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PETITIONER: WEST BENGAL HOUSING BOARD

       Vs.

RESPONDENT: BHANWAR LAL MUNDHRA & ORS.

DATE OF JUDGMENT:       09/07/1997

BENCH: K. RAMASWAMY, D.P. WADHWA

ACT:

HEADNOTE:

JUDGMENT:                       J U D G M E N T D.P. Wadhwa, J.      Special leave orented.      This appeal is directed against the judgment dated June 7, 1996  of a  Division Bench  of the  Calcutta High  Court, which  judgment   was   passed   in   appeal   against   the judgmentdated April  18. 1994  of the  learned Single Jundge allowing  the   writ  petition  of  the  first  respondent.; Thiswas however  the second  round of litigation between the parties.      The first  respondent who  was  the  petitioner  sought caushing of  the arlier order dated December 21. 1981 passed by the  Collector and  Additional Distric Magistrae,  Highly under Section  3(1) of the West Bengal Land (Recuisition and Acquisition) Act,  1948 (for  short the  Act) requesitioning 0.63 acres  of land of that patitioner bearing plot No. 1790 Mouza Monoharour.  J.L. No.  98 in  the district of Hooghly. In terms  of this order the possession of the land was taken over on  January 7.  1982.  As a matter of fact hte order of requisition pertained to 21.41 acres of land of various plot numbers which  included the  plot of  the petitioner.    The report  of   the  process   server  shows  that  the  notice requisitioning the  land was  served by  means of affixation with seal  and the  sionatures of witnesses, by going to the places mentioned  int he  orer requisitioning the land.  The petitioner filed  the writ  petition in  the  Calcutta  High Court challenging the order of requisition dated December 21 1981 on  the ground  that sussession  of the  land was taken over without  the service  of the order on him which was the mandetory requirement  of law.   By  judgment dated February 23, 1983,  the learned  Judge of  the High Court disposed of the writ petition with the following order:      "In this writ application one of th      egrievances of  the writ petitioner      is that  though he  is the owner of      the   plot    in   question,    the      respondents  are   trying  to  take      possession  of   those   lands   in      purported exercise  of their powers      under  Section  3(1)  of  the  West

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    Bengal   land    (Requisition   and      Acquisition)  Act,   1948   without      serving  him   with  a   notice  of      controverting       the       above      contentionof   thepetitioner    the      respondents assert  that the notice      has  duly   been  served  upon  the      recorded   owner    and   is    the      petitioner  was  not  the  recorded      owner he  waws not  served with any      notice.   It however,  appears that      by a registered deal dated November      7, 1965  the  petitioner  purchased      the  plot   in  question  from  the      reconded  owner  and  as  such  the      petitioner   is   entitled   to   a      statutory notice under the Act.  In      such circumstances.  I f\direct the      respondents to  serve a copy of the      notice  of   requisition  upon  the      petitioner and  thereafter  proceed      in accordance with law.  Let status      quo  in   respect  of   theplot  in      question in  respect of  theplot in      question in  respect of the plot in      question be  maintained  till  such      service  of  notice.    Let  it  be      recorded that  I have  not  decided      any of  the other  points raised by      the parties  in  support  of  their      respective  contentions.    Let  is      also be  recorded that such service      of notice  will not ipso facts give      any  right  to  the  petitioner  to      calim any  compensation if the land      is subsequently accuired.      Since the  court directed  maintenance  of  status  quo possession of the land remained with the State.      The order  of requisitioning  was again  seved  on  the petitioner by  the order  dated February 25, 1983 on said to hav ebeen  received by  thepetitioner on  March 24, 1983, On April 5.  1983  the  petitioner  again  filed  another  writ petition (C.R.  No. 3210  (W) of  1983) in the Calcutta Hihg Court challenging the order of requisition on three grounds, namely that  (i) no  notice was  served prior to taking over she possession  of the  land in  question.  (ii)  that there was a  total non  application of  mind on  the part  of  the Collector in  issuing the  requisitioning notice  and  (iii) the purpose.  This writ petition was disposed of by judgment dated April  18, 1994  of the learned Single Judge, as noted above, holding  that no  notice was served on the petitioner before taking  over the  possession of  the land in question and that there was no application of mind on the part of the Collector in  issuing the  order requisiioning the land that the purpose  for which  the equisition  was made  was not  a public purpose.      In the  meanwhile, however,  by  gazettee  notification dated June  6, 1985  published  on  June  12,  1985  in  the Calcutta gazette  ortraordinary issued under SEctor 4 of the Act the  State Government  acquired all  thelands  including that  of   the  petitioner   which  was  subject  matter  of requisition.   The appellant West Bengal Housing Board filed an appeal  before the  Division Bench of Calcutta High Court against the  judgment dated  April 18,  1994 of  the learned singes Judge.   This  appeal was  dismissed by  the impugned

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judgment dated  June 7,  1996 on the limited ground that the order requisitioning  the  land  was  not  served  upon  the petitioner before  taking  over  the  possession  which  was mandatory required  under Section 3 of Act.  It would appear the Division  Bench did  not consider  other two  grounds on which writ  petition had  been allowed by the learned single Judge.      We may at this stage set out the relevant provisions of law and  the operative  portion of the orders requisitioning and then acquiring the land.      Section 3 of the Act reads as under:      "Power to  requisition; (1)  If the      State Government  is of the opinion      that it  is necessary  so to do for      maintaining supplied  and  services      assential  to   the  life   of  the      community   (or    for   increasing      employmers tunities  for the people      by astablishing  commercial estates      and    industrial)    estates    in      dirrerent areas)  or for  providing      proper  faciliteis  for  transport,      communication,    irrigation     or      cranagu, or  for  the  creation  of      better licing  conditions in  rural      or  urar,   areas,  not   being  an      indusrail or  other areas  excluded      by  the   State  Government   by  a      notification in this behalf, by the      construction or  re construction of      dwelling places  in such areas 9 or      for purposes connected therewith or      incidental  thereto),   the   State      Government   may,   by   order   in      writing, requsition  any  land  and      may make  such  further  orders  as      appear to  it to  as  necessary  or      expedient in  connection  with  the      requisitioning:      Provided  that  no  land  used  for      purpose  of  religious  worship  or      used   by    an   educational    or      charitable  institution   shal   be      requisitioned under this section.      (1A) A Collector of a district, (an      Additional  District  Magitrate  or      the    First    Land    Acquisition      Collector.  Calutta) whe authorised      by the  State  Government  in  this      behalf,  may  exercise  within  his      jurisdiction the  powers  conferred      by sub-section (1).      (2) An  order under sub-section (1)      shall be  served in  the prescribed      manner on  theowner of the land and      where the  order relates to land in      occupation  (of  an  occupier,  not      being the  owner of  the land, also      on such occupier).      (3) If  any person falls to comngly      with  an   order  made  under  sub-      section (1)  the Collector  or  any      person     authorised  by   him  in      writing  in   this   behalf   shall      execute the order in such manner as

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    be considers expedient and may.-      (a) If  he is  Magistrate,  enforce      the dilivery  of possession  of the      land in  respect of which the order      has been made to himself, or      (b) If  he  is  not  a  Magistrate,      apply  to   a  Magistrate   or,  in      Calcutta ad  defined in clause (11)      of  Section   5  of   the  Calcutta      Municipal   Act    1951,   to   the      Commissioner  of  OLICE<  AND  SUCH      Magistrate or  Commissioner, as the      case  may  be,  shall  enforce  the      delivery of possession of such land      to him."      Sectoin 4 of the Act reads as under:      "4. Acquisition of land - (1) where      any  land  has  been  requisitioned      under   SEction    3,   the   State      Government may  use  or  deal  with      such land  for any  of the purposes      referred to  in sub-section  (1) of      Section 3 as may appear to it to be      expedient      (1a)  The   State  Governemnt   may      acquire  any   land   requisitioned      under Section  3  by  publishing  a      notice in the Official Gatette that      such land  is required for a public      purpose referred  to in sub-section      (1) of Section 3.      (2) Where  a notice as aforesaid is      published in  the Official Gazette,      the requisitiond ladn shall, on and      from the  beginning of  the day  on      which the  notice is  so published,      vest  absolutely   in  the   (State      Government    free     from     all      incombrancas  and   teh  period  of      requsition of such land shall end."      Rule 3 of West Bengal land (Requisition & Acquisitions, Rules, 1948  deals with manner of service of orders and is a sunder:      "3. Manner  of Service  of Orders -      An order  under sub-section  (1) of      section I  shall be  served on  the      owner of  the land  and  where  the      order relates to land in occupation      of an  occupier not being the owner      of the land, aldo on such occupier.      (a) by  delivering or  tendering  a      copy therefore,  endorsed either by      the person authorised by the Act to      make the order or by the Collector,      to the  person on whom the order is      to be served or his agent. or      (b) by fixing a copy thereof or the      outer door  of soe conspicuous part      of the mouse is which the person on      whom the  order  is  to  be  served      ordinarily resides  or  carries  on      business or  personally  works  for      pain, or      (c) by  sending  the  same  to  the      person on  whom the  order is to be

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    served  by   registered  post  with      acknowledgement due, or      (d) by  fixing a  copy  thereof  in      some conspicuous  part of  the land      to which the order relates and also      in some  conspicuous place  of  the      office or the Collector."      Extract of order under Section 3 of the Act,      "Wereas  in   mv  opinion   it   is      necessary  for   the   purpose   of      maintaning  supplies  and  services      essential  to   the  life   of  the      community/providing          proper      facilities                      for      transport/communication/irrigation/      drainage vir, for imolementation of      the housing  project at  Monoharour      to   requisition    th   land   (s)      described    in     the    schedule      below/overleaf.      And whereas State Government has by      notification  No.20500  L  A  dated      3.12.63 published  in the  Calcutta      Gazette  Part   I   of   the   26th      December,  1963,   at   page   2578      authorised me  toexercise the  powe      conferred by  sub-section  (1A)  of      Section 3  of the  West Bengal Land      (Requisition and  Acquisition0 Act.      1948 (West Bengal Act II of 1948).      Now therefore,  in exercise  of the      power conferred by sub-section (1A)      of Section  3 of  the  West  Bengal      Land (Requisition  and Acquisition)      Act. 1948  West Bengal  Act  II  of      1948 read  with  the  authority  so      vested in  me  as  aforesaid  1  do      hereby   requisition   the   land’s      mentioned  in  the  schedule  below      overlead  and  make  the  following      further order namely.      1) that possession of the land will      be taken  on 7.1.82  at 1 p.m. will      be taken on 7.1.82 at 1 p.m. and      2) that  the  owner/occupier/tenant      of the  said land  shall furnish me      such information  relating to  said      land as will be necessary from time      to time.’      Extract from  the gazette  notification under Section 4 of the Act;      "HOOGHLY Y  No. 3528  L.A. (II) 4H-      I/81 -  6th  June  1985  -  whereas      8.2216 hectares (20.34 acres). more      or less.  of land  situate  in  the      village  of  Monoharour,  described      below,  have   been   requisitioned      under sub-section  (1) of Section 3      of the West Bengal (Requisition and      Acquisition)  Act,   1948,  by  the      person  authorised   under  Section      3(1A)  of  the  said  Act  for  the      public purpose  of creating  better      living condition  in urban or rural      areas    by     construction    and

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    reconstruction of  dwelling  places      in  such   are  aor   for   purpose      connected therewith  and incidental      thereto, viz. for implementation of      housing project:      Now, therefore,  notice  is  hereby      given that  in pursuance of section      4 of  the  said  Act  the  Governor      acquires such  land being  required      for a public purpose as aforesaid.      This  notice  is  given  under  the      provisions of  sub-section (1A)  of      Section 4  of the  West Bengal Land      (Requisition and  Acquisition) Act.      1948 (West  Bengal Act II of 1949).      to all whom it may concern.      A plan of the land may be inspected      in the  office  of  the  Collector,      Hooghly."      It would  appear that  neither the State Government nor the Collector  and Additional  District  Magistrate,  Hoohly appeared before  the High  Court.   The  writ  petition  was defended by  the appellant  WEst Bengal Housing Board and on this ground,  a prasumption  was sought  to be  raised  that there  was   no  application  of  mind  by  the  parties  in requisitioning  the  land  and  that  notice  had  not  been property served in accorcance with Rule 3 before taking over possession of the land.      West Bengal Housing Board has been consituted under the West Bengal Housing Board Act, 1972.  It is a body corporate having perpatual succession and a common seal and my sue and be sued  in its  corporate name  and shall  be competent  to acquire and  hold property both movable and immovable, anter into contract  and do  all things necessary for the purposes of the  Act.   This Housing Board Act provides as to how the Housing Board  is to  be constituted,  prescribes power  and duties of the Housing Board and appointment of all its staff including the Housing Commissioner etc.  Under Section 17 of the Houding  Board Act,  the Housing Board exercises powers, sibject  to  the  provisions  of  that  Act.  It  may  ingur expenditure  and   undertake  works   for  the  framing  and execution  of  such  housing  schemes  as  it  may  consider necessary and  such  housing  schemes  may  include  housing schemes in  relation to  lands and buildings vested in or in the  possession   of  the   State  Government.    The  State Government may  also entrust  the Housing  Board the framing and executionof  any Housing scheme, whether provided for by the Act  or not,  and the Housing Board shall schemes and on such terms and conditions the State Government may think fit to impose.   SEction  18 of  the Housing  Board Act provides matters to  be taken  into  consideration  for  the  housing schemes.   Under Section  29 of  the Housing  Board Act, the State Government  may transfer  to the Housing Board on such terms and  conditions as  may be  prescribed such assets and liabilities of  the State  Government  and  thereupon  these stand vested  and transferred  to the  Housing Board.  It is not necessary  for us to state the various provisions of the Housing Board Act except to say that the Housing Board it is a statutory  body with  the Minister incharge of the housing department of  the State  Government as  the Chairman of the Housing Board.      It is  not disputed  that  the  land  in  question  was transferred to  the Housing  Board, the appellant herein, by the state  Government for  execution and  completion of  the housing scheme  known as  "Dankuni", in  Mouza Monoharour in

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the writ  petition.   It submitted  that it was possessed of all the  records of  the State  Government as well as of the Collector and Additional District Magistrate.  Hooghly which were produced  in court  during the  course of  hearing.  In this  view  of  the  matter  the  appearance  of  the  State Government   or    the   Collector-cum-Additional   District Magistrate, Hooghly, need not have been insisted upon and no adverse presumption  could have  been raised.  Be that as it may when  the  present  special  leave  petition  was  filed liberty was granted to State Government to file its counter. In pursuant  to that  an affidavit  was filed  by  the  Land Acquisition Officer  under the  Collector,  Hooghly.    This affidavit has  been filed  on  the  basis  of  the  official record,   It has  been mentioned that on January 4, 1982 the order requisitioning  the land was duly served under Section 3(2) of  the Act  upon all the owners/occupiers of the lands as per  the Records of Right available with the Collector by affixing a  copy thereof on the conspicuous part of the land and the  Collector’s office  in terms  of Rule  3(d) of  the Rules.   It is  stated, it  was only  after due  service  of notice under  Section 3(2) of the Act read with Rule 3(d) of the Rules  that possession  of the  land was  taken.  It has also been  stated that it was wrongly alleged on the part of the petitioner that neithr the State nor the Collector filed any affidavit before the High Court and that Mr. Tapas Kumar Chakraborty, Collector,  hooghly duly  swore an affidavit on October 23,  1993 on  behalf of  the  State  Government  and collector, hooghly.   The  affidavit of the Land Acquisition Officer further states as under: 1.   The appeal  was filed  by the West Bengal Housing Board as it  was the  principal aggrieved  party as by that time a part of  the housing project had been completed and the land was required for the purpose of providing the residents with an approach road to the hearby national highway. 2.   The land  was essentially  required for  the purpose of setting up a merker complex and for providing an access road to more  than 5000 residents of the Dankuni Housing Project. In fact,  the only  road leading  to  the  national  highway passes through  this plot of land.  This is an existing road and people  and using  this only road since the inception of the project.  Ifthe road is now closed,  the project will be a land-locked  one and  the residents will have no access to and from the project. 3.   providing housing  facilities in order to create better living conditions  for the  people is  a public  purpose  of great inportance  and there  was sufficient material befopre the requisitioning  authority to  form an  opinion under the Act.  The requisition was done by the Collector on behalf of the State  Government and  all  the  necessary  papers  were available with the court.  West Bengal Housing Board did not construct "Dankuni"  Housing  Project  with  the  motive  of making higher profit.  By constructing the said project in a predominantly rural  area, housing board was only fulfilling its obligation  under the Act towards creating better living conditions for the people.      The Dankuni  project has  not vst been fully completed. Only the  residential flats  have  been  constructed.    The approach road  and the marker complex have to be provided to satisfy  the   essential  requirements  of  more  than  5000 residents of the housing complex.      A further  look a  Dankuni Housing  project may also be relevant.  It is stated that "Dankuni" is about 30 kms. away from the  city of  Clacutta and  is well connected with road and railway  with the  city of  Calcutta.   It si within the purview of  both urban  and rural  areas.   The West  bengal

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Housing Board  took up the implementation of housing project in the urban and rural areas of the State of West Bengal and the Housing  Board intended  to implement housing complex in Dankuni at  Mouza  Monoharour  by  construction  about  1100 dwelling units for weaker section of the community including a market  complex, doctor’s  clinic, road,  drainage  etc.to cater to  the needs  of about 6000 inhabitants living in the project.   The State  Government  granted  approval  to  the Dankuni housing  project and  accordingly it  was decided to acquire  land  measuring  21.41  acres  including  the  land suibject  matter  of  these  proceedings.    It  is  further submitted that  from 1983  o 1994 during the pendency of the writ petition in the High Court construction work started in phases.   There was  different  categories  of  flats  viz., Higher Income  Group (Upper)  Higher Income  Group  (lower), Middle Income  Group and  the lower  income ground.    Flats which are  earmarked for  the  income  group  of  below  Rs. 72,00/- per  annum cost  Rs. 20,000/-  to Rs.  18,000/-  per annum cost  Rs, 60,000/-  flats for  the income group of Rs, 18,000 and  above per  annum cost Rs. 93,000/- and flats for the income  group of  Rs. 30,000/-  per annum  to  cost  Rs. 1.80,000/-,  wide   publicity  had   been   given   inviting applications from  public for  allotmetn of  flats and it is stated  that   1000  flats   had  already   constructed  and possession taken over by the allottees who are living there. When  the  learned  single  Judge  decided  the  first  writ petition he  had directed  maintenance of  status  guo  till service of notice requisitioning the land. Thereafter notice requistioning the  land  was  served  upon  the  petitioner. Nothing furtther  was  to  be  done  as  far  as  the  State authorities were concerned as the possession of the land had earlier been  taken though  the learned  judge had  directed serving a  copy of  the notice  of the  requisitioning order upon the  petitioner and thereafter to proceed in accordance with law.   As a matter of fact what we find is that service of the  hotice for  requisitioning of  the land  had already been earlier  served on  the petitioner  as  required  under Section 3(2)  of the  Act read  with Rule 3(d) of the Rules. This land  was subsequently  acquired under Section 4 of the Act.  From the record it could not be said that the land was not requisitioned  and subsequently  aquired for  any public purpose.  Public purpse of construction of houses for weaker ection is very much there.  We fail to see if in the context of construction  of houses for weaker sections of society it can be  said that public purpose stand frustrated.  Further, the Housing Board is not always enjoined to construct houses for a  particular section of scoeity.  It is a matter commen knowledge that  there is  an acute shortage of houses and to meet that  end the  Housing  Boardes  in  States  have  been constituted.      We have examined impugned order requisitioning the land and also  the pazette notification acquiring the land and we are unable  to concur  with the view taken by the High Court that notive  had not  been properly served or that there was no application  of mind  on the  part of  the  Collector  in requisitioning the  land or  that the  purpose for which the requisition was made was not a public purpose.  Construction of approach  road in  the  housing  project,  provision  for market complex,  doctor’s clinic, drainage ect. form part of the housing  project and  cannot be considered in isotation. That is  the public  purpose for  which the land in question had been requisitioned, a purpost which in a public purpose. We may  also usefully  refer to the judgment delivered by us today in  batch of  appeals arising  out  of  SLF  (C)  Nos. 12914/96 etc.  etc, entitled  West Bengal Housing Board etc.

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vs. Brijendra Prasad Gupta & Ors. etc.      The appeal is accordingly allowed, the judgments of the learned single  Judge and  that of  the  Division  Bench  in appeal are  set aside  and the  writ petition  filed by  the first respondent is dismissed.  There will be no order is to costs.