(1.) In this writ petition the petitioners pray for quashing of the notifications one under section 4 dated 5th December, 1974 and the other under section 6 dated 8th September, 1977 of the Land Acquisition Act I of 1894 (hereinafter called 'the Act') in respect of T. S. Nos 10/2C and 10/3 of Ongole mainly on the following grounds : (1) There was no compliance with the proviso to sub-section (1) of section 6 of the Act as no compensation was sought to be paid wholly or partly from the public revenues; and (2) the District Collector has no power to alter the draft declaration prepared and signed by the Land Acquisition Officer after the inquiry under section 5-A of the Act was concluded.
(2.) To appreciate the above contention raised by the learned Counsel for the petitioners it is necessary to note a few relevant facts. The petitioners, 12 in number are persons owning residential house in T. S. Nos. 10/2C and 10/3 of Ongole town About 12 years ago the Government constructed for the Andhra Pradesh State Road Transport Corporation (hereinafter referred to as Andhra Pradesh State Road Transport Corporation.') a bus-stand and a work shop and Road Transport Corporation Quarters in T.S. No. 14 which was a tank poramboke without the necessity of spendine any public funds The bus-stand is abutting the patta lands of the petitioners on the rear side. On all three sides of bus-stand there is Government land for extension. Due to the construction of the bus-stand the petitioners were compelled to raise the level of the patta lands to the road level and they did it by spending huge amount and constructed residential houses. The 1st petitioner constructed a saw-mill at a considerable cost of Rs. 60,000. The constructions raised by the other petitioners were also narrated in the writ petition. The Government then issued a notification on 5th December, 1974 under section 4(1) of the Act stating that Ac.-128166 square feet in T. S. No. 10/2C, Ac. O. 4356 square feet in T. S. No. 10/3 and Ac. 3-11639 in T. S. No. 11/1 were being acquired for public purpose for construction of Road Transport Corporation Bus Depot and Station. The Sub-Collector, Ongole was directed to perform the functions of the Collector under section 5-A of the Act. The petitioners filed objections to the notices issued under section 5-A of the Act. Apart from the objections, they requested to drop the proposals. The Sub-Collector after examining the situation ordered that the built up area in T. S. Nos. 10/2C and 10/3 shall be excluded as it would cause heavy injury to the petitioners particularly when the required site a available on the other three sides, which could be used without spending any public funds. The Road Transport Corporation proposed to beautify the depot and insisted on the inclusion of the built up area also. Accordingly a declaration was made under section 6(1) of the Act including the built up area and the same was published in the Gazette on 8th September, 1977. The petitioners stated that when the acquisition of the land was for purposes of the corporation the Government is bound to conduct an inquiry under section 40 of the Act and since no such inquiry was held the proceedings are vitiated. It is also pointed out that the notifications under sections 4 and 6 of the Act do not disclose that the Government contributed from the public funds for the proposed acquisition and the failure to do so makes the proceedings illegal and void.
(3.) On behalf of the respondent a counter- affidavit is filed. It is admitted that while spending the draft declaration the Sub-Collector, Ongole inspected the lands and proposed to eliminate Ac. O-37206 square feet in T. S. No. 10/2C on the eastern side covered by some semi-permanent constructions and also Ac. O. 4356 square feet in T. S. No. 10/3. Thus he sent the draft declaration on 15th December, 1976 to the Collector, Ongole, along with the withdrawal notification in respect of the eliminated extents. But the Collector, Ongole, after discussing with the Road Transport Corporation Officers issued instructions on 1st May, 1977 tp send revised draft declaration including the built up areas also lest the orientation of the building would be badly affected and there would also be no sufficient frontage. Thereupon the Sub-Collector sent a revised draft declaration to the Government through the Collector. The Government approved the declaration in G. O. Rt. No. 752 Transport (Roads and Buildings) Department dated 20th July, 1977 and the same was published in the Gazette on 8th September, 1977. It is further stated that according to the Government memo. 7594/11/61-2 dated 10th February, 1961 the acquisition of the lands on behalf of the Road Transport Corporation should be dealt with under Part II and not Part VII of the Act. Therefore, the inquiry under section 40 of the Act does not arise. Further the Road Transport Corporation is not a company, but a corporate body established under the Road Transport Corporation Act, 1950.