# NAGPUR IMPROVEMENT TRUST v. VASANTRAO AND ORS

- **Citation:** [2002] Supp. 2 S.C.R. 636
- **Court:** Supreme Court of India
- **Decided:** 2002-09-26
- **Case number:** Civil Appeal Nos. 11641200 of 1993
- **Bench:** B.N. Kirpal, Shivaraj V. Patil, B.P. Singh
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/nagpur-improvement-trust-v-vasantrao-and-ors-18736
- **Pages:** 39

## Headnote

Land Acquisition Act, 1894 [as amended by Land Acquisition
(Amendment and Validation) Act, 1967 and Land Acquisition (Amendment)
C Act, 1984)-Sections 6,23(1-A), 23(2) and 28-Punjab Town Improvement
Act, 1922-Section 59-Nagpur Improvement Trust Act, 1936-Section 59Uttar Pradesh Awas and Vikas Parishad Adhiniyam, 1965-Section 55Provisions of State Acts providing acquisition under Land Acquisition Ac/-
Applicability of the subsequenl amendments of Land Acquisition Acl to the
State Acts-Whether Land Acquisition Act incorporated or merely referred to
D in lhe Slate Acts-Held, Land Acquisition Act legislatively incorporated in the
State Acts and hence subsequent amendments of Section 6 will have no effect
on the acquisition made under the State Acts-Bw claimants are entitled to
the benefits conferred by section 23(/-A) and sections 23(2) and 28 of the
Land Acquisition Act because while incorporating the provisions of the Land
E acquisition Act in the State Acts, the intention of the legislature was that
amendments in the Land Acquisition Act relating to determination and payment
of compensation would be applicable to acquisition of lands for lhe purposes
of the State Acts.
Legislation by incorporation-Effect of-Held, when an earlier Act or
F certain of its provisions are incorporated by reference into a later Act, later
Act constitutes an independent legislation and repeal of the first statute by a
third does not affect the second-But where there is mere reference to an
earlier Act in later Act, modification, repeal or amendment of the statute that
is referred will also have an effect on the statute in which it is referredWhether a former statute is merely referred to in a later statute, or it is wholly
G or partia!Zv incorporated therein is a question of construction ..
H
Punjab Town Improvement Act, 1922, Nagpur Improvement Trust
Act, 1936 and Uttar Pradesh Awas Evam Vikas Parishad Adhiniyam,
provide for acquisition of land in accordance with the provisions of the
Land Acquisition Act subject to the modifications made thereto by the Acts
636
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NAGPUR IMPROVEMENT TRUST v.VASANTRAO
637
and/or the schedule to the Acts.
A
The common question for consideration in the present cases were
whether Sections 6, 23(2) and 28 of Land Acquisition Act, 1894 of Land
Acquisition Act, stands incorporated or merely referred to in the State
Acts in order to decide whether the claimants were entitled to the benefits
given by subsequent amendments of the provisions above mentioned by B
Land Acquisition (Amendment and Validation) Act, 1967 and Land
Acquisition (Amendment) Act, 1984.
In the matters arising under the Punjab Act, High court held that
claimants whose lands were acquired under the Punjab Act were entitled C
to additional compensation u/s 23(1-A) and also to the solatium u/s 23(2)
and interest u/s 28 of the Land Acquisition Act as amended by 1984 Act. ·
In matters relating to Nagpur Act, High Court held that since Land
Acquisition Act is merely referred to in Nagpur Act, the provisions of
Section 6 including proviso thereto of Land Acquisition Act apply to D
acquisitions under Nagpur Act; and that notice u/s 39 of the Act
(corresponding to Section 4 of Land Acquisition Act) lapsed since
notification u/s 45 of the Act (corresponding to Section 6 of Land
Acquisition Act) was published after more than three years from the date
of notification u/s 39 of the Act.
E
In matters relating to U.P. Act, High Court held that since Section
6 of Land Acquisition act was legislatively incorporates in the U.P. Act
which was of 1965, subsequent amendments of section 6 of Land
acquisition Act in 1967 did not affect the provisions of U.P. Act, and
therefore acquisition proceedings did not lapse on expiry of period of three
years from the date of issuance of notification u/s 28 of the Act F
(corresponding to Section 4 of Land Acquisition Act).
In appeal to this Court Jallandhar Improvement Trust in the matters
relating to Punjab Act contended that

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A
B
NAGPUR IMPROVEMENT TRUST
V.
VASANTRAO AND ORS.
SEPTEMBER 26, 2002
[B.N. KIRPAL, CJ., SHIVARAJ V. PATIL AND B.P. SINGH, JJ.]
Land Acquisition Act, 1894 [as amended by Land Acquisition
(Amendment and Validation) Act, 1967 and Land Acquisition (Amendment)
C Act, 1984)-Sections 6,23(1-A), 23(2) and 28-Punjab Town Improvement
Act, 1922-Section 59-Nagpur Improvement Trust Act, 1936-Section 59Uttar Pradesh Awas and Vikas Parishad Adhiniyam, 1965-Section 55Provisions of State Acts providing acquisition under Land Acquisition Ac/-
Applicability of the subsequenl amendments of Land Acquisition Acl to the
State Acts-Whether Land Acquisition Act incorporated or merely referred to
D in lhe Slate Acts-Held, Land Acquisition Act legislatively incorporated in the
State Acts and hence subsequent amendments of Section 6 will have no effect
on the acquisition made under the State Acts-Bw claimants are entitled to
the benefits conferred by section 23(/-A) and sections 23(2) and 28 of the
Land Acquisition Act because while incorporating the provisions of the Land
E acquisition Act in the State Acts, the intention of the legislature was that
amendments in the Land Acquisition Act relating to determination and payment
of compensation would be applicable to acquisition of lands for lhe purposes
of the State Acts.
Legislation by incorporation-Effect of-Held, when an earlier Act or
F certain of its provisions are incorporated by reference into a later Act, later
Act constitutes an independent legislation and repeal of the first statute by a
third does not affect the second-But where there is mere reference to an
earlier Act in later Act, modification, repeal or amendment of the statute that
is referred will also have an effect on the statute in which it is referredWhether a former statute is merely referred to in a later statute, or it is wholly
G or partia!Zv incorporated therein is a question of construction ..
H
Punjab Town Improvement Act, 1922, Nagpur Improvement Trust
Act, 1936 and Uttar Pradesh Awas Evam Vikas Parishad Adhiniyam,
provide for acquisition of land in accordance with the provisions of the
Land Acquisition Act subject to the modifications made thereto by the Acts
636
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NAGPUR IMPROVEMENT TRUST v.VASANTRAO
637
and/or the schedule to the Acts.
A
The common question for consideration in the present cases were
whether Sections 6, 23(2) and 28 of Land Acquisition Act, 1894 of Land
Acquisition Act, stands incorporated or merely referred to in the State
Acts in order to decide whether the claimants were entitled to the benefits
given by subsequent amendments of the provisions above mentioned by B
Land Acquisition (Amendment and Validation) Act, 1967 and Land
Acquisition (Amendment) Act, 1984.
In the matters arising under the Punjab Act, High court held that
claimants whose lands were acquired under the Punjab Act were entitled C
to additional compensation u/s 23(1-A) and also to the solatium u/s 23(2)
and interest u/s 28 of the Land Acquisition Act as amended by 1984 Act. ·
In matters relating to Nagpur Act, High Court held that since Land
Acquisition Act is merely referred to in Nagpur Act, the provisions of
Section 6 including proviso thereto of Land Acquisition Act apply to D
acquisitions under Nagpur Act; and that notice u/s 39 of the Act
(corresponding to Section 4 of Land Acquisition Act) lapsed since
notification u/s 45 of the Act (corresponding to Section 6 of Land
Acquisition Act) was published after more than three years from the date
of notification u/s 39 of the Act.
E
In matters relating to U.P. Act, High Court held that since Section
6 of Land Acquisition act was legislatively incorporates in the U.P. Act
which was of 1965, subsequent amendments of section 6 of Land
acquisition Act in 1967 did not affect the provisions of U.P. Act, and
therefore acquisition proceedings did not lapse on expiry of period of three
years from the date of issuance of notification u/s 28 of the Act F
(corresponding to Section 4 of Land Acquisition Act).
In appeal to this Court Jallandhar Improvement Trust in the matters
relating to Punjab Act contended that the claimants were not entitled to
the beneficial provisions under the Land Acquisition Act as brought in G
by amending the Land Acquisition Act even in respect of acquisition under
Punjab Act as the Scheme of the Punjab Act was different from the
Scheme of Land Acquisition Act and different equities arose under the
two Acts; that the compensation paid was not justifiable having regard
the principles laid down in Maneklal Chhotalal and State of Gujarat cases;
that since the two legislations were under two different entries of the H
638
SUPREME COURT REPORTS [2002] SUPP. 2 S.C.R.
A Constitution, Article 14 of the Constitution of India could not be invoked;
that since under the Punjab Act, trust is the acquiring authority and not
the State, there cannot be allegation of discrimination against it; and that
even if claimants cannot be deprived of enhanced solatium under Section
23(2) of land Acquisition Act, in the facts of the case they are not entitled
B to the benefit of additional compensation payable under Section 23(1-A)
of Land Acquisition Act, which was brought in by way of amendment in
1984.
Nagpur improvement Trust and U.P. Avas Evam Vikas Parishad
contended that provisions of Nagpur and U.P. Acts and the modifications
C brought about by these Acts show that the Land Acquisition Act stood
incorporated by legislation in the state Acts and therefore it cannot be
said that legislature intended that subsequent amendments in the Land
Acquisition Act, 1894 should apply to an acquisition under the said Act;
that mere absence of a limitation of time period for issuance of declaration
under Section 6 would not imply a breach of Article 14 of the Constitution;
D that the provisions pertaining to compensation would be different from
the provisions as pertaining to the time limit of notifying sanction of the
draft.S'cheme; that the cases of this Court pertaining to compensation
being equal to the compensation paid under the Land Acquisition Act in
view of Article 14 would have no applicability for invoking the proviso to
E Section 6 of the Land acquisition Act in respect of the scheme under the
Nagpur Act.
Respondents in cases pertaining to Punjab Act contended that
awarding solatium and interest under beneficial provisions of the Land
Acquisition Act as amended in year 1984 by High court is correct; that
F the provisions of the Punjab Act will have to be struck down as
discriminatory if the claimants are not given benefit of the beneficial
provisions of the Land Acquisition Act as amended in year 1984.
The respondents in cases pertaining to Nagpur Act and U.P. Act
contended that Section 59 as well as Section 61(b) of Nagpur Act simply
G cites/refers to the Land Acquisition Act and does not incorporate
referentially, hence all the amendments made to the Land Acquisition Act
must apply automatically; that even if it is assumed that the provisions
incorporate the Land Acquisition Act, it falls in exceptional situations
carved out by this Court namely that it is supplemental to the Land
H Acquisition Act and, therefore, incidence of incorporation shall not follow;
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NAGPUR IMPROVEMENT TRUST v. V ASANTRAO
639
and that not applying the amendments leads to unconstitutionality of the A
Act.
.
In Civil Appeal Nos. 6590-6592 of2001, this Court had held that the
claimants whose land had been acquired under Land Acquisition Act were
entitled to interest on the amount envisaged in Section 23(2) of Land
Acquisition Act. Hence the sole question for consideration was whether B
the claimants were also entitled to interest on the sum payable under subsection (I-A) of Section 23 of the Land Acquisition Act.
Disposing of the appeals, the Court
HELD: 1.1 When an earlier Act or certain of its provisions are C
incorporated by reference into a later Act, the provisions so incorporated
become part and parcel of the later Act as if they had been bodily
transposed into it. The incorporation of an earlier Act into a later Act is
a legislative device adopted for the sake of convenience in order to avoid
verbatim reproduction of the provisions of the earlier Act into the later. D
But this must be distinguished from a referential legislation which merely
contains a reference or the citation of the provisions of an earlier statute.
In a case where a statute is incorporated, by reference, into a second
statute, the repeal of the first statute by a third does not affect the second.
The later Act alongwith the incorporated provisions of the earlier Act
constitute an independent legislation which is not modified or repealed by E
a modification or repeal of the earlier Act. However, where in later Act
there is a mere reference to an earlier Act, the modification, repeal or
amendment of the statute that is referred, will also have an effect on the
statute in which it is referred. The question whether a former statute is
merely referred to or cited in a later statute, or whether it is wholly or p
partially incorporated therein, is a question of construction. 1658-B-DI
U.P. Avas Evam Vikas Parishadv. Jainul Islam and Anr., 1199812 SCC
467; Mary Roy v. State of Kera/a, 11986] 2 SCC 209; Ramsarup v. Munshi,
AIR (1963) SC 553; Ram Kripal Bhagat v. State of Bihar; AIR (1976) SC
951; Bo/ant Ores Ltd. v. State ofOrissa, AIR (1975) SC 17 and Mahindra G
and Mahindra Ltd v. Union of India, AIR (1979) SC 798, relied on.
SecretGJy of State v. Hindustan Cooperative Insurance Society Ltd.,
AIR (1931) PC 149 and Jn Re: Wood's Estate, Ex parte, Works and Buildings
Commrs., (1886) 31 Ch D 607, referred to.
H
640
SUPREME COURT REPORTS [2002] SUPP. 2 S.C.R.
A
1.2. So far as the U.P. Act is concerned the Land Acquisition Act, as
modified, stands incorporated in the U.P. Act. However, as a matter of
construction, Section 55 of the U.P. Act, while incorporating the provisions
of the Land Acquisition Act intended to apply to acquisition made under
the U.P. Act the beneficial amendments that may be brought about for
B determination and payment of compensation, in the Land Acquisition Act,
1894. Nagpur Act, Punjab Act as well as the U.P. Act have a common
scheme and pattern. All the three legislations relate to town planning and
development, and each one of them specifies the various schemes that may
be undertaken. For acquisition of land for the purposes of any of the
schemes under the said Acts, the Land Acquisition Act, 1894 has been
C made applicable with certain modifications as contained in the schedule
to the said Acts which are numerous and substantial. The modifications
made are also similar. There is no distinction in the three Acts, which may
have a bearing on the question relating to legislative incorporation of the
Land Acquisition Act in the State Acts. [668-G-H; 669-A-D[
D
UP. Avas Evam Vikas Praishadv. Jainul Islam and Anr., [19981 2 SCC
467, relied on.
Bhatinda Improvement Trust v. Ba/want singh and Ors., [19911 4 SCC
368, distinguished.
E
Gauri Shankar Gaur and Ors. v. State of UP. and Ors., [199411 SCC
92, referred to.
1.3. Though under the Land Acquisition Act as amended in its
application to the State of U.P. there was no provision for grant of solatium
by the U.P. Act such solatium was provided for. The intention of the
F legislature was apparent that it wanted to confer the benefit of solatium
by modifying Section 23(2) which benefit was not available under the
provisions of the Land Acquisition Act as it was applicable in the State of
U.P. at the time of enactment of the U.P. Act. So far as the Punjab Act
and the Nagpur Act are concerned, the schedules do not modify the
G provisions of Section 23(2) of the Land Acquisition Act which provides
for payment of solatium. However, a proviso was added to the effect that
sub-section (2) shall not apply to any land acquired under the State Acts
in question. This clearly implies that where acquisition was made under
the provisions of the Land Acquisition Act, as modified, the legislature
did not intend to deprive the claimants of solatium as provided under the
H Land Acquisition Act. But solatium was not payable in cases of acquisition
NAGPUR IMPROVEMENT TRUST v. VASANTRAO
641
under the State Acts. There are provisions in Punjab Act as well as Nagpur A
Act which permit the State to acquire lands for the purposes of the schemes
without resorting to the provisions of the Land Acquisition Act such as
acquisition by purchase lease exchange or otherwise, or acquisitions
contemplated under deferred street scheme, development scheme and
expansion scheme. In respect of such acquisitions solatium is not payable. B
In these circumstances with a view to save the law from the vice of
arbitrary and hostile discrimination, the provisions must be construed to
mean, in the absence of anything to the contrary, that the provisions of
the Land acquisition Act as amended by the 1984 Act relating to
determination and payment of compensation would apply to acquisition
of land for the purposes of the State Acts. It must, therefore, be held that C
while incorporating the provisions of the Land Acquisition Act in the State
Acts, the intention of the legislature was that amendments in the Land
Acquisition Act relating to determination and payment of compensation
would be applicable to acquisition of lands for the purposes of the State
Acts. Consequently the claimants are entitled to the benefits conferred by
section 23(1-A), if applicable, and section 23(2) and 28 of the Land D
Acquisition Act as amended by the 1984 Act for acquisition of land for
the purposes of the State Acts under Sections 59 of both the Nagpur and
the Punjab Acts. 1669-F-H; 670-A-E]
UP. Awas Evas Vikas Parishadv. Jainul Islam and Anr., 11998] 2 SCC E
467, relied on.
Prakash Amichand Shah v. State of Gujarat and Ors., 11986] I SCC
581; Maneklal Chhotelal and Ors. v. MG. Makwana and Ors., 11967] 3 SCR
65 and State ofGz!)arat v. Shanti/al, Mangaldas and Ors., 1196911SCC509,
distinguished.
F
2. It cannot be contended that since under the Punjab Act, Trust is
the acquiring authority and not the State, there cannot be allegation of
discrimination against it. Since section 17-A is inserted in the Land
Acquisition Act by way of modification in all the three State Acts acquiring
authority under the State Acts is the Government and not the Trust.
G
1671-C, DI
Om Prakash and Anr. v. State of UP. and Ors., 11974] I SCC 628,
relied on.
Nagpur Improvement Trust and Anr. v. Vithal Rao and Ors., AIR (1973) H
642
SUPREME COURT REPORTS [2002] SUPP. 2 S.C.R.
A SC 689, referred to.
3. Since the Awards of the Collector in the instant cases were made
much before 30th April, 1982, the claimants will not be entitled to the
benefit of additional amount payable under section 23(1-A) of the Land
Acquisition Act and the judgments and orders of the High Court on this
B aspect of the matter must be set aside. (672-F, GI
Union of India and Anr. etc. etc. v. Zora Singh and Ors. etc. etc., I 19921
I SCC 673 and K.S. Paripoornan v. State of Kera/a and Ors., 119941 5 SCC
593, referred to.
C
4. In C.A. Nos. 9260-9261 of 1995 as well, where the appellant has
D
claimed benefit of additional amount payable under section 23(1-A) or the
Land Acquisition Act, the Collector had made his Award much before 30th
April, 1982 and, therefore, the appellant's claim for additional amount
under Section 23(1-A) must be rejected. 1672-G-HJ
5. So far as the acquisition under the Nagpur Act and the U.P. Act
are concerned they have been challenged on the ground that the
Notification corresponding to the declaration under Section 6 of the Land
Acquisition Act was made more than 3 years after expiry of the date of
publication of the Notification corresponding to the Notification under
E Section 4 of the Land Acquisition Act. This was on the assumption that
the provisions of the Land Acquisition Act were not incorporated in the
State Acts but were merely referred to and the amendment of Section 6
of the Land Acquisition by insertion of proviso thereto by Land Acquisition
(Amendment and Validation) Act, 1967 (Act 13of1967), would apply to
the acquisitions. Since the provisions of the Land Acquisition Act as
F modified by the State Acts and the Schedule thereto stand incorporated
in the State .Acts and therefore, the subsequent amendments of Section 6
by the Act No. 13 of 1967 or by Act 68 of 1984 will have no effect on the
acquisition made under the State Acts. 1673-A, CJ
G
6. In Civil Appeal Nos. 6590 to 6592 of 2001 the claimants are
entitled to interest on the amount of compensation worked out in
accordance with the provisions of Section 23 of Land Acquisition Act
including all the Sub-sections thereof meaning thereby Sub-sections (I),
(I-A) and (2) of Section 23. 1674-CJ
H
Sunder v. Union of India, 120011 7 sec 211, relied on.
NAGPUR IMPROVEMENT TRUST ~. VASANTRAO [B.P. SINGH. J.] 643
Prem Nath Kapur and Anr. v. National fertilizers Corporation of India A
Ltd. & Ors., (1996( 2 SCC 71, referred to
CIVIL APPELLATE JURISDICTION
Civil Appeal Nos. 11641200 of 1993.
From the Judgment and Order dated 16.10.1991 of the Mumbai High B
Court in W.P. Nos. 555 2304, 1592/82, 2367/83, 1983, 1429, 2723/84, 2432,
2707/85. 126, 464, 531, 570/86, 671/88, 726, 727, 749, 840, 849, 955, 1400,
1617, 1764, 1818, 1846, 1893, 1894, 1908, 1942, 2053, 2176, 2187/86,
2674/87, 463/88, 1388/86, 1765 and 1884 of 1986.
WITH
C.A. Nos. 9209, 9210, 9213, 9214, 9260-9261/95, S.L.P. (C) Nos.
8256-8259/93, C.A. Nos. 839/95, 3789/92, S.L.P. (C) No. 12949/92, 333 I/
93, C.A. Nos. 9207, 9206195, S.L.P. (C) No. 3210/99, C.A. No. 921 I, 9212,
9208195, 6590, 6591, 6592 of 200 I.
Rakesh Dwivedi, V.A. Mohta, Rajinder Sachar, Ujagar Singh, N.N.
c
D
Goswami, Subodh Markandeya, Ms. Vimla Sinha, Abhishek Chaudhary, Sunil
Kumar Verma, T. Raja, M.K. Dua, Arvind Minocha, Ms. Madhu
Moolchandani, Sunil Kumar Verma, S.C. Patel, V.B. Saharya, K.K. Mohan,
Ambrish Kumar, E.C. Agrawala, N.M. Popli, Sanjeev K. Singh, Ms. Vrindha E
Dhar, A.K. Sanghi, K.C. Jain, Mrs. KawaljitKochar, S.C. Paul, C.L. Basha!,
Ms. Sonal Mahajan, J.D. Jain, R.S. Lambat, Uday Umesh Lalit, S.M. Jadhav,
Sanjeev Malhotra, Ravindra Bana, S.M. Sarin, P.N. Puri, Devendra Verma,
Satish Vig. S.S. Shinde, S.V. Deshpande, P.N. Gupta, Nischal Kumar, Vineet
Kumar, Mahabir Singh, R.K. Talwar, Yash Pal Dhingra, Harinder Mohan
Singh, Anil Hooda, Ms. lndu Goswamy, Bhargava V. Desai, Ms. Sweta F
Kakkad, Alok Gupta, Mohan Babu Agarwal, Kamlendra Misra, Ms. Chitra
Markandaya and K.C. Jain for the appearing parties.
The Judgment of the Court was delivered by
8.P. SINGH, J. In this batch of appeals and special leave petitions the
common question which arises for consideration is whether the provisions of
the Land Acquisition Act, 1894, particularly Sections 6, 23(2) and 28 thereof
stand incorporated in the three State Acts with which we are concerned in
these matters or whether the Land Acquisition Act has been merely referred
G
to in the State Acts. If it is held that the provisions of the Land Acquisition H
644
SUPREME COURT REPORTS [2002] SUPP. 2 S.C.R.
A Act stand legislatively incorporated in the State Acts, the subsequent
amendments to the Land Acquisition Act will have no effect upon the
acquisitions made under the State Acts. We are concerned with three State
Acts, namely, The Punjab Town Improvement Act, 1922 (hereinafter referred
to as 'the Punjab Act'); The Nagpur Improvement Trust Act. 1936 (hereinafter
B referred to as 'the Nagpur Act') and The Uttar Pradesh Avas Evam Vikas
Parishad Adhiniyam, 1965 (hereinafter referred to as 'the U.P. Act').
C.A. Nos. 9206 to 9214 of 1995; C.A. Nos. 9260-9261 of 1995; C.A.
No. 3789 of 1992; SLP (C) No. 12949/1992; SLP (C) No. 3331 /1993 & SLP
(C) No. 3210/1999 relate to acquisitions made under the Punjab Act. C.A.
C No. 839 of 1995 and C.A. Nos. 6590 to 6292 of 200 I relate to acquisitions
under the U.P. Act while C.A. Nos. 1164-2000 of 1993 and SLP (C) Nos.
8256-8259 of 1993 relate to acquisitions made under the Nagpur Act.
In the matters arising under the Punjab Act, the High Court of Punjab
and Haryana held that the claimants, whose lands were acquired under the
D Punjab Act were entitled to additional compensation under Section 23(1-A)
as amended by Land Acquisition (Amendment) Act, 1984 as also to the
solatium under Section 23(2) and interest under Section 28 of the Land
Acquisition Act as amended by Act 68 of 1984. Th·e Court relied upon the
judgment of this Court in Union of India and Anr. v. Zora Singh and Ors.,
E [1992], I sec 673; Nagpur Improvement Trust and Anr. V. Vithal Rao and
Ors., AIR (1973) SC 689 as also the full Bench of that Cowt in Harbans
Kaur and Ors. v. Ludhiana Improvement Trust and Ors., (1973) P.L.J. 250.
In the appeals which relate to the acquisitions under the Nagpur Act,
the appellant, namely the Nagpur Improvement Trust, has impugned the
F judgment and order of the High Court of Bombay (Nagpur Bench), Nagpur,
holding that the Land Acquisition Act is merely referred to in the Nagpur Act
and, therefore, the provisions of Section 6 including the proviso thereto apply
to acquisitions under the Nagpur Act. Since the notice under Section 39 of
the Nagpur Act corresponding to the Notification under Section 4 of the
Land Acquisition Act was first published in the official gazette on 25th
G December, 1969 and the subsequent Notification under Section 45
corresponding to the declaration under Section 6 of the Land Acquisition Act
was published on 18th September, 1974 i.e. after more than three years, the
same deserves to be quashed since the notice published under Section 39 of
the Act lapsed on expiry of three years from the date of its publication, and
H no action pursuant to the said notice could have been taken thereafter .
•
NAGPUR IMPROVEMENT TRUST v. VASANTRAO [B.P. SINGH, J.] 645
In Civil Appeal No. 839 of I 995 which arises under the U.P. Act, the A
High Court of Judicature at Allahabad dismissed the writ petitions challenging
the acquisitions before it holding that Section 6 of the Land Acquisition Act
was legislatively incorporated in the U.P. Act which was of the year 1965,
and that the subsequent amendment of Section 6 of the Land Acquisition Act
in the year 1967 did not affect the provisions of the U.P. Act including B
Section 6 of the Land Acquisition Act as incorporated in the U.P. Act. It,
therefore, rejected the contention urged on behalf of the petitioners that
acquisition proceedings lapsed on expiry of the period of three years from the
date of issuance of Notification under Section 28 of the U.P. Act which
corresponds with Section 4 of the Land Acquisition Act. The High Court
relied upon its Full Bench decision in Doc/ors Sahakari Gram Nirman Samili C
Lid v. Avas and Vikas Parishad etc. , AIR (1984) Allahabad 234.
In Civil Appeal Nos. 6590-6592 of 2001, the sole question is whether
the claimants are entitled to interest on the sum payable under Section 23 of
the Land Acquisition Act.
The Punjab Act was enacted to make provision for the improvement
and expansion of towns in Punjab. The Nagpur Act also makes provisions for
the improvement and expansion of the town of Nagpur. The U.P. Act has the
same objective but applies to whole of the State of Uttar Pradesh, excluding
D
the Cantonment areas. All these State Acts incorporate a similar scheme and
follow a common pattern. They provide for the constitution of Trust or Board, E
as the case may be, and also provide for various schemes for the improvement
and expansion of the areas covered by the Act. All the three Acts provide for
acquisition of land in accordance with the provisions of the Land Acquisition
Act subject to the modifications made thereto by the Act and/or the Schedule
to the Act. In a nutshell, the provisions of the Land Acquisition Act are made F
applicable to the acquisitions made under the State Acts subject to certain
modifications as indicated in the Act and/or the Schedule thereto.
Before we advert to the submissions urged at the Bar we may briefly
notice the scheme under the said A~ts.
The Punjab Act provides for the creation and incorporation of Trusts
which are charged with the duty of carrying out the provisions of the Act in
G
the local area within their jurisdiction. Provisions have been made for the
constitution of the Trusts and the manner in which the proceedings of the
Trusts and their Committees are to be conducted. Chapter IV of the Act deals
with the schemes which may be framed under the Act, which include general H
646
SUPREME COURT REPORTS [2002] SUPP. 2 S.C.R.
A improvement scheme or rebuilding scheme; street schemes and deferred street
schemes ; development and expansion schemes; housing accommodation
scheme ; re-housing scheme etc. Under Section 36 of the Act when a Scheme
is framed, the Trust shall prepare a notice stating the fact that the scheme has
been framed and prescribe the boundaries of the locality comprised in the
B scheme and furnish requisite particulars. Such a notice is required to be
published weekly for three consecutive weeks in the Official Gazette and in
a newspaper or newspapers with a statement of the period with in which
objections will be received. Under Section 38, during the thirty days next
following the first day on which any notice is published under Section 36 in
respect of any scheme under the Act, the Trust is required to serve a notice
C on every person, whom the Trust has reason to believe, to be the owner of
any immovable property which it is proposed to acquire in executing tile
scheme and the occupier of such premises. Under Section 41 the State
Government may sanction, either with or without modification, or may refuse
to sanction, or may return for reconsideration, any scheme submitted to it
D
under Section 40 of the Act. In case scheme is sanctioned by the State
Government, Section 42 mandates the State Government to notify the sanction
of the scheme under the Act whereafter the Trust shall proceed to execute the
scheme in accordance with the provisions of the Act. A notification under
sub-section (I) of Section 42 in respect of any scheme is conclusive evidence
that the scheme has been duly framed and sanctioned. Chapter V deals with
E the powers and duties of the Trust where the scheme has been sanctioned.
Chapter VI deals with the acquisition proceedings and the application of the
Act to other authorities. Section 56 thereunder enables the State Government
to abandon the acquisition of land in certain cases on payment being made
of a sum to be fixed by the Trust. A Tribunal is constituted under Section 58
for the purpose of performing the functions of the Court in reference to the
F acquisition of land for the Trust under the Land Acquisition Act, 1894. Section
59 is of considerable significance and is, therefore, reproduced below :-
G
H
"59. Modification of the Land Acquisition Act, 1894 - For the purpose
of acquiring land under the Land Acquisition Act, 1894, for the trust
(a) the tribunal shall (except for the purposes of section 54 of the
said Act) be deemed to be the Court, and the president of the
tribunal shall be deemed to be the Judge, under the said Act :
(b) the said Act shall be subject to the further modifications indicated
in the Schedule to this Act;
NAGPUR IMPROVEMENT TRUST v. Y ASANTRAO (B.P. SINGH. J.] 647
(c) the president of the tribunal shall have power to summon and A
enforce the attendance of witnesses, and to compel the production
of documents by the same means and (so far as may by) in the
same manner as is provided. in the case of a Civil Court under
the Code of Civil Procedure, 1908 ; and
,.-
(d) the award of a tribunal shall be deemed to be the award of the B
Court under the Land Acquisition Act, 1894, and shall be final".
The Schedule to the Act is also of considerable significance since it
seeks to modify the provisions of the Land Acquisition Act in its application
to acquisitions under the Punjab Act. Paragraph 2 of the Schedule reads as
under :-
c
"2. Notification under section 4 and declaration under section 6 to be
replaced by notification under sections 36 and 42 of this Act. - (I)
The first publication of a notice of any improvement scheme under
section 36 of this Act shall be substituted for and have the same
effect as publication in the Official Gazette and in the locality of a D
notification under sub-section (I) of section 4 of the said Act, except
where a declaration under section 4 or section 6 of the said Act has
previously been made and is still in force.
(2) Subject to the provisions of clauses 10 and 11 of this Schedule, E
the issue of a notice under sub-section 32 (I) of section in the case
of land acquired under that sub-section and in any other case the
publication of a notification under section 42 shall be substituted for
and have the same effect as a declaration by the State Government
under section 6 of the said Act, unless a declaration under the last
mentioned section has previously been made and is still in force".
F
Various clauses of the schedule seek to amend sections 11, )5, 17, 18,
19, 20, 23, 24, 31 & 49 of the Land Acquisition Act. Two new provisions
have been inserted, namely Sections 24A and 48A. The rele\(11nt part of
paragraphs 6 and 10 of the schedule Which seek to add Sectio.~ 17-A and
,/
modify Section 23 of the Land Acquisition Act are as follows :-
G
"6. Transfer of land to Trust - After section 17 of the said Act, the
following shall be deemed to be inserted, namely :-
17-A. 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 H
648
SUPREME COURT REPORTS [2002) SUPP. 2 S.C.R.
A
ihe liinato 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".
B
"10. Amendment of section 23. - (I) In clause first and clause sixthly
of sub-section (1) of section 23 of the said Act, for the words
"publication of the declaration relating thereto under section 6" and
the w0rds "publication of the declaration under section 6", shall be
deemed to be substituted.
(a)
if the land is being acquired under sub-section (3) of section 32
of this Act the words "issue of the notice under sub-section (3)
C
of section 32 of the Punjab Town Improvement Act, 1922," a~d
D
E
F
G
(b) in any other case, the words "first publication of the notification
under section 36 of the Punjab Town Improvement Act, 1922".
(2) The fullstop at the end of sub-section (2) of section 23 of the said
Act shall be deemed to be changed to a colon and the following
proviso shall be deemed to be added :-
Provided that this sub-section shall not apply to any land acquired
under the Punjab Town Improvement Act, 1922.",
Section 48A reads as under :-
" 48-A. Compensation to be awarded when land not acquired within
one year. - (!) If within a period of one year, from the date of the
publication of the declaration under section 6 in respect of any land,
the Collector has not made an award under section 11 with respect to
such land, the owner of the land shall, unless he has been to a material
extent responsible for the delay, be entitled to receive compensation
for the damage suffered by him in consequence of the delay.
(2) The provision of part III of this Act shall apply, so far as it
may to the determination of the compensation payable under this
section."
The Nagpur Act, namely - the Nagpur Improvement Trust Act, 1936,
follows the same pattern. Chapter II of the Act deals with the Constitution of
the Trust and Chapter Ill deals with the proceedings of the Trust and the
Committees. Chapter IV deals with various improvement schemes
H contemplated by the Act. Section 26 provides that an improvement scheme
-
,
NAGPUR IMPROVEMENT TRUST v. VASANTRAO [B.P. SINGH, J.] 649
may provide for all or any of the matters provided therein which includes the A
acquisition by purchase, exchange, or otherwise of any property necessary
for or affected by the execution of the scheme; recovery of betterment
contributions; the re-laying out of any land comprised in the scheme, the
construction and re-construction of buildings; the provisions of parks, playingfields and open spaces etc; sanitary arrangements required for the area;
reclamation or reservation of land for market, gardens, afforestation etc. etc. B
It also includes any matter for which, in the opinion of the State Government,
it is expedient to make provision with a view to the improvement of any area
in question or the general efficiency of the scheme. Various schemes have
been specified such as a general improvement scheme; a re-building scheme;
a re-housing scheme; a street scheme; a deferred street scheme; a house C
accommodation scheme etc. etc. Sections 36 to 4 7 prescribe the procedure to
be followed in framing an improvement scheme. Section 39 provides that
when any improvement scheme has been framed, the Trust shall prepare a
notice stating the fact that the scheme has been framed; the boundaries of the
area comprised in the scheme and such other particulars as are specified in
that section. Under Section 41, during the thirty days next following the first D
day on which any notice is published under Section 39 in respect of any
improvement scheme, the Trust shall serve a notice on every person whose
name appears in the Municipal assessment list of land as owner of any building
or land which it proposed to acquire in executing the scheme or in regard to
which it proposed to recover a betterment contripution. The notice shall state E
that the Trust propose to acquire such land or to recover such betterment
contribution for the purposes of carrying out an improvement scheme. The
notice shall call upon such person, if he dissents from such acquisition or
from the recovery of such betterment contribution, to state his reason in
writing within a period of sixty days from service of the notice. The objections
are, thereafter, to be considered under Section 43 within the period prescribed. F
The objectors are entitled to be heard in the matter if they so desire, whereafter
the Trust may either abandon the scheme or apply to the State Government
for sanction of the scheme with such modification, if any, as the Trust may
consider necessary. Thereafter the State Government may sanction either
with or without modification, or may refuse to sanction, or may return for G
reconsideration, any improvement scheme submitted to it under Section 43.
Section 45 provides that whenever the State Government sanctions an
improvement scheme, it shall announce the fact by notification and the Trust
shall forthwith proceed to execute the same. The publication of a notification
under sub-section (I) of Section 45 in respect of any scheme shall be conclusive
evidence that the scheme has been duly framed and sanctioned. Section 46 H
650
SUPREME COURT REPORTS (2002] SUPP. 2 S.C.R.
A authorises the Trust to alter any improvement scheme after the same has been
sanctioned subject to the previous sanction of the State Government, if
required. Chapter V of the Act lays down the powers and duties of the Trust
where a scheme has been sanctioned. Chapter YI deals with the acquisition
and disposal of land. Section 58 provides for acquisition by purchase, lease
B or exchange by the Trust pursuant to an agreement with the person concerned.
Section 59 reads as follows :-
c
D
E
"59. The Trust may, with the previous sanction of the State
Government acquire, land under the provisions of the Land Acquisition
Act, 1894, as modified by the provisions of this Act, for carrying out
any of the purposes of this Act."
Section 60 provides for the constitution of Tribunal for the purposes of
performing the functions of the Court in reference to the acquisition of land
for the Trust, under the Land Acquisition Act, 1894. Section 61 reads as
under :-
"61. For the purpose of acquiring land under the Land Acquisition
Act, 1894, for the Trust, -
(a) the Tribunal shall except for the purposes of section 54 of that
Act, be deemed to be the Court, and the President of the Tribunal
shall be deemed to be the Judge thereunder ;
(b) the Act shall be subject to the further modifications as indicated
in the Schedule ;
(c) the President of the Tribunal may summon witnesses and enforce
their attendance and may compel the production of documents
F
by the same means, and so far as may be, in the same manner,
as is provided in case of a Civil Court under the Code of Civil
Procedure, 1908 ; and
G
( d) the award of the Tribunal shall be deemed to be the award of the
Court under the Land Acquisition Act, 1894, and shall be final".
It is not necessary to refer to other provisions of the Act. However, the
Schedule to the Act provides for fm1her modification of the Land Acquisition
Act, 1894. Clauses 2 and 3 of the Schedule are significant and they are
reproduced below:-
H
"2. ( 1) The first publication of a notice of an improvement scheme
NAGPUR IMPROVEMENT TRUST v. VASANTRAO [B.P. SINGH. J.]651
•
under section 39 of the Nagpur Improvement Trust Act, 1936, shall A
be substituted for, and have the same effect as publication in the
official Gazette and in the locality of, a notification under sub-section
(I) of section 4, except where a declaration under section 4 or section
6 has previously been made and is still in force .
..
(2) Subject to the provisions of clauses I 0 and 11 of this Schedule, B
the issue of notice under sub-section ( 4) of section 32 of the Nagpur
Improvement Trust Act 1936, in the case of land acquired under that
sub-section, and in any other case the publication of a notification
under section 45 of the Nagpur Improvement Trust Act, 1936, shall
be substituted for, and have the same effect as a declaration by the C
State Government under section 6, unless a declaration under the last
mentioned section has previously been made and is in force.
(3) The full stop at the end of section 11 shall be deemed to be
changed to a semi-colon, and the following shall be deemed to be
added, namely:-
D
"and
(iv) the costs which, in his opinion, should be allowed to any person
who is found to be entitled to compensation, and who is not entitled
to receive the additional sum of fifteen per centum mentioned in sub- E
section (2) of section 23 as having been actually and reasonably
incurred by such person in preparing his claim and putting his case
before the Collector.
The Collector may disallow, wholly or in part, costs incurred by
any person, if he considers that the claim made by such person for p
compensation is extravagant."
The Schedule further amends Sections 15, 17, 18, I 9, 20, 23, 24 & 31
of the Land Acquisition Act. The schedule inserts two new provisions, namely
Section 24-A and Section 48-A. Section 17-A which has been added by
clause 6 of the Schedule reads as under:-
G
"6. After section 17, the following section shall be deemed to be
inserted, namely :-
17-A. 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 H
A
B
652
SUPREME COURT REPORTS [2002] SUPP. 2 S.C.R.
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.''
Clause 10 of the schedule which effects several modifications in Section
23 of the Land A.cqui:&,jtion Act, modifies sub-section (2) thereof as follows:-
"(2) The full stop at the end of sub-section (2) of section 23 shall be
deemed to be changed to a colon.