- (1.) N exercise of the powers under S. 4 of the Land Acquisition Act 1 of 1894, the government of Gujarat notified for acquisition an area of land in the town of Gondal, for a public purpose. Enquiry was under S. 5-A of the Land Acquisition Act and thereafter on 11/05/1966, a notification was published under Section 6 of the Act declaring that the land was needed for a public purpose. It was stated in the notification "and whereas the government of Gujarat is satisfied after considering the report of the Deputy Collector under Ss. (2) of S. 6-A of the Land Acquisition Act 1 of 1894 that the said land is needed to be acquired at the expense of a local body, i. e. , Agricultural Produce Markets Committee, Gondal, for the purpose specified in Column 4 of the Schedule hereto, it is hereby declared under the provisions of S. 6 of the said Act that the land is required for the purpose specified in Column 4 of the Schedule hereto; and in Column 4 of the Schedule the purpose specified was for New Market Yard at Gondal".
(2.) The appellant moved a petition before the High court of Gujarat challenging the validity of this notification. It was urged in support of the petition that the Agricultural Produce Markets Committee not being a "local authority" within the meaning of Section 6 of the Land Acquisition Act, the government of Gujarat was not competent to acquire the land under the Land Acquisition Act.
(3.) S. 6 of the Land Acquisition Act, by the first subsection provides for making a declaration that the land is needed for a public purpose. There are two provisos to that S. of which the second is relevant : "Provided further that no such declaration shall be made unless the compensation to be awarded for such property is to be paid by a Company, or wholly or partly out of public revenue or some fund controlled or managed by a local authority. ";