# DALCHAND & ORS v. DELffi IMPROVEMENT TRUST (NOWI DELHI DEVELOPMENT AUTHOIUTY)• NEW DELHI

- **Citation:** [1966] Supp. 1 S.C.R. 27
- **Court:** Supreme Court of India
- **Decided:** 1966-03-24
- **Bench:** K. N. Wanchoo, M. H!Dayatullah, J.C. Shah
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/dalchand-ors-v-delffi-improvement-trust-nowi-delhi-development-authoiuty-new-3852
- **Pages:** 11

## Headnote

United Provinces Town Improvement Act (8 of 1908), ss. 23(a), 24
(h} and 32-Scheme of Town expansion by Improvement TrustSupplementary scheme to fulfil requireme.nts of company unde! . ~he
Original Scheme-Validity-If Act authorised compulsory acquisition
of land-Procedure under Part VII Land Acquisition Act, 1894 if had
to be followed.
The Delhi Improvement Trust (set up under the U.P. Town Improvement Act (8 of 1908) extended to the territory of Delhi) prepared
and notified under the Act an industrial development scheme intended to secure the growth of an industrial area so as to induce a flow
of population away from the crowded parts of Delhi. Land in the
area was to be developed by the Trust and a part of the land was
to be allotted to industrial concerns fot construction of industrial
building and the rest for construction of residential and other
buildings, Under the scheme one particular company was to be allotted a certain acreage of land but the land covered by the scheme
was found inadequate for this purpose. A supplementary
scheme
was therefore notified modifying the original scheme and providing
for the acquisition of an additional area of land, to be sold to the
company, Under the terms of sale this additional area wa• to be
developed by the Company, The appellants, whose lands were sought
to be compulsorily acquired under the supplementary scheme, sued
the Trust challenging the legality of the scheme and the award made
in the acquisition proceedings. The Subordinate Judge decreed the
suit but on appeal the High Court reversed this decision.
In the appeal to this Court three questions fell for determination: (i) whether acquisition of land of the appellants under the
supplementary scheme was for the purposes of the Act; (ii) whether
for executing the supplementary scheme the Trust had power to
compulsorily acquire land; and (hli) whether land of the appellants
could be acquired only in the manner provided by Part VII of the
Land AcquiSition Act, 1894.
HELD: The High Court was right in refusing to decree the suit.
(i) The .original and supplementary schemes had to be regarded
as one composite scheme conceived in the interests of industrial
development. The original scheme was primarily a town expansion
scheme within the meaning of the Act; and the
supplementary
scheme was framed for the further progress of and to effectuate the
purpose of the original scheme Acquisition of land for industrial
development and making provision for the residence of employees
in the industries would clearly fall within the terms
of s.24(h),
read with s.32.
The provisions of the Act would not justify acquisition of land
with a view to handing it over to an industrial concern for private
gain. But this was not the position in the present case, as a scheme
8Ul'RF.llE COURT REPORTS
[1966] 8Ul'P. 8.C.Jl.
which contemplated acquisition of land for affectuating the object
of the original scheme was not a device to acquire land for the private gain of an industrialist. The general supervision and control
over the execution of the supplementary scheme, as over the original scheme, was retained by the Trust and the Compnay was to
develop the' land subject to control under the Town Planning
Scheme. [35 C, F, G, H]
A
B
(ii) Power to acqufre land compulsorily was conferred by s.23
(a) which in terms authorised acquisition by purchase, exchange or
otherwise of any property necessary or affected by the execution of
the scheme, and this provision could be incorporated in any of the
improvement schemes of the type mentfoned in s.:l<t. The power
could also be exercised under ss.32, 55 and 5G.
Under the provisions
relating to other classes of schemes express provision with regard to
acquisition of land was made and such express provision was absent in s.32 dealing with town expansion schemes. But that would C
not justify the inference that the provisions of s.23(a) relating to
acquisition of land necessary for or afTected
by the execution
of the scheme w

## Text

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DALCHAND & ORS.
v.
DELffi IMPROVEMENT TRUST (NOWI DELHI DEVELOPMENT
AUTHOIUTY)• NEW DELHI
March 24, 1966
(K. N. WANCHOO, M. H!DAYATULLAH AND J.C. SHAH, JJ.]
United Provinces Town Improvement Act (8 of 1908), ss. 23(a), 24
(h} and 32-Scheme of Town expansion by Improvement TrustSupplementary scheme to fulfil requireme.nts of company unde! . ~he
Original Scheme-Validity-If Act authorised compulsory acquisition
of land-Procedure under Part VII Land Acquisition Act, 1894 if had
to be followed.
The Delhi Improvement Trust (set up under the U.P. Town Improvement Act (8 of 1908) extended to the territory of Delhi) prepared
and notified under the Act an industrial development scheme intended to secure the growth of an industrial area so as to induce a flow
of population away from the crowded parts of Delhi. Land in the
area was to be developed by the Trust and a part of the land was
to be allotted to industrial concerns fot construction of industrial
building and the rest for construction of residential and other
buildings, Under the scheme one particular company was to be allotted a certain acreage of land but the land covered by the scheme
was found inadequate for this purpose. A supplementary
scheme
was therefore notified modifying the original scheme and providing
for the acquisition of an additional area of land, to be sold to the
company, Under the terms of sale this additional area wa• to be
developed by the Company, The appellants, whose lands were sought
to be compulsorily acquired under the supplementary scheme, sued
the Trust challenging the legality of the scheme and the award made
in the acquisition proceedings. The Subordinate Judge decreed the
suit but on appeal the High Court reversed this decision.
In the appeal to this Court three questions fell for determination: (i) whether acquisition of land of the appellants under the
supplementary scheme was for the purposes of the Act; (ii) whether
for executing the supplementary scheme the Trust had power to
compulsorily acquire land; and (hli) whether land of the appellants
could be acquired only in the manner provided by Part VII of the
Land AcquiSition Act, 1894.
HELD: The High Court was right in refusing to decree the suit.
(i) The .original and supplementary schemes had to be regarded
as one composite scheme conceived in the interests of industrial
development. The original scheme was primarily a town expansion
scheme within the meaning of the Act; and the
supplementary
scheme was framed for the further progress of and to effectuate the
purpose of the original scheme Acquisition of land for industrial
development and making provision for the residence of employees
in the industries would clearly fall within the terms
of s.24(h),
read with s.32.
The provisions of the Act would not justify acquisition of land
with a view to handing it over to an industrial concern for private
gain. But this was not the position in the present case, as a scheme
8Ul'RF.llE COURT REPORTS
[1966] 8Ul'P. 8.C.Jl.
which contemplated acquisition of land for affectuating the object
of the original scheme was not a device to acquire land for the private gain of an industrialist. The general supervision and control
over the execution of the supplementary scheme, as over the original scheme, was retained by the Trust and the Compnay was to
develop the' land subject to control under the Town Planning
Scheme. [35 C, F, G, H]
A
B
(ii) Power to acqufre land compulsorily was conferred by s.23
(a) which in terms authorised acquisition by purchase, exchange or
otherwise of any property necessary or affected by the execution of
the scheme, and this provision could be incorporated in any of the
improvement schemes of the type mentfoned in s.:l<t. The power
could also be exercised under ss.32, 55 and 5G.
Under the provisions
relating to other classes of schemes express provision with regard to
acquisition of land was made and such express provision was absent in s.32 dealing with town expansion schemes. But that would C
not justify the inference that the provisions of s.23(a) relating to
acquisition of land necessary for or afTected
by the execution
of the scheme were not available in sanctioning a town expansion
scheme. Were it otherwise, s.23(a) would not have application to
any scheme at all [36 B-E]
(iii) The provisions of Part VII of the Land Acquisition Act,
1894, did not have to be followed, for, in this case, land was not to D
be acquired for the company: it was to be acquired for carrying out
an industrial development scheme. Mere inclusion of a provision
tor sale of land comprised in the scheme did not vitiate the scheme.
If the Act was valid and could be resorted to for compulsorily
acquiring land, the awards made under the Act were not open to
challenge on the ground that if another scheme of acquisition had
been resorted to, more compensation could have been paid to the
appellants. [36 F. G: 37 Bl
GYIL APPELLATE JURISDICTION: Civil Appeal No. 1107 of
1963.
Appeal from the judgment and order dated September 8, 1959
of the Punjab High Court (Circuit Bench) at Delhi, in Civil Regular Appeal No. 17-D of 1954.
B. D. Jain, for the appellants.
N. S. Bindra and B. R. G. K. Achar. for the respondent.
The Judgment of the Court was delivered by
Shah, J. By a notification issued on March 2, 1937
under
B
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s. 7 of the Delhi Laws Act, 13 of 1912, the Government of India
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extended, subject to certain modifications. the United Provinces
Town Improvement Act. 8 of 1919. to the territory Clf Delhi, and
thereafter set up an Improvement Trust under the Act for that
territory. The Trust prepared an industrial development scheme
with the object of relieving congestion by inducing a flow of population from the crowded parts of the town of Delhi to certain other B
areas. Under the scheme land in those areas was to be developed
and after construction of roads, storm water drains, street-Iightin11.
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DALCHAND V. IMPROVEMENT TRUST
(Shah, J.)
29
A
refuse and sewage disposal works, schools, parks, playgrounds,
dispensaries, weMare centres and police-station a part of the land
was to be allotted to industrial concerns for construction of industrial buildings and the rest for construction of residential and other
buildings.
B
The scheme was sanctioned under s.
42 of the Act by the
Government of India, and was duly promulgated. Thereafter the
Trust reso2ved in June 1942 to make a supplementary scheme as
the land covered by the original scheme was inadequate. It
appeared that the Trust had agreed to provide under the original
scheme a block of land oomprising 268 acres of land to the Delhi
Cloth & General Mills Co. Ltd.-hereinafter called 'the Company'
C
--on certain terms and conditions embodied in a resolution dated
January 9, 1942, but the Trust was able to offer to the Company
under the lay-out of the original scheme only 17 4.84 acres. It was
therefore proposed by the Trust to modify the scheme as sanctioned and to provide for acquisition of an additional area of 103.16
acres under a supplementary scheme.
D
On July 18, 1942 notice under s. 36 of the Act was published
in respect of the supplementary scheme for development of the
industrial area, specifying the boundaries of the land in which the
scheme was to be worked and inviting objections to the scheme.
within one month from the date of publication. No objections
were, it appears raised to the proposed supplementary scheme, and
it was finally approved by resolution dated July 31, 1944, and was
E
notified under s. 42 of the Act on June 28, 1946. Land acquisition
proceedings were then commenced under s. 58 of the Act and
awards were made assessing compensation to be paid to the owners
of the land for compulsory acquisition. In the scheme so notified
was included an area of 13 bighas of land belonging to the appellants and that land was acquired.
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On May 3, 1949 the appellants sued the Delhi Improvement
Trust for a declaration that the awards were "wrong and illegal
and did not result in acquisition of the suit property" and for an
order restraining the Trust from taking possession of their lands
under the awards and from interfering in any way with their enjoyment of the lands. The appellants in support of their claim
contended that the notification extending the United Provinces
Town Improvement Act, 8 of 1919, was invalid, that the Improve·
ment Trust was not lawfully constituted, that the industrial development schemes were invalid, that the Trust had no power to
acquire lands for the purposes mentioned in the scheme, and that
the resolutions and proceedings of the Trust being procedurally
defective, the scheme "was illegal". The appellants also contended
that the scheme was framed at the instance of and solely for the
benefit of ~~e. Company, since the land was intended to be given
after acqms1t10n to that Company or to other industrialists for
30
SUPREME COURT REPORTS
(1966] 8'C1'P. 8.C.R.
development by them for their own benefit. The Subordinate Judge, A
Delhi, held that the Act was properly extended to the Delhi territory, that the scheme was valid and the Trust had power to acquire
the land, but in the view of the Subordinate Judge there was "nothing on the record to show that the area in suit" was "necessary
for or" was "affected by the execution of this scheme," and that
"the Act does not authorise compulsory acquisition for purposes
B
of recoupment or for allotment to some company". The Subordinate Judge accordingly decreed the suit as claimed by the appellants.
In appeal to the Senior Subordinate Judge with appellate
powers the decree passed by the Trial Court was affirmed. In
second appeal to the High Court of Punjab, Falshaw, J., reversed
C
the decree passed by the First Appellate Court. In the view of the
learned Judge, since the original industrial area scheme framed in
1940. was a valid scheme, acquisition of an additional area of land
for. meeting the requirements of that scheme was a legitimate extension thereof and merely because the Trust had resolved to
· acquire land for sale to the Company after development. the scheme
was not open to challenge. He also held that the acquisition not
D
being for the Company, Part VII of the Land Acquisition Act had
no application and that the supplementary scheme was not invalid
merely because the plan for development was to be worked out
not by the Trust directly but by the Company under the general
supervision and control of the Trust, and in accordance with the
town planning scheme framed under s. 192 of the Punjab Municipal Act. The decree passed by Falshaw, J., was confirmed by a
Division Bench of the High Court. With certificate granted by the
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High Court, this appeal has been preferred.
The arguments in this case have ranged over a wide field, but
in the main three que,tions of law fall to be decided: (() Whether
acquisition of land of the appellants under the supplementary
scheme was for the purposes of the Act; (2) whether for executing
the supplementary scheme the Trust had power to compulsorily
p
acquire land; and (3l whether land of the appellants could be
acquired only in the manner provided by the Part VII of the Land
Acquisition Act, 1894.
The Act as the preamble discloses was enacted with a view
to make provision for the improvement and expansion of towns.
Chapter II of the Act deals with the constitution of Improvement
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Trusts for carrying out the provisions of the Act. Chapter III deals
with the proceedings of the Trust and Committees thereof. Chapter
IV deals with different forms of improvement schemes. Section 23
describes in els. (a) to (p) matters which may be provided for in an
improvement scheme. Clauses (a) & (g) thereof read as follows:
"(a) The acquisition by purchase, exchange, or otherwise of H
any property necessary for or affected by the execution
of the scheme."
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DALCHAND V. IMPROVEMENT TRUST (Shah, J,)
31
"(g) The sale, Jetting, or exchange of any property comprised in the scheme."
By s. 24 it is provided that an improvement scheme shall be one
of the following types, or may combine any two or more of such
types, or of any special features of, that is to say,-
(a) a general improvement scheme;
(b) a re-building scheme;
(c) a re-housing scheme;
(d) a street scheme;
(e) a deferred street scheme;
(f) a development scheme;
(g) a housing accommodation scheme; and
(h) a town expansion scheme.
Sections 25 to 32 set out the conditions in which the different
classes of schemes may be framed and provisions which may be
made in those schemes. Provisions relating to development schemes
in s. 30 and town expansion schemes in s. 32 alone are material.
By s. 30 els. (I) & (2) it is provided:
"(I) In regard to any area to which this Act is extended,
the Trust may, from time to time, prepare a scheme of proposed public streets with plans showing the direction of such
streets, the streets alignment and building line on each side
of them, their intended width and such other details as may
appear desirable.
(2) When any such scheme has been notified under section 42 the street to which it refers shall be deemed to be ~
projected public street."
Restrictions are then placed upon the right of occupants of the
buildings to erect, re-erect, add to or alter any building or wall, and
provision is made for other related matters. Section 32 reads:
"(I) Whenever the Trust is of opinion that it is expedient
and for the public advantage to control and provide for the
future expansion of a municipality in any area to which this
Act is extended, the Trust may frame a scheme (to be called a
"town expansion scheme").
(2) Such scheme shall show the method in whioh it is
proposed to lay out the area to be developed and the purposes
for which particular areas are to be utilized.
(3) For the purposes of a town expansion scheme the
provisions of clause (a) of sub-section (2) of section 40 shall
not be applicable, but the Trust shall be required to supply
such details as the State Government may consider necessary.
(4) When any such scheme has been notified under section
42, if any person desires to erect, re-erect, add to or alter any
building or wall within the area comprised in the said scheme,
he shall apply to the Trust for permission to do so.
82
Rl'PREME COURT REPORTS
(1966] SUPP. S.C.R.
(5) If the Trust refuses to grant permission to any person
A
to er7ct, re-erect, add to or alter any building or wall on his
land m the a~ea. aforesaid, and if it does not proceed to acquire
such land within one year from the date of such refusal, it
shall pay reasonable compensation to such person for any
damage sustained by him in consequence of such refusal."
~ection 33 deals with the procedure to be followed in framing
B
improvement schemes. Section 36, i111er a/ia, deals with the prepa·
ration, publication and transmission of notices about the improve·
ment schemes. Section 38 deals with notice of proposed acquisition
of land. Section 40 authorises the abandonment of and submission
of the schemes for sanction to the State Government with such
modifications as the Trust may consider necessary after consider· C
ing the objections or representations which may be received. Section
41 authorises the State Government to sanction with or without
modification, or refuse to sanction, or return for reconsideration,
any improvement scheme submitted to it under s. 40. Section 42
provides:
"(!) Whenever the State Government sanctions an improve·
ment scheme it shall announce the fact by notification, and D
except in the case of a deferred street scheme, development
scheme. or town expansion scheme. the Trust shall forthwith
proceed to execute the same.
(2) The publication of a notification under sub-section (!)
in respect of any scheme shall be conclusive evidence that the
scheme has been duly framed and sanctioned."
Section 43 provides for alteration in an improvement scheme
before it had been carried into execution, subject to certain condi·
tions specified therein. Chapter V deals with the powers and duties
E
of the Trust in respect of a scheme which has been sanctioned.
Section 55 authorises the Trust to enter into an agreement with
any person for the purchase. lease or exchange by the Trust of any
land which the Trust is authorised to acquire or any interest in such r
land. Section 56 provides that the Trust may, with the previous
sanction of the State Government, acquire land under the provi·
sions of the Land Acquisition Act, 1894, as modified by the provi·
sions of the Act for carrying out any of the purposes of the Act.
Section 58 provides that for the purpose of a(Xjuiring land under
the Land Acquisition Act for the Trust, the Tribunal constituted
•
under s. 57 shall be deemed to be the Court, and the President of
G
I
the Tribunal shall be deemed to be the Judge under the said Act
subject to further modifications indicated in the Schedule, and that
· the award of the Tribunal shall be deemed to be the award of a
Court under the Land Acquisition Act, 1894, and shall be final. At
this stage, the material provisions of the Schedule referred to in
· '· 58 may be referred to. The Schedule amends the Land Acquisi· B
tion Act in certain respects. The expression "local authority" in
s. 3(ee) of the Land Acquisition Act includes a Trust constituted
,
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DALCHAND V. IMPROVEMENT TRUST (Shah, J.)
33
under the United Provinces Town Improvement Act, 1919. By
cl. 2(1) the first publication of the notice of an improvement scheme
under s. 36 of the Act is substituted for and has the same effect as
publication in the Official Gazette and in the locality, of a notification under sub-section (!) of s. 4 of the Act, except where a declaration under s. 4 or s. 6 of the Act had previously been made and
was still in force. By sub-cl. (2) of cl. 2, inter alia, publication of a
notification under s. 42 is substituted for and has the same effect
as a declaration by the State Government under s. 6 of the Act,
unless a declaration under the last mentioned section had previously been made and was still in force. By cl. 6, s. 17-A is incorporated
in the Land Acquisition Act, and it reads:
"In every case referred to in section 16 or section 17, the
Collector shall, upon payment of the cost of acquisition, make
over charge of the land to the Trust; and the land shall thereupon vest in the Trust, subject to the liability of the Trust to
pay any further costs which may be incurred on account of
its acquisition."
Section 65 of the Act deals with disposal of l®d. It provides:
"Subject to any rules made by the State Government
under section 72 of this Act, the Trust may retain, or may let
on hire, lease, sell, exchange or otherwise dispose of, any land
vested in or acquired by it under this Act."
Broadly stated the scheme of the Act is that with a view to make
improvements in towns the Trust may make certain order after
framing an appropriate scheme of a type or containing special
features of different types of schemes mentioned in s. 24. The
scheme so framed m<1y make provisions for matters which are prescribed by s. 23 and such other matters as are provided for speciallY,
in the appropriate sections dealing with the different classes of
schemes.
The relevant resolutions adopted by the Trust for framing the
original! and supplementary schemes may be briefly noticed. On
June 30, 1942 it was resolved by the Trust to acquire an additional
area of 103.16 acres to be sold to the Company. The resolution
reads as follows:
"A reference is invited to Board's resolution No. 78 of the
29th March, 1940 relating to the Trust's Industrial Area
Scheme. The scheme as approved by the Board and sanctioned
by the Chief Commissioner covers an area of about 479.81
acres
and provides for the acquisition and
development of 271.21 acres of land
. at a cost
not exceeding Rs. 6.84 lakhs, and the acquisition and development of the remaining 208.6 acres provided any one or more
reputable industrialists deposit with or guarantee to the Trust
the cost of acquiring and developing this additional area. As
decided by the Board in their Resolution Nos. 108 amd 109
eL"PREME C-OURT REPORTS
(1966]
SUPP. e.o.n.
of the 16th May, 1941 the scheme as regards block 'I' in sub·
A
scheme 'A' has been held in abeyance and land in block II
has been acquired and is under development for factory sites.
The B?ard have now agreed to sell 268 acres of land in
the Industrial Area to the Delhi Cloth and General Mills Co.
Ltd., on the terms and conditions embodied in Resolution No
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19 of the 9th of January, 1942 as amended by Resolution No:
50 of the 27th March, 1942.
"The Trust can
.
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offer only 174.84
acres out of the land falling within the boundaries of the sanctioned scheme to the Company for the present.
. .
. . .
It 1s therefore proposed to alter under section 43 of the Trust C
Law, the scheme as sanctioned so as to provide for the acquisition of this additional area of 103.16 acres to be sold to the
Company.
As under the terms of the sale
this additional area is to be developed by the Company, the
Trust will have to incur initially expenditure only on acquisition of this land.
"
Pursuant to this resolution notices were issued under s. 36 of the D
Act in respect of the acquisition of the area. Thereafter a resolution
was passed on July 31, 1944 and it was stated in the introductory
part of the resolution:
"The present site of the industrial area was seleoted as
being suitably located vis-a-vis the city and the newly developed Trust area. There was no other site available where such E
facilities for roads and railway lines existed. The sizes of the
plots were fi xcd on the basis of the demand of different industrialists."
The scheme was then sanctioned under s. 42 of the Act.
The resolution Of the Trust dated March 29,
1940. clearly
indicates that the original scheme was intended to secure growth r
of an industrial area and thereby to relieve congestion in the
over-crowded localities in the town of Delhi. Such a scheme was
primarily a town expansion scheme within the meaning of
s. 24(b) read with s. J2. In framing such a scheme the ;Jrovisions
of a development scheme were incidentally incorporated, and that
the Trust, by express ena·etment in s. 24 was competent to do.
It appears that neither before Falshaw, J., nor before the High G
Court the va·lidity of the original scheme of 1940 was challenged.
Counsel for the appellants contended that no reliance was ever
placed by the Trust before the Trial Court or the First Appellate
Court upon the original scheme and the appellants bad no opportunity for challenging the validity of that scheme, but we are unable
to accept that contention. The appellants by their plaint challenged H
the application of the U.P. Town Improvement Act, the constitution of the Trust and the various steps taken by the Trust resulting
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DALCBAND V. IMPROVEMENT TRUST (Shah, J.)
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in the acquisition of their land. The original sche~e was tendered
in evidence before the Court of First Instance. It 1s true that arguments in the Trial Court and the First Appellate Court were primarily directed to canvassing the validity of the supplementary
scheme in enforcement of which the property of the appellants was
acquired. But it cannot be said that the original scheme was not
before the Court or that its validity was not challenged. In any
event counsel for the appellants has not been able to suggest any
ground on which that scheme is open to challenge. The supplementary scheme, as the resolution dated June 30, 1942 clearly indicates, was framed for the further progress of the original scheme.
The scheme was one for town expansion, and acquisition of land
for town expansion, i.e. providing for industrial development and
making provision for the residence of employees in the industries
and of others, would clearly fall within the terms of s. 24(h) read
with s. 32. It is true that in the resolution dated June 30, 1942 it is
recited that the scheme was to provide for the acquisition of "an
additional area of 103.16 acres to be sold to the Company". But
from a perusal of the primary scheme it is clear that the Company
had expressed its requirement for a large area of land under the
development scheme and the resolution dated March 29, 1940 had
approved of that requirement. It was recited in the resolution that
the Company was employing a large number of labourers and
removal of the factory to the outskirts of Delhi would contribute
in a substantial measure to relief of congestion and also because
esta:blishment of a big concern in the industrial area would afford
great stimulus to the development of the area. It was found after
Part 'A' of the original scheme was carried out that the area provided for the Company was inadequate for its requirements and
the Company requested that a larger area may be provided, and accordingly the supplementary scheme was framed.
Resort to the provisions of the Act for a:cquiring land with a
view to hand it over to an industrial concern for private gain may
not fall within the terms of the Act. But in the circumstances already set out a scheme framed which contemplates acquisition of
land for effectuating the object of the original scheme is not open
to challenge on the ground that it is a device to acquire land to be
disposed of for private gain of an industrialist. The original and
the supplementary schemes must be regarded as one composite
scheme conceived in the interests of industriaJI development and
relief of congestion by inducing a flow of population from the
congested areas. The object of the supplementary scheme was to
effectuate the purpose of the original scheme and failure to frame
that scheme may seriously have affected the utility of the original
scheme.
There is no warrant for the contention raised by the appellants
H
that the land was not to be developed by the Trust, but was to be
acquired and handed over to the Company. It is clear from the
scheme that the general supervision and control over the execution
36
81JPREME COCRT REPORTS
[1966]
SUPP.
S.C.R.
of the supplementary scheme as over the original scheme was roA
tained by the Trust and the Company was to develop the land
subject to control under the Town Planning Scheme.
The argument that in a town expansion scheme under s. 32
read with s. 24(h) of the Act, there is no power to acquire land
compulsorily is futile. Section 23(a) in terms authorises acquisition
by purohase. exchange, or otherwise of any property necessary for
B
or affected by the execution of the scheme. That provision may be
incorporated in any of the improvement schemes of the types men·
tioned in s. 24. Again Section 32 clearly implies that in a town ex·
pansion scheme such a power would be reserved, for the Trust is
statutorily declared liable to pay compensation when permission to
alter any building or wall on the land in the area is denied, if the
Trust docs not proceed to acquire such land within one year from
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the dato of such refu~l. By s. 55 a general power to purchase or
lease by agreement of any land which the Trust is authorised to
acquire is granted and by s. 56 power to acquire land under the
Land Acquisition Act, 1894, is expressly conferred. It is true that
under the provisions relating to other classes ·Of schemes, for
instance, s. 26(2)(0, s. 28(2)(a), s. 29(3) an express provision with
regard to acquisition of land is made, and there is no such express
D
provision in s. 32. But that by itself is not sufficient to justify an
inference that the provisions of s. 23(a) relating to acquisition of
land necessary for or affected by the execution of the scheme may
not be conferred in sanctioning a town expansion scheme. If the
view contended for be correct, s. 23(a) will not have application to
any scheme. We are unable to see any reason why s. 56 which
authorises the Trust to acquire land is to be restricted only to those
E
cases in which in the case of a specific scheme an express provision
conferring power of acquisition apart from s. 23(a) is conferred.
Nor is there any substance in the contention that the provi·
sions of Part VII of the Land Acquisition Act had to be resorted
to by the Trust for acquiring land which was to be allotted to a
Company after development. If the land is to be notified for acquiF
sition under the Land Acquisition Act for a Company, the require·
ments of Part VII of the Land Acquisition Act must undoubtedly
be complied with, and failure to do so would render the acquisition
invalid. In this case land was not to be acquired for the Company:
it was to be acquired for carrying out the industrial development
and town expansion scheme of the Trust, and then it was to be
allotted for carrying out the scheme to the Company for developG
ment. Power to include provision for sale of land comprised in the
scheme may competently be conferred under s. 23(gl of the Act
and may be exercised under s. 65. Mere inclusion of a power of
sale of land acquired under a scheme does not therefore vitiate a
scheme.
The argument that in passing the resolution for bringing into H
force the supplementary scheme one of the Directors of the Com·
pany had participated need not detain us. This argument was
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DALOHAND v. IMPROVEMENT TRUST (Shah, J.)
37
apparently not raised before the High Court, and having regard
to the terms of ss. 42 & 100 of the Act has no force.
It is true that if the land of the appellants had been acquired
under the Land Acquisition Act, the appellants may have become
entitled to the statutory solatium in addition to the market value.
But if the Act is valid, and could be resorted to for oompulsorily
acquiring land of the appellants, the awards made under the Act
are not open to challenge on the ground that if another scheme of
acquisition had been resorted to, the appellants may possibly have
obtained more compensation.
The appeal must therefore fail. Having regard however to the
circumstances of the case, we think that in this case there should
be no order as to costs throughout.
Appeal dismissed.