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Pawan Sagar Jain vs Union Of India & Ors.
2010 Latest Caselaw 1703 Del

Citation : 2010 Latest Caselaw 1703 Del
Judgement Date : 26 March, 2010

Delhi High Court
Pawan Sagar Jain vs Union Of India & Ors. on 26 March, 2010
Author: Sanjay Kishan Kaul
*            IN THE HIGH COURT OF DELHI AT NEW DELHI


                                                     Reserved on            : 26.02.2010
%                                                   Date of decision :26.03.2010

+                             WP (C) No.1692/2006


PAWAN SAGAR JAIN...               ...       ...       ...       ...       ...       ...PETITIONER

                                Through :       Mr. Sumit Bansal and Mr.Manish
                                                Paliwal, Advocates.


                                     -VERSUS-

UNION OF INDIA & ORS.

         ...      ...       ...     ...       ...       ...       ...       ...       RESPONDENTS

                                Through :       Mr.Ajay Verma, Ms.Renuka Arora and
                                                Ms.Sangeeta Chandra, Advocates for
                                                the DDA.
                                                Mr. Sanjay Kumar Pathak, Advocate
                                                for Land & Building Department,
                                                Govt. of NCT of Delhi and LG of Delhi.

                                                Mr.Sanjay Poddar, Advocate for LAC.

                                                Ms.Rachna Shrivastava, Advocate for
                                                Govt. of NCT of Delhi.

                                                Mr.B.V.Niren,    Mr.Atul     Nanda,
                                                Ms.Rameeza    Hakeem,     Mr.Gaurav
                                                Gupta, Mr.Sumeer Sodhi, Ms.Malika
                                                Gahlot, Ms.Sugandha and Mr.Sanjay
                                                Bhardwaj, Advocates for UOI.

                                And 27 connected matters being

+   WP   (C)   No.1667-68/2006
+   WP   (C)   No.1693-94/2006
+   WP   (C)   No.1696-97/2006
+   WP   (C)   No.1710/2006
+   WP   (C)   No.2087/2006
+   WP   (C)   No.2160/2006
+   WP   (C)   No.2161/2006
+   WP   (C)   No.2300/2006
+   WP   (C)   No.2301/2006
+   WP   (C)   No.2306/2006
+   WP   (C)   No.2582/2006
+   WP   (C)   No.2604-2607/2006
___________________________________________________________________________________________
WPC 1692/2006 and other connected matters                                    Page 1 of 27
 +    WP   (C)   No.12094-95/2006
+    WP   (C)   No.12105-06/2006
+    WP   (C)   No.2140/2007
+    WP   (C)   No.2143/2007
+    WP   (C)   No.2449/2007
+    WP   (C)   No.2450/2007
+    WP   (C)   No.2457/2007


CORAM:

HON'BLE MR. JUSTICE SANJAY KISHAN KAUL
HON‟BLE MS. JUSTICE VEENA BIRBAL


1.        Whether the Reporters of local papers                         YES
          may be allowed to see the judgment?

2.        To be referred to Reporter or not?                            YES

3.        Whether the judgment should be                                YES
          reported in the Digest?


SANJAY KISHAN KAUL, J.

1. The petitioners are recorded owners and bhumidars in

possession of land comprised in different khasra numbers

situated in Village Bamnauli, Tehsil Mehrauli, New Delhi.

2. The petitioners purchased a land through separate sale

deeds and necessary mutations were effected in the land

revenue records.

3. It is the case of the petitioners that farm houses have been

built on the land after due sanction and even completion

certificates have been issued in a number of cases,

However, it is the stand of the petitioners in three of these

cases that the farm houses were constructed as early as in

1967 when no such sanction was required.

4. A notification dated 04.01.2004 was issued under Section 4

of the Land Acquisition Act, 1894 („the said Act‟ for short) ___________________________________________________________________________________________

for acquisition of land for public purpose namely Dwarka

Phase-II under planned development of Delhi. The land of

the petitioners was notified under the said notification.

The land owners filed objections under Section 5A of the

said Act. The primary grounds taken were:

a) That there were sanctioned farm houses and the land

was being used as per the Master Plan.

b) The public purpose was stated to be imaginary and non-

existent.

c) The farm owners also claimed that the land had been de-

notified under Section 12 of the Delhi Development Act,

1957.

d) A professed policy of the respondents not to acquire

built up construction and sanctioned farm houses was

pleaded on the basis of a decision taken by the LG on

30.05.1996 in respect of the some other cases that

unless a major policy decision was taken, the sanctioned

farm houses and their land should not be acquired.

e) In terms of the National Housing Policy declared by the

Central Government, there was need for privatization of

housing activity in Delhi and

f) The green area is required to be maintained in the

vicinity of the airport.

5. On the objections being considered and in pursuance to

the decision of the LG a declaration was issued under Section

6 of the said Act at which stage these farm owners approached

___________________________________________________________________________________________

this court seeking quashing of the notification under Section 4

and the declaration under Section 6 of the said Act.

6. Learned counsel for the petitioners sought to canvass the

following propositions:

i) Lack of proper consideration of objections and

effective hearing under Section 5A of the said Act.

ii) Lack of application of mind prior to the issuance of

declaration under Section 6 of the said Act.

iii) The stated requirement not being in conformity with

the MPD-2021.

iv) Discrimination qua the petitioners as land in respect

of other farm houses, though not forming subject

matter of the same notification, was not even notified

under Section 4 of the said Act on account of policy of

the Government not to acquire built up farm houses.

7. The petitioners submitted that right to property continues

to be a constitutional right under Article 300-A of the

Constitution of India though it may not be a fundamental

right. It is a valuable right akin to a fundamental right and

thus the consideration of the objections filed by the owners

of the land as also the acceptance of recommendations

must be proceeded by a proper application of mind on the

part of the Government. The said Act being exproprietary

legislation, the provisions of the said Act ought to be strictly

construed as they seek to deprive a person of his land

without his consent. It was canvassed before us on the

basis of the records produced by the respondents and also

___________________________________________________________________________________________

on the basis of the report of the LAC that a note sheet was

prepared which also did not reflect the factual position and

the LG only appended his signatures. It was thus pleaded

to be a case of lack of formation of any proper opinion by

the LG and non application of mind. Mere signatures were

stated to be not sufficient to show application of mind.

8. It was submitted that the respondents at no stage

examined the aspect of a proper sanction being available in

the case of farm houses of the present cases in the context

of the policy decision of the LG dated 30.05.1996. The LG

while dealing with farm houses in other areas under

different notifications opined that such farm houses and

their land should not be acquired because they were duly

sanctioned. This is apart from the fact that the green areas

are lungs of the city. It was pleaded that in terms of MPD-

2021, one peripheral village is to be maintained as green

and Bamnauli is a peripheral village.

9. In support of their plea, learned counsel for the petitioners

referred to the judgment in Hindustan Petroleum

Corporation Ltd. v. Darius Shapur Chennai & Ors.; (2005) 7

SCC 627 to canvass the proposition that there has to be

application of mind both at the stage of consideration of

objections filed by the owners of the land by the LAC as

also at a second stage of the acceptance of

recommendations made by the LAC by the competent

authority. The action required to be taken by the State is

distinct and different from the action required to be taken

___________________________________________________________________________________________

by the Collector and when the ultimate order is in question,

it is for the State to satisfy the Court about the validity

thereof and mere satisfaction of the Collector cannot be

held to be sufficient compliance with the requirement of

law. It is in that context, it was observed as under:

"19. Furthermore, the State is required to apply its mind not only on the objections filed by the owner of the land but also on the Report which is submitted by the Collector upon making other and further enquiries therefore as also the recommendations made by him in that behalf. The State Government may further inquire into the matter, if any case is made out therefore, for arriving at its own satisfaction that it is necessary to deprive a citizen of his right to property. It is in that situation production of records by the State is necessary."

10. A reference was also made to the Division Bench judgment

of this Court in Vasant Kunj Enclave Housing Welfre Society

through its President and Ors. v. Union of India and Ors.;

2006 (89) DRJ 406 where it was held that the validity of an

order for acquisition of land must be decided on the

touchstone of the grounds stated in the order and by

reference to the material available on the date when the

order was passed. It was observed in para 26 as under:

"26. I find it difficult to read in this note anything concerning the question whether or not an enquiry under Section 5-A of the Act qua the land belonging to the petitioners should be conducted. The note does not even address itself to that question leave alone propose to the Lt. Governor any particular course of action in regard thereto. All that the note proposes is the issue of a notification under Section 6 and 17(4) for Zone I and II, taking over of possession of area not covered ___________________________________________________________________________________________

by court order in Zone I and II, issue of a corrigendum in respect of Zone III and affording the owners an opportunity for filing objections under Section 5-A of the Act. The note also seeks approval of instructions to the DDA to ensure that no further construction comes up in Zone III during the time the objections are heard. Significantly, Lt. Governor has approved the note which inter alias implies that those owning farm houses in Zone III may be given an opportunity of filing objections under Section 5-A. The order passed by the Lt. Governor however does not demonstrate application of mind leave alone record any reasons for dispensing with such an enquiry under Section 17(4) of the Act in regard to other area notified for acquisition. Just because the Lt. Governor agreed to afford an opportunity to the farm house owners for filing objections under Section 5-A, it cannot be said that a proper consideration of the question had taken place nor can it demonstrate application of mind by the competent authority. Any inference from these notes which are sketchy and which do not directly address the issue in the manner it ought to be, would be far-fetched and unsustainable. If the law requires, as it does in the instant case, that the authority passing the order should apply its mind properly, such application of mind cannot be readily inferred. That is especially so when the order passed by the authority affects valuable civil rights of the citizens. As a matter of fact, the greater the potential of mischief, the more careful and objective should the authority passing the order be. There is also no gainsaying that while acquisitions made for public purpose are at times inevitable, hardship is more often than not implicit for expropriated owners in any compulsory acquisition. Adherence to the requirements of law and the procedure established for the purpose must, therefore, be scrupulously ensured lest the procedural safeguards that the law provides to the owners against arbitrary acquisitions are reduced to bare rituals. I, thereforee, agree with the view expressed by brother Madan Lokur, J that there was no due and proper application of mind on the part of the Lt. Governor to the question of dispensing with the enquiry either before the issue of the notification under Section 17(4) or at any time thereafter."

___________________________________________________________________________________________

(emphasis supplied)

11. On the other hand, learned counsel for LAC submitted that

62 objectors filed their objections who were all given

personal hearing and the objections pressed by them were

all examined. One of the pleas raised by the objectors was

in respect of there being sanctioned farm houses and in

that behalf, the LAC observed that the Government may

take a decision. Simultaneously, the LAC also recorded that

there was no legal impediment to acquire the land as per

the said Act. The report of the LAC along with its

annexures, original objections filed, hearing proceedings,

summary of LAC report and joint survey report were placed

before the LG for consideration and necessary

orders/approval regarding issuance of declaration under

Section 6 of the said Act. A draft notification was also sent

under Section 6 of the said Act. In that summary, prepared

for the LG insofar as the aspect of farm houses is

concerned, it has been stated that the LAC has reported

that there is no impediment to acquire such land by citing a

number of court cases on which acquisition has been

upheld by the Hon‟ble Court. The note also stated that the

LAC has not recommended release of any land in this

category. We may observe at this stage that the note

prepared, however, does not specifically refer to the fact of

the LAC observing that the aspect of release of farm houses

be decided by the Government. The LG after perusing and

considering the material placed before him, gave an

___________________________________________________________________________________________

approval for issuance of a declaration under Section 6 of

the said Act by affixing his signatures. It is submitted that

this is sufficient to establish a subjective satisfaction of the

LG and implies that the decision on the farm houses to be

left out, if any, was negated by the LG as no farm house

was left out from the acquisition.

12. Learned counsel submitted that in any case any policy

decision to leave out sanctioned farm houses or built up

structures could not override the statutory law in view of

what has been observed by the Division Bench of this Court

in Rajesh Kumar Yadav v. Union of India & Ors.; 141 (2007)

DLT 493.

13. Learned counsel submitted that the declaration under

Section 6 of the said Act was issued on 31.10.2005 by the

competent authority after following the due process of law

for the entire land measuring 2100 bighas and 6 biswas and

such a declaration is conclusive proof of the existence of a

public purpose under Section 6(3) of the said Act. Notices

were also issued under Sections 9 & 10 of the said Act to

the interested persons and the award no.1/2007-2008 was

announced on 06.08.2007 with prior approval of the

competent authority for acquisition of the entire land.

Learned counsel thus pleaded that this award had been

challenged in a batch of writ petitions including writ

petitions filed by some of the petitioners herein, but those

writ petitions had been dismissed. Thereafter, reference

petitions had been filed seeking enhancement of

___________________________________________________________________________________________

compensation before the learned Addl.District Judge.

Possession of approximately 1087 bighas is stated to have

been already taken over.

14. Learned counsel also emphasized that two of the writ

petitions bearing no.1715/2006 and 17582/2006 relating to

the same acquisition proceedings after some arguments

were dismissed as withdrawn with liberty to the petitioner

to seek de-notification of the land under Section 48 of the

said Act and same was the fate of some of the other

objectors.

15. Learned counsel for the LAC pleaded that the satisfaction of

the LG has been properly accorded and once the complete

material before the LAC along with recommendation of the

LAC and the summary report prepared in the office is

before the LG, the appending of signatures by LG would

suffice. In this behalf, learned counsel relied upon the

judgment in P.S.Gill and Ors. v. Union of India & Ors; ILR

(1979) I Delhi 601 where the plea of the LG laconically

disposing of the petitions was rejected since all the material

was before the LG and it was observed that a speaking

order is not necessary in recording satisfaction under

Section 6 of the said Act. What is required is to be seen

whether there was substantial compliance with the

requirement in the Act and the LG should satisfy himself

with the acquisition of the land was necessary. It was

observed as under:

___________________________________________________________________________________________

"(66) The argument of Sri Dhamija is that the file has been put up to the Lieutenant Governor for two purposes. The first was for the rejection. of the objection that had been put forward under Section 5A. The second purpose was for orders regarding the issue of the declaration under Section 6. Sri Dhamija contends that the record shows that the L.G. approved of the first suggestion, namely, that the objections should be rejected but he did not apply his mind at all to the second suggestion that a declaration under Section 6 should issue. He submits thereforee that the satisfaction that the lands were required for a public purpose was not arrived at by the Lt. Governor and that he has not directed the issue of declaration under Section 6.

(67) The argument is attractive but we do not think it can be accepted. The proceedings of the L.G., it seems to us, cannot be dissected in the manner suggested by Sri Dhamija. A notification under Section 4 had been issued in 1959. A good portion of the land had already been acquired. It was found that the chunk of land now proposed to be acquired was being misused and that it was necessary to acquire it as early as possible. The objections were considered to be not maintainable in view of the report of the Collector and in view of the analysis made of the various objections by the office note. In the light of these facts, a draft declaration was put up and the file was submitted to the L.G. with a proposal that the objections be rejected and draft proposed be approved. In other words, so far as this particular matter was concerned, The rejection of the objections by the L.G. also automatically meant that he was satisfied that the land was required for a public purpose. It is perhaps conceivable that cases may arise where, as pointed by Sri Dhamija, the rejection of objections might not necessarily lead to the issue of a declaration under Sec. 6 e.g. it may be that the objections raised are flimsy, irrelevant and so liable to be rejected ; but, at the same time there may be some facts or reasons set out in the report of the Collector which render the issue of declaration unnecessary or not possible. To give an illustration, it may be that an extent of land is sought to be acquired for purposes of a public school. The land owners may object on the ground that each of them is holding a small piece of land and that deprivation thereof would cause him enormous hardship. This may be found to be no ground for not acquiring the lands. But it is ___________________________________________________________________________________________

quite possible that the Collector may report that, after the date of the notification under section 4, another big school had come into existence in the locality, and that, thereforee, the acquisition of these lands was no longer necessary. In such cases the rejection of the objections may not be followed by the L.G. with a direction to acquire the land. But such academic illustrations are not helpful in construing the section. What is required is to see whether there is a substantial compliance with the requirement in the Act that L.G. should satisfy himself that the acquisition of the land was necessary. In the present case, having regard to the whole tenor of the note put up to him and having regard to the fact that the L.G. has specifically rejected the objections, it must necessarily follow that he was satisfied that the lands were needed for a public purpose. If inspire of having rejected the objections, the L.G. had not been thus satisfied, he would have specifically directed that, though the objections were rejected, the declaration should not issue."

16. Learned counsel for LAC emphasized that the plea of the

petitioners that the land in question being built-up farm

houses should not be acquired is misplaced as there was

absence of any such policy notified by the Government not

to acquire any built-up property or to exclude built-up farm

houses from acquisition of land under the said Act. There

could be no impediment for acquiring built-up properties

under the said Act and the acquisition proceedings were

carried out following due process of law. To support this

plea, learned counsel referred to the Division Bench

judgment of this Court in Sh.Bhagwan and Anr. v. Union of

India & Ors.; 1991 (2) Delhi Lawyer 59 and Roshanara

Begum v. Union of India and Ors.; AIR 1996 Delhi 206 (FB).

Sh.Bhagwan and Anr. v. Union of India & Ors‟s case (supra)

supports the plea that no policy decision can curb the

jurisdiction of LG under Section 11 of the said Act and thus

___________________________________________________________________________________________

statutory powers cannot be curtailed by administrative

instructions except where principles of promissory

estoppels come into play. The petitioners in that case

relied upon a policy decision dated 18.08.1996 of the Delhi

Administration to the effect that the land will not be

acquired which had been built-up and only that vacant land

will be acquired if it is 1 hectare or more. This plea was

negated on the ground that the decision was an

administrative decision and even assuming for the sake of

argument that the said decision was with the concurrence

of the LG, the administrative decision could also be altered,

modified or abrogated by the competent authority. The

impugned award had been announced after approval had

been obtained from the LG and thus even if there was a

policy decision of the LG, which was incorporated in the

letter dated 18.08.1996, the same stood varied by the LG

himself when soon after the policy decision he gave assent

to the promulgation of the awards. The administrative

policy decision was thus held not to vary or curb the

jurisdiction of the LG under Section 11 of the said Act. This

view is also fortified by the Full Bench of this Court in

Roshanara Begum v. Union of India and Ors‟s case (supra).

17. Learned counsel for LAC thus submitted that in the present

case there is not even a so-called policy decision unlike in

Sh.Bhagwan and Anr. v. Union of India & Ors‟s case (supra).

There was no circular issued and no promise held out to

anyone. The note sheet of the LG is an internal document

___________________________________________________________________________________________

in the file which could not create any promissory estoppels.

The note only proposed that a policy decision be taken in

this behalf, but ultimately no such policy was formulated.

The approval of the award and of the declaration under

Section 6 of the LG thus in any case impliedly superseded

any thought process towards the formulation of such a

policy. It was pleaded that there was sufficient material on

record to support the decision of the LG to approve the

acquisition proceedings and the declaration under Section 6

of the said Act was a conclusive proof of its public purpose.

18. Learned counsel emphasized that the land is being

acquired for the development of a residential scheme to

provide housing to general public and such larger public

purpose must weigh as against the personal rights of the

petitioners. Learned counsel emphasized that in case of

acquisition of large area of land as in the present case,

specifications of the purpose can only be with reference to

the acquisition of the whole area, which is planned

development of Delhi as observed in Aflatoon and Ors. v. Lt.

Governor of Delhi and Ors. (1975) 4 SCC 285.

19. Learned counsel sought to emphasize that judicial notice

can be taken of acute housing shortage in Delhi and

keeping this mind Dwarka Phase II has been planned by the

DDA with the object of providing flats/houses to the

common man. The land sought to be acquired vide

impugned notification is part of the scheme of extension of

the urban limits of Delhi and the land was being utilized in

___________________________________________________________________________________________

accordance with the Master Plan. Learned counsel

emphasized that possession of large number of land as

stated aforesaid has already been taken and it is in such

context it was observed in Om Prakash and Anr. V.State of

UP and Ors.; (1998) 6 SCC 1 that in such a situation setting

aside of a notification would not be appropriate. We may,

however, note that in the facts of that case, almost 9/10th of

land already stood validly acquired and the dispute

centered around only 1/10th of the land while in the present

case possession of 1087 bighas of land has been taken out

of the total land sought to be acquired of 2100 bighas and 6

biswas.

20. In this behalf, learned counsel also submitted that

acquisition contrary to the stated purpose of land use in the

Master Plan, could not be struck down on that account in

view of the observations in Bhagat Singh v. State of UP;

1999 (2) SCC 384. This is so as the beneficiary of the

acquisition can obtain a sanction for change of user from

the competent authority.

21. Learned counsel for the DDA also sought to support the

stand of the LAC in the capacity of a beneficiary of the

acquired land. It was pleaded that the DDA formulated the

plan for development of Dwarka as an integrated sub-city

including residential, commercial, public and semi-public

(institutional), recreational etc. land uses for which

necessary amendments in the MPD-2021 were undertaken.

The land in the present case is for Dwarka Phase-II. The

___________________________________________________________________________________________

land is bounded by oil pipeline in the North East, Rewari

Line in the South East, Najafgarh-Bijwasan Road in the

South and Najafgarh Drain in the West. The land use stood

changed vide notification dated 16.10.2000 from rural use

to the aforesaid purposes and the area was declared a

development area no.172 under Section 12 of the Delhi

Development Act, 1957 vide notification dated 20.07.1988.

It was specifically pleaded that there was no policy of the

DDA to exempt farm houses in this area from acquisition.

22. The land of the petitioners is stated to be primarily falling in

what are proposed sectors 27, 28 and 29 of Dwarka Sub-

city Phase-II Scheme, which land constitutes an integral

part of the Dwarka Phase-II. The Second Diplomatic

Enclave was proposed in the available land of about 222

hectares, but due to non availability of the said land

including on account of challenge to the acquisition

proceedings, an alternative area for diplomatic missions

had to be planned in Sector 24 in a paltry area of only

about 34 hectares. The land in question in these writ

petitions is also stated to be acquired for essential services

of the Scheme like road, water, sewer and electricity works,

which would be adversely affected due to non-availability of

the land. The implementation of peripheral road network

around sectors 27, 28 and 29 is stated to be important to

ensure connectivity of Dwarka sub-city with urban

extension road network. The Draft Zonal Plan K-II is as

under:

___________________________________________________________________________________________

___________________________________________________________________________________________

23. We have examined the elaborate submissions made by

learned counsel for the parties. We have also perused the

records of the LAC pertaining to the hearing granted on the

petitions filed under Section 5A of the said Act as also the

record relating to the satisfaction of the LG before issuance

of declaration under Section 6 of the said Act and

publication of the award.

24. It clearly emerges that the land in question along with other

lands formed subject matter of the same notification under

Section 4 of the said Act with the avowed object of public

purpose of planned development of Delhi. Dwarka Phase-II

was envisaged on the lands in question. The housing

shortage in Delhi is epidemic. It can thus hardly be said

that the object of having Dwarka Phase-II lacks public

purpose. The records of the LAC show that the parties

made their submissions by reference to the various points

which were duly noted by the LAC. The parties/counsels

even signed proceedings before the LAC. The plea of lack

of proper consideration and effective hearing under Section

5A of the said Act can thus hardly be sustained.

25. The parties have had full opportunity to make their

submissions on which the LAC has submitted his report.

We have to note that while filing objections often large

number of pleas are taken but when the matter is

addressed, the relevant pleas are sought to be advanced.

This is what has happened in the present case and the

___________________________________________________________________________________________

pleas advanced have been taken note of and the LAC has

made itself comments on the same.

26. In our considered view, the LAC rightly came to the

conclusion that these petitions really have no merit keeping

in mind the large public purpose.

27. The only aspect which the LAC has taken note of and not

given a proposal is in respect of the plea of there being

sanctioned farm houses and in view of earlier notings of the

LG dated 30.05.1996 in some other cases whereby such

sanctioned farm houses were excluded and it was observed

that a major policy decision in this behalf is required to be

taken. This aspect was left by the LAC to be considered by

the competent authority. We have thus no hesitation in

coming to the conclusion that the petitioners have had full

opportunity of effective hearing and considerations in the

proceedings before the LAC.

28. The petitioners have also pleaded that the stated

requirement was not in conformity with the MPD-2021. We

fail to appreciate this plea. This plea is predicated on the

requirement of open areas and the peripheral areas to be

treated as a buffer of green areas. All that is required to

be said in this context is that the planners are best

equipped to decide this aspect and the petitioners cannot

choose how development of Delhi shall take place. Even

otherwise, this plea is not sustainable in view of the

observations of the Supreme Court in Bhagat Singh v. State

of UP‟s case (supra).

___________________________________________________________________________________________

29. The petitioners have pleaded the hostile discrimination on

account of release of other farm houses though not forming

subject matter of the same notification. It has been

pleaded that a notification has not even been issued under

Section 4 of the said Act on account of this policy.

30. If this plea is examined closely, we find there has been

absence of any policy in this behalf. Undoubtedly, while

dealing with particular acquisition, LG in terms of its order

dated 30.05.1996 had left out some sanctioned farm

houses while granting no such exemption to non sanctioned

farm houses. The LG wanted a major policy decision to be

taken. However, no such major policy decision has been

taken in this behalf and this has been repeatedly

emphasized by the respondents before us. Thus, even if

the then LG in his opinion sought to leave out the

sanctioned farm houses in respect of another acquisition

proceedings, it cannot be said that despite the requirement

of land for Dwarka Phase-II, all sanctioned farm houses

should be left out.

31. We may also notice the authoritative legal pronouncements

referred to aforesaid which show that a policy decision

cannot in any way restrict or alter the power of the LG

under the said Act. In this behalf, the observations in

Rajesh Kumar Yadav v. Union of India & Ors.‟s (supra),

Sh.Bhagwan and Anr. v. Union of India & Ors‟s case (supra)

and of the Roshanara Begum v. Union of India and Ors‟s

___________________________________________________________________________________________

case (supra) which has received the approval of the

Supreme Court are apposite.

32. The observations made in Sh.Bhagwan and Anr. v. Union of

India & Ors‟s case (supra) in respect of a policy decision are

thus very germane as the plea in that case also predicated

on a policy decision. In the present case, there is only a

proposal for a policy decision with exclusions of certain

areas from acquisition. It is, however, true that even after

acquisition proceedings have been completed, the land has

been released under Section 48 of the said Act from

acquisition in different cases including in the case of

Roshanara Begum v. Union of India and Ors‟s case (supra).

It is in this context that while some petitioners sought to

confine the relief to release of the land under Section 48 of

the said Act and thus withdrew the petitions with liberty,

some of the other petitioners sought to canvass their plea

before this Court while simultaneously not wanting to give

up their right to move under Section 48 of the said Act.

Such selective release does give rise to hope in the mind of

the owners that they may also become beneficiaries of

release of their land. The petitioners who did not have

sanction for their farm house thus withdrew their petitions

as their case would not have been covered by the so-called

policy decision of 30.05.1996.

33. The rare controversy which arises for consideration in the

present case and as canvassed by learned counsel for the

parties is arising from the observations made by the LAC for

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the issue of non acquisition of land of sanctioned farm

houses being examined by the Government while observing

at the same time that there was no impediment under the

said Act. The LAC thus rightly left this aspect to be

examined by the competent authority.

34. In the summary report prepared arising from the

recommendations of the LAC which was put up to the LG,

there is absence of any specific observations in this behalf

of the LAC leaving this aspect to be considered by the

Government. The second part of the observations of the

LAC that there is no impediment in the said Act has been

mentioned by reference to the judgments. It is thus the

case of the petitioners that the competent authority being

the LG could hardly be expected to have applied his mind

properly to the facts of the case since this aspect was never

brought to the notice of the LG and was deliberately kept

away in the summary report. On the other hand, learned

counsel for the respondents have pleaded that since the

complete material was placed before the LG including the

objections filed, their consideration, the comments of the

LAC along with the summary report, the LG had the

opportunity to consider the material along with draft

notification under Section 6 of the said Act. Thus, approval

by the LG in the form of appending his signatures (which is

all that as per law was required to be done) shows that the

LG was fully aware of this plea and thus the approval of the

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notification under Section 6 of the said Act amounts to

negation of this plea.

35. The moot point which thus arises for consideration is

whether in these facts, could it be said that the LG has had

an opportunity to consider the plea of the petitioners?

36. We have no doubt that the summary report prepared for

the perusal of LG ought to have incorporated the aspect of

LAC noticing that though under the said Act there was no

impediment to acquisition of the land, the question of not

requiring land of sanctioned farm houses be examined by

the Government. However, the consequence of the

absence of this detail in the summary report would have to

be examined.

37. It cannot be lost sight of that the original note of the LG

dated 30.05.1996 strongly relied upon by the petitioners

themselves stated that a major policy decision ought to be

taken. It is not in issue that no such policy decision has

been taken. Thus, though the then LG expressed his views,

while exempting the sanctioned farm houses from that

notification, that it would be advisable to have a major

policy decision, the concerned authorities in their wisdom

have not made a policy in that behalf. In the absence of

such a policy decision, a general exemption could not have

been claimed in respect of the sanctioned farm houses.

Thus, though there is force in the contention of learned

counsel for petitioners relying upon the judgment in

Hindustan Petroleum Corporation Ltd. v. Darius Shapur

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Chennai & Ors.‟s case (supra) that the State is required not

only to apply its mind to the objections filed by the owners

of the land but also to the report of the LAC prior to the

declaration under Section 6 of the said Act, but in facts of

the present case in the absence of any policy decision there

could not have been any general exemption in respect of

the sanctioned farm houses. The judgment in Vasant Kunj

Enclave Housing Welfre Society through its President and

Ors. v. Union of India and Ors.‟s case (supra) does not give

much assistance to the petitioners as the summary report

in the present case could not have suggested a course of

action to the LG as there was no professed policy of the

Government which had been brought into place in respect

of such sanctioned farm houses. It is of course trite to say

that there is no impediment in law for acquisition of even

constructed land.

38. Learned counsel for LAC has rightly pointed out that insofar

as the impediment in law is concerned, there was absence

of such impediment and even if a policy existed it could not

override a statutory law in view of the observations in

Rajesh Kumar Yadav v. Union of India & Ors.‟s (supra). Not

only that the complete material was placed before the LG

including the report of the LAC with the summary report

though we again emphasize that such summary report

ought to have incorporated the aspect referred to

aforesaid. The LG is not required to record detailed reasons

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for its approval in view of the observations in P.S.Gill and

Ors. v. Union of India & Ors.‟s case (supra).

39. We cannot lose sight of the fact that the land is being

acquired for development of a residential scheme to

provide housing to general public and the larger public

interest must weigh against personal rights. This aspect is

of course to be balanced with the right to property being a

constitutional right under Article 300A of the Constitution of

India and thus there has to be strict enforcement of the

provisions of the said Act which in this case are not in

doubt. The beneficiaries can even utilize the land for the

purposes other than originally envisaged after obtaining

sanction for change of user from the competent authority.

40. The plan of the area which we have incorporated in the

present judgment shows that the land of the petitioners is

primarily falling in what are proposed as Sectors 27, 28 and

29 of Dwarka Sub-city Phase-II Scheme. It has been

explained that the requirement of land for the Second

Diplomatic Enclave has not been satisfied.

41. We are thus of the considered view that the absence in the

summary report preventing the examination of the question

whether the competent authority wants to not acquire

sanctioned farm houses in the absence of any policy, there

being no impediment under the said Act, cannot be said to

be fatal to the acquisition proceedings. We, however, find,

as observed aforesaid, that ideally this aspect of exempting

sanctioned farm houses ought to have been mentioned in

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the summary report. We are of the view that though this

aspect cannot defeat the provisions of the said Act, yet the

respondents have selectively released farm houses from

acquisition under earlier acquisitions even after acquisition

proceedings are complete. In fact, a number of cases have

come to light where the power has been exercised under

Section 48 of the said Act to release the land after

acquisitions have been upheld right till the Supreme Court

and the classic example of the same is Roshanara Begum v.

Union of India and Ors.‟s case (supra).

42. We are thus of the view that acquisition proceedings are

not required to be quashed on account of the plea of the

petitioners and as to whether the sanctioned farm houses

are liable to be released from acquisition proceedings is an

aspect which needs to be examined by the competent

authority under Section 48 of the said Act.

43. We thus permit the petitioners to file a representation to

the competent authority under Section 48 of the said Act

raising all pleas as are germane within thirty days of

pronouncement of this judgment and the said applications,

if so filed, would be decided in accordance with law by the

competent authority. Till such time as the applications are

decided, no coercive steps will be taken against the

petitioners and the parties will maintain status quo as to

nature, title and possession of the land in question. In case

of an adverse decision, this benefit would continue for a

period of fifteen days after the date of the receipt of the

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decision by the petitioners in order to enable the petitioners

to take recourse to the legal remedy, if any. We, however,

make it clear that if no such application is filed within a

period of thirty days of pronouncement of this judgment,

the respondents would be free to proceed against the land

in question.

44. The writ petitions are accordingly dismissed with the

aforesaid directions.

SANJAY KISHAN KAUL, J.

MARCH 26, 2010                                                  VEENA BIRBAL, J.
dm




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