MAHESH GROVER, J. - (1.) On 15/2/2002 the State of Punjab issued a notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as 'the Act'). The said acquisition was for a public purpose, namely for setting up of Ganesha Project of M/s International Tractors Limited. The notification was published in the newspapers on 9/2/2002. Objections were invited from the interested persons and the petitioners submitted their objections which are on record.
(2.) The petitioners were heard and thereafter on 28.2.2003 the State issued a notification under Section 6 of the Act. The petitioners in all these writ petitions have challenged these notifications primarily on the ground that the State had resorted to the acquisition under the provisions of Part VII of the Act and that this was not an acquisition which was covered by Part II of the Act. The acquisition was being made for a company which was interested in profiteering and there was no public purpose involved. Further it was stated that the acquisition was totally against the provisions of Part VII of the Act and, therefore, the acquisition deserves to be quashed. Having broadly set out the contours of the factual aspects of the case and the legal challenges made by the petitioners to the action of the State, we now propose to go into the matter in detail and deal with the submissions made by the learned counsel for the petitioners.
(3.) The first and foremost submission made by the learned counsel for the petitioners is that the acquisition is for a company and not in pursuance to any public purpose, hence the present acquisition is one which has been made under the provisions of Part VII of the Land Acquisition Act and not under the provisions of Part II and since the acquisition is under Part VII, the procedure as envisaged therein ought to have been followed and any violation of the provisions contained in Part VII would result in the entire acquisition proceedings being vitiated. Building up his case on this premise he went on to say that the impugned notification is vague, inasmuch as it does not define the purpose of acquisition clearly and therefore, this has prejudiced the rights of the petitioners. Further, the provisions of Sections 38 to 44 have to be read in conjunction with each other and violation of any part of these provisions would render the entire acquisition void. Sections 38, 40, 41, 42 and 44-B are extracted herein as the entire submissions of the learned counsel for the petitioners centre around these provisions :- "38. Omitted by Act 68 of 1984, (Secton 21 w.e.f.24.09.1984). 40.Previous enquiry :- (1) Such consent shall not be given unless the appropriate Government be satisfied, either on the report of the Collector under Section 5-A, sub-section (2) or by an enquiry held as hereinafter provided :- (a) That the purpose of the acquisition is to obtain land for the erection of dwelling house for workmen employed by the company or for the provisions of amenities directly connected therewith; or (aa) That such acquisition is needed for the 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 public purpose; or (b) That such acquisition is needed for the construction of some work, and that such work is likely to prove useful to the public. (2) Such enquiry shall be held by such an officer at such time and place as the appropriate Government shall appoint. (3)Such officer may summon and enforce the attendance of witnesses and compel the production of documents by the same means and, as far as possible, in the same manner as is provided by the Code of civil Procedure, 1908 in the case of a Civil Court. 41. Agreement with appropriate Government If the appropriate Government is satisfied after considering the report, if any, of the Collector under Section 5-A, subsection (2), or on the report of the officer making an inquiry under Section 40 that the proposed acquisition is for any of the purposes referred to in clause (a) or clause (aa) or clause (b) of sub-section (1) of Section 40, it shall require the company to enter into an agreement with the appropriate Government, providing to the satisfaction of the appropriate Government for the following matters, namely : (1) The payment of the appropriate Government of the cost of the acquisition; (2) The transfer, on such payment of the land to the company; (3) The terms on which the land shall be held by the company; (4) Where the acquisition is for the purpose of erecting dwelling houses or the provision of amenities connected therewith, the time within which, the conditions on which and the manner in which the dwelling houses or amenities shall be erected or provided; (4-A) Where the acquisition is for the construction of any 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 the time within which, and the conditions on which, the building or work shall be constructed or executed; and (5) Where the acquisition is for the construction of any other work, the time within which and the conditions on which the work shall be executed and maintained, and the terms on which the public shall be entitled to use the work. 42. Publication of agreement Every such agreement shall, as soon as may be after its execution, be published in the official Gazette, and shall thereupon (so far as regards the terms on which the public shall be entitled to use the work) have the same effect as if it had formed part of this act. 44-B. Land no to be acquired under this part except for certain purpose for private companies other than government companies Notwithstanding anything contained in this Act, no land shall be acquired under this part, except for the purpose mentioned in clause (a) of subsection (1) of Section 40, for a private company which is not a Government company. Explanation - "Private Company" and "Government Company" shall have the meanings respectively assigned to them in the Companies Act, 1956 (1 of 1956).";