# [1968] 3 S.C.R. 207

- **Citation:** [1968] 3 S.C.R. 207
- **Court:** Supreme Court of India
- **Decided:** 1968-02-19
- **Case number:** Civil Appeal No. 1369 to 1407 and 1564 to 1578 of 1967
- **Bench:** J. C. Shah, V. Ramaswami, G. K. MlTTEll
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/1968-3-s-c-r-207-4278
- **Pages:** 7

## Headnote

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Land Acquisition Act--Slruclures made after s. 4 notice, on urtderta/...-
ing b,v owners not to claim conipensation-TenGnts, if can choUengcAcquisition for Municipality, if any restrictions.
Bombay Municipal Boroughs Act, 1925 (Born. Act 18 of 1925) ss. 52,
114--Powers of Municipality to acquire-Whet/1er attentpt to purchase
by private treaty prerequisite.
For widening a street, the respondent-municipality requested the State
Government to acquire the lands within the "line of the street" prescribed
by the Municipality.· After the State Government issued notification under
s. 4 of the Land Acquisition Act, the owners of the lands put up temporary
structures upon the lands with the pormission of'the Municipality on giving
an undertaking that they would not claim compensation for those structures
in the land acquisition proceedings. The structures were let out t.o the
appellants. Notifications were issued under s. 6 and compensation payable
de!ermiued.
When attempts were made to take possession of the land
acquired, the tenants-appellants, moved writ petitions in the High Court
The High Court rejected the petitions. Dismissing the appeals, this Court,
HELD : By the compulsory acquisition for a public purpose, subject to
payment of compensation, no fundameutat rights guaranteed under Arts~
19 and 31(2) of the Constitution were infringed. The lands were properly
notified for acquisition. The compensation payable in respect of the lands
was determi~. If there was any grievance which the appellants were
entitled to raise in respect of the compensation determined as payable, their
remedy lay in approaching the Courts competent to determine that question~
[210 D-E]
For the purpose of widening the street, th~ Municipality had the pawcr
under s. 114 of the Bombay Municipal Boroughs Act 1925 to purchase
land, and under s. 52 of the Act the Municipality could request the local
Government to take action for compulsory acquisition of the land and for
vesting the same in the Municipality.
The power of the appropriate
Government under s. 4 of the Land Acquisition Act to notify land needed
or likely to he needed for a public purpose is not subject to the restriction
that when the public purpose is of a municipality the municipality h'"'
attempted to purchase the land by private treaty and has failed in thot
attempt. [211 G, 212 B.C]
The appellants as lessees of the structures had no right in the land on.
which the structures stood. The structures belonged to the owners of the
land, and were allowed to be put up after the date of the notification
ur.der s. 4 of the Land Acquisition Act was issued on the undertaking that
no compensation shall be claimed in resP"..ct of the structures. The appella~ts were not on the lands al the date of the notification under s. 4, and
bemg tenants of the structures they acquired, prima facie, no intemit in
the lands. Even assunung that they had acquired, by virtue of their respective tenancies, an interest in the lands, their remedy was to approachi
208
SUPREME COURT REPORTS
[1968]3 5.C.R.
the Land Acquisiti'on Authorities for claiming apportionment of compen·
sation. [212 G, HJ

## Text

A
AMBALAL PURSHOTIAM ETC.
11.
AHMEDABAD MUNICIPAL CORPORATION & ORS.
February 19, 1968
B
[J. C. SHAH, V. RAMASWAMI AND G. K. MlTTEll, JJ.)
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Land Acquisition Act--Slruclures made after s. 4 notice, on urtderta/...-
ing b,v owners not to claim conipensation-TenGnts, if can choUengcAcquisition for Municipality, if any restrictions.
Bombay Municipal Boroughs Act, 1925 (Born. Act 18 of 1925) ss. 52,
114--Powers of Municipality to acquire-Whet/1er attentpt to purchase
by private treaty prerequisite.
For widening a street, the respondent-municipality requested the State
Government to acquire the lands within the "line of the street" prescribed
by the Municipality.· After the State Government issued notification under
s. 4 of the Land Acquisition Act, the owners of the lands put up temporary
structures upon the lands with the pormission of'the Municipality on giving
an undertaking that they would not claim compensation for those structures
in the land acquisition proceedings. The structures were let out t.o the
appellants. Notifications were issued under s. 6 and compensation payable
de!ermiued.
When attempts were made to take possession of the land
acquired, the tenants-appellants, moved writ petitions in the High Court
The High Court rejected the petitions. Dismissing the appeals, this Court,
HELD : By the compulsory acquisition for a public purpose, subject to
payment of compensation, no fundameutat rights guaranteed under Arts~
19 and 31(2) of the Constitution were infringed. The lands were properly
notified for acquisition. The compensation payable in respect of the lands
was determi~. If there was any grievance which the appellants were
entitled to raise in respect of the compensation determined as payable, their
remedy lay in approaching the Courts competent to determine that question~
[210 D-E]
For the purpose of widening the street, th~ Municipality had the pawcr
under s. 114 of the Bombay Municipal Boroughs Act 1925 to purchase
land, and under s. 52 of the Act the Municipality could request the local
Government to take action for compulsory acquisition of the land and for
vesting the same in the Municipality.
The power of the appropriate
Government under s. 4 of the Land Acquisition Act to notify land needed
or likely to he needed for a public purpose is not subject to the restriction
that when the public purpose is of a municipality the municipality h'"'
attempted to purchase the land by private treaty and has failed in thot
attempt. [211 G, 212 B.C]
The appellants as lessees of the structures had no right in the land on.
which the structures stood. The structures belonged to the owners of the
land, and were allowed to be put up after the date of the notification
ur.der s. 4 of the Land Acquisition Act was issued on the undertaking that
no compensation shall be claimed in resP"..ct of the structures. The appella~ts were not on the lands al the date of the notification under s. 4, and
bemg tenants of the structures they acquired, prima facie, no intemit in
the lands. Even assunung that they had acquired, by virtue of their respective tenancies, an interest in the lands, their remedy was to approachi
208
SUPREME COURT REPORTS
[1968]3 5.C.R.
the Land Acquisiti'on Authorities for claiming apportionment of compen·
sation. [212 G, HJ
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1369 to
1407 and 1564 to 1578 of 1967.
Appeals by Certificates/Special leave from the judgment and
order dated February 1966 of the Gujarat High Court, in Special
Civil Application Nos. 912, 916, 918, 920, 922, 923, 925, 929,
930, 931, 938 and 941 of 1964, and 917, 926, 927, 928, 932.
933, 934, 921, 935, 942, 924, 939 and 940 of 1964 respective!)-.
Vlthalbhai Patel and S. S. Shukla, for the appellants (in all
the appeals).
I. N. Shroff, for respondent No. 1 (in C.As. Nos. 1396 to 1407
of 1967).
Purshottam Trikamdas and /, N. Shroff, for respondent No. 1
(in C.As. Nos. 1564 to 1578 of 1967).
· R. H. Dhebar, S. K. Dholakia and S. P. Nayyar, for respondents Nos. 2 and 3 ,in all the appeals).
The Judgment of the Court was delivered by
Shah, 1. On June 6, 1941, the Municipal Borough of Ahmcdabad prescribed a "line of the street" along an important
thoroughfare in the town of Ahmedabad and resqlved that steps
be taken for compulsory acquisition of lands falling "within the
line." On June 9, 1941 a notification was issued by the ·Government of Bombay under s. 4 of the Land Acquisition Act, 1894.
that the lands set out .in the Schedule "were likely to be needed
for the public purpose set out in column 6 of the Schedule thereto, viz., for road widening", and that "any contracts for the disposal of any of the said lands by sale, lease, mortgage, assignment, exchange or otherwise, or any outlay or improvements
made therein without the sanction of the Collector, . • . . . after
the date of this notification will, under section 24 ( seventhly) of
the said Act, be disregarded by the officer assessing compensation
for such parts of-the said lands as may be finally acquired." The
Government of Bombay issued a notification under s. 6 of the
Land Acquisition Act sometime in 1943, and als() appointed the
Special Land Acquisition Officer to take order for acquisition of
the lands.
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After the publication of the notification under s. 4 of the Land
Acquisition Act, structures on the lands notified were burnt down
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by rioters. The owners of the lands put up temporary structures
upOn the. lands with the permission of the Municipal Borough
¢Ying an undertaking that they will not claim compensation for
••
AMBi;LAL v. MUNICIPAL .. COOPERAT!ON (S/tah, /.)
209
A
these structures in the land acquis«ion prorudings. The struc·
tures were let out to different tenants.
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·Proceedings for assessment of compensation were not immediately taken in hand, but negotiations were started by the Municipal Borough with the owners of the lands, and between the
years 1944 and 1952 some lands were purchased by the Municipal Borough by private treaty and the lands so purchased were
withdrawn from the notification for acquisition. Finding that it
was not possible to persuade the other owners to sell their lands,
the Special Land Acquisition Officer was moved to make his
award.• The Special Land Acquisition Officer made a common
award on August 13, 1960. When the Special Land Acquisition
Officer attempted to take possession of the lands acquired, the
tenants of the structures moved petitions under Art. 226 of the
Constitution in the High Court of Gujarat for writs quashing or
setting aside the notifications under S$. 4 and 6 of the Land Acquisition Act, and the awards and the notices issued for obtaining
possession from the petitioners.
The High Court rejected the petitions. Against the orders
rejecting the petitions, these appeals have been filed with special
leave.
In these appeals counsel for the appellants contended that-
( 1) the notification issued by the Government of Bombay, the
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award made by the Special Land Acquisition Officer, and the
proceedings subsequent to the award were invalid as infringing
Arts. 19 and 31(2) of the Constitution in that the appellants
were deprived of their right to property otherwise than in accordance with law; (2) that the conditions precedent to the exercise
of the power to acquire the lands under the ;Land Acquisition
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Act being absent, alt the proceedings including the notillcation
under s. 4 of the Land Acquisition Act were invalid; (3) that the
rights of the appellants in the structures occupied by them as
tenants were not affected by the award as no notices were served
upon them by the Special Land Acquisition Officer under s. 9(3)
of the Land Acquisition Act, and they could not be deprived of
G their right in the structures; and ( 4) that the notifications under
ss. 4 & 6 of the Land Acquisition Act were without jurisdiction
because there was "no possible need" of the lands by the Municipal Corporation, and the proceedings were commenced not fore
the purpose for which they may under the law be commenced.
but for a collateral purpose, viz., to acquire the !and in future
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at rates pegged down to the date on w~ich the notification under
s. i was issued.
. In o~ judgment mere is no substance in any of the contenuons ra1Sed.
lit may be recalled that the appellants in these
210
SUPJU!MB COUR.T llBPOl.TS
(1968) 3 S.C.R,
appeals are not the owners of the lands acquired : they are tenants
in occupation of structures pennitted to be constructed upon the
lands after the date of the notification under s. 4 of the La.'ld
Acquisition Act, on condition that the owners of the lands will
not claim compensation for those structures. If the land owners
A
are not entitled to claim compensation for the structures, evidently
the persons who occupy tliose structures and who have come to
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occupy the same after the notification, have, no interest in the
lands or the compensation and they cannot bold up the acquisition
proceedings by preventing the Special Land Acquisition Officer
from taking over possession of the lands.
The Land Acquisition Act authorises the appropriate Government to notify land for acquisition which is or is likely to be
needed for a public purpose : and road widening in a town is
undoubtedly a public purpose.
After considering the report of
the Collector under s. s:A of the Land Acquisition Act, the Government of Bbmbay published a notification under ~. 6( 1) of the
Land Acquisition Act that the lands were needed for a public
purpose. That declaration was, by virtue of s. 6(3) of the Act,
conclusive evidence that the lands were needed for a public purpose.
By the compulsory acquisition for a public purpose, subject to payment of compensation, no fundamental rights guaranteed under Arts. 19 & 31(2) of the Constitution were infringed.
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The lands were properly notified for acquisition.
The compensation payable in respect of the lands .has been determined. If
there is any grievance which the appellants are entitled to raise
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in respect of the compensation determined as payable,
their
remedy lies in approaching the courts competent to determine
that question. The plea of infringement of fundaμiental rights
of the appellants is wholly unsubstantial and was rightly not
raised before the High Court in the writ petitions out of which
these appeals arise.
In considering the second contention that the conditions precedent to the exercise of the power to acquire lands have not been
fulfilled, it is necessary (irst to refer to certain provisions of the
Bombay Municipal Boroughs Act 18 of 1925.
F
S. 52 "When there is any hindrance to the permaG
nent or temporary acquisition by a municipality! upon
payment of any land or building required for the pur ..
poses of this Act, the Provincial Government may, after
obtaining possession of the same for itself under the
Land Acquisition Act, 1894, or other existing · law,
vest such land or building in the municipality on its
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paying the compensation awarded, and on its repaying
to the Provincial Government all costs incurred by the
Provincial Government on account of the acquisition."
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AMBALAL V. MUNICIPAL COOPERATION (Shah, /.)
21 :b
Section 63 of the Bombay Municipal Boroughs Act by the first
sub-section authorises the Municipal Borough to acquire and.
hold property both movaltle and immovable, whether within or
without its limits.
Section 118 authorises the Chief Officer of
the municipality, subject to the approval of the municipality, to
prescribe a line. on each side of every ~public street within the:
municipal borough and from time to time to prescribe a fresh line
in substitution of any line so prescribed or for any part thereof.
By cl. (a) of sub-s. (3) of s. 118, except under the provisions.
of s. 143 no person shall construct or reconstruct any portion.
of any building within the regular line of the public street without
the permission of the Chief Officer under s. 123. Clause (b) of
sub-s .. ( 3) of s. 118 provides that when the Chief Officer refuses
permission to construct or reconstruct any building in any area
within the regular line of the public street, such· area shall with
the approval of the municipality be added to the street and shall'
thenceforth be deemed part of the public street and shall be
vested in the municipality.
Clause (c) of sub-s. (3) of s. 118'
provides that the amount of compensation shall be determined inD
the manner provided by s. 198 which shall be paid by the muni--
cipality to the owner of any land added to a street under cl. (b)
of sub-s. ( 3). Section 114 ( 1) of the Act provides that it shall'
be lawful for a municipality to Jay out and make new pubJic·
streets to construct tunnels and other works subsidiary to publicE
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streets; to widen, open, enlarge or otherwise improve, and to tum.
divert, discontinue or stop up any public street.
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On a review of these provisions it is dear that the municipality
under the Bombay Municipal Boroughs Act, 1925, had the power
to acquire land needed for municipal purposes including widening,
opening, enlarging or otherwise improving any public street or
municipal road. The municipality laid down a line of the street :
after the line of the street was laid down, it was open to the municipality to decline permission to construct or reconstruct any
building on the land and the lands were to be deemed added to
the street. But the municipality did permit construction on the
lands. The provisions of cl. (b) of s. 118(3) were therefore not
a_ttracted. For the purpose of widen-ing the street, the municipality had the power under s. 114 to purchase the land, and under
s. 52 the municipality could request the local Government to
take action for compulsory acquisition of the land and for vesting
the same in the municipality.
Counsel for the appellants urged
that the power confe.ued upon the municipality could only be
exercised when there was any ''hindrance to the permanent or
temporary acquisition" by the municipality of any land required
f~r the purposes of the Act, and since there is no proof of such
h1~drance, all the proceedings for acquisition must be deemed
void. In our judgment, the argument is misconceived.
Section
212
SUPREME COURT llEPOllTS
(1968] 3 S.C.R.
52 of the Bombay Municipal Boroughs Act, 1925, authorises the
municipality to purchase property required for th~ purpose of the
Act by private treaty or to approach the Government for compulsory
acquisition of
the
land for
a
v.ublic purpose.
Section 52 merely sets out alternative modes of acquiring property : it does not provide that before a Municipal Borough may
move the Government to acquire land under the Land Acquisi.
ti on Act, the Borough should have made attempts , to purchase
.the land by private treaty and have failed in that attempt.
In
.any case, the power of the appropriate Government under s. 4
of the Land Acquisition Act to notify land needed or likely to be
needed for a public purpose is not subject to the restriction that
when the public purpose is of the municipality, the municipality
has attempted to purchase the land by private treaty and has
fa.iled in that attempt. The scheme of the Land Acquisition Act
is that whenever the land is needed for a public purpose or is
likely to be needed for a public purpose, the Government may
resort to the machinery provided under the Act for acquiring the
land. Where the public purpose is the purpose of a local authority and the provisions of the Land Acquisition Act are put in
force for acquiring land at the cost of any fund controlled or
managed by a local authority, s. 50 of the Land Acquisition Act
provides that the charges of and incidental to such acquisition
shall be defrayed from.such fund. There is no other bar statutory or otherwise to the acquisition of the land for purposes of a
municil'ality. In issuing the notification under s. 4 of the Land
Acquisition Act, the appropriate Government is therefore not
prevented, merely because the municipality has not attempted to
acquire the land by private treaty. There wa.s, therefore, no condition precedent to the acquisition of the land before a notification
under s. 4 of the Land Acquisition Act was issued which was not
romplied with.
The contention that the proceeding for making of his award
by the Special Land Acquisition Officer was invalid has also no
substance.
The appellants as lessees of the structures had no
right in the land on which the structures stood. The structures
'belonged to the owners of the land, and were allowed to be put
up after the date of the notification under s. 4 of the Land Acqui-
·sition Act was issued, on the undertaking that no compensation
shall be claimed in respect of the structures. The appellants
·were not on the lands at the date of the notifica!ion under s. 4,
and being tenants of the structures they acquired, prima facie, no
'interest in the lands. Even assuming that they had acquired, by
virtue of their respective tenancies, any interest in the lands, their
remedy was to approach the Land Acquisition authorities for
-claiming apportionment of compensation. It may be pointed .out
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AMBALAL V. MUNICIPAL COOPERATION (Shah, J.)
213
that this contention was not raised before·the High Court and has
been raised for the first time in this Court.
The last argument raised by counsel for the appellants is, in
our judgment futile. The notification issued by the Government
of Bombay under s. 6 of the Land Acquisition Act was by operation of sub-s. ( 3) conclusive evidence that the land was needed
for a public purpose. No inquiry was thereafter permissible that
the land was not needed for a public purpose. It is true that no
stegs were immediately taken by the Land Acquisition Officer
authorities to make awards of compensation and to take possession
of the lands. But the reason apparently was that tlie municipality
was still trying to purchase the land by private treaty and when
it was found that it could not purchase the lands, the Land Acquisition Officer was requested to expedite the determination of compensation.
We are unable to bold that there is any evidence that
the Government of Bombay issued the notification under s. 4 of
the Land Acquisition Act, not for the bona fide
purpose of
acquisition, but with the object of pegging down prices so that
the lands may when needed be obtained at those rates in future.
The land was within the line of the street and could not without
the sanction of the municipality be put to any profitable use. If
either the land owners or the tenants were aggrieved by the delay.
it was open to them to claim writs or orders compelling the State
Government to complete the assessment and payment of compensation.
We are not hereby to be understood as suggesting that
after issue of the notifications under ss. 4 & 6 the appropriate
Government would be justified in allowing the matters to drift
and to take in hand the proceeding for assessment of compensation whenever they think it proper to do. It is intended by the
scheme of the Act that the notification under s. 6 of the Land
Acquisition Act must be followed by a proceeding for determination of compensation without any unreasonable delay.
But on
the facts of the present case, it does not appear that there was
any scope for holding that with a view to prevent the land owners
or the persons claiming derivative title from them from getting
the benefit of the rise in prices, notifications under ss. 4 and 6
were.issued without any intention to take steps for acquisition of
the lands.
The appeals fail and are dismissed with costs. One hearina
fee in· all the appeals. Separate costs will be paid by the appellant~
to the Corporation and to the State Government.
H
Y.P.
Appeals dismissed_