05 August 1970
Supreme Court


Case number: Writ Petition (Civil) 182 of 1969






DATE OF JUDGMENT: 05/08/1970


CITATION:  1970 AIR 1771            1971 SCR  (1) 719  1970 SCC  (3) 323  CITATOR INFO :  F          1971 SC1188  (4)  R          1976 SC1031  (18)  F          1977 SC 183  (6)

ACT: Maharashtra  Industrial  Development  Act,  1961-Maharashtra Development  Corporation  formed  under the  Act  whether  a trading corporation Legislative competence-Legislation falls under  Entry 24 of the State List and not under Entry 43  of Union  List-Act is valid-No discrimination in procedure  for acquisition under above Act and Land Requisition Act,  1894- Proviso  to  s.  33 of Maharashtra  Act  does  not  restrict judicial power of Collector in determining compensation.

HEADNOTE: In a petition under Art. 32 of the Constitution of India the petitioners  challenged  the  validity  of  the  Maharashtra Industrial  Development  Act,  1961.   In  support  of   the petition  it  was  contended  :  (i)  that  the  Maharashtra legislature was incompetent to enact the Act because the Act was for the incorporation, regulation and winding up of  the Maharashtra  Development  Corporation which  was  a  trading corporation;  accordingly  the  impugned  legislation   fell within  Entry  43  of List I (.Union List)  or  the  Seventh Schedule of the Constitution; (ii) that there was a  special procedure   designed  by  the  land  Acquisition   Act   for acquisition of land for the companies whereas in the present case under the provisions of the impugned Act the State  was acquiring land for companies without adopting the  procedure of  the Land Acquisition Act and thus there  was  procedural discrimination;  (iii)  that  the proviso to s.  33  of  the impugned  Act providing that no compensation exceeding  such amount as the State Government may by general order  specify to  be  paid  for acquisition shall  be  determined  by  the Collector  without  the  previous  approval  of  the   State Government  or its nominee, was restrictive of the  judicial power of the Collector. HELD  : (i) It is the true intent of the Act i.e.  its  pith



and substance which will determine the validity of the  Act. Industries come within Entry 24 of the State List subject to the  provision of Entry 7 and Entry 52 of the Union List  of the  Constitution.   Entry 7 of the Union  list  relates  to industries declared by Parliament by law to be necessary for the purpose of defence or for the prosecution of war.  Entry 52 of the Union List relates industries the control of which by  the  Union  is  declared by  Parliament  by  law  to  be expedient in the public interest.  The establishment, growth and  development of industries in the State  of  Maharashtra does  not  fall within Entry 7 and Entry, 52  of  the  Union List.  Establishment growth and development of industries in the State is within the State List of industries.  The, pith and  substance  of  the  Act  is  establishment  growth  and development  of industries, and acquisition of land in  that behalf carries out the purposes of the Act by setting up the Corporation  as  one  of  the  limbs  or  agencies  of   the Government.   ’Me  powers and functions of  the  Corporation show  in no certain terms that these are all in aid  of  the principal  and  predominant  purpose  of  establishment  and growth of industries.  When the Government is satisfied that the Corporation has substantially achieved the purposes  for which the Corporation is established, 720 the Corporation will be dissolved because the raison  d’etre is  gone.   It must, therefore, be held that the  Act  is  a valid piece of legislation. [725 F-726 D] The  contention that the Corporation was a trading  one,  or that  it Was -a Government company within the meaning of  s. 617  of  the  Companies Act, 1956  could  not  be  accepted. [Reason dissussed] The true character of the Corporation  in the present case is to act as an architectural agent of  the development  and growth of industrial towns by  establishing and developing industrial estates and industrial areas. [727 B-728 F] (ii) The contention that there was procedural discrimination is  between  the present Act and the  Land  Acquisition  Act could not be accepted. The Maharashtra Industrial Development Act is a special  one having   the  specific  and  special  purpose   of   growth, development  and Organisation ,of industries.  That Act  has its   own  procedure.   Under  the  Land   Acquisition   Act acquisition  is at the instance of and for the benefit of  a company whereas under the present Act acquisition is  solely by  the  State  for  public  purposes.   ’Me  two  acts  arc dissimilar in situation and circumstances. [728 H-729 E] (iii) The proviso to s. 33 no doubt provides that where  the amount of compensation determined by the Collector is higher than what the State Government may by general order  specify the approval of the State Government is necessary, But  sub- s. (5) of s. 33 states that in determining the  compensation the Collector shall be guided by the provisions contained in sections 23 and 24 and other relevant provisions of the Land Acquitition   Act.   There  is  no  ceiling  fixed  by   the Government.   Further there is an appeal to the  Court  from the  decision of the Collector.  The decision of  the  Court will finally determine the amount of compensation.  There is thus  no restriction on the powers of the Collector  in  the matter  of  determination  of  compensation,  although   the approval  of Government may be necessary in  the  Government interest. [729 F-730 C]




ORIGINAL  JURISDICTION: Writ Petitions Nos. 182 of 1969  and 42 to 45 of 1968. Petition  under  Art. 32 of the Constitution  of  India  for enforcement of the fundamental rights. D.  M. Parulekar and A. G. Ratnaparkhi, for the  petitioners (in W.P. No. 182 of 1969). S.  S. Shukla, for the petitioners (in W.P. No. 42 to 45  of 1968. S. T. Desai, G. L. Sanghi, B. D. Sharma for S. P. Nayar, for respondents  Nos. 1 to 3 (in W.P. No. 182 of 1969)  and  the respondents (in W.P. Nos. 42 to 45 of 1968). The Judgment of the Court was delivered by- Ray,  J.  These petitioners raise two  principal  questions. First,   whether  the  State  of  Maharashtra   (hereinafter referred  to  as  the  State)  is  competent  to  enact  the Maharashtra Industrial Development Act, + 1961  (hereinafter referred  to  as  the  Act):  secondly,  whether  there   is procedural discrimination between the Maharashtra Industrial Development Act, 1961 and the Land Acquisition Act, 1894, 721 The contentions of the petitioners are that. the Act is  for the  incorporation,  regulation  -and  winding  up  of   the Maharashtra Development Corporation (hereinafter referred to as  the Corporation) and that the Corporation is  a  trading one  and  therefore the impugned  legislation  falls  within Entry  43  of  List  I  of  the  Seventh  Schedule  of   the Constitution.   On  behalf of the State-it is  said  on  the other hand that the Act is for the growth and development of industries  in the State of Maharashtra and for  acquisition of  land in that behalf and the Corporation  is  established for carrying out the purposes of the Act, and, therefore,the legislation is valid. The  true  character,scope and intent of the Act  is  to  be ascertained   with  reference  to  the  purposes   and   the provisions  of  the Act. The Act is one to  make  a  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, and for  purposes  con- nected with the matters aforesaid. The  Corporation is established for the purpose of  securing and  assisting  the  rapid  and  orderly  establishment  and organisation   of   industries  in  industrial   areas   and industrial  estates  in  the  State  of  Maharashtra.    The Corporation consists of 8 members, two of whom are nominated by the.  State Government of whom one shall be the Financial Adviser  to  the Corporation, one member  nominated  by  the State Electricity Board, one member nominated by the Housing Board  and three members nominated by the State  Government, from amongst person appearing to Government to be  qualified as having had experience of , and having shown capacity  in, industry    or   trade   or   finance   or   who   are    in the  opinion of the Government capable of  representing  the interest  of  persons engaged or employed therein,  and  the Chief Executive Officer of the Corporation, who shall be the Secretary of the Corporation. The  functions  of the Corporation shall,  be  generally  to promote  and assist in the rapid and orderly  establishment, growth  and  development  of  industries  in  the  State  of Maharashtra  and to establish and manage industrial  estates at   places  selected  by  the  State  Government,   develop industrial  areas selected by the State Government  for  the purpose  and make them available for undertakings to  estab- lish  themselves, assist financially by loans industries  to



move  their  factories into such estates or  areas,  and  to undertake  schemes  or  works,  either  jointly  with  other corporate bodies or institutions, or 69Sup.CI(P)71-2 722 with Government or local authorities, or on agency basis, in furtherance  of  the purposes for which the  Corporation  is established and all matters connected therewith. An industrial area under the Act means any area declared  to be   an   industrial  area  by  the  State   Government   by notification  in  the  Official  Gazette  which  is  to   be developed  and where industries are to be accommodated.   An industrial  estate under the Act means any site selected  by the State Government, where the Corporation builds factories and  other buildings and makes them available for  any  site selected  by  the State Government,  where  the  Corporation means  the carrying out of building, engineering,  quarrying or  other  operations  in, on, over or under  land,  or  the making  of any material change in any building or land,  and includes   redevelopment,  but  does  not   include   mining operations.  Amenity under the Act includes road, supply  of water  or electricity, street lighting, drainage,  sewerage, conservancy  and  such  other  conveniences  as  the   State Government  may  by  notification in  the  Official  Gazette specify to be an amenity for the purposes of the Act. We  have  referred to these  expressions,  industrial  area, industrial  ’estate,  development and amenity  in  order  to appreciate   the  general  powers  of  the  Corporation   to discharge the functions of the Corporation in regard to  the establishment, growth and development of industries, in  the State.   These  powers  are to acquire  and  hold  property, movable  and, immoveable for the performance of any  of  its activities, and to lease, sell, "change or otherwise  trans- fer any property held by the Corporation on such  conditions as  may  be  deemed proper by the Corporation  and  also  to purchase by agreement or to take on lease or under any  form of tenancy any land, to erect such buildings and to "execute such  other  works as may be necessary for  the  purpose  of carrying  out its duties and functions, to provide or  cause to be provided amenities and common facilities in industrial estates  and industrial areas and construct and maintain  or cause  to  be maintained works and buildings  therefore,  to make  available buildings on hire or sale to  industrialists or  persons intending to start industrial  undertakings,  to construct buildings for the housing of the employees of such industries,  to  allot factory sheds or  such  buildings  or parts  of  buildings,  including  residential  tenements  to suitable  persons in the industrial estates  established  or developed  by the Corporation, and to, do such other  things and perform such acts as it may think necessary or expedient for  the proper conduct of its functions, and  the  carrying into effect the purposes of this Act. Broadly stated ’the functions and powers of the  Corporation are  to-develop industrial areas and industrial  estates  by providing.   amenities   of  Toad,  supply   of   water   or electricity, street,. lighting,  723 drainage,  sewerage,  conservancy  and  other  conveniences, secondly to construct works and buildings, factory sheds and thirdly,  to  make available buildings on hire  or  sale  to industrialists  or  persons intending  to  start  industrial undertakings   and  to  allot  factory   sheds,   buildings, residential  tenements  to suitable  persons  in  industrial estates  established or developed by the Corporation and  to lease,  sell,  exchange or otherwise transfer  any  property



held by the Corporation on such conditions as may be  deemed proper by the Corporation. The  development of industrial areas and industrial  estates is intended to serve two objects.  In the first place, there is  to be an orderly establishment and growth of  industries in the Bombay Poona sector.  The second object is to  secure dispersal  of  industries from the congested  areas  of  the Bombay Poona sector to the under-developed parts of the  St- ate.   The industrial areas are broadly classified into  two categories,  namely, first, those meant for engineering  and other  industries  which are not obnoxious,  and,  secondly, those meant for chemical industries.  The establishment  and growth  of industries in the State is inextricably bound  up with availability of land. - Available land in  limited.Such limited  supply  leads  to speculation in  land.   Power  is therefore  required  for compulsory acquisition of  land  to achieve  the  purposes of the Act.  At the same  time,  land owners  are not to be deprived of the legitimate benefit  of reasonable increase in land values in a developing economy. Development  of chemical industries requires long  stretches of  pipelines to be laid for moving gas and other  liquid  , chemical products.  The growth of industries in the State by establishment  of  industrial areas and  industrial  estates also  means  laying  pipelines  for  carrying  gas,   water, electricity  and  constructing sewerage and  drains.   These amenities  are  essential.   The  absence  of  amenities  is envisaged  and  answered  in  the  Act  by  empowering   the Corporation to provide these essential amenities, facilities and conveniences. The principal functions of the Corporation in regard to  the establishment,  growth and development of industries in  the are  first  to establish and manage industrial,  estates  at selected  places  and secondly to develop  industrial  areas selected  by the  State Government.  When  industrial  areas are  selected the necessity of acquisition of land in  those areas  is apparent.  The ’Act, therefore, contemplates  that the, ate Government may acquire land by publishing a  notice specifying  the  particular purpose for which such  land  is required.   Before: the publication of the notice the  owner of  the land is    given an -opportunity, to show  cause  as to 724 why  the  land  should not be  acquired.   The  State  after considering   the  cause  shown  by  the  owner  the   State Government  may  pass such orders as it deems fit.   When  a notice  is  published  for acquisition of  land,  the  land, shall,  on  and  from the date  of  such  publication,  vest absolutely  in  the  State, Government  free  from  all  en- cumbrances.   Where  the  land has be-en  acquired  for  the Corporation  or  any local authority, the  State  Government shall,  after it has taken possession of the land,  transfer the land to the Corporation or that local authority, for the purposes  for  which the land has been acquired  subject  to such  terms and conditions which the -State  Government  may deem  fit to impose.  We have already noticed that  for  the purpose   of  the  Act,  namely,  the   establishment   -and development of industries in the State the Corporation  will establish industrial estates and develop industrial areas. Apart  from establishing industrial estates  and  developing industrial  areas  the Corporation may dispose of  any  land acquired  by  the State Government and  transferred  to  the Corporation   without  undertaking  or  carrying   out   any development thereof or transfer such land after  undertaking or  carrying  out any development as it thinks  fit.   These powers  of the Corporation with respect to the  disposal  of



land  are to be exercised so far as practicable, that  where the Corporation proposes to dispose of by sale any such land without  any development having been undertaken  or  carried ,out  thereon, the Corporation shall offer the land  in  the first  instance to the persons from whom it was acquired  if they  desire to purchase it subject to such requirements  as to its development and use as the Corporation may think  fit to  impose.   Against,  the -persons  who  are  residing  or carrying  on business or other activities on any  such  land shall,  if  they  desire to obtain  accommodation  -on  land belonging to the Corporation and are willing to comply  with any  requirements of the Corporation as to  its  development and use, have an opportunity to obtain thereon accommodation suitable  to their reasonable requirements on terms  settled with  due  regard to the price at which any  such  land  has been. acquired ’from them. The  other  provisions  in  the  Act  are  that  the   State Government may upon such conditions as may be agreed between the  State  ’Government and the Corporation,  place  at  the disposal  of the ,Corporation any land vested in the,  State Government.   After any such land has been developed by,  or under  the control and super-vision of, the Corporation,  it shall  be dealt with by the Corporation in  accordance  with the  regulations  made, and directions given -by  the  State Government  in this behalf.  Further, if Any land placed  at the  disposal  of the Corporation is required  at  any  time thereafter  by the State Government, the  Corporation  shall replace  725 it  at the disposal of the State Government upon such  terms and conditions as may be mutually agreed upon. There are two-other important provisions in the Act.  In the first   place,  the  State  Government  may  issue  to   the Corporation such general or special directions as to  policy as  it may think necessary or expedient for the  purpose  of carrying  out the purposes of the Act,_ and the  Corporation shall  be  bound  to follow and act  upon  such  directions. These directions will be in the field of’ establishment  and management   of  industrial  estates  and   development   of industrial  areas and carrying out the other powers  of  the Corporation  in  regard to the provision  of  amenities  and common   facilities,   and   assisting   industrialists   or industrial  undertakings in. obtaining buildings or  factory sheds  or residential tenements or land for  development  of industries.  The second important provision is that when the State  Government is satisfied that the purposes  for  which the  Corporation  is  established under the  Act  have  been substantially  achieved  so  as  to  render  the   continued existence  of  the Corporation in the opinion of  the  State Government  unnecessary that Government may by  notification in  the Official Gazette declare that the Corporation  shall be  dissolved  with  effect  , from  such  date  as  may  be specified  in the notification and the Corporation shall  be deemed to be dissolved ’accordingly.  Upon such dissolution, all  properties,  funds  and dues which are  vested’  in  or realisable  by the Corporation shall vest in or be  realised by  the  State Government and  all  liabilities  enforceable against  the  Corporation shall be enforceable  against  the State Government. It  is  in  the background of the purposes of  the  Act  and powers  and functions of the Corporation that the  real  and true character of the legislation will be determined.   That is the doctrine of finding out the pith and substance of  an Act.  In deciding the pith and substance of the legislation, the  true  test  is  not to find out  whether  the  Act  has



encroached upon or invaded any forbidden field but what  the pith and substance of the Act is.  It is true intent of  the Act   which  will  determine  the  validity  of   the   Act. Industries come within Entry 24 of the State List subject to the  provision of Entry 7 and Entry 52 of the Union List  of the  Constitution.   Entry 7 of the Union  List  relates  to industries  declared by Parliament by law to  necessary  for the purpose of defence or for the prosecution of war. Entry  52  of  the Union List  relates  to  industries,  the control  of which by the Union is declared by Parliament  by law   to   be  expedient  in  the  public   interest.    The establishment,  growth and development of industries in  the State of Maharashtra do not fall within Entry 7 and Entry 52 of the Union List.  Establishment, growth and development of industries in the State is within the 726 State  List of industries.  Furthermore,- to effectuate  the purposes of the development of industries in the State it is necessary  make  land  available.  Such  land  can  be  made available  by - acquisition or requisition.  The Act in  the present case deals with acquisition of land by the State and on such acquisitions the State may transfer the land to  the Corporation which again may develop it itself and  establish industrial estates or may develop industrial areas.   Acqui- sition  or requisition of land falls under Entry 42  of  the Concurrent  List.  In order to achieve growth of  industries it  is  necessary  not ,only to acquire  land  but  also  to implement  the  purposes  of the Act.   The  Corporation  is therefore  established for carrying out the purposes of  the Act.   ’De pith and substance of the Act  is  establishment, growth  and Organisation of industries, acquisition of  land in  that behalf and carrying out the purposes of the Act  by setting  up the Corporation as one of the limbs or  agencies of  the  Government.   The  powers  and  functions  of   the Corporation show in’ no ,uncertain terms that these- are all in   aid  of  the  -principal  and-predominant  purpose   of establishment, growth and establishment of ,industries.  The Corporation  is  established  for that  purpose.   When  the Government   is   satisfied   that   the   Corporation   has substantially achieved the purpose for which the Corporation is  established, the Corporation will be  dissolved  because the raison detre is gone.  We, therefore, hold that the  Act is a valid piece of legislation. The  petitioners  contended  that  -the  Corporation  was  a trading  one.  The reasons given were that  the  Corporation could  sell  property,  namely,  transfer  land;  that   the Corporation had borrowing powers-, and that the  Corporation was  entitled  to  moneys  by  way  of  rents  and  profits. Reliance was placed on the report of the Corporation and  in particular on the income and expenditure of the  Corporation to  show  that  it was making profits.   These  features  of transfer of land, or borrowing of moneys or receipt of rents and  profits will by themselves neither be the  indicia  nor the  decisive  attributes of the trading  character  of  the Corporation.   Ordinarily, a Corporation is  established  by shareholders  with  their capital.   The  shareholders  have their  Directors  for the regulation and management  of  the Corporation.  Such a Corporation set up by the shareholders, carries  on  business and is intended  for  making  profits. When  profits  are  earned by such a  Corporation  they  are distributed  to shareholders by way of dividends or kept  in reserve  funds.  In the present case, these attributes of  a trading   Corporation  are  absent.   The   Corporation   is established by the Art for carrying out the purposes of  the Act.  The purposes of the Act are development of  industries



in the State.  The Corporation consists of nominees -of  the State  Government, State Electricity Board and  the  Housing Board.  The functions and powers of the Corporation indicate ’that  the  Corporation is acting as I a wing of  the  State Government  727 in establishing industrial estates and developing industrial areas,  acquiring property for those purposes,  constructing buildings,    allotting   buildings,   factory   sheds    to industrialists  or industrial undertakings.  It  is  obvious that  the  Corporation will receive moneys for  disposal  of land,  buildings  and  other properties and  also  that  the Corporation  would receive rents and profits in  appropriate ,cases.   Receipts  of  these moneys arise not  out  of  any business   or  trade  but  out  of  the  sole   purpose   of establishment, growth and development of industries. The  Corporation has to provide amenities and facilities  in industrial estates and industrial areas.  Amenities of road, electricity,  sewerage  and other facilities  in  industrial estates  and  industrial areas are within the  programme  of work  of  the  Corporation.  The  fund  of  the  Corporation consists  of moneys received from the State Government,  all fees,  costs  and charges received by the  Corporation,  all moneys  received  by the Corporation from  the  disposal  of lands,  buildings  and  other  properties  and  all   moneys received  by the Corporation by way of rents and profits  or in any other manner The Corporation shall have the authority to  spend  such  sums  out  of  the  general  funds  of  the Corporation   or   from  reserve  and  other   funds.    The Corporation  is  to  make provision for  reserve  and  other specially  denominated  funds as the  State  Government  may direct.   The  Corporation accepts  deposits  from  persons, authorities  or  institutions to whom allotment or  sale  of land, buildings, or sheds is made or is likely to be made in furtherance of the object of the Act.  A budget is  prepared showing   the  estimated  receipts  and  expenditure.    The accounts  of  the  Corporation are audited  by  -an  auditor appointed  by  the State Government.   These  provisions  in regard  to the finance of the Corporation indicate the  real role of the Corporation, viz., the agency of the  Government in  carrying out the purpose and object of the Act which  is the development of industries.  If in the ultimate  analysis there  is  excess of income over expenditure that  will  not establish  the trading character of the Corporation.   There are  various  departments of the Government which  may  have excess of income over expenditure. The  Corporation  is  not a Government  company  within  the meaning  of section 617 of the Companies Act, 1956  nor  can the ’Companies Act, 1956 be said to apply to the Corporation because under the provisions contained in section 616 of the Companies  Act that Act will apply to a company governed  by any  special Act except in so far as the provisions  of  the Companies  Act are inconsistent with the provisions of  such special Act.  The provisions of the Act in the present  case in   regard   to  incorporation,   functions,   powers   and dissolution of the Corporation show that the purposes 728 and  objects of the Act and the functions and powers of  the Corporation  are  like the warf and weft of  the  fabric  of development of industries by the State. There  are  two provisions of the- Act which are not  to  be found  in any trading Corporation.  In the first place,  the sums   payable  by  any  person  to  the   Corporation   are recoverable  by  it  under this Act as  an  arrear  of  land revenue  on the application of the, Corporation.   Secondly,



on dissolution of the Corporation the assets vest in and the liabilities become enforceable against the State Government. The  underlying concept of a trading Corporation  is  buying and  selling.  There is no aspect of buying or  selling  by- the  Corporation  in  the, present  case.   The  Corporation carries out the purposes of the Act, namely, development  of industries in the State.  The construction of buildings, the establishment of industries by’ letting buildings on hire or sale,  the acquisition and transfer of land in  relation  to establishment  of  industrial  estates  or  development   of industrial  areas and of setting up of industries cannot  be said  to  be dealing in land or buildings  for  the  obvious reason that the State is carrying out the objects of the Act with the Corporation as an agent insetting up industries  in the State.  The Act aims at building an industrial town  and the  Corporation  carries out the objects of the  Act.   The hard   core  of  trading  Corporation  is   its   commercial character.   Commerce connotes transactions of purchase  and sale  of  commodities,  dealing in  goods.   The  forms  ’of business  transactions may be varied but the real  character is   buying  and  selling.   The  true  character   of   the Corporation   in   the  present  case  is  to  act   as   an architectural agent of the development and growth of  indus- trial  towns  by  establishing  and  developing   industrial estates  and industrial areas.  We are of opinion  that  the Corporation is not a trading one. Counsel  on behalf of the petitioners contended  that  there was  procedural discrimination between the Land  Acquisition Act and the Act in the present case.  It was said that there was a special procedure designed by the Land Acquisition Act for  acquisition of land for the companies whereas  in  the’ present  case  the State was acquiring  land  for  companies without  adopting  the procedure of , the  Land  Acquisition Act.   It  is to be remembered that the Act in  the  present case  is a special one having the specific and special  pur- pose  of growth, development and Organisation of  industries in the State of Maharashtra.  The Act has its own  procedure and there is no provision in the Act for acquisition of land for  a company as in the case of Land Acquisition  Act.   In the  present  case,  acquisition under the Act  is  for  the purpose of development of industrial  729 estates or industrial areas by the Corporation or any  other purpose  in  furtherance  of the objects of  the  Act.   The policy  underlying, the Act is not acquisition of  land  for any   company  but  for  the  one.  and  only   purpose   of development,  Organisation and growth of industrial  estates and industrial areas.  The Act is designed to have a planned industrial city as opposed to haphazard growth of industrial areas  in  all parts of the State.  The Act is  intended  to prevent ,.growth of industries in the developed parts of the State.   Industries  are  therefore  to be  set  up  in  the developing  or, new parts of the State where new  industrial towns  will be brought into existence.. The object  of,  the Act  is to carve out planned areas for industries..  On  one side  there Will be engineering industries and on the  other there   will   be  chemical  industries.   There   will   be localisation   of  industries  with  the  result  that   the residents  and dwellers of towns and cities will not  suffer either  from  the polluted air or  obnoxious.  chemicals  of industries or the dense growth of industries and  industrial population,  within  and near about the  residential  areas. The  Land Acquisition Act is a general Act and that  is  why there is specific provision for acquisition of land by  the, State  for  public purpose and acquisition of  land  by  the



State  for companies.  The present Act on the other hand  is designed the sole purpose of development of industrial areas and  industrial  estates  and  growth  and  development   of industries  within  the State.  Industrial  undertakings  or persons who are engaged in industries all become entitled to the’  facilities on such industrial growth.  Under the  Land Acquisition  Act acquisition is at the instance of  and  for the  benefit  of  a company whereas under  the  present  Act acquisition is solely by the State for public purposes.  The two acts are dissimilar in situations and circumstances. The   petitioners  contended  that  the  provisions  as   to compensation were a restriction on the judicial power of the Collector.   Section 33 of the Act deals with  compensation. The  amount of compensation under the Act can be  determined by agreement between the State Government and the person  to be  compensated.  Where on the other hand no such  agreement can be reached, the State Government shall refer the case to the Collector.  That is subsection (3) of section 33 of  the Act.    The   proviso  to  that  sub-section  is   that   no compensation  exceeding such amount as the State  Government may by general orders specify to b paid for such acquisition shall  be determined by the Collector without  the  previous approval  of  the State Government or such  officer  as  the State  Government may appoint in that behalf.  This  proviso was  construed on behalf of the petitioners to be -a  fetter on  the  judicial  powers of  the  Collector  to   determine compensation.   Subsection  (5) of section 33 of  ’,.he  Act states  that in determining the amount of  compensation  the Collector shall be guided by the pro- 730 visions  contained in sections 23 and 24 and other  relevant provisions  of  the Land Acquisition  Act  These  provisions indicate  that  if the Collector will  determine  an  amount higher than what the State Government may by general  orders specify,  the  approval  of the  State  Government  will  be necessary.   There  is no ceiling fixed by  the  Government. Finally,  there is an appeal to the Court from the  decision of  the Collector.  The decision of the Court  will  finally determine  the  amount of compensation.  We are  of  opinion that there is no restriction on the, powers of the Collector in  the matter -of determination of  compensation,  although the   approval  of  Government  may  be  necessary  in   the Government interest. All  the contentions advanced by the petitioners fail.   The petitions ’are dismissed with costs. G.C.            Petitions dismissed. 731