uddar gagan judgment

8/16/2019 Uddar Gagan Judgment

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REPORTABLE

IN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 5072 OF 2016(ARISING OUT OF SLP (Civil) NO.5455 OF 204)

UDDAR GAGAN PROPERIES LTD. !APPELLANT

VERSUSSANT SINGH " ORS. ...RESPONDENTS

WITH

CIVIL APPEAL NOs. 5073-5077 OF 2016(ARISING OUT OF SLP (Civil) NOS.5#$0%5#$4 OF 204)

WITH

CIVIL APPEAL NOs. 5079-5085 OF 2016 (ARISING OUT OF SLP (Civil) NOS.5#4%5#4& OF 204)

WITH

CIVIL APPEAL NO. 5086 OF 2016 (ARISING OUT OF SLP (Civil) N.5#5# OF 204)

WITH

CIVIL APPEAL NO. 5100 OF 2016

(ARISING OUT OF SLP (Civil) NO.25'4$ OF 204)

WITH

CIVIL APPEAL NOs. 5087-5099 OF 2016 (ARISING OUT OF SLP (Civil) NO.$%4$ OF 204)


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J U D ! E N T

ANIL R. DAVE" J.

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[i] Whether the object behind the subject-acquisitionwas to achieve a bona-fde public purpose or to useit as a cloak or the private beneft o Builder-cum-Developer?

[ii] Whether the power o eminent domain has beene!ercised in violation o "rticles #$% and '((-" o the )onstitution?

[iii] Whether it is lawul to enter into "*reement to+ell or )ollaboration "*reement in respect o theland under acquisition and can an instrument o salebe e!ecuted in respect o such land?

[iv] Whether a writ court in e!ercise o its powersunder "rticle &&, o the )onstitution is competent to

annul a sale-transaction e!ecuted in violation o andon plain* a raud on the +tatute?

[v] Whether the orders *rantin* .icenses or releasin*the acquired land have been passed in avour o ## th

respondent in accordance with provisions o #/01+tate "ct?

[vi] Whether the petitioners have *ot locus standi tochallen*e the licences or the orders o release o the acquired land in avour o respondent 2o3 ##?

[vii] Whether writ petitions su4er rom inordinate

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6[,(]3 "wards 2o3 #% & and ' were admittedl passedon (,th "pril% &((1 i3e3 a da beore the e!pir o thestatutor period o two ears3 "s per the cate*oricstand taken b the .and "cquisition )ollector in thewritten statement initiall fled% he took over the possession o land and handed-over it to the 7state89cer% :;D"% overnment @iles pertainin* to the *rant o licence or release o land in avour o ##threspondent have been deceptivel captioned as i the entire initiative to seek the release o land is at the instance o the armerAowners o the acquiredland3 =hat ver record% however% alsifes this acade3

=he application dated st arch% &((1 [receipt 2o3&$,#] is on the letter-head o respondent 2o3 ##3 Ct issi*ned b one o its Directors3 @orm .)-C% however%earlier thumb impressions o previous owners alon*with the attested copies o ower o "ttorne and)ollaboration "*reements e!ecuted b them inavour o respondent 2o3 ##3 =he "pplication @ormsreer to deposits o demand drats o lacs o rupees3Who paid that requisite ee or statutor char*es?

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Was it b the armers whose land alread stoodacquired and who had not received even a sin*le penn o compensation? 8< was it deposited b respondent 2o3 ##? =he copies o Demand Dratsanswer this quer as ever penn was deposited b respondent 2o3 ## onl3 =he illiterate or semi-illiterate armers had no knowled*e e!cept that their land was under acquisition and there was aBuilder willin* to pa them a price which was muchmore than the >overnment compensation3

[,']3 Ct is quite unortunate and misleadin* that ever relevant >overnment fle recites% sa or e!ample% that 6+hri +urat +in*h and other individualshave submitted request on .)-C or settin* up o


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in enterin* into distress-sale a*reements with thedesperate owners who were sandwiched and had noother choice but to *ive in or a comparativel better o4er3

[0(]3 =o sa that the landowners entered into variedcontracts with


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documents on dotted-lines orcin* them to sell out most o their ancestral holdin*s3 =he en-mass"*reements conclusivel belie the plea o need-based bona-fde sales3 :ow the )ourts shoulddeal with the unconscionable contracts which areinjurious to public *ood and public interest% has been eloquentl answered b the+upreme )ourt in )entral Cnland Water =ransport )orporation .imited I "nr3 Js3 Brojo 2ath >an*ul I "nr3 [#/,] ' +))% #1, sain* that 6333333"rticle #$ o the )onstitution *uarantees to all persons equalit beore the law and the equal protection o laws33333333=his principle is that thecourts will not enorce and will% when called upon todo so% strike down an unair and unreasonablecontract% or an unair and unreasonable clause in acontract% entered into between parties who are not equal in bar*ainin* power333333@or instance% the above principle will appl where the inequalit o bar*ainin* power is the result o the *reat disparit in the economic stren*th o the contractin* parties333333333Ct will also appl where a man has nochoice or rather no meanin*ul choice% but to *ive hisassent to a contract or to si*n on the dotted line in a prescribed or standard orm or to accept a set o rules as part o the contract% however unair%unreasonable and unconscionable a clause in that contract or orm or rules ma be3333353

[0&]3 C there were *ood and justifable reasons%thou*h conspicuousl missin* rom the record% or not proceedin* with the subject-acquisition% the+tate >overnment as a *uardian o peoples ri*htscould shelve o4 its previous plan to develop +ector &0-& at


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licences were *ranted to respondent 2o3 ## under the directions o this )ourt3 =he o9cial respondentsin the written statements have repeatedl reerredto )W 2os3 #$$1# to #$$1' o &(#( which wereallowed b a learned +in*le Kud*e on (, th December%&(#( directin* the +tate and its authorities to e!tendthe beneft o +ection $ o the #/$ "ct to thelandowners and *rant them licences3 Ct is pertinent to mention that while )W 2o3 #$$1# o &(#( wasfled b Fs ;ddar >a*an roperties rivate .imited Arespondent 2o3 ## alon* with some land-ownersrepresented it% in the &nd case also the saidBuilder-cum-Developer was one o the writ petitioner and the other armers were also impleaded6=:: =:7C< 8W7< 8@ "==8


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to *rant .icence or an acquired land etc3 etc3 werenot disclosed beore the learned +in*le Kud*e3 8nl selective inormation convenient to the cause o respondent 2o3 ## was brou*ht on record3 =here is aserious doubt on the nature o contest *iven b theo9cial respondents who took it like a riendl match3 =he collusion between respondent 2o3 ##and the senior unctionaries is writ lar*e in the act that despite unambi*uous opinion *iven b the "dvocate >eneral% :arana that it was a ft case tofle .etters atent "ppeal% the Department secured acontrar opinion rom the o9ce o .eneral could beover-ruled b securin* a tailor-made opinion rom aninerior authorit3

[01]3 =he names o landowner-armers were kept at the oreront in the >overnment fles or beore the)ourt to hide the identit o respondent 2o3 ##wherever possible and to *ive a misleadin*impression as i the real benefciaries o +tatelar*ess were the small time landowners3 =he act o the matter is that the armers have not *ot even aninch o the released land% which has been ormall transerred in avour o respondent 2o3 ## throu*hthe +ale Deeds e!ecuted in Kanuar% &((0% a*ain b >eneral ower o "ttorne holders o the armers%namel% authorised representatives o respondent 2o3 ##3 =he onl irresistible conclusion can be that the armers stood ousted rom the scene sincearchF"pril% &((1 and it was the ##th respondent who masqueraded or them% otherwise where was

the occasion or the landowners to e!ecute +aleDeeds on &1th Kanuar% &((0 throu*h the ower o "ttornes obtained rom them in arch% &((1?

!!! !!!

[0/]3 =he Jendors and the Jendee both had ull andinormed knowled*e o the act that the transactedland had since been acquired and "ward also

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passed3 =he Jendee was aware o the act that theJendors did not possess a clean title% et the +aleDeeds were presented and *ot re*istered% ater about two ears o the passin* o the "wards% on(,th "pril% &((13 7ver such transaction in respect o the acquired land was indeed null and void havin* noe!istence in the ees o law3

[(]3 MMMM +econdl% it is not a case o challen*in*the +ale Deeds or the breach o an bilateral termsand conditions or on the conventional *rounds wherea question o act has to be proved3 =he incidentalrelie to declare the +ale Deeds as null and void is ano4shoot o the broader issues raised b the petitioners includin* those hoverin* around thesstematic colourable e!ercise o power b the +tateapparatus3 " )onstitutional )ourt while perormin*its solemn dut as a =rustee o the undamentalri*hts o the citiNens shall thus be well within its ri*ht to lit the veil and unmask the private object behindan acquisition carried out in disre*ard to themandate o "rticles #$ and '((-" o the )onstitution3

!!! !!!

[&]3 ower o land acquisition vested under the#/$ "ct could be invoked onl in public interest andnot or creatin* land-bank in avour o respondent 2o3 ## throu*h distresssales3 =he +tate can not orce the landowners tosurrender their title in avour o and at a price to bedictated b a private benefciar3 =he notifed public purpose was onl a ruse to enable respondent 2o3 ##to purchase the land at the lowest possible price or ma!imiNin* the profteerin*3 Ct is so well settled that an action to be taken in a particular manner as

provided b a +tatute% must be taken% done or perormed in the manner prescribed or not at all3 =herule laid down b the riv )ouncil in 2aNir "hmadJs3 Oin* 7mperor% "C< #/', )% &1' that 6where a power is *iven to do a certain thin* in a certain wa%the thin* must be done in that wa or not at all5% hasbeen approved and urther e!panded b the "pe! )ourt in a catena o decisions3 When an action istaken in urtherance o e!plicit power *iven b a

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+tatute% the le*itimac o invokin* such power shalldepend entirel upon thee!tent o achievin* the net-end object or which the+tatute enables the e!ercise o such power3 =hese principles have been violated in whole-some in thecase in hand as the pretended public purpose wasneither intended nor was fnall achieved3

[']3 =here is too much hpe created b the o9cialrespondents with reerence to the le*islative +chemeo the #/01 +tate "ct3 "t the cost o repetition% it ma be mentioned that applications or the *rant o .icences were moved mostl in archF "pril% &((1thou*h respondent 2o3 ## continued droppin* insuch applications in the ear &((, also3 "ll the.icences were issued ater passin* o the "ward in "pril% &((1 and beore the e!ecution o +ale Deeds in Kanuar% &((03 =he Builder did not own an inch o land% et ever licence was addressed to it and sent with a specifc enclosure that respondent 2o3 ## wasthe sole owner o the licensed and released land3 =heissuance o licence% in our considered view% was araud plaed on the polic behind the #/01 "ct3 Wesa so or the reasons that +ection &[d] o the "ct defnes coloniNer to mean 6an individual% compan or association% bod o individuals% whether incorporated or not% ownin* land or convertin* it into a colon3333353 +ection &[k] defnes the e!pressionowner to include a person in whose avour a leaseo land in an urban area or not less than // earshas been *ranted3 +ection '[#] mandatoril requiresthat 6an owner desirin* to convert his land into acolon5 can make an application or the *rant o .icence3 +ub-+ection [&] obli*ates the Director toinquire into 6title to the land53 +imilarl%


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with no choice but to enter into the )ollaboration "*reements with the Builder% who was so sure o obtainin* the licences and *ettin* the land releasedthat he ousted the owners rom the consequentialbenefts o the licences in &((1 itsel b pain* them6entire sale consideration5 or the land which hadalread vested in the +tate ree rom allencumbrances3

!!! !!!

[0]3 overnment record that the process o *rantin*licences or releasin* the land commenced in the

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ear &((, and continued till the ear &(##3 Cn act%till the last date o hearin*% the o9cial respondents%or the reasons best known to them% did not deem it necessar to brin* it on record as to how much land[out o $&&3$$ acres] has since been released inavour o respondent 2o3 ##3 Ct% however% appearsrom the submissions made at the bar that a major chunk o land has now *one into the hands o respondent 2o3 ## in due course o time e!cept aew patches where the +tateF :;D" intends todevelop public utilities to acilitate the saidrespondent3 +econdl% no development whatsoever has been carried out till date and it was inormedthat the land is still lin* in its ori*inal orm without an construction havin* been made3 PemphasisaddedQ 5

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[/$]3 Cn the li*ht o the discussion and or thereasons stated above% we allow these writ petitionsin the ollowin* termsG-

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[i] +ince the subject acquisition neither intendednor has achieved its public purpose% thenotifcations dated ##th "pril% &((& and th "pril%&((' issued under +ections $ and , o the .and "cquisition "ct% #/$ are hereb quashed inentiret3 "s a result thereto% the subsequent awards passed on (,th "pril% &((1 can not sustain and are consequentl quashedR

[ii] "s a necessar corollar% the licences*ranted to respondent 2o3 ##-Builder-cum-Developer dated #&th Kune% &((,%#st "u*ust% &((,% #st +eptember% &((, or issuedthereater% even i not not brou*ht on record but pertainin* to the acquired land% are hereb declared null and void and quashedR

[iii] )onsequentl% the release orders like dated#&th Kune% &((, [-& and -&/] or an such likerelease orders pertainin* to the land acquiredvide the notifcations dated ##th "pril% &((& and(th "pril% &(('% passed in purported e!ercise o powers under +ection $[#] o the #/$ "ct arehereb quashedR[iv] "s a result o the declaration and directionsissued at [ii] and [iii] above% the +ale Deedse!ecuted in avour o respondent 2o3 ## ondi4erent dates in Kanuar% &((0 in respect o theacquired land are declared to be null and voidand non-e!istent in the ees o lawR

[v] =hose landowners who have neither received compensation nor entered into an )ollaboration or "*reements to +ell withrespondent 2o3 ##% shall be restored with the possession o their respective land orthwith3

[vi] =hose landowners who have receivedcompensation but have not entered into an )ollaboration or "*reements to +ell withrespondent 2o3 ##% shall also be returned their respective land subject to their deposit o theentire amount o compensation alon* withsimple interest at the rate o /S as prescribedunder +ection & o the .and "cquisition "ct%

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#/$3 =he possession shall be restored in their avour within one week o reund o thecompensation amountR

[vii] =hose landowners who have entered into)ollaboration or "*reements to +ell withrespondent 2o3 ##% shall be *iven option toreturn the +ale )onsideration received b themrom respondent 2o3 ## alon* with simpleinterest T 0S per annum within a period o three months rom the date o receipt o certifed cop o this order3 C an one o themhas received compensation rom the +tate%heFshe shall be required to reund the same inthe manner as laid down or the landownersallin* in direction 2o3 [vi] above3 8n doin* so%the possession o their acquired land shall berestored to them within one weekR

[viii] C an o the landowners allin* in )ate*or [vii] above ails to return the sale considerationto respondent 2o3 ## or the compensationamount to the +tate% title o hisFher land to that e!tent% shall stand transerred in avour o respondent 2o3##R

[i!] C the landowners ail to return theconsideration amount to the private Builder asdirected above and overnment would be ree to *rant .icence to the saidrespondent to the e!tent o such land% i so permissible under the #/01 "ctR

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.awers Welare @und o :i*h )ourt Bar inequal share35

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24/39Page 24

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2


25/39Page 25

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1 (2010) 7 SCC 1;2 (2012) 3 SCC 1

2


26/39Page 26

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3 (2012) 10 SCC 14 (2014) 9 SCC 516

2


27/39Page 27

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2


28/39Page 28

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3l/ 9 - 11l - 7 +,3-/ 7*

5 Royal Orchid Hotels ! "! #ayara$a Reddy (2011) 10 SCC 608% &ara 226 State o' *+a, ! "rdial Si*-h (1980) 2 SCC 4177 "reater .oida /*dstrial eelo&$e*t thority ! ee*dra $ar (2011) 12 SCC 375% &ara 398 State o' *+a, ! Ra$+ilal (1970) 3 SCC 602% &r 910; &ress .es&a&ers () td! ! O/(1986) 1 SCC 133% &r! 119120

2


29/39Page 29

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9 (2011) 12 SCC 375% &ara 43!10 i,id% &ara 4511 i,id% &ara 4712 State o' :ihar ! a$eshar Si*-h% /R (1952) SC 252% &r! 45% 52; Chair$a* /*dore ias

radhiara* ! re /*dstrial Coe (2007) 8 SCC 705% &r 5356; ei*der Si*-h ! State o' *+a,

(2008) 1 SCC 72813 :a*-alore City Coo&eratie !


30/39Page 30

i - 6-, - 7 /* 8 -i=*i- 3-/, Si- 4 *-

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14 (1995) 2 SCC 528% "ya* Cha*d ! "o&ala = Ors!>; (1995) 5 SCC 335 ?@ahair = *r! !Rral /*stitte% $raati = *r!>; (1996) 3 SCC 124 ?


31/39Page 31

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16 ara 69 o' the i$&-*ed +d-$e*t hich has already ,ee* Boted!

3


32/39Page 32

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17 (2014) 15 SCC 394% &ara 14

3


33/39Page 33

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3


34/39Page 34

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35/39Page 35

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