the
lands and were in unauthorized possession of Government lands.

H
U.P.STATEINDUSTRJALDEVELOPMENTCORPN.1·. RISHABHISPATLTD. [B.P.SINGH,J.J} }37

We shall now consider the submissions urged by the claimants in the A
appeals preferred by them relating to acquisition of lands in village Habibpur.

According to the claimants a Notification under Section 4(1) read with
Section 17(4) of the Act was published on 25th August, 198 l. By the
aforesaid Notification an inquiry under Section 5-A of the Act was dispensed B
with. Thereafter a declaration under Section 6 was also issued. The aforesaid
Notification was challenged by the claimants in Civil Misc. Writ Petition
No.11872 of 1981 which was decided on May 23, 1983. While deciding the
writ petition, the High Court held :-

"The result of the discussion is that the notification issued under C
Section 6 of the Act without affording opportunity to the petitioners
to file objections and without an inquiry under Section SA is invalid.
The decision to obviate the inquiry under that provisions was wholly
without authority of law. The recital to that effect in the Notification
under Section 4 is invalid too. The Notification dated August 25, 1981
is quashed. The respondents are directed to permit the petitioners to D
file objections and enquire into them under Section SA before making
a fresh declaration, if any, under Section 6 of the Act in regard to their
land."

The State preferred a special leave petition before this Court but during E
the pendency of the special leave petition issued a Notification on July 11,
1983 inviting objections from the claimants pursuant to the Notification earlier
issued under Section 4 of the Act. After considering the objections a
Notification under Section 6 of the Act was issued on October 7, 1983. The
submission urged on behalf of the claimants before the High Court was that
since the original Notifications under Sections 4 and 6 of the Act were F
quashed and a fresh Notification was issued on July 11, 1983 inviting
objections under Section 5-A of the Act, the compensation to be awarded
must be determined by reckoning the Notification issued on July 11, 1983 as
the Notification under Section 4 of the Act.
G
The High Court negatived the contention and held that the Notification
under Section 4 of the Act issued on August 25, 1981 was in two parts. While
the first part declared the need for acquisition of the lands in question for a
public purpose, the second part dispensed with the inquiry under Sections

H
1138 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A 5-A of the Act. The High Court had quashed only that part of the Notification
which dispensed with the inquiry under Section 5-A of the Act because there
was no material on record to establish any urgency which could justify
dispensing with the inquiry under Section 5-A of the Act. On a reading of
the judgment and order of the High Court it was held that the first part of
B the Notification which was a Notification under Section 4( I) of the Act was
not quashed. Adverting to the Notification issued on July 11, I983 inviting
objections under Section 5-A of the Act the High Court observed that the
Notification did not even whisper that it was a Notification under Section 4
of the Act. It only recited the earlier history which led to the issuance of the
Notification inviting objections. Thereafter on October 7, · 1983, after
c considering the objections, a Notification under Section 6 was issued. No
doubt this Notification makes a reference to the Notification dated July I I,
I983 as Notification issued under sub-section (I) of Section 4 of the Act. The
High Court, however, did not attach much importance to this recital in the
Notification issued under Section 6 of the Act because the Notification issued
D on July I I, 1983 did not purport to be a Notification under Section 4(I) of the
Act. The Notification clearly mentioned that it was a Notification inviting
objections under Section 5-A of the Act in continuation of the Notification
dated August 25, I981 issued under Section 4(1) of the Act. It further held
that the High Court in the earlier writ petition did not quash the first part of
E the Notification dated August 25, 1981 which remained intact. Mere wrong • l

mention of the Section in the subsequent Notification did not make the
Notification inviting objections under Section 5-A of the Act a Notification
issued under Section 4(1) of the Act.

Before us the same submission was urged by the counsel appearing in
F the appeals preferred by the claimants. Shri P.P. Rao, learned senior counsel
appearing on behalf of the claimants, submitted that the Notification issued
on July 11, 1983 inviting objections gave only 21 days time for filing of
objections instead of 30 days. In any event he submitted that even if the
aforesaid Notification was not invalidated in toto, it must be treated as the
G Notification under Section 4(1) of the Act. The same submission was reiterated
by the other counsel appearing for the claimants in the other appeals. Mr.
Tankha, learned senior counsel appearing on behalf of some of the claimants,
placed reliance on the judgment of this Court reported in [ 1988] 3 SCC 294:
Raghunath and Ors. v. State of Maharashtra and Ors., and submitted that
once a Section 6 Notification is issued, the Notification under SectiQP 4 is
H ~
U.P.STATEINDUSTRIALDEVELOPMENTCORPN. '" RISHABH ISPATLTD. (B.P. SINGH,J.Jl 139

exhausted. Therefore, in the instant case the first Notification issued under A
Section 6 of the Act having been quashed, the Notification under Section 4
issued earlier got exhausted and, therefore, it became necessary for the State
to issue another Notification under Section 4 of the Act. There was no
question of issuing a notification in continuation of the earlier Section 4
notification. According to him the .second Notification cannot be said to be B
in continuation of the first Notification. He also relied upon the judgment of
this Court in [1990] I SCC 59: Hindustan Oil Mills ltd. and Anr. v. Special
Deputy Collector (land Acquisition).

In reply Shri Reddy, learned senior counsel, submitted that the question
of validity of a Notification could not be gone into in a proceeding under C
Section 18 of the Act. He also relied on the decision in Raghunath and
distinguished the decision in Hindustan Oil Mills.

We ~ave carefully considered these two decisions cited at the bar and
on a careful consideration of the principles laid down therein, it must be held D
that the claimants are not right in their contention. The submissions urged
on their behalf proceed on the assumption that the Notification issued under
Section 4 of the Act got exhausted after a Notification under Section 6 of
the Act was issued, which was later struck down by the High Court as invalid.
Reliance placed on the decision in Raghunath and Ors. v. State of
Maharashtra and Ors (supra) is misplaced. In that case a similar submission E
was advanced on the basis of the decision of this Court in [1966] 3 SCR 437:
Girdhari/al Amratlal v. State of Gujarat wherein the question for:
consideration of the Court was whether there could be successive declarations
in respect of various parcels ·of land covered by a Notification under Section
4( I) of the Act and whether once a declaration under Section 6 particularising F
the area in the locality specified in the Notification under Section 4(1) was
issued, the remaining non-particularised area stood automatically released. It
was in that context that it was observed that once a valid declaration under
Section 6 is made, the scope of the Notification under Section 4 will get
exhausted. This Court in Raghunath, therefore, held that the aforesaid G
principles did not apply to a case where the declaration under Section 6 of
the Act was proved to be invalid, ineffective or infructuous for some reason.
This Court referred to three earlier decisions of this Court reported in [1966]
3 SCR 437:::: AIR (1966) SC 1408 : Girdhari Lal Amratlal v. State ofGz!}arat,-

H
1140 SUPREME COURT REPORTS [2006) SUPP. I 0 S.C.R.

A [1976] 3 SCC 536: State of Gujarat v. Haider Bux Razvi and [1980] I SCC
308 : State v. Bhogilal Keshavlal and held that where a Notification under
Section 6 is invalid, the government may treat it as ineffective and issue in
its place a fresh Notification under Section 6 and that there is nothing in
Section 48 of the Act to preclude the government from doing so. The
B decisions referred to by this Court clearly point out the distinction between
a case where there is an effective declaration under Section 6 and a case
where, for some reason the declaration under Section 6 is invalid. It further
observed that in principle there was no distinction between a case where a
declaration under Section 6 is declared invalid by the Court and a case in
which the government itself withdraws the declaration under Section 6 when
c some obvious illegality is pointed out. The Court, therefore, upheld the order
of the High Court and held that the issuance of a fresh declaration under
Section 6 of the Act after withdrawing the earlier one issued under Section
6 of the Act did not have the effect of rendering the Notification under
Section 4 ineffective and infructuous. In the case of Raghunath a Notification
D had been issued under Section 4 of the Act followed by a declaration under
Section 6 of the Act, but realizing that the declaration was not valid since the
objections filed by the petitioners had not been heard before making the
declaration, the Government itself withdrew the Notification under Section 6
of the Act and made another declaration after hearing objections under
E Section 5-A of the Act. We have no doubt that the same principle applies
to the facts of this case. Reliance placed on Hindustan Oil Mills ltd. and
Anr. v. Special Deputy Collector (land Acquisition) (supra) is also of no
avail to the claimants because that case was decided on its own facts. The
first two Notifications under Section 4 of the Act did not clearly indicate the
land that was proposed to be acquired. That became clear only when the
F third Notification was issued. This Court found that there were vital defects
in the first two Notifications and it was really the third Notification which was
effective under Section 4 of the Act. This Court observed that when there
is a Notification which purports to be by way of an amendment, the question
whether it is really one rectifying certain errors in the earlier one or whether
r
G its nature is such as to totally change the entire complexion of the matter
would have to be considered on the terms of the relevant notifications. This
Court, therefore, based its conclusion entirely on the language of the
Notification. It was also observed that this did not mean that wherever there
are notifications by way of amendments, it is only the last of them that can
H be taken as the effective notification under Section 4 of the Act. The
U.P.STATEINDUSTRIALDEVELOPMENTCORPN. r. RISHABH ISPATLTD. [B.P. SINGH.J.J l l 4 J

authority, therefore, is of no assistance to the claimants. The principles laid A
down in Raghunath clearly apply to the facts of the instant c.ase and,
therefore, the submission urged on behalf of the claimants must be rejected.

We, therefore, find no merit in any of these appeals and all the appeals
are, therefore, dismissed but without any order as to costs.
B
D.G. Appeal dismissed.