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STATE OF GUJARAT & ANOTHER versus SANKALCHAND KHODIDAS PATEL

Citation: [1978] 2 S.C.R. 178 · Decided: 09-11-1977 · Supreme Court of India · Bench: N.L. UNTWALIA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
B 
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D 
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G 
H 
178 
STATE OF GUJARAT & ANOTHER 
v. 
SANKALCHAND KHODIDAS PATEL 
(DEAD) BY L.Rs. 
November 9. 1977 
[N. L, UNTWALIA AND P. N. SHINGHAL, J.J 
Land Acquisition Act 1894-Section 4 and 6-Public 
purpose-Abandon-
n1ent of intention to con'tribute part of the compensation 
to be awarded-
Whetlter lligh Court in first appeal by deciding a question without any pleading 
and issue can set aside the judgment of trial court. 
The State of Gujarat issued a notification under s. 4 of the Land Acquisition 
Act on 23-5-1958. The public purpose mentioned was for the construction of 
houses for co-operative society. 
An erratum was issued pointing out that the 
Co-operative Society was of the backward class people. Thereafter. notifica-
tion under s. 6 was issued on 13-8-1960 in which also it was declared that the 
land was required for the public purpose of providing housing facilities for the 
backward class peop1e. 
The respondent filed a suit on 8-2-1961, 
challenging 
the validity of the notification under s. 4 and 6 and praying for perpetual 
injunction. 
The City Civil Court dismissed the suit. The High Court, however, allo\ved 
the respondent's appeal on the ground that the acquisition was not for a 
public purpose within the meaning of s. 6 of the Act as the intention declared 
by the Government to pay the amount of subsidy in respect of the acquisition 
\Vas, by 
r.ecc~sary implication, abandoned. 
Allowing the appeal by certificate, 
HELD : ( 1) Before the trial court no plea was taken that the appellant 
abandoned its intention to pay part of the compensation to be awarded for the 
acquisition. 
It was therefore not permissible for the High Court to decide the 
controversy on a plea which was not 
taken 
at 
all 
and 
which 
was 
not 
the subject matter of any issue at the trial. 
In fact the six contentions raised 
before ihe High Court also· did DOit include the question of abandonment. The 
High Court therefore committed an error of law in deciding the· appeal on the 
finding of ;:ibandonment of the origirlal intention of the St.ate Government to 
pay a part of the compensation. 
Even otherwise there \Vas no real basis for 
the High c·ourt 's finding about the abandonment of the intention of the State 
Government to pay a part of the compensation. [180 B-D] 
(2) The High Court committed obvious error of law in arriving at its 
finding and its finding of fact could not be sustained, [180 D] 
(3) The High Court was wrong in relying on the non-publication of the 
award because, as early as 1961, the respondent had filed a suit and an order 
was made by the trial, court restraining the appellants 
from disturbing and 
obstru·cting the possession of the respondent. The evidence clearly showed that 
the State Government had taken a clear decision to pay a part of the compen-
sation for the cost of acquisition. The fact that the State had preferred the 
present ap~real clearly showed that it had not abandoned its intention to make 
the acquisition on payment of a part of the compensation out of public 
revenue. [180 F-G, 182 D-E] 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 177 of 1973. 
From the fi.Jdgment and Decree tiated the 17th/18th February 
l 972 of the Gujarat High Court in First Appeal No. 275 of 1966. 
S. T: Desai, P. H. Parekh and M. N. Shroff for the Appellants. 
D. V. Patel, Vasuben P. Shah, S. K. Dholdkia and Raju Rama-
chandran for the Respondents. 
Hamid Kureshi for the Intervenet 
GUJARAT v. s. K. PATEL (Shinghal, J.) 
I 79 
The Judgment of the Court was delivered by 
SHINGHAL J.,-This is an appeal by the defendant State of Gujarat 
;and another against the appellate judgment and decree of the Gujarat 
High Court dited February 17 /18, 1972, on a certificate under Arti-
-cle 33(1) (b} of the Constitution as it stood before the Constitution 
(Thirtieth Amendment) Act, 1972. 
The case arose on a suit instituted by the plaintiff Sankalchand 
Khodidas Patel on February 8, 1961, to challenge the validity of the 
notillcations issued by the defendant-State under section 4 and 6 of 
the Land Acquisition Act, 1894 (hereinafter referred to as the Act) 
in respect of land bearing survey number 146, in Dariapur- Kazipur 
.area of Ahmedabad City. The notification. under section 4 was issued 
011 May 23, 1958, in respect of 1 acre 36 gunthas of land. 
It was 
·stated in the notification that the land was likely to be needed for a 
"public purpose, viz., for the construction of houses for New S

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