ITI LTD Vs. TAHSILDAR

JUDGEMENT

(1.) This writ petition raises three important questions: (i) Whether in the light of the amendment to Part VII of the Land Acquisition Act, 1894 (for short 'the Act'), acquisition for a Government company is covered by the provisions of the said Part and an agreement executed between such a Government Company and the Government will be void; (ii) whether the agreement is violative of Section 20 of the Contract Act and if so, it is void; and (iii) whether the agreement could be saved in the light of Section 21 of the Contract Act.

(2.) The necessary facts for the disposal of the writ petition are the following: The petitioner is the ITI Limited, Bangalore, a Government of India company. For expanding the Palakkad Unit, the Company requested the Government of Kerala to acquire the property having 100 acres in extent in 1987. The request was considered under Part VII of the Act. Exts.P2 to P6 are the copies of awards passed in the land acquisition proceedings. The Company paid an amount of Rs.2.5 crores to satisfy the awards. On completion of the proceedings of acquisition Ext.P7 agreement was executed between the Company and the Government on 17.7.1987 imposing certain conditions. One of the important conditions therein is the clause regarding resumption in case of any failure on the part of the petitioner to carry on their obligation.

(3.) The main challenge is against Ext.P13 order by which an order of resumption has been passed resuming 77.80 acres of land unutilised by the Company. Ext.P14 is the covering letter served along with the same and forwarding a Demand Draft for an amount of Rs.1,70,47,790/-. Ext.P15 is the proceedings of the State Government conveying the decision to make available the land for starting a Medical College for the benefit of students from among Scheduled Castes and Scheduled Tribes and Ext.P16 is the communication issued by the Principal Secretary to the Government, Revenue Department requesting the District Collector to resume the said land from the Company. Pursuant to these orders, the above land has been taken possession.