Supreme Court Quashes Kolkata Municipal Corporation’s Acquisition of Property Under Section 352
The Supreme Court of India, in the case of Kolkata Municipal Corporation & Anr. vs. Bimal Kumar Shah & Ors., delivered a landmark judgment quashing the acquisition of private property by the Kolkata Municipal Corporation (KMC) under Section 352 of the Kolkata Municipal Corporation Act, 1980. The case centered around the legality of KMC’s actions, which sought to acquire a property for public purposes without following the proper legal procedures for compulsory acquisition. The Court upheld the High Court’s decision, emphasizing the constitutional right to property under Article 300A and the need for compliance with established procedures.
Background of the Case
The property in question, located at Premises No. 106C on Narikeldanga North Road in Kolkata, was originally owned by Mr. Birinchi Bihari Shah, who had inherited it through a deed of settlement from his father. The Kolkata Municipal Corporation attempted to forcibly take control of the property under Section 352 of the Kolkata Municipal Corporation Act, 1980, citing a need for land to develop public spaces. However, the legality of this action was contested by the property owner and, after several rounds of litigation, the matter reached the Supreme Court.
Chronology of Events
- 2009: KMC attempted to occupy the property, leading to a writ petition by the property owner in the High Court of Calcutta seeking a restraint order.
- 2010: KMC removed the property owner’s name from the official records and replaced it with its own.
- 2015: The High Court issued an order preventing KMC from interfering with the property and ordered KMC to restore the original records.
- 2016: KMC filed an appeal against the High Court’s decision, introducing the claim of property acquisition under Section 352 for public purposes.
- 2017: The High Court reaffirmed its stance, ruling that KMC did not have the authority to acquire property under Section 352.
- 2024: The Supreme Court dismissed the appeal filed by KMC, affirming the High Court’s judgment and quashing the property acquisition.
Legal Issues Considered
The Supreme Court addressed several important legal questions in the case:
- Whether the Kolkata Municipal Corporation had the legal authority to acquire private property under Section 352 of the Kolkata Municipal Corporation Act, 1980.
- Whether the procedures followed by KMC in acquiring the property were in accordance with constitutional and statutory requirements for compulsory acquisition.
- Whether the acquisition of the property violated the constitutional right to property under Article 300A of the Indian Constitution.
Arguments by the Appellant (Kolkata Municipal Corporation)
The Kolkata Municipal Corporation, represented by senior counsel Mr. Jaideep Gupta, contended that:
- Section 352 of the Kolkata Municipal Corporation Act granted KMC the power to acquire land for public purposes such as opening parks, streets, and squares, which fell under the definition of ‘public purpose’.
- Section 363 of the Act provided for compensation, ensuring that the acquisition was fair and legitimate.
- The High Court erred in ruling that Section 352 did not provide for the power of acquisition, and the issue could have been resolved through the statutory provisions.
Arguments by the Respondent (Bimal Kumar Shah & Others)
The respondents, represented by senior counsel Mr. Mukul Rohatgi and Mr. Huzefa Ahmadi, argued that:
- Section 352 only provided for the identification of land for public purposes but did not confer the power of compulsory acquisition.
- Compulsory acquisition must be carried out following the procedures outlined in Section 537 of the Act, which KMC had not followed.
- The acquisition violated the constitutional right to property under Article 300A of the Indian Constitution as it was done without the requisite legal process and due procedure.
Supreme Court’s Judgment
The Supreme Court, in its judgment, ruled in favor of the respondents, holding that:
“Section 352 of the Kolkata Municipal Corporation Act, 1980 does not grant KMC the power to compulsorily acquire private property for public purposes. The power of acquisition lies under Section 537 of the Act, which provides the procedure for acquiring property through the State Government.”
- The Court emphasized that the right to property is protected under Article 300A of the Constitution, which mandates that no person shall be deprived of their property except by authority of law.
- The Court found that KMC’s attempt to acquire the property without following the necessary procedures outlined in the law was illegal and violated the constitutional rights of the respondents.
- The Court upheld the High Court’s ruling and dismissed KMC’s appeal, affirming that any acquisition of land must comply with due process and statutory requirements.
Impact of the Judgment
The ruling has significant implications for property rights and acquisition procedures in India:
- Reaffirmation of Property Rights: The judgment reinforces that compulsory acquisition of property must be conducted in accordance with established legal procedures, ensuring that citizens’ rights are protected.
- Clarity on Powers of Municipal Authorities: The Court clarified the scope of Section 352 of the Kolkata Municipal Corporation Act, limiting its application to identifying land for public purposes and not conferring the power of acquisition.
- Upholding the Rule of Law: The ruling ensures that any acquisition of property by the State or its agencies must adhere to the principles of fairness, due process, and compensation.
Conclusion
The Supreme Court’s decision in Kolkata Municipal Corporation & Anr. vs. Bimal Kumar Shah & Ors. is a landmark judgment that upholds the constitutional right to property and clarifies the procedural requirements for land acquisition. The Court’s ruling emphasizes the importance of following due process in acquisition proceedings and ensures that public authorities cannot bypass legal safeguards for the sake of expediency.
Petitioner Name: Kolkata Municipal Corporation.Respondent Name: Bimal Kumar Shah & Ors..Judgment By: Justice Pamidighantam Sri Narasimha, Justice Aravind Kumar.Place Of Incident: Kolkata, West Bengal.Judgment Date: 16-05-2024.
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