Holding

The Court held that the amendments to the Land Acquisition Act, 1894 introduced by Central Act 68 of 1984, including Section 11-A, apply mutatis mutandis to acquisitions under the M.R.T.P. Act and that the Sant Joginder Singh decision must be reconsidered.

Summary

Girnar Traders, a partnership firm, owned land reserved under the Jalgaon Development Plan. After the State Government confirmed the firm's purchase notice, the municipal council failed to acquire the land under the Maharashtra Regional and Town Planning Act (M.R.T.P. Act). The State later declared the land required for public purpose under Section 126(4) of the M.R.T.P. Act, but no award was made within two years as mandated by Section 11-A of the Land Acquisition Act (LAA), 1894. The firm challenged the delay, arguing that the amendments introduced by Central Act 68 of 1984 to the LAA, including the two‑year award limitation, should apply mutatis mutandis to acquisitions under the M.R.T.P. Act. The Supreme Court examined earlier decisions, notably State of Maharashtra v. Sant Joginder Singh, and concluded that the provisions of the amended LAA, especially Section 11-A, must be read into the M.R.T.P. Act and that the Sant Joginder Singh ruling requires reconsideration. Consequently, the Court referred the matter to a larger bench for further determination.

Issues considered

Whether the provisions of the Land Acquisition Act, 1894 as amended by Central Act 68 of 1984, including Section 11-A, apply to acquisitions under Chapter VII of the Maharashtra Regional and Town Planning Act, 1966.
Whether the failure to make an award within two years of a declaration under Section 126(2) of the M.R.T.P. Act renders the acquisition proceedings void.
Whether the decision in State of Maharashtra v. Sant Joginder Singh is binding on the present case.

Legislation cited

Land Acquisition Act, 1894s. 11-A, s. 12(2), s. 23, s. 28, s. 6
Maharashtra Regional and Town Planning Act, 1966s. 125, s. 126, s. 49, s. 6

Subjects

Land acquisitionMaharashtra Regional and Town Planning ActSection 126Section 11-ACentral Act 68 of 1984Award time limitArticle 14Reference to larger benchCompensationAcquisition procedure

Judgment

A MIS. GIRNAR TRADERS
v.
STA TE OF MAHA.RASHTRA AND ORS.

OCTOBER 14, 2004

B [SHIVARAJ V. PATIL AND B.N. SRIKRISHNA, JJ .]

Maharashtra Regional and Town Planning Act, 1966:

Chapter VJI-ss. 126(2) and (4)-Acquisition of land under the Act-
C Failure to make award within two years from date of declaration under sub-
s. (2) of s.126-Effect of-Applicability of s.11 ~A and other provisions of
Land Acquisition Act, 1894 as amended by Act 68 of 1984 to acquisition of
land made under the State Act-Decision in Sant Joginder Singh's case*
holding that s.11-A of Central Act would not apply to acquisition of land
D made under the State Act, referred to larger Bench for reconsideration-
Land Acquisition Act, 1894-s. l l-A.

*State of Maharashtra and Anr. v. Sant Joginder Singh Kishan Singh
and Ors., (1995) Supp. 2 SCC 475, referred to larger Bench for
reconsideration.
E
Gauri Shankar Gaur and Ors. v. State of UP. _and Ors., [1994) 1 SCC
92; Nagpur Improvement Trust and Anr. v. Vithal Rao and Ors., [1973) 1 SCC
500 and Maharashtra State Road Transport Corporation v. State of
Maharashtra and Ors., [2003J 4 SCC 200, relied on.

F UP. Avas Evam Vikas Parishad v. Jainul Islam, [1998) 2 SCC 467,
referred to.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3703 of2002.

From the Judgment and Order dated 29.3.2000 of the Bombay High
G Court in W.P. No. 822 of2000.

VA l\1ohta, Aniruddha P. Mayee, Sanjeev Kr. Choudhary and Neelakanth
Nayak with him for the Appellant.

V.N. Ganpule, Dr. N.M. Ghatate, Ravindra K. Adsure, for Mukesh K. Giri,
H 490
GIRNAR TRADERS v. STATE OF MAHARASHTRA 491

Shivaji M. Jadhav, Himanshu Gupta and Brij Kishor Sah with them for the A
Respondents.

The following Order of the Court was delivered :

This appeal is directed against the judgment of the Division Bench of
the High Court of Judicature at Bombay, Aurangabad Bench, dismissing the B
writ petition of the appellant under Article 226 of the Constitution of India.
The question for consideration is: Whether all the provisions of the Land
Acquisition Act, 1894 as amended by Central Act 68 of 1984 can be read into
the provisions under Chapter VII of the Maharashtra Regional and Town
Planning Act, 1966 for an acquisition thereunder?
c
The appellant is a registered partnership firm owning certain lands
situated within the jurisdiction of Second Respondent, Jalgaon Municipal
Council. The land owned by the appellant was subject to a reservation in the
draft development plan of Jalgaon town, which was published on 19.3.1987.
Since the appellant was unable to develop the land under reservation, and no D
steps were being taken by the Jalgaon Municipal Council to acquire the said
land under the provisions of The Maharashtra Regional And Town Planning
Act, 1966 (hereinafter referred to as the 'M.R.T.P. Act'), the appellant issued
a notice dated 19.1.1989 under Section 49(1) of the M.R.T.P. Act, calling upon
the State Government to either confirm or refuse the purchase notice within
the period fixed under Section 49 of the M.R.T.P. Act. E
On 25.7.1989 the State Government, acting under Section 49(4) of the
M.R.T.P. Act, confirmed the purchase notice issued by the appellant. Despite
confirmation of the purchase notice, Second Respondent, Jalgaon Municipal
Council did not take any steps under Section 126 of the M.R.T.P. Act, nor did
it apply to the State Government for acquisition of the land under reservation. F
Ultimately, on 3.10.1991, the First Respondent State Government issued
a notification under Section 126(4) of the M.R.T.P. Act read with Section 6 of
the Land Acquisition Act, 1894, declaring that the concerned land was required

.. for a public purpose as indicated in the notification. This notification expressly
mentions that the period of three years prescribed under Section 126(2) of the
M.R.T.P. Act was over and, therefore, the State Government was acting under
sub section (4) of Section 126 of the M.R.T.P. Act.
G

It is the case of the appellant that it had no knowledge of this declaration
dated 3.10.1991 as no individual notice has been served on it, though this H
492 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A declaration was published in the Official Gazette on 15.10.1991. Despite the
declaration under Section 126(4) of the M.R.T.P. Act, as aforesaid, nothing
happened till March, 1994. On 23 .3. l 994 the appellant issued second purchase
notice under Section 49(1) of the M.R.T.P. Act. By a reply dated 10.4.1995, the
State Government infonned the appellant that inasmuch as the earlier purchase
notice dated 19. l .1989 had already been con finned by the State Government
B on 25.7.1989, and further since the Jalgaon Municipal Council has already
initiated proceedings for acquisition of the land, the second purchase notice
was rejected.

The appellant challenged the said rejection by his Writ Petition No. 2829
C of 1996 before the High Court of Judicature at Bombay. This writ petition was
disposed of by the High Court by its judgment and order dated 31.3 .1997 by
which the State Government and the Municipal Council were directed to
initiate the proceedings for acquisition of the lands in question within one
year and complete the same within the time prescribed under the M.R.T.P. Act.
The High Court further directed, "in case the authorities fail to initiate the
D acquisition proceedings within the prescribed period, the lands of the
petitioners shall be deemed to have been released from the reservation."

According to the appellant, despite the order of the High Court, it was
not informed about any steps taken by the concerned authorities for acquisition
of its land. On 13.4.1998, the appellant issued a letter to the Special Land
E Acquisition Officer, Respondent No. 3, calling upon him to disclose whether
any proceedings had been initiated for acquisition. The appellant, however,
received no reply.

On 18.2.1999, Respondent No. 3 issued a notice to the appellant under
F Section 12(2) of the Land Acquisition Act, 1894 calling upon him to accept
the compensation for the land acquired as per the award. The appellant
moved a writ petition No. 822 of 2000 in the High Court of Judicature at
Bombay and sought quashing of the notice under Section 12(2) of the Land
Acquisition Act, I 894 and a direction enabling it to develop its land for
residential purpose. By the impugned judgment, the High Court dismissed the
G writ petition by holding that the prayer for declaration of dereservation of the
subject land as well as granting of pennission to develop the property for
residential purpose had already been declined by its earlier order dated
31.3.1997, which had become final as far as the appellant was concerned. The
High Court thus took the view, "the only issue we are required to examine
H i.e. whether the Land Acquisition Officer has complied with our directions and
GIRNAR TRADERS v. STATE OF MAHARASHTRA 493
if the directions were not complied within the period of one year, as set out A
by us, whether the Petitioner is entitled for the reliefs prayed for in this
petition." The High Court held: "on perusal of the documents submitted
before us we are satisfied that the requisite steps have been taken by the
Special Land Acquisition Officer for acquisition of the subject land and after
writ petition No. 2829 of 1996 was disposed of, there was no necessity to
initiate fresh action by the Planning Authority as contemplated under Section B
126(l)(c) of the M.R.T.P. Act." In this view of the matter, the writ petition came
to be dismissed. Hence, this appeal by special leave.

Mr. V.A. Mohta, learned senior counsel for the appellant urged that the
Scheme of the M.R.T.P. Act shows that, on receipt of an application under C
sub section (I) of Section 126, if the State Government is satisfied that the
land specified in the application is required for the public purpose, it may
make a declaration to that effect in the Official Gazette in the manner specified
in the Land Acquisition Act, 1894, and such declaration is deemed to be a
declaration duly made under Section 6 of the Land Acquisition Act, 1894. The
proviso to sub section (2) of this section prescribes the period within which D
such declaration has to be made. Sub section (3) of this section provides that
on publication of the declaration under Section 6 of the Land Acquisition Act,
1894, the Collector shall proceed to take order for the acquisition of the land
under the said Act, and thereafter, the provisions of the Land Acquisition
Act, 1894 shall apply to the acquisition of the said land, subject to the E
modification introduced by sub section (3), which pertains only to the market
value of the land. The only change made in the Scheme of this Act is that,
if the State Government fails to make the declaration under sub section (2)
within the time provided in the proviso thereto, the declaration does not
become bad as it is saved by sub section (4). Under sub section (4),
notwithstanding the fact that the requisite declaration under sub section (2) F
had not been made within the time provided therein, the State Government
is empowered to issue a fresh declaration for acquiring the land in the manner
provided by sub sections (2) and 3 of Section 126 of the M.R.T.P. Act, but,
if that be done, the market value of the land for the purpose of compensation
shall be the market value at the date of such declaration made afresh.

- Mr. Mohta submitted that barring the above special modification
introduced in the Scheme of acquisition of land, in all other respects, the
G

provisions of the Land Acquisition Act, 1894 would mutatis mutandis apply
to an acquisition under Chapter VII of the M.R.T.P. Act. He pointed out that
the M.R. T.P. Act contains neither any provision for payment of compensation, H
494 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A nor does it prescribe the time within which the award has to be made after
a declaration is made under sub sections 2, 3 or 4 of Section 126. It is urged
that the Legislature could not have left it vague and indefinite. In the
submission of the learned counsel, this is a situation of invocation of the
provisions of the Land Acquisition Act, I 894, not by incorporation, but by
B reference. In other words, as and when the provisions of the Land Acquisition
Act, I 894 are amended, all the amended provisions would be attracted to an
acquisition under Chapter VII of the M.R.T.P. Act, unless barred expressly or
by direct implication. The amendments introduced in the Land Acquisition
Act, I 894 by Central Act·68 of I 984 would all automatically apply. Consequently,
the period of limitation prescribed under Section I IA for making the award
C would squarely apply.

Appellant urges that while sub section (4) of Section 126 may save a
declaration under Section 6 of the Land Acquisition Act, 1894 from becoming
bad because of lapse of time (though, subject to the modification with regard
to the market value of the land prescribed therein), there is nothing in the
D M.R.T.P. Act which precludes, expressly or by direct implication, the provisions
of Section I IA from applying to govern the period within which the award
has to be made. In the facts of the present case, there is no dispute that the
declaration under Section 126(4) was made on 3. I 0.1991 and published in the
Official Gazette on 15.10.1991, while the award is said to have been made on
E I 8.2. I 999. In these circumstances, the award not having been made within the
period of two years from the date of the declaration under Section 6, the entire
proceedings for the acquisition of the land would lapse by reason of Section
I I A of the Land Acquisition Act, I 894.

Appellant relies heavily on the Statements of Objects and Reasons
p attached to the Bill preceding the Act 68 of I 984. The attention of the
Legislature was drawn to the fact of pendency of acquisition proceedings for
long time and, "the pendency of acquisition proceedings for long periods
often causes hardship to the affected parties and renders unrealistic the scale
of compensation offered to them."

G Finally, it is contended that the amendments introduced by Central Act
68 of I 984 in the Land Acquisition Act, 1894 were by way of a composite
package and it is not open to anyone to pick and choose them in their
application, unless so provided in any competent legislative enactment. In the
present case, there is nothing in the provisions of the M.R.T.P. Act which
H could oust the application of the entire gamut of amendments introduced by
GIRNAR TRADERS v. STATE OF MAHARASHTRA 495
Central Act 68 of 1984 and, therefore, all acquisitions, even under the M.R. T.P. A
· Act, must be read subject to them.

Learned counsel for the respondents, refuting the contentions urged on
behalf of the appellant, placed heavy reliance upon the judgment of a Bench
of two learned Judges in State of Maharashtra and Anr. v. Sant Joginder
Singh Kishan Singh and Ors., 1• Learned counsel for the respondents strongly B
urged that this judgment clinches the arguments against the appellant. The
same contention as urged by the appellant before us has been considered and
negatived in Sant Joginder Singh (supra), wherein it is observed (vide
paragraph 13) as under:

"It is next contended that since no separate procedure was prescribed C
by the Act for determining the compensation, by necessary inference,
the Central Act was intended to be applied mutatis mutandis to the
acquisition under the Act. He seeks support from the award made by
the Collector in that behalf. It is true that there is no express provision
under the Act to determine compensation for the land acquired under 'D
the Act. Therefore, by necessary implication, compensation needs to
be determined by applying the principles in Section 23 of the Central
Act. But, there is a distinction between procedural and substantive
provisions of a statute. Determination of compensation by applying

- appropriate principles is relatable to substantive provision, whereas
making of award within a prescribed period is basically procedural. So,
merely because Section 23 of the Central Act would apply to acquisition
under the Act, it is not enough to hold that what is contained in
E

Section 11-A would also apply. Further, what has been provided in
sub-section (4) of Section 126 of the Act is a clear indication that
failure to make the award within two years from the date of the F
declaration under sub-section (2) of Section 126 of the Act, would not
render the notification published under Section 125 of the Act non
est."

Appellant urges that Sant Joginder Singh (supra) needs reconsideration
by a larger Bench. G
Upon careful consideration of the contentions urged before us, we are
inclined to accept the submissions of Mr. Mohta for more than one reason.
First, although _the M.KT.P. Act and similar regional town planning Acts did

1
[1995] Supp 2 sec 475. H
496 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A not contain specific provisions for payment of compensation, when they were
challenged as infringing Article 14 of the Constitution, their validity was
upheld by reading the provisions as to payment of compensation contained
in the Land Acquisition Act, 1894 into the regional town planning Acts. [See
in this connection: Gauri Shankar Gaur and Ors. v. State of U.P. and Ors. 2
B and Nagpur Improvement Trust and Anr. v. Vitha/ Rao and Ors. 3]

Secondly, Sant Joginder Singh (supra) appears to have been doubted
· · by a judgment of another Bench of two learned Judges in Maharashtra State
Road Transport Corporation v. State of Maharashtra and Ors. 4 This was a
case under the provisions of the same Act, viz. M.R.T.P. Act, 1966. After
C considering the judgments in U.P. Avas Evam Vikas Parishad v. Jainul Islam 5
and Nagpur Improvement Trust (supra), it was held that the provisions with
regard to compensation made by Central Act 68 of 1984, by addition of sub·
section (IA) to Section 23 and the increased amount of solatium under
Section 23(2) and the interest payable under Section 28 would all apply to an
acquisition under Chapter VII of the M.R.T.P. Act. Dealing with Sant Joginder
D Singh (supra) the Division Bench of this Court explained away Sant Joginder
Singh by observing: "the ultimate conclusion in Sant Joginder Singh case
seems to rest on the ratio that there is sufficient indicia in the M.R.T.P. Act
itself to exclude the applicability of Section 11-A of the LA Act in view of
sub-sections (2) and (4) of Section 126. As we are approaching the question
E of correct interpretation of Section 126(3) from a different perspective, there
is no need to enter into a further discussion as to whether and to what extent
support can ·be drawn from this decision." Reading the judgment in
Maharashtra State Road Transport Corporation (supra), it appears to us
that, tile Division Bench in that case did not seem to agree with the proposition
that was laid down in Sant Joginder Singh (supra).
F
There appears to be no good reason to shut out or preclude the
amendments introduced by Central Act 68 of 1984 in the Land Acquisition
Act, 1894 from applying to an acquisition under Chapter VII of the M.R.T.P.
Act. Or else, the consequence would be that, in respect of two land holders
there would be arbitrary discrimination in the matter of acquisition of their
G
2[1994) 1 sec 92.

'[1973] I SCC 500 Paragraphs 30 and 31.

'[2003J 4 sec 200.

H 5[I998J 2 sec 467.
GIRNAR TRADERS v. STATE OF MAHARASHTRA 497

lands, merely because in one case the acquisition is by the direct route of the A
Land Acquisition Act, 1894 and, in another case, through the indirect route
of the M.R.T.P. Act. The vice of discrimination pointed out by a Bench of
Seven learned Judges in Nagpur Improvement Trust and Anr. (supra) (vide
Para 31 ), would affect such a situation. In order to avoid such a situation, and
to save the constitutionality of the provisions of the M.R.T.P. Act, the ·
provisions of enhanced benefits introduced by Central Act 68 of 1984 were B
read into the provisions of the M.R.T.P. Act, and an acquisition under the
M.R.T.P. Act was held to be governed by the same provisions. The same
principle should apply in the matter of attracting the provisions of Section
llA of the Act 68 of 1984 also to the acquisition under the M.R.T.P. Act.

Thirdly, ifthe provisions of the M.R.T.P. Act are read as contended by
c
the learned counsel for the respondents, in the light of Sant Joginder Singh
(supra), then it would be open to the authorities, after issuing a declaration
under sub section (3), to go into hibernation and leave the matter hanging
in perpetuity. That certainly would seriously affect the rights of the land
holder preventing him from developing the land or alienating it, merely becaus~ D
the authority chooses to act under one Act instead of the other. This again,
would attract the wrath of Article 14 of the Constitution, not only on account
of discrimination, but also on account of arbitrariness~

We, therefore, see no good reason as to why the provisions introduced
in the Land Acquisition Act, 1894 by Central Act 68 of 1984 should not be E
read into an acquisition under Chapter VII of the M.R.T.P. Act, to the extent
not precluded by M.R.T.P. Act, 1966. Section llA being one such section, it
may have to be applied to the acquisition under Chapter VII of the M.R.T.P.
Act.

For these reasons, in our considered view, the decision in Sant Joginder
F
Singh (supra) requires reconsideration by a larger Bench.

The Registry is directed to place the papers before the Hon'ble Chief
Justice of India for appropriate directions in the matter.

RP. Reference to larger bench.
G