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since 1985 practicing as advocate in both civil & criminal laws. This blog is only for information but not for legal opinions

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Friday, January 23, 2015

when a repeal of an enactment is followed by a fresh legislation such legislation does not effect the substantive rights of the parties on the date of suit or adjudication of suit unless such a legislation is retrospective and a court of appeal cannot take into consideration a new law brought into existence after the judgment appealed from has been rendered because the rights of the parties in an appeal are determined under the law in force on the date of suit. However, the position in law would be different in the matters which relate to procedural law but so far as substantive rights of parties are concerned they remain unaffected by the amendment in the enactment. We are, therefore, of the view that where a repeal of provisions of an enactment is followed by fresh legislation by an amending Act such legislation is prospective in operation and does not effect substantive or vested rights of the parties unless made retrospective either expressly or by necessary intendment.= CIVIL APPELLATE JURISDICTION I.A. No. 8 of 2014 IN CIVIL APPEAL NO.7424 OF 2013 KARNAIL KAUR & ORS. .........APPELLANTS Vs. STATE OF PUNJAB & ORS. .........RESPONDENTS

                               NON-REPORTABLE


                        IN THE SUPREME COURT OF INDIA
                         CIVIL APPELLATE JURISDICTION

                             I.A. No. 8 of 2014

                                      IN

                        CIVIL APPEAL NO.7424 OF 2013



   KARNAIL KAUR & ORS.                     .........APPELLANTS

                                     Vs.

   STATE OF PUNJAB & ORS.                .........RESPONDENTS


                                       with

                 I.A. No. 5 in Civil Appeal No. 7425 of 2013
                I.A. No. 19 of Civil Appeal No. 7426 of 2013
                I.A. No. 15 in Civil Appeal No. 7427 of 2013
                 I.A. No. 3 in Civil Appeal No. 7428 of 2013
                 I.A. No. 3 in Civil Appeal No. 7429 of 2013
                 I.A. No. 3 in Civil Appeal No. 7430 of 2013
                 I.A. No. 6 in Civil Appeal No. 7431 of 2013
                 I.A. No. 3 in Civil Appeal No. 7432 of 2013
                 I.A. No. 3 in Civil Appeal No. 7433 of 2013
                 I.A. No. 3 in Civil Appeal No. 7435 of 2013
       I.A.Nos.3-4 in Civil Appeal Nos.7437-7438 of 2013
       I.A. Nos.6-8 in Civil Appeal Nos.7439-7441 of 2013
 I.A. No. 5 in Civil Appeal No. 7444 of 2013
                                     and
                 I.A. No.6 in Civil Appeal No. 7445 of 2013


                               J U D G M E N T


V.GOPALA GOWDA, J.

The abovementioned applications are filed by  the  appellants  for  allowing
the concerned appeals in terms  of  Section  24(2)  of  the  Right  to  Fair
Compensation  and  Transparency  in  Land  Acquisition,  Rehabilitation  and
Resettlement Act, 2013 (in short 'the  Act  of  2013').  The  appellant-land
owners have come to this Court questioning the  correctness  of  the  common
judgment and order dated 19.04.2011 passed by the High  Court  of  Punjab  &
Haryana at Chandigarh in Civil Writ  Petition  No.5512  of  2001  and  batch
petitions by which the High Court dismissed the Writ Petitions filed by  the
appellants herein.

As all the appeals are identical involving similar question of law, for  the
sake of brevity we will discuss the facts of the case in C.A.  No.  7424  of
2013 which are stated hereunder:

    The appellants are original residents and have their houses  along  with
their  land  in  village-Sohana,  Tehsil  Mohali  in  District  Roop   Nagar
(Punjab). The State of Punjab has framed a special Act known as 'The  Punjab
Regional and Town Planning and Development Act, 1995' (hereinafter  referred
to as 'the Act of 1995') to construct a residential urban  estate  with  the
main object  to  undertake  urban  development  and  housing  programme.  On
21.02.2000, the State  of  Punjab  through  Secretary,  Punjab  Housing  and
Development, the respondent No.1 herein, issued notification  under  Section
4 of the Land Acquisition Act, 1894 (for  short  'the  L.A.  Act')  for  the
purpose of setting up a residential urban estate  in  the  area  of  revenue
estate of village Mauli Baidwan, SAS Nagar (Mohali).  The  said  acquisition
notification covered a total  extent  of  1264.84  acres  of  land  in  four
villages -Mauli Baidwan, Sohana, Raipur Khurd  and  Lakhnausr  in  Roopnagar
district of Punjab out of which the land of the appellants  in  the  present
batch of appeals constituted 102 acres of land in small pockets of the  said
1264.84 acres. Objections were raised against the  same  by  the  appellants
under Section 5A alleging that in the year 1996 the Punjab State  Government
had framed a scheme called  "Farmers  Friendly  and  Land  Pooling  Exchange
Scheme", and as per the contents of the said Scheme, for every acre of  land
transferred by  the  land  owners  to  Punjab  Urban  Development  Authority
(PUDA), the land owners will be given back approximately 1000  square  yards
after development and the land owners were advised not to sell  their  land.
Therefore, the appellants objected to the said notification under Section  4
of the L.A. Act, as the same was violative of the principles  of  promissory
estoppel. The said objections were  not  decided  by  the  Land  Acquisition
Officer. Thereafter, on 02.02.2001, the notification under Section 6 of  the
L.A. Act was published.

The appellants filed writ petition No. 5512 of 2001 before  the  High  Court
of Punjab and Haryana at Chandigarh alleging inter alia that respondent  no.
1 has started acquiring the land without complying with the  provisions  and
in  utter  violation  of  the  Act  of  1995  &  therefore  the  acquisition
proceedings are bad in law and liable to be quashed.

The High Court vide order dated 19.04.2011 dismissed writ petition No.  5512
of 2001 along with batch matters  in  CWP  No.  4981  of  2001.  Hence,  the
present appeal.

It has been contended by the learned senior counsel for the appellants  that
the L.A. Act has been replaced by the Act  of  2013,  which  has  come  into
force w.e.f. 01.01.2014 and that Section 24(2) of the Act of  2013  provides
that where an award under Section 11 of the L.A.  Act  has  been  made  five
years or more prior to the commencement of the Act of 2013 but the  physical
possession of the land has not been taken or the compensation has  not  been
paid, the said proceedings shall be deemed to have lapsed.  In  the  present
case, the proceedings under the L.A. Act have  lapsed  for  both  the  above
said reasons because the case of the appellants satisfy both the  conditions
as referred to in Section 24(2) of the Act of 2013. The award under  Section
11 of the L.A. Act  in  respect  of  the  land  in  dispute  was  passed  on
17.05.2001. It is further contended that not  only  the  possession  of  the
said land is still with the appellants but they have also not been paid  any
compensation. Therefore, the acquisition proceedings in respect of the  land
under challenge in the present appeal have lapsed by  virtue  of  provisions
of Section 24(2) of the Act of 2013.

It has been further contended that the then Additional Chief  Administrator-
cum-Land  Acquisition  Collector,  GMADA,  Mohali  in  his  affidavit  dated
06.02.2008 has admitted that the possession of the land in question is  with
the appellants. Further, in the affidavit dated 19.07.2012 filed  on  behalf
of respondent no.2, it has been categorically  stated  that  the  appellants
and other land owners are using their land for  agricultural  purposes.  For
the said  reason,  the  respondent-GMADA  had  filed  an  application  dated
09.02.2012 seeking permission to complete the  remaining  development  works
in Sectors 76-80 of SAS Nagar, Mohali. The said  application  was  dismissed
by this Court on 11.11.2013.

Further, it is contended by the appellants that  no  details/calculation  of
the awarded money has been given to the appellants. Even  if  payments  have
been deposited, the  same  is  no  payment  in  the  eyes  of  law  and  the
respondent State has never offered to pay compensation of the acquired  land
in terms of the award of the appellants. No  notice,  whatsoever,  has  been
received by the appellants from any  quarter  asking  them  to  collect  the
compensation awarded in respect of their acquired land.  A  perusal  of  the
Annexure R-10 filed  by  the  State  of  Punjab  along  with  their  further
affidavit filed before this Court on 02.07.2013 would  clearly  go  to  show
that the  compensation  amount  is  lying  in  the  Treasury.  It  has  been
contended that in view of the above, the case of the appellants is  squarely
covered under Section 24(2) of the Act of 2013.  Therefore,  the  appellants
have filed the applications.


On the other hand, it has been contended by the  learned  Solicitor  General
Mr. Ranjit Kumar for the  respondents  that  the  issue  involved  in  these
appeals relates to the prayer for re-allotment of the land  on  the  premise
that  certain  other  housing  societies/institutions  were  re-alloted  the
acquired land. Therefore, it is no ground for the claim  of  the  appellants
to dispose of the appeal in terms of Section 24(2) of the Act of 2013 as  it
is not sustainable in the eyes of law and deserves to be rejected.

Further it has been contended that physical possession of the entire  extent
of the acquired land except 102 acres of the land involved in these  appeals
were not taken  by  the  respondent  no.2-PUDA  (now  GMADA)  on  17.05.2001
because of the interim order passed by both the High Court and  this  Court.
The possession of the land covered by the above batch of appeals  could  not
be taken as stay orders passed by the High Court in writ petitions filed  by
the land owners were in force.

It has been further  contended  that  Section  24(2)  of  the  Act  of  2013
stipulates that in relation to the land  acquisition  proceedings  initiated
under the L.A. Act where an award has been made five years or more prior  to
the commencement of the Act of 2013 and either of the two  contingencies  is
satisfied, viz; (i) physical possession of the land has not  been  taken  or
(ii) the compensation has not been  paid  to  the  owners,  the  acquisition
proceedings  shall  be  deemed  to  have  lapsed.  On  the  lapse  of   such
acquisition under the L.A. Act, it has to initiate  the  proceedings  afresh
under the Act of 2013. The proviso appended to Section 24(2)  deals  with  a
situation where in respect of the acquisition initiated under the  L.A.  Act
an award has been made and compensation in respect of  a  majority  of  land
holdings has not been deposited in the account  of  the  beneficiaries  then
all the beneficiaries specified in Section 4  notification  become  entitled
to compensation under the Act of 2013.

Further, it is contended that the acquisition  proceedings  in  relation  to
the land involved in the present appeals are a  part  of  1264.84  acres  of
land  acquired  pursuant  to  the  notification  dated  21.02.2000  and  the
compensation has already  been  paid/deposited  in  Court  in  case  of  the
affected land holders and physical possession of the  land  has  been  taken
with regard to more than 90% of the acquired land except  the  land  covered
by the present appeals where physical possession of the land  could  not  be
taken as the stay orders passed by the High Court & this Court have been  in
force. It is further contended that, however, soon after the passing of  the
impugned judgment dated 19.04.2011 the possession  of  the  land  was  taken
28.4.2011. Reliance was placed on the decision of this Court in the case  of
Sita Ram Bhandar Society, New Delhi v. Lt. Governor, Govt. of N.C.T.,  Delhi
& Ors.[1],  in justification of the above legal  contentions,  the  relevant
paragraph of which is extracted hereunder:-
"30. It would, thus, be seen from a  cumulative  reading  of  the  aforesaid
judgments, that while taking possession of a  large  area  of  land  with  a
large number of owners, it would be impossible  for  the  Collector  or  the
Revenue Official to enter  each  bigha  or  biswa  and  to  take  possession
thereof and that a pragmatic approach has to be adopted  by  the  Court.  It
is also clear that one of the methods of taking possession  and  handing  it
over to the beneficiary Department is the recording  of  a  Panchnama  which
can in itself constitute evidence of  the  fact  that  possession  had  been
taken and the land had vested absolutely in the Government."


Further, it is contended that this Court while  granting  special  leave  to
appeal directed to maintain "status quo" with regard to  possession.  As  is
held by this Court in a catena of judgments including Municipal  Corporation
of Delhi v. Lichho Devi and Ors.[2], and Bailamma  &  Ors.  v.  Poornaprajna
House Building Cooperative Society  &  Ors.[3],  while  dealing  with  cases
under Section 11-A  of  the  L.A.  Act  which  also  speaks  of  'lapse'  of
acquisition proceedings, if no award is made within a period  of  two  years
from the date of publication of the declaration, once an order  of  stay  is
obtained and the Government and the Collector are prevented from taking  any
further action pursuant to the declaration they cannot be  faulted  for  the
delay. Similarly, the authorities cannot be faulted for not taking  physical
possession of the land covered in the present appeals in as much  as  it  is
not that the authorities had on their own volition not taken  possession  of
the acquired land of the appellants. In fact the authorities who  had  taken
physical possession of more than 90% of the total extent  of  acquired  land
covered by the acquisition proceedings were prevented from  taking  physical
possession of the land in question in view of  the  stay  orders  passed  in
writ petitions moved by the landowners themselves in spite of the filing  of
application  by  the  authorities  seeking  permission   to   complete   the
development works on the land in issue which was adversely affected in  view
of the pending lis. Section 24(2) of the Act of 2013 will not be  applicable
in such a situation. Any  interpretation  to  the  contrary  would  lead  to
absurdity and anomalous results and unjust  and  unwarranted  enrichment  of
the landholders who are in physical possession of the acquired land in  view
of the stay orders  passed  in  the  writ  petitions  filed  by  them  which
prevented the authorities from taking physical possession  of  the  acquired
land when the L.A. Act was in force. Further, reliance  was  placed  on  New
India Assurance Co. Ltd. v. Nusli Neville Wadia & Anr.[4] and Ashok Lanka  &
Anr. v. Rishi Dixit & Ors.[5] that legislature is known to avoid anomaly  or
absurdity.

It is further contended that the settled principle of  law  based  upon  the
legal maxim 'Actus  Curiae  Neminem  Gravabit'  that  has  also  been  given
statutory flavour in terms of  Section  144  of  the  Civil  Procedure  Code
(Restitution) must be read  into  Section  24(2)  of  the  Act  of  2013  in
conjunction with Section 6 of the General Clauses Act and Section  11(A)  of
the L.A. Act.

The learned Attorney General has further  submitted  that  the  judgment  of
this Court in Sree Balaji Nagar Residential Association v.  State  of  Tamil
Nadu[6] is per incuriam in as much as the above crucial legal  aspects  have
not been considered therein.  Further, he has placed reliance upon the  case
of Nand Kishore Gupta & Ors. v.  State  of  Uttar  Pradesh  &  Ors.[7]  this
Court held thus:-
"46.The learned counsel appearing on behalf  of  the  appellants  could  not
deny the fact that the  total  number  of  petitioners  concerned  in  these
acquisition proceedings, coming up before  the  High  Court,  was  extremely
insignificant as compared to those who had  accepted  the  compensation.  Of
course, that by itself may not be  the  only  reason  to  hold  against  the
appellants (the petitioners), however, that fact will have  to  be  kept  in
mind while deciding the issues which cover the  whole  acquisition  process,
which acquisition is for the purpose of development of 25 million  sq  m  of
land. The High Court has also noticed this aspect. We  have  mentioned  this
aspect only with a limited objective of showing that the  criticism  against
the whole scheme which would invalidate the acquisition would  be  difficult
to be accepted, particularly  in  this  case,  in  view  of  the  fact  that
majority  of  the  landowners  have  parted  with  possession,   taken   the
compensation and thus, the whole scheme  has  progressed  to  a  substantial
level, wherefrom it will be extremely difficult now to turn back  to  square
one."


With reference to the above decision, he has further contended that  in  the
above circumstances, Section 24(2) of the Act of 2013 cannot  be  applicable
to the fact situation in the present  appeals  and  the  above  applications
deserve to  be  dismissed  in  the  interest  of  justice  and  also  public
interest.

We have carefully gone through the legal submissions  made  by  the  learned
senior counsel on behalf of the appellants with respect to  the  application
filed under Section 24(2) of the Act of 2013 and the  objections  raised  by
the respondents to the same. In our considered view, respondent  No.2  GMADA
has admitted that the possession of the land in  question  (i.e.  about  102
acres) is with the appellants and  the  appellants  have  not  received  the
compensation for the said land being acquired by GMADA. Therefore, the  case
of Nand Kishore Gupta referred to supra is not  applicable  to  the  present
case on hand. In fact, the present case is squarely covered by the law  laid
down in the matter of Pune Municipal  Corporation  and  Anr.  v.  Harakchand
Misirimal Solanki & Ors.[8], Union of India & Ors. v. Shiv  Raj  &  Ors.[9],
Bimla Devi & Ors. v. State of Haryana & Ors.[10], Bharat Kumar v.  State  of
Haryana & Anr.[11] and Sree Balaji Nagar Residential Association (supra).



The above said provisions of Section 24 (2) of the Act of 2013 quoted  above
has been interpreted by the three Judge Bench of this Court in the  case  of
Pune Municipal Corporation (supra), the relevant paras 20 and  21  from  the
case are extracted hereunder:-

"20......it is clear that the award pertaining to the subject land has  been
made by the Special Land Acquisition Officer more than five years  prior  to
the commencement of  the  2013  Act.  It  is  also  admitted  position  that
compensation so awarded has neither  been  paid  to  the  landowners/persons
interested nor deposited in the court. The deposit  of  compensation  amount
in the Government treasury  is  of  no  avail  and  cannot  be  held  to  be
equivalent to compensation paid to  the  landowners/persons  interested.  We
have, therefore, no hesitation in holding that the subject land  acquisition
proceedings shall be deemed to have lapsed under Section 24(2) of  the  2013
Act.

21. The argument  on  behalf  of  the  Corporation  that  the  subject  land
acquisition proceedings have been concluded in all respects under  the  1894
Act and that they are not affected at all in view of Section 114(2)  of  the
2013 Act, has no merit at all, and is noted to be rejected.  Section  114(1)
of the 2013 Act repeals the  1894  Act.  Sub-section  (2)  of  Section  114,
however, makes Section 6 of the General Clauses Act,  1897  applicable  with
regard to the effect of repeal but this is subject to the provisions in  the
2013 Act. Under Section 24(2) land acquisition proceedings  initiated  under
the 1894 Act, by legal fiction, are deemed to have lapsed  where  award  has
been made five years or more prior to the commencement of the 2013  Act  and
possession of the land is not taken or compensation has not been  paid.  The
legal  fiction  under  Section  24(2)  comes  into  operation  as  soon   as
conditions stated therein are satisfied. The applicability of Section  6  of
the General Clauses Act being subject to Section 24(2), there  is  no  merit
in the contention of the Corporation.


 Further, this Court vide its order dated  05.09.2011  requested  the  State
Government to consider the submissions of the appellants regarding  the  re-
allotment  of  the  acquired  land  without  admitting  any  right  in   the
appellants  and  place  the  issue  before  the  State  Government  for  its
consideration. Therefore, the learned Solicitor General contends  that  this
Court found reasonable  ground  for  its  interference  in  the  matter  and
granted leave for the same to be re-examined  and  reconsidered.  The  above
contention is not tenable in law particularly  having  regard  to  the  fact
that after the above said date leave was granted by this Court  by  allowing
the Special Leave Petition that means this Court has to  consider  the  case
of the appellants on merits. However, this does not  deprive  the  right  of
the appellants to apply for relief under Section 24(2) of the  Act  of  2013
as they have  acquired  a  valid  statutory  right.  The  learned  Solicitor
General has  also placed reliance upon the case of  A.R.  Antulay   v.  R.S.
Nayak & Anr[12], in support of his legal submission that in  the  said  case
the majority  view  of  this  Court  have  succinctly  laid  down  that  the
elementary rule of justice is that no party should suffer by  mistake/action
of the Court. What the  court  does  ought  not  prejudice  a  litigant  and
therefore, respondents herein shall not be made to suffer or be deprived  of
their right by the reliance being placed by the land owners upon Section  24
(2) of the Act of 2013 due to the interim orders of the High Court and  this
Court as they have been in possession  of  the  acquired  land.   The  above
contentions of the learned Solicitor General cannot be  accepted  by  us  as
the said principle of law laid down by this  Court  in  the  above  referred
case has no application to the fact situation on hand in view of  the  clear
statement of law laid down by this Court in the above referred  cases  after
interpreting the provisions of the Act of 2013 and therefore,  the  reliance
placed upon the said decision is misplaced.

In Sree Balaji Nagar Residential Association (supra),  it  was  opined  that
after adverting to the decisions of the Privy Council and this  Court,  that
Section 24(2) of the Act of 2013 does not exclude any  period  during  which
the land acquisition proceedings might have remained stayed  on  account  of
stay or injunction or "status quo" order regarding possession  of  the  land
granted by any court. It was conclusively  held  that  the  Legislature  has
consciously omitted to extend the period of five years indicated in  Section
24(2) of the Act of 2013, even  if  the  proceedings  had  been  delayed  on
account of an order of stay or injunction granted by a court of law  or  for
any reason.

Further, so far as the judgment cited by the  respondents  in  Civil  Appeal
No.331 of 2014, we are of the view that the same has no application  on  the
facts of the present case because the appellants in that matter are  nowhere
connected or concerned with the appellants in the present batch of cases  as
contended by the appellants. In that matter, the aggrieved persons have  not
challenged  the  acquisition   proceedings   rather   they   accepted   that
acquisition but  filed  references  for  enhancement  of  compensation.  The
appellants therein have accepted the compensation in the  year  2001  itself
after the passing of the award and their possession have been taken  in  the
year 2001 itself by the authorities concerned. Whereas in the present  batch
of appeals the  appellants  are  still  in  possession  and  they  have  not
accepted any compensation for their acquired land.  Secondly,  the  impugned
judgment in the present appeals is two years after passing of  the  impugned
order in C.A. No.331 of 2014. Therefore, the impugned judgment of  C.A.  No.
331 of 2014 is totally different from the impugned judgment in  the  present
batch of matters and are in no way connected to each other.

After referring to the aforesaid decisions with reference to the  facts  and
circumstances of the case  on  hand,  we  are  of  the  view  that  physical
possession of the land belonging to the appellants have neither  been  taken
by the respondents nor compensation paid to them even though the  award  was
passed on  06.08.2007, and more than five years have lapsed  prior  to  date
on which the  Act  of  2013  came  into  force.  Therefore,  the  conditions
mentioned in Section 24(2) of the Act of 2013 are  satisfied  in  this  case
for  allowing  the  plea  of  the  appellants  that  the  land   acquisition
proceedings are deemed to have lapsed in terms of Section 24(2) of  the  Act
of 2013. The said legal principle laid down by this Court  in  the  case  of
Pune Municipal Corporation and other cases referred to supra with regard  to
the interpretation of Section 24(2) of the Act of 2013, with all  fours  are
applicable to the fact situation in respect of the  land  covered  in  these
appeals for  granting  the  relief  as  prayed  by  the  appellants  in  the
applications.

We have noticed the Gazette of India published by the Ministry  of  Law  and
Justice in respect of the "Right to Fair Compensation  and  Transparency  in
Land Acquisition, Rehabilitation  and  Resettlement  (Amendment)  Ordinance,
2014", in which a second proviso to Section 24(2) has  been  inserted  which
reads as follows:-
"Provided further that in computing the period  referred  to  in  this  sub-
section, any period or periods during which the proceedings for  acquisition
of the land were held up on account of any stay or injunction issued by  any
stay or injunction issued by any court or the period specified in the  award
of a Tribunal for taking possession or  such  period  where  possession  has
been taken but the compensation  lying  deposited  in  a  court  or  in  any
account maintained for this purpose shall be excluded."


The above said amendment has come into force  w.e.f.  01.01.2015.  With  due
regard to the same, we are of the view  that  the  amendment  would  not  be
applicable to the case on hand  for  the  reason  that  these  appeals  were
pending much prior to the ordinance and also the applications under  Section
24(2) of the Act of 2013 were filed prior to the amendment to Section  24(2)
by Ordinance and the same were heard and reserved for orders  on  28.10.2014
and therefore the Ordinance in so far as insertion of proviso to  the  above
Section by way of an amendment is  prospective.  Further,  keeping  in  mind
the principles laid down by this Court in the case of Garikapati Veeraya  v.
N. Subbiah Choudhry and Ors.[13], wherein it was held thus:

"23...(iv)The right of appeal is a vested right and such a  right  to  enter
the superior court accrues to the litigant and exists as  on  and  from  the
date the lis commences and although it may be actually  exercised  when  the
adverse judgment is pronounced such right is  to  be  governed  by  the  law
prevailing at the date of the institution of the suit or proceeding and  not
by the law that prevails at the date of its decision or at the date  of  the
filing of the appeal.


(v) This vested right of appeal can be  taken  away  only  by  a  subsequent
enactment, if it so provides expressly or by necessary  intendment  and  not
otherwise.

25.In construing the articles of the  Constitution  we  must  bear  in  mind
certain cardinal rules of  construction.  It  has  been  said  in  Hough  v.
Windus [1884] 12 Q.B.D.  224,  that  "statutes  should  be  interpreted,  if
possible, so as to respect vested right." The golden  rule  of  construction
is that, in the absence of anything in the enactment to show that it  is  to
have retrospective operation, it cannot be so constructed  as  to  have  the
effect of altering the law applicable to a claim in litigation at  the  time
when the Act was passed [Leeds and County  Bank  Ltd.  v.  Walker (1883)  11
Q.B.D. 84; Moon v. Durden (1848) 2  Ex.  22;  76  R.R.  479.  The  following
observation of Rankin C.J. in Sadar Ali v. Dalimuddin (supra)  at  page  520
is also apposite and helpful  :  "Unless  the  contrary  can  be  shown  the
provision which takes  away  the  jurisdiction  is  itself  subject  to  the
implied saving of the litigant's right."  In  Janardan  Reddy  v. The  State
[1950]1SCR940 Kania C.J. in delivering the judgment of  the  Court  observed
that our Constitution is generally speaking  prospective  in  its  operation
and is not to have retroactive operation  in  the  absence  of  any  express
provision to that effect. The same  principle  was  reiterated  in  Keshavan
Madhava Menon v. The State of Bombay 1951CriLJ680 and finally  in  Dajisaheb
Mane and Others v. Shankar Rao Vithal Rao [1955]2SCR872 to  which  reference
will be made in greater detail hereafter."
                                               (emphasis laid by this Court)

Further  in  the  case  of  Shyam  Sunder  v.  Ram  Kumar  &  Anr.[14],  the
Constitution Bench of this Court held thus:
"26. In Hitendra Vishnu  Tahkur  &  ors. vs. State  of  Maharashtra  &  ors.
1995CriLJ517 this Court laid down the ambit and scope  of  an  amending  act
and its retrospective option as follows:

'(i)A  statute  which  affects  substantive  rights  is   presumed   to   be
prospective in operation unless made retrospective, either expressly  or  by
necessary intendment, whereas a  statute  which  merely  affects  procedure,
unless such as construction is  textually  impossible,  is  presumed  to  be
retrospective in its application, should not be given  an  extended  meaning
and should be strictly confined to its clearly defined limits.

(ii) Law relating to forum and limitation is procedural in  nature,  whereas
law relating to right of action and right of appeal even though remedial  is
substantive in nature.

(iii) Every litigant has a vested right  in  substantive  law  but  no  such
right exists in procedural law.

(iv)  a  procedural  statute  should  not  generally  speaking  be   applied
retrospective where the result  would  be  to  create  new  disabilities  or
obligations or to impose new duties in respect of  of  transactions  already
accomplished.

(v) a statute which not only changes the  procedure  but  also  creates  new
rights and liabilities shall be construed to  be  prospective  in  operation
unless otherwise provided, either expressly or by necessary implication.'

27. In K.S. Paripoornan vs. State of Kerala &  others   AIR1995SC1012,  this
Court while considering the effect of amendment in the Land Acquisition  Act
in pending proceedings held thus:

"... In the instant case we  are  concerned  with  the  application  of  the
provisions of sub-section 1(1-A) of S. 23 as introduced by the Amending  Act
of acquisition proceedings which were pending on the  date  of  commencement
of the Amending act. In relation pending proceedings, the  approach  of  the
courts in England is that the same are unaffected by  the  changers  in  the
law so far as they relate to the determination  of  the  substantive  rights
and in the absence of a clear indication  of  a  contrary  intention  in  an
amending enactment, the substantive rights of the parties to an action  fall
to the determined by the law as it existed when  the  action  was  commenced
and this is so whether the law is change before the hearing of the  case  at
the first instance or while an appeal is pending  (See  Halsbury's  Laws  of
England, 4th Edn., Vol. 44, para 922).'
28. From the aforesaid decisions the legal position  that  emerges  is  that
when a repeal of an enactment  is  followed  by  a  fresh  legislation  such
legislation does not effect the substantive rights of  the  parties  on  the
date  of  suit  or  adjudication  of  suit  unless  such  a  legislation  is
retrospective and a court of appeal cannot take  into  consideration  a  new
law brought into  existence  after  the  judgment  appealed  from  has  been
rendered because the rights of the  parties  in  an  appeal  are  determined
under the law in force on the date of suit. However,  the  position  in  law
would be different in the matters which relate to procedural law but so  far
as substantive rights of parties are concerned  they  remain  unaffected  by
the amendment in the enactment. We are, therefore, of the view that where  a
repeal of provisions of an enactment is followed by fresh legislation by  an
amending Act such legislation is  prospective  in  operation  and  does  not
effect  substantive  or  vested  rights   of   the   parties   unless   made
retrospective either expressly or by necessary intendment.  We  are  further
of the view that there is a presumption against the retrospective  operation
of a statue and further a statute is not to be construed t  have  a  greater
retrospective  operation  than  its  language  renders  necessary,  but   an
amending act which affects the procedure is presumed  to  be  retrospective,
unless amending act provides otherwise. ......."
                                               (emphasis laid by this Court)


In  view  of  the  aforesaid  findings  and  reasons  recorded  by  us,  the
acquisition proceedings in respect of the appellants' land have lapsed.

     The aforesaid applications are allowed in  the  above  said  terms  and
consequently, the appeals referred to above are  also  allowed  by  quashing
the land acquisition proceedings notification in so far as the land  of  the
appellants are concerned. No costs.







    I.A. No. 6 in C.A. No.7424 of 2013 for  impleadment  is  dismissed  with
liberty to approach the appropriate forum in accordance with law.

      I.A. Nos. 9 and 10 in C.A. No.  7424  of  2013  for  intervention  and
direction are dismissed as not maintainable.


.....................................................................J.
                          [V. GOPALA GOWDA]



    .....................................................................J.

    [C. NAGAPPAN]


New Delhi,
January 22, 2015
-----------------------
[1]    (2009) 10 SCC 501
[2]    (1997) 7 SCC 430
[3]    (2006) 2 SCC 416
[4]    (2008) 3 SCC 279
[5]    (2005) 5 SCC 598
[6]    2014(10)SCALE388
[7]    (2010) 10 SCC 282
[8]    (2014) 3 SCC 183
[9]    (2014) 6 SCC 564
[10]   (2014) 6 SCC 583
[11]   (2014) 6 SCC 586
[12]   (1988) 2 SCC 602
[13]   AIR 1957 SC 540
[14]   (2001)8 SCC 24

The UPSC shall forward the said answer sheets to an expert, who shall not re-examine those answer sheets but shall examine whether the candidates answering the questions had given any indication in the answer sheets to reveal their identity. = RECORD OF PROCEEDINGS I.A. 15-18 in Civil Appeal No(s). 5877-5878/2014 SECRETARY TAMILNADU PUBLIC SERVICE COMM Appellant(s) VERSUS A.B.NATARAJAN & ORS.ETC. Respondent(s)

ITEM NO.301+303             COURT NO.3               SECTION XII

               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS

             I.A. 15-18 in Civil Appeal  No(s).  5877-5878/2014

SECRETARY TAMILNADU PUBLIC SERVICE  COMM           Appellant(s)

                                VERSUS

A.B.NATARAJAN & ORS.ETC.                           Respondent(s)

(for modification/clarification and office report)

WITH
I.A.No. 3 in C.A. No. 5879/2014
(With appln.(s) for modification/clarification and Office Report)

I.A.Nos. 23-24 in C.A. No. 5880-5881/2014
(With appln.(s) for modification/clarification and Office Report)

R.P. (C) 210-211 of 2015 in C.A.No. 5880-5881/2014
(for c/delay in filing Review Petition and for oral hearing)

I.A.Nos. 41-42 in C.A. No. 5882-5883/2014
(With appln.(s) for modification/clarification and appln.(s) for  permission
to file additional documents and Office Report)

I.A.No. 3 in C.A. No. 5884/2014
(With appln.(s) for modification and Office Report)

R.P.(C) No. 2025-2026/2014 In C.A. No. 5877-5878/2014
(With appln.(s) for oral hearing)

CONMT.PET.(C)  D  31357/2014  IN  I.A.Nos.  15-16/2014  in  C.A.  No.  5882-
5883/2014

CONMT.PET.(C)  D 31358/2014 In I.A.No. 24/2014 in C.A. No. 5880-5881/2014

with

R.P. (C) 2628-2629 of 2014 in C.A.No. 5882-5883/2014
(with application for hearing in open court and  c/delay  in  filing  Review
Petition)

R.P. (C) 201-202/2015 in C. A. No. 5882-5883 of 2014
(with application for c/delay in filing Review Petition and directions)

Date : 21/01/2015 These  applications  and  petitions  were  called  on  for
hearing today.

CORAM : HON'BLE MR. JUSTICE ANIL R. DAVE
        HON'BLE MR. JUSTICE DIPAK MISRA

For Appellant(s)  Mr. Mukul Rohtagi, Attorney General
                        Mr. Subramonium Prasad, AAG
                        Mr. B. Balaji, Adv.
                        Mr. Rakesh Sharma, Adv.
                        Ms. Meha Agarwal, Adv
                        Ms. Shase, Adv.
                        Mr. Paramveer, Adv.

                        Mr. K. Parasaran, Sr. Adv.
                        Mr. V. Balachandran, Adv.
                        Mr. A. Lakshminarayanan, Adv.

                        Mr. A. K. Ganguly, Sr. Adv.
                        Mr. Shekhar Naphade, Sr. Adv.
                        Mr. R. Thirmulani, Adv.
                        For Mr. Ashok K. Mahajan, Adv.

                        Mr. Gopal Subramaniam, Sr. Adv.
                        Mr. M. Yogesh Kanna, Adv.
                        Mr. Niraimati, Adv.

                        Mr. P. S. Patwalia, Sr. Adv.
                        Mr. S. J. Aristotle, Adv.
                        Mr. Prabhu Ramasubramanian, Adv.

                        Mr. H. P. Raval, Sr. Adv.
                        Mr. Anand Verma, Adv.
                        Mr. V. G. Pragasam, Adv.

                        Mr. Jayanth Muth Raj, Adv.
                        Mrs. Malavika J., Adv.
                        For Mr. Sureshan P., Adv.

I.A.No. 19-20           Mr. Subhashish Bhowmick, Adv.
                        Mr. Kunal Malik, Adv.
                        Mr. A. K. Mishra, Adv.

For Respondent(s)       Dr. Rajeev Dhavan, Sr. Adv.
                        Mr. Prashant Bhushan, Adv.
                        Mr. N. Subramaniyan, Adv.
                        Mr. B. V. Chandan, Adv.
                        Mr. M. Y. K. Moorthy, Adv.
                        Mr. Pranava Sachadeva, Adv.
                        For Mrs. T. Anamika, Adv.

                        Mr. G. Ananda Selvam, Adv.
                        Mr. Ram Sankar, Adv.


              UPON hearing counsel the Court made the following
                         O R D E R

In pursuance of notice issued on 19.11.2014  to  the  Union  Public  Service
Commission  (in  short,  "UPSC"),  Ms.  Binu  Tamta,  learned  counsel,  has
appeared for the UPSC.
Heard the learned counsel appearing for all the parties at length.
Upon hearing the learned counsel for the parties, we find  that  in  all  91
candidates' answer sheets were in dispute.  Out of the said  91  candidates,
whose answer sheets were questioned,  it has been submitted at the Bar  that
15 candidates have  already  resigned,  while  3  candidates  did  not  join
service and  eight candidates have been  declared  successful  by  the  High
Court.  Thus, in all, the dispute is with regard to 65 answer sheets.
It is directed that the said answer sheets shall be  forwarded by the  Tamil
Nadu Public Service Commission (in short,  "TNPSC")  to  the  UPSC  for  the
following purpose :-
The UPSC shall forward the said answer sheets to an expert,  who  shall  not
re-examine those answer sheets but  shall  examine  whether  the  candidates
answering the questions had given any indication in  the  answer  sheets  to
reveal their identity.  The expert shall also note the fact  that  the  High
Court had examined the answer  sheets  and  had  cleared  8  answer  sheets,
wherein the candidates had not given any indication  with  regard  to  their
identity.  The expert shall forward his report to  the  UPSC  and  the  said
report shall be forwarded by the UPSC along with its comments  in  a  sealed
cover to this Court.
The expert shall look into the said 8  answer  sheets  for  the  purpose  of
ascertaining the basis upon which, the said eight answer sheets  were  found
flawless and follow the same criteria.
The TNPSC shall forward the 8 answer sheets which have been cleared  by  the
High Court of Madras to the UPSC.  Thus, two sets of answer sheets,  namely,
65 & 8 shall be put in two separate sealed covers and be  forwarded  to  the
UPSC along with all the instructions which had been given to the  candidates
who had undertaken the examination within two weeks from today.
The UPSC shall complete the aforesaid exercise within two  months  from  the
date of receipt of the aforesaid material by it.
List on 06.05.2015 at 02.00 PM.
Interim order, granted on 27.08.2014, shall continue.

|(Jayant Kumar Arora)                 | |(Sneh Bala Mehra)                 |
|Sr. P.A.                             | |Assistant Registrar               |

whether the suit filed by the father of the appellants in respect of property owned by appellants Nos.1 and 2 could be held to be not maintainable even when the appellants were added as plaintiffs as heirs of their father who died during pendency of the suit and whether description of the appellants who are owners as heirs instead of owners in their own right will be a case of mere "error, defect or irregularity" not affecting the merits or jurisdiction of the Court which did not affect the maintainability of the suit. =Thus on admitted facts, only defect pointed out is of formal nature in description without, in any manner, affecting the merits or the jurisdiction of the Court. Such irregularity could have been corrected by the Court under Order 1 Rule 10 and can be corrected even at this stage unless the defendant is in any manner prejudiced. No principle or authority has been brought to our notice which could affect the maintainability of the suit merely on account of wrong description which did not in any manner cause prejudice to the defendant, particularly when no such objection is shown to have been raised before the trial Court. 2015 S.C. MSKLAWREPORTS

 

whether  the  suit  filed  by  the
father of the appellants in respect of property owned  by  appellants  Nos.1
and 2 could be held to be not maintainable even  when  the  appellants  were
added as plaintiffs as heirs of their father who  died  during  pendency  of
the suit and 
whether description of the appellants who are owners  as  heirs
instead of owners in their own right  will be a case of mere "error, defect or irregularity" not affecting the merits or jurisdiction of the Court which did not affect the maintainability
of the suit. =
Thus on  admitted
facts, only defect pointed out is of formal nature in  description  without,
in any manner, affecting the merits or the jurisdiction of the Court.   Such
irregularity could have been corrected by the Court under Order  1  Rule  10
and can be corrected even at this stage  unless  the  defendant  is  in  any
manner prejudiced.  No principle  or  authority  has  been  brought  to  our
notice which could affect the maintainability of the suit merely on  account
of wrong description which did not in any  manner  cause  prejudice  to  the
defendant, particularly when no such objection is shown to have been  raised
before the trial Court. 2015 S.C. MSKLAWREPORTS

Rajkumar is the owner. Rajkumar bequeathed property to the sons of his brother by name Shiva Kumar Dubey. after the death of Rajkumar , his brother filed suit for eviction against the tenant. Pending suit plaintiff died.
His sons and widow were brought on record as legal heirs of plaintiff. 
The sons of plaintiff having a WILL in their favour not added as owners of the property nor they have filed suit for eviction.
The very eviction suit was filed by plaintiff -  as legal heir of his brother Rajkumar.
The decree passed infavour of the plaintiff as legal heirs but not as owners - is a mere error or curable ?

Thus, we direct the appellant-Corporation to re-allot the plot originally allotted to the respondent, i.e. Plot No.57, Pocket-I, Sector-2, Bawana Industrial Area, Delhi, and if the same is not available, an alternative plot, in the same Bawana Industrial Area or any other proximate area be allotted to him within a period of four weeks from the date of receipt of the copy of this order. The discretionary power exercised by the learned single Judge of the High Court which is confirmed by the Division Bench of the High Court need not be interfered with by this Court as no case is made out. The appeal is dismissed. CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 1087 OF 2015 (ARISING OUT OF SLP (C) NO. 22784 OF 2014) DELHI STATE INDUS. DEV. CORPN. LTD. .........APPELLANT Vs. ASHOK KUMAR MADAN ......RESPONDENT

                               NON REPORTABLE


                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION
                        CIVIL APPEAL NO. 1087 OF 2015
                 (ARISING OUT OF SLP (C) NO. 22784 OF 2014)


DELHI STATE INDUS. DEV. CORPN. LTD.  .........APPELLANT

                                     Vs.

ASHOK KUMAR MADAN                    ......RESPONDENT


                                  O R D E R




V.GOPALA GOWDA, J.

     Leave granted.

This appeal has been filed against the impugned  judgment  and  final  order
dated 24.07.2013 passed by the High Court of Delhi at New  Delhi  in  L.P.A.
No.3


of 2013, whereby the High Court has disallowed the action of the  appellant-
Corporation in cancellation of  the  plot  allotted  under  the  "Relocation
Scheme" on account of non-payment of the  initial  50%  amount  towards  the
cost of the plot in terms of order dated 24.1.2001 passed by this  Court  in
M.C.Mehta Vs. Union of India[1] and subsequently  dismissed  the  L.P.A.  of
the appellant-Corporation.





      The brief facts of the case are stated hereunder:-





The appellant-Corporation is the agency implementing the direction  of  this
Court in the case of M.C.Mehta (supra), for  the  relocation  of  industries
that are carrying on business  in  non  conforming  areas  or  are  misusing
residential   properties.   The    respondent,    who    was    running    a
commercial/industrial establishment  in  a  residential  premises,  made  an
application  dated  23.12.1996  for  the  allotment  of  a  plot  under  the
"Relocation Scheme" and also furnished a sum of Rs.60,000/- along  with  the
application. The respondent was required to make a further  deposit  of  30%
of the tentative cost of the plot, which amounts to Rs.75,000/-, apart  from
the earnest money paid along with the application, which was duly  deposited
by him on 09.05.2000. The application of the respondent was accepted and  he
was allotted a plot  measuring  150  sq.  meters  bearing  no.57,  Pocket-I,
Sector-2, Bawana Industrial Area, Delhi, in accordance  with  the  allotment
letter issued on 23.10.2000. The  appellant-Corporation  also  informed  the
respondent that the cost of the plot stood revised from  Rs.3000/-  per  sq.
meter to Rs.4,200/- per square meter and the respondent  was  also  required
to  deposit  50%  of  the  revised  estimated  cost,   which   amounted   to
Rs.3,15,000/- within a period of 3 months from 23.10.2000.  Pursuant  to  an
order dated 24.01.2001 passed by this Court  in  M.C.Mehta's  case  (supra),
the date for depositing the requisite amount was  subsequently  extended  to
31.03.2001. The respondent failed to deposit the  said  amount  despite  the
extension of the period given by this Court.  The  respondent  deposited  an
amount of Rs.1,80,000/- to complete the payment of 50% of the  cost  of  the
plot on 27.11.2001, instead of the stipulated date i.e. 31.03.2001,  without
any demand  and  permission  from  the  appellant-Corporation.  The  payment
challan states that any late payment or payment  without  demand  would  not
create any right upon the property.  on  27.07.2004,  an  aggregate  sum  of
Rs.4,27,117/-, was deposited by the  respondent  on  a  demand  made  by  an
officer of the appellant-Corporation, to complete  the  balance  payment  of
50% of the cost of the plot as well as the  interest  for  delay  in  making
payment. Further, on 14.11.2006, the  respondent  received  a  communication
from the appellant-Corporation, demanding certain  documents  to  facilitate
the handing over the possession of the plot to the respondent. However,  the
allotment in favour of the respondent was cancelled on  30.01.2008  and  the
amount  was  refunded  with  interest  on  07.05.2010.  Aggrieved   by   the
cancellation order, the respondent  filed  Writ  Petition  No.8478  of  2010
before the learned single Judge of the High Court, who disposed of the  same
in favour of the respondent vide order dated 03.07.2012,  stating  that  the
appellant-Corporation  had  not  corrected  the  mistake  committed  by  its
officer and had remained silent for four years  after  the  receipt  of  the
value of the plot. It has further held that  the  aforesaid  action  of  the
appellant-Corporation shows that it had accepted the action of the  officer.
Further, the respondent had paid interest on the delayed payment, which  was
also accepted by the appellant-Corporation, and therefore  the  doctrine  of
equity is in his favour. Further, no action was taken against the  concerned
officer of the appellant-Corporation by it. Thus,  in  the  absence  of  any
reasonable explanation as to why the appellant-Corporation  chose  to  enjoy
the money of the respondent for a period of 4 years without any recourse  to
him and without taking any action for the cancellation of the  allotment  of
the plot, can safely lead to the conclusion that  the  appellant-Corporation
chose to accept the action of its Section Officer, Mr.R.K.Bhatia. Thus,  the
learned  single  Judge  disposed  of  the  writ  petition  and  quashed  the
cancellation letter dated 30.01.2008, wherein the appellant-Corporation  has
cancelled the plot allotted to the respondent  and  further  the  appellant-
Corporation was  directed  to  make  available  an  alternate  plot  to  the
respondent in case the original plot allotted  to  the  respondent  was  not
available, within a period of four weeks from the date of the order.





The Division Bench of the High  Court  also  dismissed  the  appeal  of  the
appellant-Corporation on the similar reasons assigned by the learned  single
Judge.  Hence, this appeal is filed by the appellant-Corporation seeking  to
set aside the impugned judgment and order of the High Court.




It is the contention of Mrs. S. Janani, the learned  counsel  on  behalf  of
the appellant-Corporation that the High Court has erred in  not  considering
the fact that the respondent has failed to make the payment in terms of  the
allotment letter and also in accordance with the directions issued  by  this
Court, whereby the period stipulated for making payment with regard  to  the
allotment of land was extended. The High Court has failed to  see  that  the
appellant-Corporation has followed the policy of cancellation  of  allotment
in cases where the initial 50% of payment has not been deposited in time  by
the allottees uniformly and any favourable decision as directed by the  High
Court in favour of the respondent would open the flood gates  of  litigation
and in such circumstances the appellant-Corporation would be  put  to  great
hardship.

Further, the  paragraphs  3,  11  and  12  of  the  allotment  letter  dated
23.10.2000, clearly state that in case the payment towards the cost  of  the
plot is not made within the stipulated time, by the  allottees,  in  respect
of the plot already allotted in favour of the respondent  is  likely  to  be
cancelled without any further notice in this regard.  The  Delhi  Government
has reserved its right to withdraw/reject the offer  of  allotment  made  in
favour of the respondent in case of  any  discrepancy  noticed  subsequently
after following due process of law.





     Further, it has been contended by the learned counsel that  it  is  the
sole discretion of the  Delhi  Government  to  allot  and  cancel  the  plot
allotted in favour of any allottee, if  the  conditions  stipulated  therein
are not complied with  by  the  allottee,  without  informing  him  in  this
regard.





It has been further contended by the  learned  counsel  that  the  delay  in
refunding the amount to the respondent amounts to a  conscious  decision  on
the part of the appellant-Corporation to accept the belated payment  of  the
first instalment made by the respondent towards the allotment of  the  land.
However, the delay  in  refunding  the  amount  to  the  respondent  by  the
appellant-Corporation cannot be inferred as an acceptance of the same by  it
towards the  allotment  of  the  plot  in  favour  of  the  respondent.  The
respondent had not deposited the shortfall amount of 50% of  the  cost  with
its authorization within the stipulated time and  therefore,  it  cannot  be
contended that the respondent was misled by the conduct  of  the  appellant-
Corporation to think that the cut-off date fixed  by  this  Court  has  been
relaxed by it.





On the other hand, it is the contention of Mr.  Akhilesh  Kumar  Gupta,  the
learned counsel on behalf of the respondent that  the  appellant-Corporation
has accepted the full payment amount with interest towards the cost  of  the
plot, which was deposited by the  respondent  after  sanction  and  approval
from  one  Mr.R.K.Bhatia,  Section  Officer  of  the  appellant-Corporation.
However, the appellant-Corporation has refused to withdraw the  cancellation
order inspite of several representations made by the respondent.





It has been further contended by him that no communication was  received  by
the respondent from the appellant-Corporation that there was any default  in
the payment towards the allotment of  the  plot,  when  the  respondent  had
deposited the additional amount  of  Rs.1,80,000/-  on  27.11.2001,  thereby
completing the deposit of the requisite amount of 50% payment of  the  total
cost of the plot that was made  available  to  the  respondent  through  the
allotment scheme by the Delhi Government.





  It  has  been  further  contended  that  the  respondent   had   deposited
Rs.7,42,117/- on 27.07.2004, which is the total cost of  the  plot  together
with the up to date interest in  response  to  the  newspaper  advertisement
published  by  the  appellant-Corporation,  asking  the  allotees   of   the
Relocation Scheme, who had not made full payment for the plots  allotted  to
them, to make full  payment  along  with  interest  in  the  office  of  the
appellant-Corporation   within   the   time   stipulated   in   the    above
advertisement. Further, the respondent received the communication  from  the
appellant-Corporation, demanding certain documents to facilitate it to  hand
over the plot to the respondent, which were duly furnished by him.  However,
the handing over of the possession of the allotted plot was not made to  him
but on the other hand, the allotment  of  the  plot  to  him  was  cancelled
giving the reason that there was default in the payment of  the  instalments
on the part of the respondent, which is factually incorrect.





 Further, it has been contended that the  contract  between  the  appellant-
Corporation  and  the  respondent  is  still  subsisting  and  there  is  no
substantial question of law in this appeal to interfere with  the  judgments
and orders of both the learned single Judge and the Division  Bench  of  the
High Court as they are legal  and  valid.  It  is  further  urged  that  the
appellant-Corporation has committed fraud on the  respondent  and  therefore
the appeal of the appellant-Corporation  is  not  maintainable  before  this
Court. The allotment of the plot in favour of the respondent  was  cancelled
by the  appellant-Corporation  in  utter  violation  of  the  principles  of
natural justice.





On the basis of the facts pleaded, the evidence  on  record  and  the  rival
legal contentions urged on  behalf  of  the  parties,  we  have  to  examine
whether the appellant-Corporation is entitled to the relief  as  prayed  for
in this appeal. The answer for the same is given in the negative.





 It is contended by the learned counsel for the  appellant-Corporation  that
the respondent had made a default in the payment of the initial 50%  of  the
cost of the plot amounting to Rs.3,15,000/- despite the  extension  of  time
given by this Court in the M.C.Mehta case (supra), i.e. upto 31.03.2001  and
instead, he made the payment directly to the bank without the  authorization
of the appellant-Corporation and therefore, the said  deposit  made  towards
the cost of the allotment of the plot is not  valid  and  therefore  it  has
cancelled the allotment of the plot in favour of the respondent. The  action
of cancellation of the plot by the  appellant-Corporation  for  the  reasons
ascribed above cannot be accepted by us in view of the  peculiar  facts  and
circumstances of the present case, wherein, on  27.07.2004,  an  endorsement
was made by the officer of the appellant-Corporation, Mr.R.K.Bhatia,  asking
the Bank of Baroda to accept the balance payment payable by the  respondent,
thus leading the respondent to a bona fide belief that the  belated  payment
along with the interest that was deposited by the respondent has  been  duly
accepted by the appellant-Corporation.





 Further, on a careful examination  of  the  cancellation  letter  that  was
addressed to the respondent, cancelling the allotment of the  plot  allotted
to him, the appellant-Corporation had not  given  any  other  reason  except
admitting the bona fide mistake on the part of its officer in accepting  the
belated payment made by the respondent towards the  allotment  of  the  plot
and the delay on the part of the respondent in  making  the  payment  within
the stipulated time period. Thus, the explanation given  by  the  appellant-
Corporation has failed to satisfy the courts below as well as this Court  as
the  appellant-Corporation  had  continued  to  retain  the   total   amount
deposited by the respondent for  more  than  half  a  decade,  without  even
making an attempt to return  the  same  with  interest  to  the  respondent.
Further,  the  respondent  had   promptly   responded   to   the   newspaper
advertisement dated  27.04.2004,  published  by  the  appellant-Corporation,
asking the allottees of the plots  to  make  full  payment  along  with  the
interest in the office of the appellant-Corporation.





 Further, as has been rightly held by the Division Bench of the High  Court,
that the letter dated  14.11.2006  sent  by  the  appellant-Corporation  for
furnishing of  certain  documents  by  the  respondent,  to  facilitate  the
appellant-Corporation to hand over the possession of the plot to him,  would
also indicate  that  the  appellant-Corporation  had  condoned  the  delayed
payment of the cost of the plot on the part of the respondent  and  further,
there is no allegation  made  in  the  present  appeal  that  the  concerned
officer of the appellant-Corporation had colluded  with  the  respondent  or
acted in mala fide manner with a view to  favour  him  by  allowing  him  to
deposit the cost of the plot belatedly. In fact, the deposit of  the  amount
was made by the respondent pursuant to the opportunity given to him  by  the
extended time for depositing  the  amount  as  published  in  the  newspaper
advertisement.





 Thus, the fact that  the  respondent  had  paid  interest  on  the  delayed
payment to the account of the appellant-Corporation, which was  accepted  by
it and it did not take any action either against  its  officer  or  for  the
return of money to the respondent between the  period  2004-2008,  certainly
created equity in favour of the  respondent,  as  observed  by  the  learned
Single Judge and the  judgment  and  order  was  rightly  confirmed  by  the
Division Bench of the High Court.





The appellant-Corporation has failed to satisfy this Court with  cogent  and
reasonable explanation as to why the money paid by the  respondent  for  the
allotment of the plot was not returned to him by  the  appellant-Corporation
which has led him to believe that his delayed payment towards  the  cost  of
the allotted plot had been accepted by the appellant-Corporation.  Thus,  in
our considered view, there is no merit in the  above  contentions  urged  by
the  learned  counsel  on  behalf  of  the  appellant-Corporation  and   the
respondent has been wrongfully denied the benefit of allotment of the  plot.
Therefore, the quashing of the cancellation of  the  allotted  plot  by  the
High Court is legal and valid, the same does  not  warrant  interference  by
this Court.





Thus, we direct the appellant-Corporation to re-allot  the  plot  originally
allotted to the respondent, i.e.  Plot  No.57,  Pocket-I,  Sector-2,  Bawana
Industrial Area, Delhi, and if the same is  not  available,  an  alternative
plot, in the same Bawana Industrial Area or  any  other  proximate  area  be
allotted to him within a period of four weeks from the date  of  receipt  of
the copy of this order. The discretionary power  exercised  by  the  learned
single Judge of the High Court which is confirmed by the Division  Bench  of
the High Court need not be interfered with by this Court as no case is  made
out. The appeal is dismissed.



     .....................................................................J.
                                        [V. GOPALA GOWDA]



   .....................................................................J.
                              [N.V. RAMANA]


New Delhi,
January 21, 2015
-----------------------
[1]
       (2001) 1 SCALE 420


it is not open for the State Government to issue the impugned notification proposing to modify the Development Plan from deleting for the purpose of Railways and adding to the Development Plan for the formation of Development Plan Road after lapse of 10 years and expiry of 6 months notice served upon the State Government. CIVIL APPEAL NO. 1086 OF 2015 (ARISING OUT OF SLP(C)NO.19426 OF 2012) GODREJ & BOYCE MANUFACTURING.CO.LTD. .........APPELLANT Vs. STATE OF MAHARASHTRA & ORS. ......RESPONDENTS

REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION
                       CIVIL APPEAL NO. 1086  OF 2015
                   (ARISING OUT OF SLP(C)NO.19426 OF 2012)

   GODREJ & BOYCE MANUFACTURING.CO.LTD.    .........APPELLANT

                                     Vs.

STATE OF MAHARASHTRA & ORS.             ......RESPONDENTS



                               J U D G M E N T


V.GOPALA GOWDA, J.

Leave granted.
The appellant whose land bearing CTS Nos. 31(pt), 7 (pt), 70 to  78,  80(pt)
and  81,  measuring  2188  sq.  mtrs.  at  Vikhroli  were  reserved  in  the
Development Plan in the  year  1991  for  acquisition  by  the  Ministry  of
Railways for laying additional railway tracks  between  "Thane  and  Kurla",
has questioned the correctness of the notification   dated  5.8.2008  issued
by  the  Urban  Development  Department  of  the  respondent   No.   1-State
Government under Section 37(1) of the  Maharashtra  Regional  Town  Planning
Act  (for  short  "the  MRTP  Act")  proposing  the  modification   in   the
Development Plan deleting the reservation of land in question  from  Railway
reservation and adding reservation for Development  Plan  Road,  before  the
High  Court  of  Bombay  questioning  the  power  of  the  State  Government
regarding the proposed  modification  in  the  Development  Plan  after  the
period of 10 years specified under Section 127 of the MRTP Act, was  expired
and the State Government has failed to take steps  for  acquisition  of  the
land involved in these  proceedings  reserved  for  the  purpose  of  laying
additional  railway  tracks  between  "Thane  and  Kurla",  which  was   not
interfered with by the High Court by recording its reasons in  the  impugned
order dated 12.12.2011, passed in the Writ Petition No.  2274  of  2011,  is
under challenge in these proceedings, urging various legal contentions.
The brief facts of the case are as under:-
In the year 1991, appellant's land  in  question  were  reserved  under  the
Sanctioned Development Plan of Greater Mumbai for acquisition of  respondent
No.2 herein  -  Union  of  India,  Ministry  of  Railways  for  laying  down
additional Railway tracks between "Thane and Kurla".
 No steps were taken by the concerned  authorities  despite  passing  of  10
years period as contemplated under Section 127 of the MRTP  Act  to  acquire
the reserved land of the appellant. The appellant has  issued  the  purchase
notice under the said  Section  on  04.09.2002  to  the  respondent  No.2  -
Ministry of Railways stating that if, the Ministry of Railways  is  in  need
of the land in question, the same may be acquired by them, and if  the  same
is not required, a clarification to that effect may be issued.
After issuance of the said notice, the period  of  6  months  as  prescribed
under Section 127 of the MRTP  Act,  was  expired  on  3.3.2003,  thus,  the
reservation of the land in question was deemed to be released.
Having got no reply from respondent No.  2,  the  appellant  again  wrote  a
letter dated 2.10.2004 to respondent No.1 for de-reservation of the land  if
the same is not required by them.
On 1.11.2004, the respondent No. 2  -  Ministry  of  Railways  informed  the
Urban Development Department  of  State  that  there  was  no  proposal  for
acquisition of reserved land for railway development works in  the  Railways
in the near future.
The appellant, on 5.1.2005, wrote to the  Urban  Development  Department  of
the State Government requesting for suitable steps in view of  clarification
letter dated 1.11.2004 issued by respondent  No.  2  and  requested  it  for
expediting the process of deleting the reservation of the land in question.
The Urban Development Department of the  State  Government  has  issued  the
notification on 24.5.2006 under Section 37(1) of  the  MRTP  Act,  proposing
the modification to the Development Plan by deleting  "Railway  reservation"
and adding "Reservation for DP Road". The land which  was  reserved  earlier
in the Development Plan for railway line, the  period  of  10  years  and  6
months after issuing notice was lapsed, now  proposed  to  be  reserved  for
Development Plan Road. The same was followed by another notification  issued
by the State Government under Section 37(1) of the MRTP Act  dated  5.8.2008
for modification of the land  deleting  from  the  Railway  reservation  and
reserving the same for Development Plan Road.
Being aggrieved by  the  said  notification  dated  5.8.2008  proposing  the
modification of reservation of the land in question from  the  Railway  line
to Development Plan Road, the appellant approached the High Court by  filing
Writ Petition No. 2274 of 2011  challenging  the  correctness  of  the  said
notification by placing strong reliance upon Section 127 of  the  MRTP  Act,
contending  that  the  proposed  modification  by  the   Urban   Development
Department is impermissible in law as the State Government has no  power  to
do so.
The High Court vide its order dated 12.12.2011 dismissed the  writ  petition
by holding that  the  action  of  the  State  Government  is  only  proposed
modification and therefore, the writ petition cannot be entertained at  this
stage. However, the High Court has given liberty to the appellant  to  raise
objections before the Urban Development Department of the  State  Government
regarding the proposed modification. Further, it is  observed  by  the  High
Court in the impugned order that the impugned  notification  was  issued  in
the month of August, 2008, whereas the appellant has filed the  petition  in
the month of August, 2009. In the absence of explanation  by  the  appellant
for filing a  petition  about  one  year  after  the  issuance  of  impugned
notification, therefore,  the  writ  petition  was  also  rejected  on  this
ground. Hence, the civil appeal is filed by  the  appellant  urging  various
grounds.
 Mr. Shyam Divan, the learned senior counsel  appearing  on  behalf  of  the
appellant placed strong reliance upon the provision of Section  127  of  the
MRTP Act, in support of his legal contention that the land of the  appellant
involved in this case was reserved for the Development  Plan  by  the  State
Government  for  acquisition  by  the  Ministry  of  Railways   for   laying
additional Railway tracks between "Thane and  Kurla",  which  period  of  10
years was expired long back  and  therefore,  the  proposed  action  to  de-
reserve and modify the same for the abovesaid purpose is not permissible  in
law.
It was further contended by the learned senior counsel that in view  of  the
law laid down in Prakash R. Gupta v. Lonavala Municipal Council and  Ors.[1]
the land should have  been  acquired  within  10  years  from  the  date  of
sanctioned development plan. No proceeding for acquisition of  the  reserved
land was commenced by the State Government  and  Railway  department  within
the said period under Section 127 of the MRTP  Act.  The  land  involved  in
these proceedings  having  not  been  acquired  by  the  respondents  within
stipulated time of 10 years, the reservation of the land for the purpose  of
railway under the provision of Section 127 of the MRTP Act has  lapsed  long
back and hence the same stands released from reservation in  favour  of  the
appellant.
The learned senior counsel also contended that the High  Court  should  have
seen that once the right of the appellant under  Section  127  of  the  MRTP
Act, is accrued in favour of the appellant, any  proposed   modification  of
the plan in exercise of power by the State Government under  Section  37  of
the MRTP Act, should not be allowed  to render the right  of  the  appellant
under Section 127 of the MRTP Act as otiose.
 On the contrary, Mr. R.P. Bhatt, the learned senior counsel  on  behalf  of
the respondents sought to justify the impugned notification contending  that
the Stat Government is empowered to modify the Development Plan by  deleting
the earlier purpose for which the land was reserved,  and  can  be  modified
for Development Plan  Road.  The  said  action  is  only  proposed  one  and
therefore, the appellant cannot have any grievance at  this  stage  and  can
raise objections to the impugned notification before the  State  Government,
the same will be examined it and take appropriate decision  in  the  matter.
Therefore, he submits that the impugned order  is  not  vitiated  either  on
account of erroneous reasoning or error in law and  the  same  need  not  be
interfered with by this Court in exercise of its appellate  jurisdiction  in
this appeal.
 Having heard the learned senior counsel on behalf of both the  parties  and
with reference to the abovesaid rival  factual  and  legal  contentions,  we
have carefully examined the  same  keeping  in  view  the  undisputed  facts
involved in this case. It is an undisputed fact that the  respondent  No.  1
has reserved the land  in  question  for  the  Development  Plan  under  the
provisions of Section 127 of the MRTP Act for the acquisition  of  the  land
in favour of Ministry  of  Railways  for  laying  additional  railway  track
between "Thane and Kurla". It would be apposite to extract  Section  127  of
the MRTP Act for better appreciation of the  claim  of  the  parties,  which
deals with lapsing of reservation:-
"127. Lapsing of reservations-If any land reserved, allotted  or  designated
for any purpose specified in any plan under this  Act  is  not  acquired  by
agreement within ten years from the date on which a final Regional plan,  or
final  Development  plan  comes  into  force  or  if  proceedings  for   the
acquisition of such land under this Act or under the Land  Acquisition  Act,
1894, are not  commenced  within  such  period,  the  owner  or  any  person
interested  in  the  land  may  serve  notice  on  the  Planning  Authority,
Development Authority or as the case may be, Appropriate Authority  to  that
effect; and if within six months from  the  date  of  the  service  of  such
notice, the land is not acquired or no steps as aforesaid are commenced  for
its acquisition, the reservation, allotment or designation shall  be  deemed
to have lapsed, and thereupon the land shall be deemed to be  released  from
such reservation, allotment or designation and  shall  become  available  to
the owner for the purpose of development as otherwise,  permissible  in  the
case of adjacent land under the relevant plan."


 It is also an undisputed fact that after 10 years,  notice  dated  4.9.2002
served by the  appellant  under  Section  127  of  the  MRTP  Act  upon  the
respondent No.1 stating that if,  the  reserved  land  was  needed  for  the
notified purpose, Railway  department  may  acquire  the  same  by  adopting
acquisition proceedings, but if the same is not acquired, the  clarification
to that effect be issued. Thereafter, on 3.3.2003 the period of 6 months  as
prescribed under the provision  of  Section  127  of  the  MRTP  Act,  after
issuance of the above notice by the appellant and served on  the  respondent
No.1, was also lapsed long back. Therefore, the reservation of the  land  in
favour of the Railway was  deemed  to  be  released  under  the  above  said
provision of the  MRTP  Act.  The  respondent  No.  2-Ministry  of  Railways
informed the  Urban  Development  Department  of  the  State  Government  on
1.11.2004 stating that there was no proposal for acquisition of the land  in
the Railways in the near future, is evident from the undisputed fact of  the
correspondence  made  between  the  Ministry  of  Railways  and  the   Urban
Development Department of the State Government, which would  clearly  go  to
show that the land reserved even after 10 years and on expiry of service  of
notice of 6 months  there  was  no  intention  on  the  part  of  the  State
Government to acquire the reserved land for the purpose reserved  in  favour
of the Railways department to form the Railway  tracks  between  "Thane  and
Kurla". In that view of the matter, the land reserved for the purpose  under
Section 127 of the MRTP Act, is lapsed and the  appellant  is  entitled  for
developing the land as it likes. The State Government instead of  clarifying
to the notice issued by the appellant, has  proceeded  further  to  initiate
proceedings under Section 37 of the MRTP Act, proposing the modification  in
the Development Plan by deleting Railway reservation and adding  reservation
for Development Plan Road. Section 37(1) of the MRTP Act, which  deals  with
modification of Final Development Plan reads thus:-
"37.Modification of final Development Plan - (1)  Where  a  modification  of
any part of or any proposal made in, a final Development Plan is of  such  a
nature that it will not change the character of such Development  Plan,  the
Planning Authority may, or when so directed by the State  Government  shall,
within sixty days from the date of such direction, publish a notice  in  the
Official Gazette and in such  other  manner  as  may  be  determined  by  it
inviting objections and suggestions from any  person  with  respect  to  the
proposed modification not later  than  one  month  from  the  date  of  such
notice;  and shall  also  serve  notice  on  all  persons  affected  by  the
proposed modification and after  giving  a  hearing  to  any  such  persons,
submit the proposed modification (with amendments, if  any),  to  the  State
Government for sanction.
1A) If the Planning Authority fails to issue the notice as directed  by  the
State  Government,  the  State  Government,  shall  issue  the  notice   and
thereupon, the provisions of sub-section (1) shall apply as  they  apply  in
relation to a notice to be published by a Planning Authority."


By a careful reading of the provisions of Sections  127  and  37(1)  of  the
MRTP Act, which are extracted as above abundantly make  it  clear  that  the
State Government is not empowered to delete  the  reservation  of  the  land
involved in  this  case  from  Railway  use  and  to  modify  the  same  for
Development Plan Road in the Development Plan after expiry of 10  years  and
6 months notice period was over as the appellant has acquired  the  valuable
statutory right upon the land and  the  reservation  of  the  same  for  the
proposed formation of Railway  track  was  lapsed  long  back.  Further  the
respondent No. 2 vide its letter dated 1.11.2004 has stated  that  there  is
no proposal for acquisition  of  land  for  the  purpose  of  which  it  was
reserved.

      Section 127 of the MRTP Act, which fell for consideration  before  the
three Judge Bench  of  this  Court  in  the  case  of  Shrirampur  Municipal
Council, Shrirampur v. Satyabhamabai Bhimaji Dawkher & Ors.[2]  wherein  the
contention of the appellant that the   majority  judgment  in  the  case  of
Girnar Traders (2) v. State of Maharashtra[3]   need  to  be  considered  by
larger Bench as the same is contrary to Section 127 and Municipal Corpn.  Of
Greater Bombay v. Hakimwadi  Tenants'  Asson.[4]  case,  was  rejected.  The
Court opined that the same is not contrary to Section 127 of  the  MRTP  Act
and further held that there is no conflict between the judgments of the two-
Judge Bench in Hakimwadi Tenants' Asson. (supra) and the  majority  judgment
in Girnar  Traders  (2)  (supra)  case.   Further,  the  three  Judge  Bench
judgment in Shrirampur Municipal Council, Shrirampur  (supra)  at  paras  45
and 46  supported  the observation of Constitution Bench in  Girnar  Traders
(3) v. State of Maharashtra[5] case relating to  Section  127  of  the  MRTP
Act, which read thus:-

"45. In our view, the observations contained in para 133 of  Girnar  Traders
(3) unequivocally support the majority judgment in Girnar Traders (2).

46. As a sequel to the above discussion, we hold that the majority  judgment
in  Girnar  Traders  (2)  lays  down  correct  law  and  does  not   require
reconsideration by a larger Bench..."


From the above, it is clear that the majority view  in  Girnar  Traders  (2)
(supra) is held to be good law. Therefore, the case of  Girnar  Traders  (2)
(supra) is binding precedent under Article 141 of the Constitution of  India
upon the respondent No.1. The relevant paragraph  133  from  Girnar  Traders
(3)  is extracted hereunder :-

"133. However, in terms of  Section  127  of  the  MRTP  Act,  if  any  land
reserved, allotted or designated for any purpose specified is  not  acquired
by agreement within 10 years from the date on which final regional  plan  or
final development plan comes into force  or  if  a  declaration  under  sub-
section (2) or (4) of Section 126 of the MRTP Act is not  published  in  the
Official Gazette within such period, the owner or any person  interested  in
the land may serve notice upon such authority to that effect and  if  within
12 months from the date of service of such notice, the land is not  acquired
or  no  steps,  as  aforesaid,  are  commenced  for  its  acquisition,   the
reservation, allotment or designation shall be deemed  to  have  lapsed  and
the  land  would  become  available  to  the  owner  for  the  purposes   of
development. The defaults, their consequences and  even  exceptions  thereto
have been specifically stated in the State Act. For a period  of  11  years,
the land would remain under reservation or designation, as the case may  be,
in terms of Section 127 of the MRTP Act (10 years + notice period)."



In view of the above said statement of law declared by  this  Court  in  the
cases referred to supra, after adverting to the judgment  of  majority  view
in Girnar Traders (2) case  (supra)  is  accepted  in  Shrirampur  Municipal
Council, Shrirampur (supra), wherein it is held  that  the   Girnar  Traders
(2)(supra) case is not conflicting with the Hakimwadi Tenants'  Asson.  case
(supra), the statement of law laid down in  the  above  referred  cases  are
aptly applicable to the fact situation. Therefore, we have to hold that  the
impugned notification is bad in law and liable to quashed.  The  High  Court
has not examined the impugned notification from the view  point  of  Section
127 of the MRTP Act and interpretation  of the above said provision made  in
the case of Girnar Traders (2) (supra), therefore,  giving  liberty  to  the
appellant by the High Court to file objections to the proposed  notification
is futile exercise  on the part of the appellant for  the  reason  that  the
State Government, once the purpose  the  land  was  reserved  has  not  been
utilized for that purpose and a valid statutory right  is  acquired  by  the
land owner/interested person after expiry of  10  years  from  the  date  of
reservation made in the Development Plan and 6 months notice period is  also
expired, the State Government has not commenced the proceedings  to  acquire
the land by following the procedure as provided under Sections 4  and  6  of
the repealed Land Acquisition Act,  1894.  Therefore,  the  land  which  was
reserved for the above purpose is lapsed and it enures  to  the  benefit  of
the appellant herein. Therefore, it is not open for the State Government  to
issue the impugned notification proposing to  modify  the  Development  Plan
from deleting for the purpose of Railways  and  adding  to  the  Development
Plan for the formation of Development Plan Road after lapse of 10 years  and
expiry of 6 months notice served upon the State Government.

In view of above, the order  passed  by  the  High  Court  as  well  as  the
impugned notification issued by the State Government  are  vitiated  in  law
and liable to be set aside and quashed and we order accordingly.

 The appeal is allowed. The impugned order is  set  aside  and  consequently
Rule issued. The impugned notification dated 5.8.2008  is  also  quashed  as
the period of 10 years from the date of reservation in the Development  Plan
and 6 months notice served by the appellant on the respondent No. 1 is  also
over, the reservation of the land is lapsed. No costs.


  .....................................................................J.

  [V. GOPALA GOWDA]



    ..................................................................J.
  [R. BANUMATHI]


New Delhi,
January 21,2015
-----------------------
[1]

        (2009) 1 SCC 514
[2]     (2013) 5 SCC 627
[3]    (2007) 7 SCC 555
[4]    (1988) Supp SCC 55
[5]    (2011) 3 SCC 1