Venkataramiah, J. - (1.) Meerut city which is situated in a densely populated part of the State of Uttar Pradesh is growing very fast. The State Government constituted a Development Authority under the provisions of the U. P. Urban Planning and Development Act, 1973 for the city of Meerut for the purpose of tackling the problems of town planning and urban development resolutely, since it felt that the existing local body and other authorities in spite of their best efforts had not been able to cope up with the problems to the desired extent.
(2.) The Meerut Development Authority sent a proposal to the Collector of Meerut for acquisition of 662 bighas 10 biswas and 2 biswanis of land (approximately equal to 412 acres) situated at villages Mukarrabpur, Plahera, Paragana-Daurala, Tehsil Sardhana, Distt. Meerut for its housing scheme with the object of providing housing accommodation to the residents of Meerut city. After making necessary enquiries and receipt of the report from the tehsildar of Sardhana, the Collector was fully satisfied about the need for the acquisition of the land. He accordingly wrote a letter on December 13, 1979 to the Commissioner and Secretary, Housing and Urban Development, Government of Uttar Pradesh recommending the acquisition of the above extent of land in the villages mentioned above and he also stated that since there was acute shortage of houses in Meerut city, it was necessary that the State Government should invoke S. 17(l) and (4) of the Land, Acquisition Act, 1894 (hereinafter referred to as 'the Act'). He also submitted a certificate as required by the Rules containing the relevant data on the basis of which the Government could take a decision. In that certificate he stated that the acquisition of the land was very necessary for the purposes of the housing scheme. The total value of the land was estimated to be about Rs. 55,01,270.25 paise and the cost of trees and structures was stated to be in the order of about Rs. 1 lakh. The Secretary of the Meerut Development Authority also submitted his certificate in support of the acquisition of the land in question. He stated that the proposed cost of the project was in the order of Rs. 48 crores. He also furnished the number of flats to be constructed and house sites to be allotted. The certificate further stated that the land which was proposed to be acquired was being used for cultivation and that the said land had been proposed to be used for residential purposes under the master plan of Meerut city. After taking into consideration all the materials before it including the certificates of the Collector and the Secretary, Meerut Development Authority, referred to above, the State Government published a notification under sub-sec. (1) of S. 4 of the Act notifying for general information that the land mentioned in the Schedule was needed for a public purpose, namely, for the construction of residential buildings for the people of Meerut by the Meerut Development Authority under a planned development scheme. The notification further stated that the State Government being of the opinion that the provisions of sub-sec. (1) of S. 17 of the Act were applicable to the said land inasmuch as it was arable land which was urgently required for the public purpose, referred to above. The notification further directed that S. 5-A of the Act shall not apply to the proposed acquisition. The above notification was published in the U.P. Gazette on July 12, 1980 and it was followed by a declaration under S. 6 of the Act which was issued on May 1, 1981. The possession of the land, which had been notified for acquisition, was taken and handed over to the Meerut Development Authority in July, 1982. Thereafter about 17 persons who owned in all about 40 acres of land out of the total of about 412 acres acquired, filed writ petitions in the High Court of Allahabad questioning the notification under S. 4 and declaration under S. 6 of the Act on the ground that the action of the Government in invoking S. 17(l) of the Act and dispensing with the inquiry under S. 5-A of the Act was not called for in the circumstances of the case. The High court after hearing the parties held that the notification dated 29-4-1980 under S. 4 of the Act which contained a direction under S. 17(4) of the Act dispensing with the inquiry under S. 5-A of the Act was an invalid one and therefore, both the notification under S. 4 and the subsequent declaration made under S. 6 of the Act were liable to be quashed. Accordingly they were quashed.
(3.) It should be stated here that while only 17 persons owning about 40 acres of land had filed the writ petitions, the High Court set aside the acquisition of the entire extent of about 412 acres. That was the effect of quashing the notification issued under S. 4(l) of the Act and all subsequent proceedings as the relief was not confined to the petitioners only. By the time the judgment of the High Court was pronounced on May 24, 1985, it is stated, that the Meerut Development Authority had spent more than Rs. 4 crores on the development of the land which had been acquired. By then 854 houses have been constructed on the land and 809 plots had been allotted by it to various persons. All the landowners other than the writ petitioners before the High Court had been paid two-thirds of the compensation due to them.;