- (1.) THESE four special appeals are directed against the order passed by Srivastava, J. on 29-1-1962 on writ petitions Nos. 484 of 1961 and 485 of 1961. Special Appeals Nos. 245 of 1962 and 246 of 1962 have been filed by Shanti Nagar Co-operative Housing Society Limited, hereinafter referred to as the Society, while special appeals Nos. 484 of 1962 and 485 of 1962 have been filed by the State of Uttar Pradesh. The Society is registered under the U.P. Co-operative Societies Act. The objects of the society are : (a) to buy or acquire land by lease, exchange or otherwise. (b) to lay out and to suit the requirements of members and to prepare plans and estimates for the construction of building thereon (c) to build or cause to be built residential houses or other buildings for the convenience of members, and for this purpose to purchase in bulk the necessary building material to start brick time and other kilns and to provide necessary technical guidance and supervision. (d) to develop a co-operative colony and if necessary to establish and maintain therein a store, a common mess, a transport service, and other social, recreative and educational institutions for the convenience and benefit of the members. (e) to hold, sell, mortgage, lease out on hire, or on hire purchase system, give on lease or otherwise dispose of land, houses, house sites, buildings and all other property, movable and immovable, as may be necessary for carrying out the objects of the society. (f) to advance loans to members for building houses on easy terms, and (g) to do all such things as may be necessary or expedient for accomplishment of the aforesaid objects and for the comfort convenience and good of its members.
(2.) THE State of Uttar Pradesh started proceedings for acquisition of land situated in villages Etah and Choncha Bangaon for the purposes of the society. A notification under Sec. 4 of the Land Acquisition Act, hereinafter referred to as the Act, was published in the State Gazette dated 10-8-1957. In that notification it was stated under the heading "For what purpose required "For Shanti Nagar Co-operative Housing Society Limited, Etah". The deed embodying the agreement between the State of U.P. and the society contemplated by S. 41 of the Act was executed on 24-3-1958 and published in the State Gazette dated 19-7-1958. Then followed the notification under S. 6 of the Act and in that notification the purpose of the acquisition was given as "for the construction of residential houses for the members of the Shanti Nagar Co-operative Housing Society Limited, Etah." In the agreement referred to above there was a clear recital to the effect that the Government was satisfied that the acquisition of land was needed for the construction of a work, viz., construction of houses etc. for members of co-operative society, and that such work was likely to be useful to the public. Writ Petitions Nos. 484 of 1961 and 485 of 1961 were filed in this Court by persons whose property or right in property was being acquired. Those petitions were heard by Srivastava, J. before whom only the two following submissions were made : (1) That the acquisition was not being made for a public purpose in so far as it was being made for a company, and the works would not be directly useful to the public and (2) the acquisition proceedings were not bona fide and even though lot of other land was available the land belonging to the petitioners had been chosen for acquisition. The learned single Judge rejected the second submission made on behalf of the petitioners on the finding that the petitioners had not made out a case of mala fide acquisition. The first submission, however, prevailed with him. Placing reliance upon R.L. Arora v. State of U.P., AIR 1962 SC 764 the learned single Judge held mat the acquisition was not made for a public purpose within the meaning of S. 40 of the Act and consequently the proceedings for the acquisition of the land which was for a company were illegal and void. He, therefore, quashed the proceedings in respect of those plots of land only which belonged to the petitioners in the two writ petitions. This obviously he did because all the persons whose land was being acquired had not joined in the two writ petitions heard by Srivastava, J.
(3.) SUBSEQUENT to the decision of Srivastava, J., on 20-7-1962 the Land Acquisition (Amendment) Ordinance, 1962, hereinafter referred to as the Ordinance, was promulgated by the President. This Ordinance was superseded by the Land Acquisition (Amendment Act, 1962), hereinafter referred to as the amending Act. By virtue of S. 2 of the amending Act S. 3 of the Art was amended in so far that in cl. (e) of the parent Act the following words were added at the end, namely : "or any other law relating to co-operative societies for the time being in force in any State." Section 3 of the amending Act amended also S. 40 of the Act (principal Act) by inserting Cl. (aa) after Cl. (a) The said clause (aa) reads as follows : "that such acquisition is needed for construction of some building or work for a company which is engaged or is taking steps for engaging itself in any industry or work which is for a public purpose; or" Some other sections of the principal Act were also amended.;