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KENDRIYA KARAMCHARI SAHKARI GRIH NIRMAN SAMITI LTD. & ANR. versus NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY & ORS.

Citation: [1988] 1 S.C.R. 662 · Decided: 28-10-1987 · Supreme Court of India · Bench: B.C. RAY · Disposal: Dismissed

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Judgment (excerpt)

A 
KENDRIY A KARAMCHARI SAHKARI GRIH NIRMAN 
SAMIT! LTD. & ANR. 
v. 
NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY 
& ORS. 
B 
OCTOBER 28, 1987 
]B.C. RAY AND K. JAGANNATHA SHETTY, JJ.] 
>-
U.P. Industrial Development Act, 1976: Secs. 3, 6, 8 and 
12-New 
Okhla 
Industrial 
Development 
Area-Development 
C of-Acquisition of lands owned by Group Housing Societies-G.O. ~­
dated 9.4.1980---Nature and effect of-Lands of Cooperative House 
Building Societies not to be acquired 'as far as may be'-Whether 
~directory/mandatory-Building Bye-Laws 1977-New Okhla Indus-
trial Development Authority-Refusal of permission for development 
of land of Housing Society-Validity of. 
D 
The U.P. Industrial Development Act, 1976 was enacted to pro-
.. 
vide for the constitution of an Authority for development of certain 
areas in the State into industrial and urban township. By a notification 
dated 17.4.1976 the "New Okbla Industrial Development Authority was 
established and "New Okbla Industrial Development Area" was 
~' 
E declared. 
F 
New Okbla Industrial Development Authority made the Building 
bye-laws, 1977, and the Authority in 1978 prepared a plan wherein the 
land of the Society was earmarked as 'low density residential area'. 
The appellant-Society submitted an application on March 14, 
1978 with a plan for approval and permission to develop its land. By 
letters dated 12th June/3rd July, 1978 and 22.11.1978, Respondent No. 
1 intimated the appellants that permission had been refused for 
development of the land and that the entire land of the Society had not 
G 
been acquired. 
The appellants filed a writ petition before the High Court, assail· 
ing refusal of permission without recording proper and germane 
reasons, and praying for direction to respondents not to acquire the 
lands belonging to the Society, and to permit its development according 
H to the lay out plan submitted by it. 
662 
-
K.K. SAMm v. NEW OKHLA !NOL. AUTH01l-ITY 
663 
The High Court granted an interim order of stay of dispossession. . A 
During the pendency of the writ petition a G.O. dated 9.4.1980 
was issued iniimating that the Government had decided that the lands 
acquired by those Co-operative House Building Societies, which 
satisfied the conditions laid down therein should not he acquired as far 
as~k 
B 
The appellants' representation for reconsideration of the matter 
in the light of the above Government order was rejected, on the ground 
that the G.O. was an administrative Instruction and could not be con-
strued as mandatory, that the Government's power to acquire land for 
public purposes under the Land Acquisition Act, 1894 was not pro-
hibited, and that the object of the Act, to ensure planned development 
C 
of the area for industrial and urban township would be frustrated, if 
individual societies were permitted to develop their lands themselves. 
The High Court dismissed the writ . petition holding thai the 
Government's orders dated July 27, 1967 and April 9, 1980, having 
not mentioned the Chief Executive Officer, New· Okhla Industrial 
Development Authority; the intention of the State Governmenf was to 
exclude the Chief Executive Officer, New Okhla Industrial Develop-
ment Authority from its application, that on the basis of these G. Os. 
the appellants could not claim exemption from acquisition hy New Okhla 
Industrial Development Authority under the provisions of U.P. Act VI, 
1976. 
.. 
Aggrieved by the order of the High Court, the appellan~ f"lled a 
special leave petition before this Court, and also a writ petition chal-
D 
E 
. Ienging the validity of the change made by New Okhla Industrial De-
~ 
. velopment Authority during the pendency of the Writ Petition in the 
F 
( 
Master Plan by showing the appellant's land as Regional Park. 
Dismissing the appeal by special leave, and the writ petition, 
( 
HELD: 1.1 The sole object of the 1976 Act is to develop certain G 
areas in the State into industrial and urban township in a planned way 
by the Authority constituted under the Act and as such the cooperative 
societies cannot be permitted to develop their lands for the purpose of 
building houses haphazardly. This will frustrate the entire object of the 
Act. The Government has power to acquire land for public purposes 
under the Land Acquisition Act, 1894. [669B-D] 
· H 
664 
SUPREME COURT REPORTS 
[ 1988] 1 S.C.R. 
A 
1.2 The application of the appellant-Society was duly considered 
and the Authority refused permission on the

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