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INDORE DEVELOPMENT AUTHORITY versus SHRIKRISHNA OIL MILLS AND ORS.

Citation: [2005] 3 S.C.R. 480 · Decided: 12-04-2005 · Supreme Court of India · Bench: RUMA PAL · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
B 
c 
INDORE DEVELOPMENT AUTHORITY 
v. 
SHRIKRISHNA OIL MILLS AND ORS. 
APRIL 12, 2005 
[RUMA PAL AND C.K. THAKKER, JJ.] 
Urban Development : 
Madhya Pradesh Town Improvement Trust Act, 1960-Madhya Pradesh 
Nagar Tatha Gram Nivesh Adhiniyam, 1973-Section 50-Development 
Scheme-Proposal to frame-Under the Act-Objections against the Scheme 
filed before Improvement Trust-Constitution of Development Authority and 
dissolution of the Trust on coming into force of the Adhiniyam-Fresh objections 
D invited by Authority-Objections submitted-After hearing the objectors Scheme 
approved-Approval also by Revisional Authority-Scheme challenged by 
objectors-Set aside by High Court-On appeal, held: Scheme not illegal or 
unlawful as the same was approved by the Development Authority after 
following the procedure as provided under the Adhiniyam and observing 
E principles of natural justice. 
A resolution was passed by Improvement Trust for framing Town 
Development Scheme under Madhya Pradesh Town Improvement Trust 
Act, 1960. Notification and individual notices were issued inviting 
objections to the Scheme. Objections were filed by the respondents. In the 
p 
meantime Madhya Pradesh Nagar Thatha Gram Nivesh Adhiniyam, 1973 
came into force under which Development Authority was established and 
Improvement Trust was dissolved. Tht: Development Authority issued 
notice to the objector with regard to the objections against the Scheme. 
Objectors filed objections afresh with the Authority. The Authority after 
hearing the objectors and considering the objections, approved the Scheme 
G in accordance with Section 50 of the Adhiniyam. Thereafter notifications 
u/ss. 4 and 6 of Land Acquisition Act, 1894, were issued as also a notice 
u/s. 9 to the respondents asking them to handpver possession of the 
property. Respondents filed Writ Petitions challenging the notifications. 
Single Judge of High Court disposed of the petitions by permitting the 
H 
4W 
I --ยท 
IN DORE DEVELOPMENT AUTHORITY v. SH RI KRISHNA OIL MILLS 
481 
respondent-objectors to approach revisional authority u/s.51 of the A 
Adhiniyam. Appellant-Authority filed Writ appeal, which was di~missed 
by Division Bench of High Court, upholding the order of Single Judge. 
The Revisional Authority dismissed the revision filed by the respondents 
observing that the Scheme had been notified by the Authority as per rules 
and following the requisite procedure. 
Challenging the order of Development Authority and the Revisional 
Authority, respondents filed Writ Petition. High Court relying on Indore 
Development Authority v. Madan Lal and Ors., [19901 2 SCC 334, allowed 
the petition and also other petitions. 
B 
In appeal to this Court, appellant-Authority contended that since the C 
Authority had finalized the scheme after taking all the actions required 
under the Adhiniyam, such Scheme could not be held illegal, unlawful or 
against provisions of Adhiniyam; and that the case of Madan Lal was not 
applicable to the present case. 
Respondent-objectors contended that the Authority should have D 
started the proceeding under the Adhiniyam afresh, since there was no 
'draft Scheme' as envisaged by the Trust Act, the proceedings could not 
have continued under the Adhiniyam by the Authority. 
Allowing the appeals, the Court 
HELD : 1. In the present case, procedure under Madhya Pradesh 
Nagar Tatha Gram Nivesh Adhiniyam, 1973 was followed by the 
Authorities. Notices were issued, objections were submitted and hearing 
E 
was afforded to the affected persons and thereafter the decision was taken. 
Since in this case, the said procedure was followed, the provisions of the 
Adhiniyam had been complied with; so also the principles of nature justice F 
were observed. In these circumstances, it cannot be said that the action 
taken by the appellants was illegal or unlawful. As the Revisional Authority 
did not think it fit to interfere with the decision of the Development 
Authority, it approved the action of the Authority and dismissed the 
revision. Consequently, notifications under Sections 4 and 6 of the Land G 
Acquisition Act were issued and published in accordance with law. Those 
actions also cannot be termed illegal. The Scheme was not illegal or 
unlawful. (494-H; 495-A-D) 
Indore Development Authority v. Madan Lal and Ors., (1990} 2 SCC 
334, distinguished. 
H 
482 
SUPREME COURT REPORTS 
[2005] 3 S.C.R. 
A 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2547 of2005. 
B 
F

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