JUDGEMENT
D. P. Wadhwa, J. -
(1.)Leave granted.
(2.)All these five appeals arise out of a common judgment dated February 27, 1997 of a Division Bench of the Gujarat High Court in three Special Civil Applications (SCA) Nos. 1568/87, 5149/89 and 5171/91 whereby the High Court set aside the acquisition of land for M/s. Larsen and Toubro Ltd. ('L and T Ltd.' for short) under the provisions of the Land Acquisition Act, 1894 (for short, 'the Act') comprised in SCAs 1568/87 and 5149/89 and dismissed the challenge of L and T Ltd. in SCA 5171/91 for withdrawal from acquisition by the State Government under Section 48 of the Act. In all these matters, different notifications under Section 4 of the Act were issued as it appeared to the State Government that lands specified in these notifications which were under challenge in these matters were likely to be needed for the purpose of a housing colony of the L and T Ltd. "which was engaged in Engineering Manufactures Industries which was for a public purpose." All the lands are situated in Village Mandalla, Taluk Choryasi, District Surat. In SCA 1568/1987 acquisition was set aside on the ground that there was no compliance with the provisions of Rules 3 and 4 of the Land Acquisition (Companies) Rules, 1963 ('Rules' for short). In SCA 5149/89 acquisition was set aside not only on the ground on non-compliance with the Rules 3 and 4 of the Rules but also that petitioners therein were not served with notice under Section 9 of the Act before passing of the award. In SCA 5171 High Court held that the decision of the State Government for withdrawal from acquisition under Section 48 of the Act was neither illegal nor ultra vires though the same would be enforceable only on the issuing of notification under Section 48 of the Act. In this case, High Court also held that actual physical possession of the land had not been delivered to the acquiring body L and T Ltd. Against the order passed in SCA 1568/87 both L and T Ltd. and the State Government have filed special leave petition Nos. 11957/97 and 12986/97 respectively. Against the order in SCA 5149/89 again both L and T Ltd. and the State Government have filed special leave petitions respectively bearing Nos. 11900/97 and 14637/97. Against the order in SCA 5171/91 it is only the L and T Ltd. who is aggrieved and has filed special leave petition No. 11778/97. In this State Government is supporting its action for withdrawal from acquisition.
(3.)Under the Act, land can be acquired for a company as well. "Company" means a company as defined in Section 3 of the Companies Act, 1956. Petitioner is such a company. Under Section 4 of the Act whenever it appears to the appropriate Government that land in any locality is needed or is likely to be needed for any public purpose or for a company, a notification to that effect shall be published and a public notice also to be given in the said locality. Under Section 5-A any person interested in any land notified under Section 4 can object to the acquisition of the land or of any land in the locality, as the case may be. Procedure is prescribed as to how objections are to be heard by the Collector and his making the report to the Government. Under Section 6 when the appropriate Government is satisfied after considering the report, if any, made under Section 5-A that any land is needed for a public purpose, or for a Company, a declaration shall be made to that effect. Part VII of the Act deals with acquisition of land for companies. Under Section 39 falling in Part VII, the provisions of Sections 6 to 16 and Sections 18 to 37 shall not be put in force in order to acquire land for any company unless with the previous consent of the appropriate Government and not unless the Company shall have executed the agreement as prescribed. Under Section 40 an enquiry is to be made before the appropriate Government consents to acquisition of land for the Company. This Section, in relevant part, is as under:
"40. Previous enquiry.- (1) Such consent shall not be given unless the appropriate Government be satisfied, either on the report of the Collector under Section 5-A, sub-section (2), or by an enquiry held as hereinafter provided-
(a) that the purpose of the acquisition to obtain land for the erection of dwelling houses for workmen employed by the company or for the provision of amenities directly connected therewith, or
(aa) . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . ."