Untwalia, J. - (1.) This is an appeal by special leave from the judgment and order of the Allahabad High Court quashing the order dated March 26, 1970 of the Collector, Dehra Dun made in respect of the land measuring about 951 acres situated in village Guljawari near the town of Dehra Dun. The said land belonged to and was in possession of one Lala Joti Prasad. On March 30, 1949 Joti Prasad entered into an agreement with the Delhi Land and Finance Ltd., for development of the land under a housing scheme. The said Company was given possession of the land, which as per the agreement, was to be sold to it. The Company took some steps for the furtherance of the housing scheme. A lay out plan was prepared and some plots were booked by some intending purchasers. A major portion of the land was covered by forest which, because of certain restrictions under the Forest Act, could not be cut. Hence no substantial progress was made in the execution of the housing scheme by the Delhi Land and Finance Ltd. This company transferred its right to another company known as the Delhi Land Finance Housing and Construction (P) Ltd. Most of the events which will be narrated hereinafter happened when this Company was in possession of the land. Respondent No. 1 Anghalia Housing (P) Ltd. was incorporated on January 22, 1970 and the land was transferred to this Company on March 22, 1970. Hereinafter in this judgment by the Company would be meant the Company which was in possession of the land at the relevant time.
(2.) The U. P. Zamindari Abolition and Land Reforms Act, 1950 - hereinafter called the Act - came into force on July 1, 1951. Under the scheme of the Act on the issuance of a notification under Section 4 all estates of the intermediaries and the land comprised therein vested in the State of Uttar Pradesh. But because of certain exemptions and exemptions provided in the Act, the land in question remained outside its operation. Section 1 (3) of the Act says: "It shall come into force at once except in the areas mentioned in Clauses (a) to (f) of sub-section (1) of Section 2 where it shall, subject to any exception or modification under sub-section (1) of Section 2, come into force on such date as the State Government may by notification published in the Gazette appoint, and different dates may be appointed for different areas and different provisions of this Act." We may now read the relevant provisions of Section 2: "(1) The State Government may by notification in the Gazette apply the whole or any provision of this Act to any of the following areas or estates subject to such exceptions or modifications not affecting the substance, as the circumstances of the case may require - ....... ............ ............. ............ (c) areas held and occupied for a public purpose or a work of public utility and declared as such by the State Government or acquired under the Land Acquisition Act, 1894; the United Provinces Land Acquisition (Rehabilitation of Refugees) Act, 1948, the United Provinces Acquisition of Property (Flood Relief) (Temporary Powers) Act, 1948, or any other enactment other than this Act, relating to acquisition of land for a public purpose; ....... ............ ............. ............ (2) The declaration of the State Government under Clause (c) of sub-section (1) shall be conclusive evidence that the land is held and occupied for a public purpose or a work of public utility. Explanation - Any area held on the seventh day of July 1949, for the purpose of a housing scheme by a co-operative society registered under the Co-operative Societies Act, 1912 or a Society registered under the Societies Registration Act. 1860, or a limited liability company under the Indian Companies Act, 1913, shall be deemed to be held for a work of public utility."
(3.) Although under the explanation aforesaid the land would have been deemed to be held for a public utility, a specific declaration was also made by the State Government in excercise of its power under sub-section (2) of Section 2 declaring that the areas of land held on the 7th July, 1949 for the purposes of a housing scheme by a Limited Liability Company were exempted as areas held and acquired for public purposes or works of public utility within the meaning of Clause (c) of sub-section (1) of Section 2 of the Act. Since the area in question was not specifically included in the declaration made on July 1, 1952 under Section 2(1) the Company applied to the Government to make a specific declaration in respect of this area i.e. 951 acres. Eventually it was found by the Collector, Dehra Dun that this was an area to which the provisions of the Act were not applicable. As already stated a large part of the land constituted a reserve forest under Section 4 of the U. P. Private Forest Act, 1949, and therefore, could not be cleared without the specific permission of the authority concerned.;