M.M. Dutt, J.@mdashIn these two appeals, which arise out of proceedings for compensation of land acquired under the West Bengal Land Development and Planning Act, 1948 (hereinafter referred to as the Act), the principal question relates to the constitutional validity of the second paragraph of clause (b) of the proviso to section 8(1), as amended by the West Bengal Land Development and Planning (Amendment) Act, 1955 (hereinafter referred to as the Amending Act). Clause (b) of the proviso to section 8 of the Act as it stood before the amendment is as follows :
Provided that in determining the amount of compensation to be awarded for land acquired in pursuance of this Act the market value referred to in clause first of sub-section (1) of section 23 of the said Act shall be deemed to be the market value of the land on the date of publication of the notification under sub-section (1) of section 4 for the notified area in v/hich the land is included subject to the following condition, that is to say, -
if such market value exceeds by any amount the market value of the land on the 31st day of December, 1946, on the assumption that the land had been at that date in the state in which it in fact was on the date of publication of the said notification, the amount of such excess shall not be taken into consideration.
2. On April 8, 1955, the Governor of West Bengal promulgated the West Bengal Land Development and Planning (Amendment) Ordinance, 1955 (West Bengal Ordinance No. IV of 1955). Section 2 of the Ordinance provided as follows :
Notwithstandjing anything contained in the West Bengal Land Development and Planning Act, 1948, the condition mentioned at the end of clause (b) of the proviso to section 8 thereof shall not apply, and shall be deemed never to have applied, in relation to land which is, or has been acquired in pursuance of the said Act for any public purpose other than the purposes specified in sub-clause (i) of clause (d) of Section 2 thereof.
3. On September 21, 1955, the Amending Act was passed inter alia enacting Section 2 of the Ordinance. Section 8 was renumbered as sub-section (1) and the Second paragraph of clause (b) of the proviso was amended by the Amending Act as follows:
if such market value in relation to land acquired for the public purpose specified in sub-clause (i) of clause (d) of section 2 exceeds by any amount the market value of the land on the 31st day of December, 1946, on the assumption that the land had been at that date in the state in which it in fact was on the date of publication of the said notification, the amount of such excess shall not be taken into consideration.
Section 2 (d) is as follows :
(d) "public purpose" includes--
(i) the settlement of immigrants who have migrated into the State of West Bengal on account of circumstances beyond their control,
(ii) the establishment of towns, model villages and agricultural colonies,
(iii) the creation of better living conditions in urban and rural areas, and
(IV) the improvement and development of agriculture, forestry, fisheries and industries;
but does not include a purpose of the Union.
4. Under the first paragraph of clause (b) the market value of the acquired land on the date of publication of the notification u/s 4(1) shall be the market value for the purpose of clause first of sub-section (1) of section 23 of the Land Acquisition Act, subject to the condition as contained in the Second paragraph, that if the land is acquired for a public purpose specified in section 2 (d) (i), that is, for the settlement of immigrants the compensation shall not exceed the market value of the land on December 31, 1946.
5. In F.A. No. 13 of 1966 the notification u/s 4(1) was published on December 8, 1955 and in F.A. No. 391 of 1966 it was published on April 3, 1950. In both these cases, lands were acquired for settlement of immigrants and compensation has been awarded on the basis of the market value of the lands as on December 31. 1946. It is contended on behalf of the appellants who were the referring claimants, that the second paragraph of clause (b) of the proviso to section 8(1) as amended, is violative of the equality clause of the Constitution and, as such, ultra vires and void. It has been claimed by them that they are entitled to the market value of the acquired lands on the date off the respective notifications u/s 4(1), as compensation.
6. The Act was included in the Ninth Schedule of the Constitution on April 27, 1955. Before the Act was included in the Ninth Schedule, the Second paragraph of clause (b) of the proviso was amended by the West Bengal Ordinance 4 of 1955. The Amending Act was passed on September 21, 1955, that is, after the Act was included in the Ninth Schedule substantially enacting the provision of the Ordinance. The question is whether the Second paragraph of clause (b) having been amended after the inclusion of the Act in the Ninth Schedule, the amended provision will get any protection of Article 31B of the Constitution. In
7. If clause (b) had been amended for the first time by the Amending Act, it could be said at once that the amended provision would not get the protection of Article 31B, - for the amendment was made after the Act was included in the Ninth Schedule. The Amending Act was, however, preceded by an Ordinance which, before the Act was included in the Ninth Schedule, amended the second paragraph of clause (b) with retrospective effect. On the basis of the decision in Ramanlal''s case referred to above, it is argued that the amendment of the second paragraph of clause (b) of the proviso to section 8(1) by the Amending Act not having carried the Act into a new field it will get the protection of Article 31B. The amendment that was made by the Ordnance and the amendment that was made by the Amending Act are subs-stantially the same. After the amendment of the second paragraph of clause (b) by the Amending Act, the Act was not carried into a new field. But the question is whether the amendment which was made by the Ordinance was protected by Article 31B after the inclusion of the Act in the Ninth Schedule. By the- Constitution (Fourth Amendment) Act, 1955, the Act was included as item No. 20 in the Ninth Schedule as follows :--*
20. The West Bengal Land Development and Planning Act, 1948 (West Bengal Act XXI of 1948). as amended by the West Bengal Act XXIX of 1951.
8. Mr. Chatterjee, learned Advocate appearing on behalf of the appellants submits that in including the Act in the Ninth Schedule, Parliament intended to give protection to the provisions of the Act as amended by the West Be Act XXIX of 1951 and- that it was ''not the intention of Parliament to extend the protection to the amendment made by the Ordinance. Had it been the intention of Parliament to give protection to the amendment made by the Ordinance, in that case, the Act would not have been included in the Ninth Schedule as amended only by the West Bengal Act XXIX of 1951. He submits that the express mention of the West Bengal Act XXIX of 1951 and non-mention of the Ordinance clearly indicates that it was not the intention of Parliament to give any protection to the Ordinance. Next, it is contended by him that the Ordinance was only a temporary provision which could be withdrawn by the Governor at any time and it died a natural death after the Amending Act was passed by the Legislature. It is submitted that the Legislature might not have amended the second paragraph of clause (b) in the same manner as was done by the Ordinance. Further, it is submitted that Article 31B does not apply to temporary provisions, far less to the provisions of an Ordinance which is transitory in nature.
9. On the other hand, it is contended by Mr. P. K. Sen Gupta, learned Advocate appearing on behalf of the of the State of West Bengal that the second paragraph of section 8(1) (b) having been amended by the Ordinance before the Act was included in the Ninth Schedule and that the provisions the Ordinance having been re-enacted by the Amending Act, the amendment will get the protection of Article 31B. He submits that non-mention of the Ordinance in item No. 20 of the Ninth Schedule is irrelevant and does not deprive the amendment made by the Ordinance and re-enacted by the Amending Act of the benefit of the said protection. It is said that the West Bengal Act XXIX of 1951 has been mentioned in item No. 20 by way of abundant caution and such mentioning does not exclude the amendment of the second paragraph of clause (b) by the Amending Act from the benefit of the protection under Article 31B. He submits that Article 31B applies both to permanent and temporary statutes including an Ordinance which has the force of law under Article 13(3) of the Constitution.
10. The West Bengal Act XXIX of 1951 by which the Act was amended has been mentioned in item No. 20 of the Ninth Schedule, but the Ordinance has not been mentioned. In our view, there is much substance in the contention of Mr. Chatterjee that by mentioning the West Bengal Act XXIX of 1951, Parliament intended to give protection to the Act as amended by Act XXIX of 1951. If Parliament had intended to protect the amendment made by the Ordinance, in that case, the Ordinance would have been mentioned. Mr. Sen Gupta has placed reliance on a decision of the Supreme Court in
11. In considering the intention of Parliament, it is difficult to imagine that the State will recommend the prolection of a provision which is transitory in character and will cease to operate at the expiration of six weeks from the re-assembly of the Legislature or even earlier if a resolution disapproving it is passed by the Legislative Assembly or if withdrawn by the Governor. Article 31B provides as follows :
Without prejudice to the generality of the provisions contained in Article 31A, none of the Acts and Regulations specified in the Ninth Schedule nor any of the provisions thereof shall be deemed to be void, or ever to have become. void, on the ground that such Acts, Regulations or provisions is inconsistent with, or takes away or abridges any of the rights conferred by, any provision of this Part, and notwithstanding any judgment, decree or order of any court or tribunal to the contrary, each of the. said Acts and Regulations shall, subject to the power of any competent Legislature to repeal or amend continue in force.
Notwithstanding that a particular-Act or. regulation has been included in the. Ninth Schedule, the Legislature will have the power to repeal or amend it but subject to such power the Act or, regulation. shall continue in force. An amendment" of an Act made by an Ordinance cannot continue in force, for the Ordinance itself will cease to operate after a certain period or even earlier as stated above. It is, therefore, manifestly clear that Article 31B refers to.such Acts and Regulations which, subject to the power of a competent Legislature to repeal or amend may continue to remain operative and not to cease to operate on the expiry of a. certain period or on the happening of a contingency. The expression "shall continue in force" in Article 31B is significant. On a proper interpretation of Article 31B, we are of the view that there is great force in the contention of Mr. Chatterjee that only permanent statutes can be included in the Ninth Schedule so as to save them from any attack for the violation of the rights conferred by Part III of the Constitution. In these circumstances, we hold that the second paragraph of clause (b) of the proviso to Section 8 as amended by the Ordinance did not get any protection of Article 31B, and consequently, the amendment of that paragraph by the Amending Act having been made after the incorporation of the Act in the Ninth Schedule will not also get any protection.
12. Now the question is whether the second paragraph of clause (b) of the proviso to section 8(1) of the Act as amended is ultra vires Article 14 of the Constitution. Under that provision if the land is acquired for any public purpose other than for settlement of immigrants, the owner will get compensation on the basis of the market value of the acquired land on the date of the publication of the notification u/s 4(1). If, however, the acquisition is made for settlement of immigrants the compensation shall not exceed the market value of the land as on December 31, 1946. The impuglned provision seeks to make a discrimination between owners of land under like circumstances and situations. It is true that the legislature is competent to make a, reasonable classification but that classification must be based on an intelligible differentia and the differentia must have a rational relation to the object sought to be achieved by the legislation concerned. It is only under the circumstances that a classification or discrimination made between two sets of persons similarly placed may be upheld as valid.
13. The object of the Act as stated in the preamble is to provide for the acquisition and development of land for public purposes. Some of the public purposes for which lands can be acquired have been enumerated in section 2(d) of the Act. One of the purposes is the settlement of immigrants who have migrated into the State of West Bengal on account of circumstances beyond their control. There can be no doubt that it is the duty of the State Government to provide accommodation to the immigrants who had to migrate into the State of West Bengal against their will under circumstances beyond their control. There is no dispute that the purpose is a public purpose and acquisition of lands for this purpose will get priority over other purposes mentioned in section 2(d). The unamended, section 8(b) provides for payment of compensation equal to the market value of the acquired land on December 31, 1946. This is surely not a just equivalent of the acquired land, and, consequently, it contravenes the fundamental rights guaranteed by the provisions of Part III of the Constitution. In
14. There is no indication in the Act or in the Amending Act why such a discrimination has been, made with regard to the, payment of compensation. If a piece of land is acquired for settlement of immigrants and another piece of land is acquired for a public purpose other than for settlement of immigrants, the owner of the land which is acquired for settlement of immigrants will get compensation not exceeding the market value of the land as on December 31, 1946. But in the other case, the owner will get compensation equivalent to the market value of the land on the date of the publication of the notification u/s 4(1). The purpose for which a land is acquired has nothing to do with the amount of compensation that has to be paid by the State; the object of the Act as stated above, is simply to provide for the acquisition and development of land for public purposes. We fail to see what relation can a specific public purpose or the amount of compensation can have to the said object. The purpose for which a land is acquired is immaterial to the owner of the land. The owner is only interested in the payment of compensation. He is not interested in the purpose for which the land is acquired. If he finds that the land of another person has been acquired and that person gets a higher amount of compensation he will be entitled to make a reasonable grievance about the same. In our opinion, it will be no answer that because the land has been acquired for settlement of immigrants the compensation must not exceed the market value of the land as on December 31, 1946. As has been stated already, we do not see any relation, far less any rational relation, between the classification made between owners of lands regarding payment of compensation and the object of the Act or the object sought to be achieved by such classification.
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17. The question whether classification can be made on the basis of the public purpose for the purpose of compensation for which the land is acquired came up for consideration before the Supreme Court in a recent decision in Nagpur Improvement Trust v. Vithal Rao AIR 1973 S.C. 689. Sikri C.J. who delivered the judgment of the Court observed as follows :
Can classification be made on the basis of the public purpose for the purpose of compensation for which land is acquired ? In other words, can the legislature lay down different principles of compensation for lands acquired say for a hospital or a school or a Government building ? Can the legislature say that for a hospital land will be acquired at 50 per cent of the market value, for a school at 60 per cent of the value, and for a Government building at 70 per cent of the market value ? All three objects are public purposes and as far as the owner is concerned it does not matter to him whether it is one public purpose or the other. Article 14 confers an individual right and in order to justify a classification there should be something which justifies a different treatment to this individual right. It seems to us that ordinarily a classification based on the public purpose is not permissible under Article 14 for the purpose of determining compensation. The position is different when the owner of the land himself is the recipient of benefits from an improvement scheme, and the benefit to him is taken into consideration in fixing compensation. Can classification be made on the basis of the authority acquiring the land ? In other words can different principles of compensation be laid if the land is acquired for or by an Improvement Trust or Municipal Corporation or the Government ? It seems to us that the answer is in the negative because as far as the owner is concerned it does not matter to him whether the land is acquired by one authority or the other. It is equally immaterial whether it is one Acquisition Act or another Acquisition Act under which the land is acquired. If the existence of the two Acts would enable the State to give one owner different treatment from, another equally situated the owner who is discriminated against can claim the protection of Art. 14.
18. The principles of law as laid down in Vithal Rao''s case apply with all force to the facts and circumstances of the instant cases. Here also the classification for the purpose of compensation of the acquired lands has been made on the basis of the public-purpose for which the lands have been acquired. The Second paragraph of the amended provision of clause (b) of the proviso to section 8(1) has sought to dsicriminate between owners similarly situated. The discrimination or classification is not based on any intelligible differentia having any rational relation to the object sought to be achieved. It may bethat the purpose for which the lands in the instant cases have been acquired, namely, for settlement of immigrants is a very laudable purpose, but it matters very little to the owneRs. We do not find any justification for the differential treatment sought to be made by the impugned provision of the second paragraph of clause (b).
19. Mr. Sen Gupta has placed strong reliance on Article 31(2) of the Constitution as amended, which provides that no property shall, be compulsorily acquired or requisitioned save for a public purpose and save by authority of a law which provides for compensation for the property so acquired or requisitioned and either fixes the amount of compensation or specifies the principles on which, and the manner in which, the compensation is to be determined and given; and no such law shall be called in question in any court on the ground that the compensation provided by that law is not adequate. It is argued that section 8 (1) (b) including the second paragraph thereof, having specified the principle on which compensation is to be determined and the Act also having laid down the manner in which compensation is to be given, the adequacy of the compensation cannot be challenged in view of Article 31(2). This argument, in our opinion, is fallacious. There is a wide distinction between adequacy of compensation and discrimination; that may be made as to the quantum of compensation. The first paragraph of section 8(1) (b) provides for payment of compensation equal to the market value of the land on the date of the publication of the notification u/s 4(1), subject to the condition which is contained in the second paragraph, namely, that if the land is acquired for settlement of immigrants, such compensation shall not exceed the market value of the land as on December 31, 1946. Although a citizen is precluded from challenging the adequacy of compensation in view of Article 31(2) as amended, he can, in our view, surely complain about the discrimination which has been sought to be made between owners of land under like circumstances and conditions. If the legislature had provided for payment of the same amount of compensation or laid down the same principle for the determination of the amount of compensation in all cases of acquisition, whether for one public purpose or another, in that case, it might have been difficult to challenge the adequacy of compensation and there might not have been any scope for discrimination; but where, as in the instant cases, the quantum of compensation depends on the public purpose for which the land is acquired without any reasonable relation to the object sought to be achieved, the provision must be held to be in infringement of the equality clause of the Constitution and, as such, void.
20. Mr. Sen Gupta submits that in
21. For the foregoing reasons, we are of the view that the second paragraph of clause (b) of the proviso to section 8(1) of the Act as amended, having made a differential treatment to the owners of land similarly situated without any rational relation to the object sought to be achieved, is ultra vires Article 14 of the Constitution and is void. The result, therefore, is that the appellants will be entitled to the payment of compensation on. the basis of the market value on the date of publication of the notification u/s 4(1), as laid down in the first paragraph of clause (b) of the proviso to section 8(1).
22. The next question which arises for consideration is whether the appellants are entitled to the statutory allowance of 15 per cent u/s 23(2) of the Land Acquisition Act. Subsection (2) of section 8 of the Act provides that when the amount of compensation has been determined under sub-section (1), the Collector shall make an award in accordance with the principles set out in section 11 of the said Act, but no amount referred to in subj-section (2) of section 23 of the said Act shall be included in the award. Thus it appears that section 8(2) has expressly excluded the application of section 23(2) of the Land Acquisition Act. This question came up for consideration before a Division Bench of this Court presided over by Sankar Prasad Mitra, J. (as he then was) in