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Supreme Court of India

U.P. STATE SUGAR CORPORATION LTD.versusSTATE OF U.P. AND ORS.

Citation
1995 INSC 515
Decided
29 August 1995
Disposal
Appeal(s) allowed

Holding

The Court held that the appellant, as a public corporation serving a public purpose, is entitled to exemption of the 2.18 acres and that the acquisition should proceed on the alternative 2.74‑acre plot offered.

Summary

The appellant, U.P. State Sugar Corporation Ltd., sought exemption of 2.18 acres of a 2.40‑acre parcel slated for acquisition under the Land Acquisition Act, 1894, arguing that the land was needed for the convenient enjoyment of its General Manager's residence and staff quarters. The corporation offered an alternative 2.74‑acre plot (No. 41/4) in lieu of the exempted portion. The respondent, Avam Evam Vikas Parishad, initially agreed to acquire the alternative land but refused to delete the 2.18 acres from the acquisition. The Supreme Court held that both parties are public corporations serving a public purpose and that the appellant’s request for exemption was genuine and necessary for its operations. Consequently, the Court directed the Parishad to propose to the State Government the withdrawal of the acquisition of the 2.18 acres and to acquire the alternative plot, with the State Government to issue the requisite notifications. The appeal was allowed.

Issues considered

  • Whether a public corporation can be granted exemption of a portion of land from acquisition under the Land Acquisition Act, 1894 for the purpose of convenient enjoyment of its property.
  • Whether the offering of alternative land in lieu of the exempted portion is permissible.

Legislation cited

Subjects

land acquisitionexemptionpublic corporationalternative landUttar Pradeshconvenient enjoyment

Judgment

A                U.P. STATE SUGAR CORPORATION LTD.
                                  v.
                        STATE OF U.P. AND ORS.

                                AUGUST 29, 1995

B               [K. RAMASWAMY AND B.L. HANSARIA, JJ.}

          Land Acquisition Act, 1894:                                             I
                                                                                  "
           Public C01porations-Acquisition of land-Exemption of part of land
C   for enjoyment of prope1ty-Altemative land in lieu of exempted land-Direc-
    tions regarding.

           Land measuring 2.40 acres was the subject matter of acquisition. In
    this appeal the question is whether a portion out of the said land measur-
    ing 2.18 acres should be exempted from acquisition entitling the appellant-
                                                                                  -
D   Corporation to retain the same for convenient and comfortable enjoyment
    of the property. It was agreed between the appellant-Corporation and the
    Respondent- Parishad that the said land measuring 2.18 acres adjoining
    the appellant's General Manager's residence would be exempted from
    acquisition and in lieu thereof the appellant-Corporation would give 2.74
E   acres of land. However, the respondent-Parishad submitted a proposal to
    acquire the 2.74 acres land offered by the appellant-Corporation but not
    for deletion of 2.18 acres of land.

          Allowing the appeal of the Appellant-Corporation, this Court

F          HELD : The appellant and respondent are two public corporations.
    The appellant-Corporation is also serving the public purpose. The land is
    needed by them for convenient enjoyment of the residence and the staff
    quarters. The respondent-Parishad is acquiring land for urban develop-
    ment; it would also become a part of its duty to see that the appellant-
G   Corporation should have comfortable enjoyment of properties for its
    officers and staff. The respondent-Parishad is directed to submit, within
    three months from the date of this order, a proposal for the state Govern-
    ment to withdraw the proposed acquisition to the extent of 2.18 acres of
    land and instead acquire land as offered by the Corporation. The State
    Government shall accordingly issue the required notifications within a
H   period of two months thereafter. (153-G-H; 154-B-C]
                                       152
                     U.P. STATE SUGAR CORPN. LTD. v. STATE                   153

             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 407 of A
     1986.

          From the .Judgment and Order dated 3.10.85 of the Allahabad High
     Court in C.M.W.P. No. 13855 of 1983.

          G.D. Agarwal, O.P. Rana, Gopal .Jain, Mukul Mudgal, P.N. Gupta            B
     and Pramod Dayal for the appearing parties.

             The following Order of the Court was delivered :

            The short point in this appeal, which was not argued in the High
     Court, is whether the appellant is entitled to retain the land to the extent
                                                                                    c
     of 2.18 acres out of Survey Nos. 41/l and 41/2. The Collector himself had
     written a letter on December 7, 1985 to the Secretary to the Government
     stating that a portion of the land of plot Nos. 41/l and 41/2 measuring 2.18
     acres out of total 2.40 acres adjoining the General Manager, U.P. State
     Sugar Corporation's residence, which is the subject matter of the acquisi- D
     tion, was yet to be developed. Leaving apart mere 3 metres of land around
     General Manager's residence would be highly inconvenient. The matter
     was examined ·in the meeting of the District Officer Shri Atul Kumar
     Gupta, the General Manager of the appellant, and the Executive Engineer
     of the respondents-Avam Evam Vikas Parishad ('Parishad', for short). It
     was decided in the said meeting that in exchange of the acquired land, 2.18
                                                                                    E
     acres of land, the appellant would give an extent of 2.74 acres of land in
     plot No. 41/4. The Parishad was directed to send a proposal to acquire the
     land of plot No. 41/4 and also exemption of the land to the extent of 2.18
     acres of land adjoining the General Manager's residence. The Parishad, by
     its letter dated Fcfuruary 14, 1983 submitted proposal to acquire the land F
     in plot no. 41/4, But not for deletion of 2.18 acres of land in plot Nos. 41/1
     and 41/2. This would clearly indicate that ground survey was conducted in
     consultation with the respective officers and found that deletion of 2.18
     acres of land in survey Nos. 41/l and 41/2 was necessary for convenient
     and comfortable enjoyment of the property by the appellant-Corporation. G

           After all, these are two public corporations and the appellant is also
     serving the public purpose. The land is needed by them for convenient
,.   enjoyment of the residence and the staff quarters. The Parishad is acquir-
     ing land for urban development; it would also become a part of its duty to
     see that the appellant-Corporation should have comfortable enjoyment of        H
    154                    SUPREMECOURTREPORTS (1995) SUPP.3S.C.R.

A   properties for its officers and staff.

          The appellant has submitted before us a plan, marking the land in
    yellow which is necessary for it to enjoy the land and which needs to be
    exempted from acquisition. We find the request is genuine. We, therefore,
    direct the Parishad to submit, within three months from today, a proposal
B   for the State Government to withdraw the proposed acquisition to the
    extent of 2.18 acres of land in plot Nos. 41/1 and 41/2 and instead acquire
    land of plot No. 41/4, shown in red in the plan, as offered by the Corpora-
    tion. The State Government is directed to issue required notifications
    within a period of two months thereafter.
c         The appeal is accordingly allowed. No costs.

    T.N.A.                                                    Appeal allowed.


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