Kolkata Metropolitan Development Authority v. Pradip Kumar Ghosh (SC) BS918326
SUPREME COURT OF INDIA

Before:-Arun Mishra and Mohan M. Shantanagoudar, JJ.

Civil Appeal No. 461 of 2009. D/d. 24.10.2017.

Kolkata Metropolitan Development Authority - Appellant

Versus

Pradip Kumar Ghosh & Ors. - Respondent

For the Appellant :- Ms. Anindita Gupta, Ms. Kumud L. Das, Rajesh Srivastava, Advocates.

For the Respondent/State :- Soumitra G. Chaudhuri, Chanchal Kumar Ganguli, Ms. Asha Gopalan Nair, Advocates.

A. West Bengal Land (Requisition and Acquisition) Act, 1948, Section 6 - Land acquisition - Release from requisition - Until and unless release order passed and delivery of possession pursuant thereto takes place - Requisition continues.

[Paras 12 and 13]

B. West Bengal Land (Requisition and Acquisition) Act, 1948, Section 6 - Land acquisition - Release from requisition - Mandamus issued by Court to acquire property in six months and on failure to acquire within six months to release property - No automatic release contemplated in order - Court not quashed order of requisition - Only directions issued to LAC to release property in question from requisition - Property not released - Requisition continued - Power of acquisition rightly exercised - Division Bench erred in quashing acquisition.

[Para 22]

Cases Referred :-

Abhoy Kanta Gohain v. Gopinath Deb Goswami, AIR (30) 1943 Cal 460.

All Bengal Excise Licensees' Assn. v. Raghabendra Singh, AIR 2007 Supreme Court 1386.

Andi Mukta Sadguru Shree Muktajee Vandas Swami Suvarna Jayanti Mahotsav Smarak Trust v. V.R. Rudani, (1989) 2 SCC 691.

Authorised Officer v. S. Naganatha Ayyar, (1979) 3 SCC 466.

Balwant Narayan Bhagde v. M.D. Bhagwat, (1976) 1 SCC 700.

Collector of Akola v. Ramchandra, AIR 1968 Supreme Court 244.

Collector of Kamrup v. Kamakhya Ram Barooah.

Comptroller and Auditor-General of India, Gian Prakash, New Delhi v. K.S. Jagannathan, (1986) 2 SCC 679.

DDA v. Skipper Construction Co. (P) Ltd., AIR 1996 Supreme Court 2005.

Director of Settlements, A.P. v. M.R. Apparao, (2002) 4 SCC 638.

First Land Acquisition Collector v. Nirodhi Prakash Gangoli, (2002) 4 SCC 160.

General Manager, Department of Telecommunications, Thiruvananthapuram v. Jacob s/o Kochuvarkey Kalliath (dead) by LRs., (2003) 9 SCC 662.

Grahak Sanstha Manch v. State of Maharashtra, (1994) 4 SCC 192.

Gurunath Manohar Pavaskar v. Nagesh Siddappa Navalgund, AIR 2008 Supreme Court 901.

H.D. Vora v. State of Maharashtra, (1984) 2 SCC 337.

Jiwani Kumar Paraki v. First Land Acquisition Collector, Calcutta, (1984) 4 SCC 612.

Krishnadevi Malchand Kamathia v. Bombay Environmental Action Group, (2011) 3 SCC 363.

M. Meenakshi v. Metadin Agarwal, (2006) 7 SCC 470.

Mangilal Karwa v. State of M.P., AIR 1955 Nagpur 153.

Manohar Lal v. Ugrasen, (2010) 11 SCC 557.

Mansukhlal Vithaldas Chauhan v. State of Gujarat, (1997) 7 SCC 622.

Mohanlal Goenka v. Benoy Krishna Mukherjee, AIR 1953 Supreme Court 65.

Mulraj v. Murti Raghunathji Maharaj, AIR 1967 Supreme Court 1386.

Municipal Corporation of Greater Bombay v. Industrial Development Investment Co. Pvt. Ltd., (1996) 11 SCC 501.

Naganatha Ayyar v. Authorised Officer, 84 MLW 69.

Patasi Devi v. State of Haryana, (2012) 9 SCC 503.

R. v. Justices of London, (1895) 1 QB 214.

Ravi S. Naik v. Union of India, (1994) Supp 2 SCC 641.

Smith v. East Elloe RDC, 1956 AC 736.

Sneh Gupta v. Devi Sarup, (2009) 6 SCC 194.

State of A.P. v. Raja Shri V.S.K. Krishna Yachandra Bahadur Varuh Rajah of Venkatagiri, (2002) 4 SCC 660.

State of Kerala v. M.K. Kunhikannan Nambiar Manjeri Manikoth Naduvi, AIR 1996 Supreme Court 906.

State of Punjab v. Gurdev Singh, AIR 1991 Supreme Court 2219.

Sultan Sadik v. Sanjay Raj Subba, AIR 2004 Supreme Court 1377.

Surjit Singh v. Harbans Singh, AIR 1966 Supreme Court 135.

Tayabbhai M. Bagasarwalla v. Hind Rubber Industries (P) Ltd., AIR 1997 Supreme Court 1240.

JUDGMENT

Arun Mishra, J. - Aggrieved by the quashing of land acquisition proceedings initiated under the West Bengal Land (Requisition and Acquisition) Act, 1948 (hereinafter referred to as "the Act") notice under section 4(1)(a) was published in the Gazette on 14.10.1996 and also notice under section 5 of the Act. The property in question had been requisitioned under the provisions of the Act by the issuance of notification under section 3(1) since requisition continued for long for 14 years. It was questioned by filing a writ petition i.e. CR 15177 (W) of 1979 disposed of on 10.9.1993. The High Court of Calcutta did not quash the notification issued under section 3(1), passed an order directing the concerned authorities to acquire the properties in question if so desired within a period of 6 months from the date of communication of order and if the authorities did not acquire the property within the time specified the Land Acquisition Collector was directed to release the property under requisition and restore possession of the same to the writ petitioner.

2. Thereafter there was some delay in initiating the land acquisition proceedings. The notification under section 4(1)(a) of the Act had been issued on 14.10.1996 for the acquisition of premises No.11, Sarat Bose Road, Kolkata. Questioning the same, fresh petition - Writ Petition No.4361 (W) of 1997 was filed. Award was passed determining the compensation in a sum of L 7,69,950/-. The writ petition was dismissed by the Single Bench vide order dated 11.3.1998. It was held by the Single Bench that in case the order dated 10.9.1993 was not complied, by the concerned authorities they would be liable for contempt of court and may be dealt with in accordance with law in the contempt proceedings, but the mere fact that possession of the property was not restored, in view of the order passed on 10.9.1993 the same would not disentitle the authority in taking steps for acquisition of the property.

3. As against dismissal of the writ petition, appeal MAT No.1165/1998 had been preferred before the Division Bench. The Division Bench has allowed the same vide impugned judgment and order. The Government of West Bengal had conveyed the property by registered deed of conveyance on 21.12.2004 to Kolkata Metropolitan Development Authority for development. A Division Bench of the High Court has allowed the appeal. It was held that requisition under section 3(1) of the Act deemed to have been lapsed, as such the acquisition was illegal. Aggrieved thereby the appeal has been preferred by the Kolkata Metropolitan Development Authority.

4. It was urged on behalf of the appellants that the High Court did not quash the notification relating to requisition issued under section 3(1) of the Act, but only issued a direction that the requisition should not continue for an indefinite period. Thus either the land was to be acquired or it should have been released from the requisition. The requisition continued and a notification under section 4(1)(a) of the Act had been issued. Award has been passed. Thus the property has vested in the State Government. The order of reacquisition did not lapse. The acquisition made was lawful. The ratio of Collector of Kamrup & Ors.v. Kamakhya Ram Barooah etc. AIR 1965 Supreme Court 1301 was not attracted. The only question for consideration was the effect of the order-dated 10.9.1993. The requisition came to an end on the issuance of notification under section 4(1) of the Act. There was no embargo created by orders of the court to exercise statutory power for the purpose of acquisition.

5. Shri Mukul Rohtagi, learned senior counsel appearing for the respondents urged that the property had continued for a period of more than 14 years in requisition. Thus the High Court has passed an order on 10.9.1993 that the requisition was illegal and impermissible. A direction was issued to release the property in case the property was not acquired within the time specified. As the State Government had not acted under the Act, it was a gross dereliction of statutory duty not to release the property. The requisition came to an end and under the provisions of the Act property under requisition could have been acquired. It was a precondition that the property should be under requisition for the purpose of acquisition. Power of the High Court to issue mandamus is wide and untrammeled. As the State Government failed to act as per the mandamus it was not open to acquiring the property later on. The consequence of not acquiring the property within the time specified was the release of the property and to restore the possession. The LAO had no option but to restore the same within 6 months as stipulated in the order passed in 1993. The requisition came to an end on the lapse of 6 months period on 10.3.1994 and a further period of 6 months also expired on 10.9.1994 during which period property was to be released. Under no circumstances, requisition would continue after that period. In view of the decision in Collector of Kamrup (supra) the property did not remain under acquisition, as such notification for acquisition under section 4 (1) (a) was clearly ultra vires of the powers. It was also contended that the property was not used for the purpose it was required. As the appellant had offered the property for commercial sale in the market by inviting public bids, the acquisition was wholly unjustified and deserves to be quashed. The notification under section 4 of the Act and notice under section 5 was issued in violation of orders of the court-dated 10.9.1993. The notification for acquisition was a nullity and void ab-initio being contemptuous to the order passed by the High Court. As observed in Ravi S. Naik v. Union of India & Ors. (1994) Supp 2 SCC 641 and Manohar Lal (dead) by LRs. v. Ugrasen (dead) by LRs. & Ors. (2010) 11 SCC 557 the acquisition was colourable and mala fide exercise of power. Even an erroneous decision operates as res judicata between the parties as court's order of 1993 was binding. Even if an order is void the parties cannot determine it. A party aggrieved by invalidity has to approach the court for invalidation that the order against is inoperative. Such a declaration permissible if the court lacks inherent jurisdiction hence the order of 10.9.1993 was binding. The power of judicial review has been rightly exercised by the Division Bench to undo the injustice and overreach of the State power.

6. The property had been requisitioned in the year 1979. The requisition continued for long. As the Single Bench passed an order on 10.9.1993, on the ground that the requisition should not continue for long. The requisition was not in fact quashed but a direction was issued either to acquire the property within 6 months and in case it was not so acquired within the time specified, Land Acquisition Collector was to initiate proceedings within next 6 months thereafter for release.

7. The requisition cannot last for long was laid down in H.D. Vora v. State of Maharashtra & Ors. (1984) 2 SCC 337 thus:

8. It was also held in Jiwani Kumar Paraki v. First Land Acquisition Collector, Calcutta & Ors. (1984) 4 SCC 612 that the requisition cannot continue for long and property should be acquired if necessary. This Court observed:

9. In Grahak Sanstha Manch & Ors. v. State of Maharashtra (1994) 4 SCC 192 a Constitution Bench of this Court has observed that the requisition cannot continue indefinitely. This Court observed:

10. On 10.9.1993 the High Court at Calcutta had passed the following directions in the previous writ application pertaining to requisition:

The direction was twofold; one to acquire property in 6 months and secondly on failure to acquire within 6 months to release the property within next 6 months. There was no automatic release contemplated in the order neither the notification under section 3 of the Requisition of Property issued way-back in the year 1979 had been quashed.

11. Sections 3 and 4 of the Act are relevant and they are extracted hereunder:

It is apparent from the aforesaid provisions that the property that is under requisition can only be acquired. Requisition is a sine qua non for a property as on the date when notification under section 4 is issued. Section 3 had been omitted w.e.f. 1.4.1994. However the property was requisitioned before the provision was omitted.

12. Section 6 deals with release from requisition. Section 6 is extracted hereunder :

It is apparent that section 6 requires an order to be passed by the State Government for release of the property from requisition. Government has to conduct an inquiry if any, considered necessary then the release order has to be passed and possession of the property has to be delivered under section 6. Section 6(2) also provides that even if possession has been delivered pursuant to a release order, the same shall not prejudice any right in respect of such land, if any other person may be entitled by due process of law to enforce against the person to whom possession of land was delivered.

13. The High Court in the instant case has not directed delivery of possession and possession had not been handed over. Thus by virtue of the provisions contained in section 6, until and unless release order is passed and delivery of possession pursuant thereto takes place, the requisition would continue.

14. In The Collector of Kamrup & Ors. v. Kamakhya Ram Barooah & Ors. (supra), this Court has laid down that the power to acquire the land under section 4 can be exercised only when land has been requisitioned under section 3 and not otherwise. This court in the said case has observed:

15. The question involved in the present case is whether in view of order passed by the court on 10.9.1993 property could be said to be under requisition under section 3 of the Act as on the date notification under section 4 had been issued.

16. In regard to efficacy of order dated 10.9.1993, the respondents have relied upon power to issue mandamus and the effect thereof. A reference has been made to the decision in Comptroller and Auditor-General of India, Gian Prakash, New Delhi & Anr. v. K.S. Jagannathan & Anr. (1986) 2 SCC 679 and Andi Mukta Sadguru Shree Muktajee Vandas Swami Suvarna Jayanti Mahotsav Smarak Trust & Ors. v. V.R. Rudani & Ors. (1989) 2 SCC 691. In Comptroller and Auditor-General of India (supra) the court observed :

In Andi Mukta Sadguru (supra), it was held:

There is no dispute with the proposition laid down in Comptroller and Auditor-General of India (supra) and Andi Mukta Sadguru (supra) that mandamus can be issued for doing the positive act or a legal duty cast upon an authority.

17. In Mansukhlal Vithaldas Chauhan v. State of Gujarat (1997) 7 SCC 622 it has been observed that mandamus is a discretionary remedy under Article 226 of the Constitution to compel for a public duty which may be administrative, ministerial or statutory in nature. Statutory duty may be either directory or mandatory. `Shall' and `must' sometimes be interpreted as `may'. This Court has observed:

18. The High Court directed interim payment to be made in accordance with law laid down by it in which it held A.P. Act 3 of 1971 to be invalid. However on appeal, in State of A.P. & Ors. v. Raja Shri V.S.K. Krishna Yachandra Bahadur Varuh Rajah of Venkatagiri & Ors. (2002) 4 SCC 660 this Court upheld the constitutionality of the said Act and further held that interim payments could be made only from the date of determination by the Director under section 39(1). Though the mandamus that was issued by the High Court relying upon Venkatagiri case (supra) attained finality, for its enforcement, another writ petition was filed. The Supreme Court laid down in Director of Settlements, A.P. & Ors. v. M.R. Apparao & Anr. (2002) 4 SCC 638, that no further mandamus could have been issued for release of payment in implementation of its earlier order. Once the decision on which it was based that is Venkatagiri case stood wiped off thus the mandamus became unenforceable. The Court further held that if the law which was declared invalid by the High Court is held constitutionally valid, effective and binding by the Supreme Court, then the mandamus forbearing the authorities from enforcing its provisions would become ineffective and the authorities cannot be compelled to perform a negative duty. The mandamus would not survive in favour of those parties against whom appeals were not filed. This Court examined the question whether while issuing a mandamus, the earlier judgment notwithstanding having been held to be rendered ineffective, can still be held to be operative. This Court in Director of Settlements v. M.R. Apparao (supra) observed :

19. This Court has laid down that the High Court erred in issuing mandamus in respect of a right which ceased to exist and was not available on the date on which mandamus had been issued afresh. In our opinion to enforce an order it should be effective on date mandamus is sought to be enforced. It can be interdicted by another order or by statutory intervention.

20. In First Land Acquisition Collector & Ors. v. Nirodhi Prakash Gangoli & Anr. (2002) 4 SCC 160 the premises in question had been requisitioned under the provisions of West Bengal Requisition and Control (Temporary Provision) Act, 1947 for accommodating students of Calcutta National Medical College, Calcutta. The premises subsequently sought to be acquired by issuing notification under sections 4 and 6 of the Land Acquisition Act in 1982 and 1989 respectively. The High Court quashed the notifications. The premises stood derequisitioned in 1993. A fresh notification was issued under sections 4(1) and 17(4) of the Act in November 1994. Entire notification was questioned by filing a writ petition. In the said case Division Bench had issued a direction to hand over physical possession on 25.8.1994. This Court held that merely because possession had not been delivered pursuant to the direction of derequisition the acquisition would not become malafide. In case there existed need for acquisition it has to be judged independently. This Court has laid down:

21. It was also submitted on behalf of the respondents that the acquisition proceedings contrary to court's order were a nullity. In substance, the submission is that once the derequisition has been ordered to be made in specified time, having failed to do so, continuance of requisition was unlawful. Thus the acquisition of such property could not have been made in view of the principles laid down by this Court in Ravi S. Naik v. Union of India & Ors. (1994) Supp 2 SCC 641 and Manohar Lal v. Ugrasen (2010) 11 SCC 557. The relevant portion of Ravi S. Naik (supra) is extracted hereunder :

This Court has observed that interim order is also binding till it is set aside. In Manohar Lal (supra) this Court observed:

22. In the light of aforesaid principles, in the instant case, we have to consider the nature of mandamus that has been issued on 10.9.1993. Firstly the court had not quashed the order of requisition. Apart from that, the court has not ordered that on lapse of 6 months period granted for acquisition and further period of 6 months property shall stand derequisitioned. The direction was issued to the L.A.C. to release the property in question from requisition. It was not an automatic consequence of the command issued. Thus if the property had not been released under section 6 of the Act obviously the requisition continued and statutory power of acquisition could have been exercised.

23. In General Manager, Department of Telecommunications, Thiruvananthapuram v. Jacob s/o Kochuvarkey Kalliath (dead) by LRs. & Ors. (2003) 9 SCC 662 this Court considered the question of issuance of direction by the High Court to complete acquisition proceedings and pass an award within a specified period with a view to avoiding further delay. This Court held that it would not disable the authorities to exercise power under section 11A where under a longer period was available for passing an award. This Court also held that direction or order couldn't be read to stultify any authority from exercising its powers under the statute or deprives a statutory provision of its enforceability. This Court also considered the question of limitations of mandamus and also issue of liability under the Contempt of Courts Act, and held that there was no violation of either in exercise of statutory powers despite court order. This court observed:

24. In the instant case as the High Court has not quashed the notification under section 3 and till derequisition was actually made, once statutory power had been exercised under section 4 which could be exercised when requisition continues and that as a matter of fact, continued as the court had not culled out the consequence, there was no automatic consequence of the de requisition on lapse of specified time. Proceedings under section 6 were required to be undertaken. No order of release was passed. Requisition continued until the date of acquisition notification and there was no time limit for initiating acquisition under the Act. The statutory provision would not be stultified by the command so issued by the High Court in view of the decision of this Court in Jacob (supra). Though, Single Judge has opined that considering the order, it would be a case of violation of the order to be dealt with under the Contempt of Courts Act. However, in our opinion, when statutory provision had been invoked for acquisition, there is no question of applicability of contempt of court also as laid down in Jacob (supra).

25. Reliance has been placed on Patasi Devi v. State of Haryana (2012) 9 SCC 503 that it was a colourable exercise of power. In the said case this Court found that the acquisition was made in order to oblige the colonizer that was not for a public purpose. The facts are different in the instant case. The property had been acquired for the purpose of systematic development of Calcutta and the same has been handed over to Kolkata Metropolitan Development Corporation for the said purpose. Thus it could not be said that there was colourable exercise of power in the instant case.

26. It was also submitted on behalf of respondents that even if the order is void, it is required to be so declared by the competent forum. It is not permissible to ignore it. For the purpose, reliance has been placed on Krishnadevi Malchand Kamathia & Ors. v. Bombay Environmental Action Group & Ors. (2011) 3 SCC 363:

In the instant case ratio of the aforesaid dictum is not applicable and it is not the case that the order was void but statutory power has been exercised and considering the nature of command that has been issued in the previous order dated 10.9.1993, the decision in Krishnadevi (supra) is not attracted to the case.

27. It was also submitted on behalf of the respondents that an erroneous decision operates as res judicata. For this purpose, reliance has been placed on Mohanlal Goenka v. Benoy Krishna Mukherjee & Ors. AIR 1953 Supreme Court 65. This Court observed:

There is no question of applicability of res judicata in the instant case. As statutory power has been exercised the statutory action is not stifled by the order of the court. It was stated that the land was proposed to be sold but the appellants had made it clear that they are not going to sell the property. This Court had held in Municipal Corporation of Greater Bombay v. Industrial Development Investment Co. Pvt. Ltd. & Ors. (1996) 11 SCC 501 where the land has been acquired for public purpose may be used for another public purpose; diversion to private purpose is only interdicted.

28. In view of the aforesaid discussion, we find that the Division Bench of the High Court has erred in law in quashing the acquisition. We set aside the order passed by the Division Bench of the High Court and restore that of the Single Bench. The appeal is allowed. Parties to bear their costs.

.