LexM/S. KEWAL COURT PVT. LTD. AND ANR versus THE STATE OF WEST BENGAL AND ORS.
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[2023] S.C.R. 724 : 2023 INSC 884 724 CASE DETAILS M/S. KEWAL COURT PVT. LTD. AND ANR. v. THE STATE OF WEST BENGAL AND ORS. (Civil Appeal No. 6257 of 2014) OCTOBER 09, 2023 [SURYA KANT AND DIPANKAR DATTA, JJ.] HEADNOTES Issue for consideration: The issue pertains to the true construction, meaning and import of the expression ‘vacant land’ contained in Section 2(q) of the Urban Land (Ceiling and Regulation) Act, 1976 especially with reference to sub-clause (i) thereof. Urban Land (Ceiling and Regulation) Act, 1976 – s.2(q) – Expression ‘Vacant land’ – Construction, meaning and import of – Interpretation and scope of s.2(q)(i) & (ii): Held: Discordance between *Jhonson’s case [two-Judge Bench] and **Billimoria’s case [three-Judge Bench] on interpretation of s. 2(q)(i) – Ceiling Act is an expropriatory legislation – `Payment’ u/s. 11 of the Act to a land owner is not fair and just market value of the surplus vacant land – Principles of strict construction would thus be attracted to such a statute – Interpretation, spirit and object of the Ceiling Act, as it was envisaged at the time of its enactment, when juxtaposed against the regressive impact experienced in diff erent States which is indicated in the statement of objects and reasons of the Repeal Act, needs determination of all the related issues by a larger bench – Thus, matter to be placed before Hon’ble CJI for appropriate directions – Reference to larger bench. [Para 33-37] LIST OF CITATIONS AND OTHER REFERENCES *State of U.P. and Others v. L.J. Jhonson and Others (1983) 4 SCC 110 : [1983] 3 SCR 897; Meera Gupta (Smt.) v. State of West Bengal and Others (1992) 2 SCC 494 : [1991] 1 Suppl. SCR 501; Angoori Devi (Smt.) v. 725 State of Uttar Pradesh and Others (1997) 2 SCC 434; Angoori Devi (Smt.) v. State of U.P. and Others (1997) 7 SCC 757; **State of Maharashtra and Another v. B. E. Billimoria and Others (2003) 7 SCC 336 : [2003] 2 Suppl. SCR 603; Atmaram Aggarwal v. State of U.P. (1993) 1 Suppl. SCC 1; Kunj Behari Lal v. District Judge, Gorakhpur (1997) 6 SCC 257 – referred to. OTHER CASE DETAILS INCLUDING IMPUGNED ORDER AND APPEARANCES CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6257 of 2014. From the Judgment and Order dated 19.05.2011 of the High Court at Calcutta in FMA No. 1738 of 2004. Appearances: Jaideep Gupta, Sr. Adv., Vikas Mehta, Rajat Sehgal, Munir Ahmed, Samyak Jain, Ms. Rachita Chawala, Kunal Chaiterji, Advs. for the Appellants. Rakesh Dwivedi, Sr. Adv., Ms. Madhumita Bhattacharjee, Eklavya Dwivedi, Ms. Urmila Karpurkayastha, Ms. Srija Choudhury, Anant, Sandeep, L. C. Agrawala, Pankaj Agarwala, Ms. Reena Pandey, Gautam Barua, Anurag Pandey, Chira Ranjan Addy, Advs. for the Respondents. JUDGMENT / ORDER OF THE SUPREME COURT JUDGMENT SURYA KANT, J. 1. The issue that falls for consideration in this case revolves around the true construction, meaning and import of the expression ‘vacant land’ contained in Section 2(q) of the Urban Land (Ceiling and Regulation) Act, 1976 (in short, the ‘Ceiling Act’), especially with reference to sub-clause (i) thereof. 2. Notwithstanding the fact that ‘urban land’ or any regulatory measures in relation thereto fall within the exclusive domain of a State Legislature in terms of Entry 18 of List II—State List under the Seventh Schedule of the Constitution, the Ceiling Act was enacted by Parliament, in exercise of its powers under Article 252 of the Constitution for which as M/S. KEWAL COURT PVT. LTD. AND ANR. v. THE STATE OF WEST BENGAL AND ORS. 726 SUPREME COURT REPORTS [2023] 13 S.C.R. many as 11 States passed a Resolution authorising the Parliament to enact a law imposing a ceiling on urban property, more so after the imposition of a ceiling on agricultural lands in most of the States. The Ceiling Act was, consequently, enacted to provide, inter alia, imposition of a ceiling on ‘vacant land’ in urban agglomeration, the acquisition for such lands in excess of the ceiling limit, to regulate the construction of buildings on such lands and also to prevent the concentration of urban land in the hands of a person etc. Legislative Scheme of the Ceiling Act: 3. Section 3 provides that ‘on and from the commencement of this Act’, no person shall be entitled to hold any ‘vacant land’ in excess of the ceiling limit in the territories to which the Act applies under Section 1(2) thereof. Section 4 provides distinct ceiling limits for diff erent urban agglomerations falling wit
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