E C E INDUSTRIES Vs. DISTRICT COLLECTOR VISHAKHAPATNAM

JUDGEMENT

(1.) This writ petition has been filed by ECE Industries (formerly known as Electric Construction and Equipment Company Limited) represented by its GPA holder Mr. S.C. Agarwal with a prayer to issue a writ of mandamus declaring the action of respondents in proposing to acquire the lands, buildings, godowns etc., to an extent of Ac.23.18 cents comprising Sy.Nos.57-3&4, 58-1, 59-1,2 & 3 and 66- 1A, IB, 2, 3 & 4 of Marripalem village, S.Nos.1/3, 41-1, 2 & 4 and 42-4 of Kapparada village, Visakhapatnam for expansion of Visakhapatnam Industrial Estate.

(2.) The case of the petitioner-company, in brief, is: The petitioner is a company registered under the Companies Act. It deals in manufacture and distribution of transformers and motors. The said products are manufactured in the units set up by the petitioner-company at various places in the country. The petitioner-company has one such unit at Visakhapatnam for the purpose of manufacturing the above said products. The unit at Visakhapatnam was established in the year 1962. For the purpose of construction of factory, quarters for the staff, godowns, guesthouses etc. the petitioner- company purchased the said lands. Though the lands are situated in two villages they are contiguous lands and the petitioner- company constructed a compound wall and at places where compound wall cannot be constructed erected barbed fencing all around the lands. After establishing the unit in 1962 the petitioner-company could run it till 1968 and thereafter it came to be closed due to labour problem. In 1972 production recommenced and thereafter came to be stopped in the year 1996. The petitioner-company has invested Rs.4.00 to Rs.5.00 crores for the construction of factory etc. The petitioner is also planning to upgrade the technology and modernize the unit. While so on 12.5.2005 two notices in Form 5-A under Land Acquisition Act bearing Rc.No.1882/2005/G2, dated 6.5.2005 were affixed on the compound wall of the unit of the petitioner-company at Visakhapatnam. Details of structures raised on the said lands are not given correctly in the said notices. The petitioner company was not aware as to the publication of the notification under Section 4 and declaration under Section 6 of L.A. Act. The lands belonging to the petitioner-company were sought to be acquired for the purpose of expansion of Visakhapatnam Industrial Estate. There is no reason for the respondents to acquire lands where industrial units exist. The same is nothing but colourable exercise of power. The action of respondents is highly arbitrary, illegal and unjust.

(3.) Respondents 1 and 2 have filed counter-affidavit. It is stated in the counter-affidavit that APIIC, Visakhapatnam has submitted a requisition vide its letter dated 15.5.2005 to the District Collector, Visakhapatnam for acquisition of lands admeasuring Ac.23-43 cents comprising S.Nos.57/3, 4, 5, 58/1, 59/2, 3, 66/1,2,3,4 of Marripalem village and S.Nos.1/3, 41/1, 2, 4 and 42/4 of Kapparada village of Visakhapatnam (North) Mandal for the purpose of expansion of industrial estate. Thereupon the District Collector, Visakhapatnam has issued orders vide Rc.No.1882/2005/G2, dated 16.4.2005 authorizing the Revenue Divisional Officer, Visakhapatnam, to acquire the above said lands under the L.A. Act and to handover them to the requisitioning department. The lands in question have been declared as surplus lands under ULC Act. As there is variation in the extent declared as surplus land, a letter has been addressed to Special Officer and Competent Authority, ULC, Hyderabad to issue revised orders and the same are awaited and therefore, declaration (notification) under Section 10(3) of ULC Act could not be published in A.P. Gazette. On verification of the lands proposed for acquisition with the list of lands declared as surplus as reported by the Special officer, Urban land Ceiling, except the lands in S.Nos.66/3 and 66/4 situated at Marripalem village, all other lands proposed for acquisition are listed out as surplus lands. Notifications under Section 4(1) of the Act in respect of the lands in question were approved by the District Collector, Visakhapatnam on 21.4.2005. Proposals along with draft declaration under Section 6 of L.A. Act were submitted to the Collector on 27.4.2005. The District Collector has approved the draft declaration under Section 6 of the Act. The Government informed the Collector that some of the lands proposed to be acquired have already been declared as surplus lands under ULC Act and an appeal is pending before the appellate authority i.e. Commissioner of Appeals, Hyderabad. I deem it appropriate to refer relevant portion of the counter-affidavit, which is as under: