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PETITIONER: THAOREBHAI KEVELBHAI PATEL

       Vs.

RESPONDENT: THE STATE OF GUJARAT

DATE OF JUDGMENT07/11/1974

BENCH: UNTWALIA, N.L. BENCH: UNTWALIA, N.L. RAY, A.N. (CJ) MATHEW, KUTTYIL KURIEN

CITATION:  1975 AIR  270            1975 SCR  (2) 667  1975 SCC  (1)   1

ACT: Gujarat   Vacant  Lands  in  Urban  Area   (Prohibition   of Alienation)  Act,  1972--Constitutionality-If  violative  of article 14, Constitution of India.

HEADNOTE: The  Gujarat  Vacant  Lands in Urban  Area  (Prohibition  of Alienation) Act,, 1972 is enacted to prohibit the alienation of  certain  vacant  lands in urban areas in  the  State  of Gujarat.   Section 2 of the Act embodies a declaration  that the  Act  is for giving effect to the policy  of  the  State towards securing the principles specific in clauses (b)  and (c) of article 39 of the Constitution.  Section 4  prohibits the  alienation of vacant land after the appointed day.   It however  exempts one plot of vacant land owned by  a  person not  exceeding  1000 sq. metres and not forming  part  of  a compact  block.   The  transfers  in  favour  of  the  State Government, Central Government, local’ authority, Government company,   statutory  corporations  and  cooperative   house building societies are also exempted.  The State  Government has been empowered by general or special order to exempt any area- or any alienation from all or any of the provisions of the  Act.   This is subject to the rules made by  the  State Government.   Every order made by the State  Government  and the Collector exempting any area or alienation from, any  of the provisions of the Act is required to be laid before  the State  Legislature.  The Learned Counsel for the  petitioner conceded  that  in  view of the  proclamation  of  emergency fundamental  right  guaranteed  under Article  19  is  under suspension.  It was contended that the Act offended  Article 14 and that the Act was not directly relatable to the object of Article 39 (b) and (c) and, therefore, Article 31C could, not protect it. HELD  : (i) It is not necessary to take recourse to  Article 31C for upholding constitutional validity of the Act as,  it does  not infringe equal protection of law guaranteed  under Article  14 of the Constitution.  Urban area means any  area which  is  comprised  in the city or  a  municipal  Borough. Surrounding area not exceeding 16 kms. has to be fixed’ by a notification of the State Government. By notifications limit of  16  kms.  has  been fixed in case  of  big  cities  like

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Ahmedabad,  Baroda, etc. but lesser limits of distance  have been notified in case of small municipal boroughs. When  the limit of the distance outside the city or town area differed from  place to, place it was not necessary to fix the  limit of permissible area of transfer with reference to the  value of the land. It was neither feasible nor expedient to do so. From the permissible limit of transfer the area forming part of the compact block had to be excluded as it would have led to  monopolisation and monoeuvrings by persons belonging  to the same family unit.[668F; 672-B] (ii) There is reasonable classification and there is a clear nexus between the object of the Act and the  classification. The  Act  has  neither put unequals as  equals  nor  has  it discriminated between equals. The object of the Act being to prevent  alienation of vacant lands it rightly excludes  the building-lands  from its operation. Since the object of  the Act is to ultimately distribute ownership and control of the material  resources to subserve the common good transfer  in favour   of   Government,  Local   Authorities,   Government Companies  and  Statutory Corporations  has  been  excluded. Formation   of  Cooperative  House  Building  Societies   is obviously  a step for fulfilment of the object of  the  Act. The power of the State Government to exempt any area or  any alienation from all or any of the provisions of the Act is a power  which  is  to  be exercised for  the  reasons  to  be recorded  and in furtherance of the object of the  Act.  The guideline is to be found in the object of the Act. The order of  exemption to be made by the Collector is only where  the land  is  to  be  used  for  any  educational,   scientific, industrial or  commercial  purposes.  The  exercise  of  the power by the Collector is further controlled by providing an appeal to the State Government. The orders are to be  placed before the State Legislature which will act as a supervisory of  the orders of exemption made by the State Government  or this Collector. [672D-H] 668

JUDGMENT: ORIGINAL JURISDICTION: Writ Petition No. 467 of 1972. Petition Under Article 32 of the Constitution of India. B.   Sen  and R. M. Mehta, S. K. Dholakia and R. C.  Bhatia, for the petitioner. L.   N. Sinha, Solicitor General of India, G. A. Shah and S. P. Nayar, for the respondent. The Judgment of the Court was delivered by UNTWALIA,  J.-By  this  petition under  Article  32  of  the Constitution  of  India the petitioner  has  challenged  the constitutional  validity  ,of the Gujarat  Vacant  Lands  in Urban  Areas (Prohibition of Alienation) Act, 1972,  Gujarat Act No. 12 of 1972-hereinafter referred to as the Act on the around  that  it  violates the  fundamental  rights  of  the petitioner   granted   under  Arts.  14  and   19   of   the Constitution.   In the writ petition the  petitioner  claims that he owns 9559 square yards ,of land situate in  District Bulsar, sub-district and Taluka Navsari, village  Kohilpore. He  intends  to sell the said land but is unable  to  do  so because  of the prohibition of alienation imposed under  the Act. Mr. B. Sen, learned counsel for the petitioner conceded, and in  ID ,our opinion rightly, that since the Proclamation  of Emergency   is  in  operation  under  Article  358  of   the Constitution, fundamental right guaranteed under Article  19 is  under  suspension  and therefore the Act  could  not  be

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assailed for infraction of Article 19 even if there be  any. Counsel,  however,  submitted  that  it  does  violate   the guarantee of equal protection of the law and offends Article 14.   In the Act under section 2 is embodied  a  declaration that the Act is for giving effect to the policy of the State towards securing the principles specified in clauses (b) and (c)  of  Article  39 of the  Constitution  and  consequently Article 31C would save the Act from attack on account of the infraction of Article 14.  But it was submitted that the Act is not directly relatable to the object of Article 39(b) and (c) and hence Article 31C cannot protect it.  In our opinion it is not necessary in this case to take recourse to Article 31C for upholding the constitutional validity of the Act  as it does not infringe the equal protection of law  guaranteed under Article 14 of the Constitution. Learned  counsel for the petitioner endeavoured to make  out the  following  points  for  attacking  the  Act  as   being violative of Article 14.               (1)   That the limit of Prohibition in respect               of  the  area of the vacant land is  the  same               irrespective  of its situation and value  thus               putting unequals as equals.               (2)   That it does not apply to building lands               and building areas have been left out.               (3)   That there is discrimination between the               permissible  limit of alienation on the  basis               of  the irrational consideration of  the  area               forming part of a compact block or not.                66 9               (4)   That there is no rational basis for  not               applying the Act in respect of the  alienation               of vacant  in favour of the State, Govt.,  the               Central   Govt.,  Local   authorities,   Govt.               companies,   Govt.    Corporations   or    the               Cooperative House Building Societies.               (5)   There   is  no  guideline  provided   in               section 7 of the Art for exercise of the power               of exemption. Learned Solicitor General appearing for the respondent,  the State of Gujarat, submitted that none of the points urgea on behalf  of the ,petitioners has got any substance and  there is  no violation of the equal protection of  law  guaranteed under Article 14 of the Constitution. We  shall         first  refer  to  and  wherever  necessary read  some  of  the relevant provisions  of  the  Act.   The Preamble of the Act indicates that it is an Act to  prohibit alienation  of  certain vacant lands in urban areas  in  the State  of  Gujarat.  The object of the Act  is  to  prohibit alienation  of  the  vacant lands  so  that  ultimately  the ownership  and  control  of the material  resources  of  the Community  may  be so distributed as best to  sub-serve  the common  good and may prevent the concentration of wealth  to the common detriment.  It may be pointed ,out here that  the impugned  Act  is  a temporary one.  Originally  it  was  to remain  in  force  for  one year but  the  period  is  being extended  from  time to time in order to  enable  the  State Legislature  to  pass  the  Urban  Property  Ceilings   Act. Prohibition  of  alienation  by the  Act  is  a  preparatory measure  for distribution of the material resources  of  the community.  The definition section of the Act is section  3. Clause  (b)  defines "City" to mean a  City  as  constituted under  the  Bombay Provincial  Municipal  Corporations  Act, 1949.  The definition of "Collector" includes certain  other officers  also as mentioned in clause (c).  It is  necessary to read clause (d) which defines the "compact block" to mean

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"any  block  of vacant land in an urban area  exceeding  one thousand  square  metres in extent, (whether  owned  by  one person  or  jointly  by more than one  person  or  owned  in contiguous  parts  separately by one or more  members  of  a family  unit) and whether or not divided by a private  road, street,   lane,  footway,  passage  or  drain,  natural   or artificial." Under clause (dd) "family unit" means an  indi- vidual,  his or her spouse and their children."  Clause  (e) defines "’municipal borough" to mean "a municipal borough as constituted  or deemed to be constituted under  the  Gujarat Municipalities  Act, 1963." It is necessary to read  clauses (i) and (j) of section 3 in full. (i) "urban area" means--               (1)   any area which is comprised for the time               being  in  a City or a municipal  borough  and               also  any such area in the  vicinity  thereof,               within  a  distance,  not  exceeding   sixteen               kilometres from the local limits of the  City,               or  as  the  case may  be,  of  the  municipal               borough  concerned,  as the State  Govt.  may,               having  regard to the extent of and the  scope               for the urbani-               670               sation   of  that  area  or   other   relevant               considerations,  by  a  notification  in   the               Official Gazette, specify in this behalf; and               (2)   any   other   area  which    the   State               Government   may,  by  notification   in   the               Official Gazette declare to be an urban  area.               having regard to any project existing in  that               area on the appointed day or having regard  to               the  possibility  in the near  future  of  any               project  being established in that area  where               any such project, in the opinion of the  State               Government, has led to or is likely to lead to               urbanisation of that area;               (j)   "vacant  land"  means land in  an  urban               area, agricultural or non-agricultural,  other               than land on which any building has been or is               being  constructed in accordance with any  law               regulating  such  construction  and  the  land               appurtenant  to such, building to the  minimum               extent  required under such law or  under  the               provisions  of the Bombay; Town Planning  Act,               1954  or any other corresponding law  for  the               time being in force’.               Explanation  for the purposes of  this  clause               any land which is vacant on the appointed  day               shall   be   ’deemed  to   be   vacant   land,               notwithstanding  that the construction of 2  a               building  thereon  has been  commenced  on  or               after  the said day." Section  4  provides for prohibition of alienation  etc.  in these terms (1) No person who owns any vacant land shall, on or   after the appointed day, alienate such land by  way  of sale, gift, exchange (mortgage other than  simple.mortgage), lease or otherwise, or effect a partition or create a  trust of  such  land’,  and any  alienation  made,  or,  partition effected, or trust created in contravention of this  section shall be null and void : Provided  that nothing in- this sub-section shall  apply  to the alienation by any person of any one plot of vacant  land owned  by  him not exceeding one thousand square  metres  in extent  and  not forming part of a compact block or  to  the effecting of a  partition or creation of a trust of any such plot.

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(2)  The  provisions of sub-section (1) shall apply  to  any sale, partition or creation of trust, of vacant land of  any person in execution of a decree or order of a civil court or of any award or order of any other authority.   Restrictions on  registration  of documents have been put in  section  5. Section  6(1) says that "Nothing in this Act shall apply  to any transfer of vacant land by or in favour of-               (a)   A   State  Government  or  the   Central               Government or local authority;,                671               (b)   A  Government  Company  as  defined   in               section 617 of the Companies Act, 1956;               (c)   a corporation established by or, under a               Central  Provincial  or State  Act,  which  in               controlled or managed by a State Government or               the Central Government;               (d)   such    cooperative    house    building               societies  established  for  the  purpose   of               providing  housing  accommodation  to   weaker               sections of people, as may be approved by  the               State Government in this behalf." Sub-section  (2)  of section 6 makes a  distinction  in  the application of sub-section (2) of section:-4 in relation  to the  execution of a decree or an order of a civil  court  in favour  of  the Government or the  local  authority.   Under subsection (1) of section 7 "the State Government, may, by a general  or  special  order in writing and  for  reasons  to recorded therein, exempt any area or any alienation or other transfer  of  any  vacant  land  from  all  or  any  of  The provisions of this Act." Under sub-section (2), to avoid any hardship also, the State Government may, if it considers  it necessary  so  to do, exempt, by an order  in  writing,  any alienation or other transfer of any vacant land from all  or any  of  the provisions of this Art.  Subject to  any  rules that may be made in this behalf or to any general or special orders  of  the State Government, the  Collector  has.  been authorised  under sub-section (3) of section 7 by  order  in writing,  to exempt any alienation or other transfer of  any vacant land from the Provisions of this Act in case the land is to be used for ;my educational, scientific, industrial or commercial  purpose  or  for such other purpose  as  may  be prescribed.   "Prescribed"  means under clause  (g)  of  the third  section "prescribed by rules made under  this  Art.’, The State Government has power under section 12 to make  the rules.   Sub-section (4) enjoins that every order issued  by the State Government, under sub-sections (1) and (2) and  by the Collector under section 3 shall be laid before the State Legislature as soon as possible after its issue.  Alienation etc.  made on   or after the 1st July, 1972 but  before  the appointed  day  under the Act has also been  affected  under section  8.  Section 9 gives a right to appeal  against  the order of the Collector under sub-section (3) of section 7 to the State Government within the prescribed period and in the prescribed manner.  The jurisdiction of the Civil Court  has been  barred under section 10.  A penalty has been  provided under  section 11. The act overrides other laws in  view  of section 13. It  would  be noticed that the urban- ’area means  any  area which  is  comprised  in the City or  a  Municipal  Borough. Surrounding,  distance of the City or municipal borough  has to,.be  fixed by a notification of the State Government  ’in the   Official  Gazette  having  regard  to   the   relevant considerations.  The maximum distance of such an area cannot exceed sixteen kilometres.  We were informed at the Bar  by, the   learned Solicitor General that notifications have been

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issued fixing the maximum limit of 16 kilometres in case  of big cities like Ahmedabad, Baroda etc. but lesser limits  of distances  have  been notified in case  of  small  municipal boroughs.  Under the proviso to sub-section (1) of L319SupCI/75 672 section  4 a person is not_ prohibited from  alienating  one plot  of  vacant land owned by him not  exceeding  1000  sq. metres  provided it does not form part of a  compact  block. When the limit of the distance outside-the City or town area differed from place to place it was not necessary to fix the limit of permissible area of transfer with reference to  the value of the land.  It was neither feasible nor expedient to do  so.   From the permissible limit of  transfer  the  area forming  part of the compact block had to be excluded as  it would have led to manipulations and manoeuvrings by  persons belonging  to  the  same family unit.   The  land  belonging jointly to more than one person or owned in contiguous  part separately  by one or more members of a family  unit,  which unit is a narrow one as defined in clause (dd) of section 3, comes under the definition of compact block.  Then only  the permissible limit of transfer does not apply. Excluding  the  land on which any building has  been  or  is being constructed in accordance with any law regulating such construction  and only the permissible limit of  the  vacant land  appertaining  to  it is  a  reasonable  classification distinguishing the vacant land from the building land.   The object of the act is to prevent alienation of certain vacant lands and that being so it is rightly excluded the  building lands from its operation. It is plain that the main object of the act being ultimately to  distribute  the ownership and control  of  the  material resources  of the community as best to subserve  the  common good  and to prevent concentration of wealth, a transfer  in favour  of  the Government,  local  authorities,  Government companies  or  Corporations  had  to  be  excluded  as  such transfer  could not possibly defeat the object of  the  Act, rather, it would give a fillip to it.  Permitting  transfers of  vacant lands in favour of Cooperative  Housing  Building Societies  is  obviously a step for the  fulfilment  of  the object   of  the  Act.   The  Act  cannot  be  held  to   be discriminatory on such grounds. The  power of the State Government under sub-section (1)  of section  7  to exempt any area or any  alienation  or  other transfer of vacant land from all or any of the provisions of the Act is a power which is to be exercised for the  reasons to  be recorded in the general or the special order  and  in furtherance  of the object of the Act.  The guideline is  to be  found in the object of the act itself.  The power  under sub-section (2) has to be exercised by the State  Government for  avoiding any hardship.  There is  sufficient  guideline for exemption in case of hardship which will depend upon the facts  and  circumstances  of  each  case.   The  order  ;if exemption to be made by the Collector can only be in a  case where   the  land  is  to  be  used  for  any   educational, scientific,  industrial or commercial purposes.  It has  not been  left  open to the Collector to decide for  what  other purpose he can grant the exemption.  Such other purpose  can be only that as may be prescribed by the State Government by rules made under section 12 of the Act.  Sub-section (4)  of section  7  is a good safety valve.  The  State  Legislature will act as a Supervisor of the orders of exemption 673 made by the State Government or the Collector. The  exercise of  the  power  of exemption by  the  Collector  is  further

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controlled  by providing an appeal to the  State  Government under section 9 of the Act. In  our  opinion, therefore, there is no  violation  of  the equal  protection  of law guaranteed under Art.  14  of  the Constitution.  Classifications are all reasonable and  there is  a  clear  nexus between the object of the  act  and  the classifications.   They have neither put unequals as  equals nor has discriminated between equals. In the result the writ petition fails and is dismissed  with costs. P.H.P.                             Petition dismissed. 675