BALMOKAND KHATRI EDUCATIONAL AND INDUSTRIALTRUST, AMRITSAR versus STATE OF PUNJAB AND ORS.

Citation: [1996] 2 S.C.R. 643 · Decided: 14-02-1996 · Supreme Court of India · Bench: K. RAMASWAMY, S. SAGHIR AHMAD · Disposal: Dismissed
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Judgment (excerpt)

BALMOKAND KHATRI EDUCATIONAL AND INDUSTRIAL 
A 
TRUST, AMRITSAR 
v. 
STATE OF PUNJAB AND ORS. 
FEBRUARY 14, 1996 
B 
[K. RAMASWAMY ANDS. SAGHIR AHMED, JJ.] 
Land Acquisition Act, 1894. 
Sections 4( 1), 5-A, 6, 9, 17(4}-Acquisition of land for the purpose of C 
allotting house sites to the poo1~Held, exercise of power under S.17(4) in not 
conducting an enquily as contemplated under S.5-A cannot be stTUck down 
when Govemment was of opinion that it urgently required possession of the 
land for providing house site to the po01~Simply because pmtly retained 
possession of acquired land, the acquisition cannot be said to be bad in law. 
Chameli Singh & Ors. Etc. v. State of U.P. & Anr., (1996) 1 SCALE 
101, relied on. 
Narayan Govind Gavate etc. v. State Maharashtra, (1977] 1 SCR 763, 
referred to. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2684 of 
1981. 
From the Judgment and Order dated 14.4.76 and 7.2.80 of the Punjab 
& Haryana High Court in C.W.P. No. 1359/76 and 4460 of 1979. 
P.H. Parekh for the Appellant. 
M.M. Kumar, Additional Advocate General, Ranbir Yadav and G.K. 
Bansal for the Respondents. 
The following order of the Court was delivered : 
Notification under Section 4(1) of the land Acquisition Act, 1894 (for 
short, the "Act") was published in the State Gazette on February 26, 1976 . 
..._ 
Dispensing with the enquiry under Section 5-A, declaration under Section 
D 
E 
F 
G 
6 was published on the same day. Notice under Section 9 was served on 
March 3, 1976. The appellant filed Writ Petition No.1359 of 1976 on March H 
643 
644 
SUPREME COURT REPORTS 
[1996] 2 S.C.R. 
A 7, 1976. On March 18, 1976, the High Court granted stay of dispossession. 
After. the counter-affidavit was filed by the respondents, the High Court 
dismissed the writ petition on April 4, 1976. In the meanwhile, award 
enquiry was conducted and the award under Section 11 was made on 
March 18, 1976. Possession of the land was taken on April 17, 1976. It 
B would appear that the Land A~quisition Officer (LAO) had deposited the 
compensation on May 18, 1976. Record has been placed before us to show 
that the land was earmarked and distributed to 592 landless workers on 
April 22, 1976. On December 11, 1979, the appellant again filed Writ 
Petition No. 4460 of 1979 which came to be dismissed by the High Court 
on February 7, 1980. Thus this appeal by special leave. Interim stay granted 
C on May 8, 1980 was modified by this Court, maintaining status quo, by order 
dated September 13, 1981: 
It is clear from these facts that after dispensing with the. enquiry 
under Section 5-A, immediate action was taken by issuance of the notice 
D under Section 9 and award enquiry was conducted since dispossession was 
ordered by the High Court. After the dismissal of the writ petition, pos-
session was taken on April 17, 1976. Thus the process of the requisition 
was completed and the acquisition became final. What remained to be · 
done was only the determination of the compensation in respect of the 
acquired land. In this case, the land acquired is of the extent of 121 canals 
E 10 marlas. Shri P.H. Parekh, learned counsel appearing for the appellant 
with his thorough preparation, has contended that dispensing with enquiry 
under Section 5-A is bad in law. However, we find no force in the · 
contention. The Punjab Legislature has amended the Central Act by· 
Amendment Acts II/1954, XVIl/6 and XLVIIl/1956 whereunder an ex-
F 
planation has been added to sub-section (1) of Section 17 of the Act. 
Sub-section (2) was also added in which clause (b) of the sub-section 
envisages thus : 
G 
H 
"(b) whenever in the opinion of the Collector it becomes necessary 
to acquire the immediate possession of any land for the purpose 
of any library or educational institution or for the construction, 
extension or improvement of any building or other structure in any 
village for the common use of inhabitants of such village, or any 
godown for any society registered under Co- operative Societies 
Act, 1912,or any dwelling house of for the poor, or the construction 
of labour colonies or houses for any other class of people under a 
I 
" 
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BALMOKAND KHATRI EDNL. AND INDL. TRUSTv. STATE 
645 
Government sponsored housing scheme, or any irrigation tank, A 
irrigation, or drainage channel, or any well, or any public road;" 
Thus .the Government, by virtue of State Amendment is empowered 
to exercise the urgency clause under sub-section (4) of Section 17 and to
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