MIS. MALWA OIL MILLS AND ANR. versus STATE OF M.P. AND ORS.

Citation: [1996] SUPP. 4 S.C.R. 38 · Decided: 25-07-1996 · Supreme Court of India · Bench: K. RAMASWAMY, G.B. PATTANAIK · Disposal: Dismissed

Judgment (excerpt)

A 
MIS. MALWA OIL MILLS AND ANR. 
v. 
STATE OF M.P. AND ORS. 
JULY 25, 1996 
B 
[K. RAMASWAMY AND G.B. PATTANAIK, JJ.] 
M.P. Town Improvement Trust Act, 1960 : Section 71. 
Issue of notification under Section 71 by Improvement Trust for Hous-
e ing Scheme-Subsequently appellant-Mill purchasing the land from erstwhile 
owners-Notice issued to the appellant calling upon them to remove sign 
Board put up by appellants-Wiit challenging notice-Dismissal-High Cowt 
held that appellants were not in possession and only sign Board was put up 
in the prope1ty-High Cowt also held that there was no promise made by the 
respondent to convert the Housing sche1ne into 11011-residentia~Ap-
D peal-Held on issue of notification the right title and illlerest of erstwhile 
owners stood vested in trust free from all encumberances-Sale made by 
erstwhile owne1' to appellants held therefore void-Appellants did not acquire 
any right in property-Question of estoppel does not arise. 
E 
F 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 179 of 
1981. 
From the Judgment and Order dated 21.11.81 of the Madhya 
Pradesh High Court in Misc. Petition No. 44 of 1979. 
A.K. Chitale and Sushi! Kumar Jain for the Appellants. 
Niraj Sharma and S.K. Agnihotri for the Respondent Nos. 1-3. 
The following Order of the Court was delivered : 
G 
This appeal by special leave arises from the judgment and order of 
the Division Bench of the Madhya Pradesh High Court, Indore Bench 
made on November 21, 1980 in Misc. Petition No. 44n9. The respondents 
issued a notice to the appellants calling upon them to remove the sign-
board put up by the appellants in the property in question. Calling that 
notice in question, the appellants filed writ petition in the High Court 
H admitting that pursuant to a notification issued under Section 71 of the 
38 
• 
., 
MALWAOILMILLS v. STATE 
39 
M.P. Town Improvement Trust Act 1960, a housing scheme was evolved A 
and pursuant to that notification the land stood vested in the Housing 
Board. It is their further case that thereafter since possession could not be 
secured by the Housing Board, the appellants' association was requested 
by a letter to have the possession secured from the illegal occupants and 
subsequent thereto industrial scheme was formulated since the mills were 
burnt out in a fire. On the basis thereof, they secured the possession and 
entered into an agreement with the erstwhile owners in respect of plot Nos. 
4 and 5 in the said land of an extent of 19338 sq. ft. and subsequently, they 
obtained sale deed on 21.8.1972 for a consideration of Rs. 27,073-20. Since 
B 
the respondents had promised that they would convert the scheme into 
non-residential scheme, they were stopped to take action to have them C 
ejected. The High Court has rejected the contentions. The finding of the 
High Court is that there was no promise made by the Government and the 
appellants had not suffered any detriment in furtherance of any promise 
made. The impugned order is only a direction to remove the sign-board. 
The appellants were in possession of the land and that, therefore, the relief D 
sought for could not be granted. Thus, this appeal by special leave. 
Shri Chitale, learned senior counsel for the appellants, contended 
that in view of the agreement, Annex. B, dated 15.11.1972 and revised 
agreement dated 17.11.73, the Government are estopped from acting to the 
detriment of the appellants and, therefore, on the basis of those agree-
ments, the appellants came to purchase the land from the erstwhile owners. 
The view of the High Court, therefore, is not correct in law. We find no 
force in the contention. Section 71 of the Act reads as under : 
"71. Notification of acquisition and vesting of Land in trust, (1) 
after the acquisition of land is sanctioned by the State Government 
under Section 70 the Trust may acquire such land by publishing 
in the Gazette a notice stating that it had decided to acquire the 
land and has obtained the sanction of the State Government for 
the acquisition thereof. 
E 
F 
G 
(2) When a notice under sub-section (1) is published in the Gazette 
the land shall, on and from the date of such publication, vest 
absolutely in the Trust free from all encumbrances. 
(3) Where any land is vested in the Trust under sub- section (2), 
the Trust may by notice in writing, order any person who may be H 
A 
B 
c 
40 
SUPREME COURT REPORTS (1996) SUPP. 4 S.C.R. 
in possession of the land to surrender or deli

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