STATE OF MAHARASHTRA Vs. CHANDRAKANT

JUDGEMENT

(1.) THIS petition filed by the State of Maharashtra under Article 227 of the Constitution and the group of companion writ petitions filed by the State Government and various claimants are directed against judgment dated 6/07/1982 delivered by Assistant Judge, Solapur, in proceedings commenced under chapter VI of the Maharashtra Industrial Development Act, 1961, for acquisition of large tracts of land admeasuring 540 acres, 26 gunthas and 34 annas situate adjoining the boundary of Solapur Municipal Corporation and within the compass of Solapur revenue village. The Maharashtra Legislature passed the Maharashtra Industrial Development Act, 1961, being Maharashtra Act No. III of 1962 (hereinafter referred to as the 'act') to make special provision for securing the orderly establishment in industrial areas and industrial estates of industries in the State of Maharashtra, and to assist generally in the organisation thereof, and for that purpose to establish an Industrial Development Corporation. The Act came into force on 1/03/1962 but chapter VI can come into operation only from such date as the State Government notifies in the official gazette. Section 3 provides for establishment of corporation by the name of Maharashtra Industrial Development Corporation for the purpose of securing and assisting in the rapid and orderly establishment and organisation of industries in industrial areas in the State of Maharashtra. Chapter VI deals with the subject of acquisition and disposal of land. Section 32 inter alia provides that if at any time the State Government is satisfied that any land is required for the purpose of development by the Corporation, then the State Government may acquire such land by publishing in the official gazette a notice specifying the particular purpose for which such land is required and stating that the Government has decided to acquire the land. The section demands that before publishing a notice, the State Government shall by another notice call upon the owner of the land or any other person who is interested therein, to show cause why the land should not be acquired. After considering the cause, if any shown by the owner of the land, the State Government is authorised to pass appropriate orders. Sub-section (4) of section 32 provides that the land shall vest absolutely in the State Government free from all encumbrances when notice under sub-section (1) is published in the official gazette. Section 33 deals with the liability of the State Government to pay compensation for acquisition of the land. The section inter alia provides that amount of compensation can be determined by agreement between the State Government and the person to be compensated. In case the agreement cannot be reached, then the State Government shall refer the case to the Collector for determination of the amount of compensation to be paid for such acquisition and the person or persons to whom such compensation shall be paid. Sub-section (5) of section 33 provides that in determining the amount of compensation, the Collector shall be guided by the provisions contained in Sections 23 and 24 and other relevant provisions of the Land Acquisition Act, 1894. It further prescribes that the date of publication of notice under sub-section (2) of section 32 shall be treated as the date of publication of the notification under Section 4 of the Land Acquisition Act while the notice under subsection (1) of section 32 shall be considered as publication of declaration under Section 6 of the Land Acquisition Act.

(2.) INITIALLY, Section 34 of the Act read as under :-

(3.) THE Government of Maharashtra, Industries and Labour Department under notification dated 6/09/1969 prescribed 18/09/1969 as the date from which chapter VI of the Act shall take effect in' the area declared in the notification and situate in village Solapur, tahsil north Solapur, District Solapur. The area covered by this notification admeasures 540 acres, 26 gunthas and 34 annas. On 2/04/1970, the Government of Maharashtra published notice under sub-section (2) of section 32 and called upon the owners of these lands to show cause why the lands should not be acquired for the purpose of development by the Corporation. After considering the cause shown by the owners of the lands, the State Government decided to acquire the lands by publishing in the official gazette a notice specifying the purpose and stating that the State Government has decided to acquire the lands in pursuance of sub-section (1) of Section 32. In accordance with sub-section (4) of Section 32, the lands vested in the State Government free from all encumbrances on 15/10/1971. In exercise of powers under sub-section (5) of Section 32, the State Government recovered possession of these lands on 25/12/1971. A joint meeting of the land owners, representative of the Corporation and the Special Land Acquisition Officer, Solapur, was held on 11/02/1971 for the purpose of determination of valuation of acquired lands by agreement as contemplated under section 33 of the Act. The Corporation initially offered the rate of Rs. 3,000. 00, but increased the same to Rs. 4,000. 00 per acre while the owners demanded compensation at the rate of Rs. 80,000. 00 per acre and, ultimately, came down to the rate of Rs. 50,000. 00 per acre. As an agreement could not be reached, the Government decided to refer the issue of determination of amount of compensation to the Collector and by notification dated 14/01/1972, the Sub-Divisional Officer, Solapur, was appointed to perform the functions of the Collector under section 33 of the Act. The Special Land Acquisition Officer declared his award on 31/03/1973 holding that the lands acquired are jirayat lands but are adjacent to the Corporation limits of Solapur Municipal Corporation and the adjoining area being in the process of development has building potentialities. The Land Acquisition Officer noted that a spinning mill, a huge weaving mill, Solapur College, Polytechnic, Viko-process and handloom factories are just near the acquired lands. The Land Acquisition Officer held that though the lands are used for agricultural operation and are not converted for non-agricultural use, still the lands have got building potentiality. The Land Acquisition Officer concluded that compensation should be awarded at a flat rate of Rs. 2,474. 00 per acre to various land owners. The Land Acquisition Officer also directed payment in respect of trees, wells and some structures standing on the acquired lands.