Full Judgment Text
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CASE NO.:
Appeal (civil) 3540 of 2006
PETITIONER:
P. Narayanappa & Anr.
RESPONDENT:
State of Karnataka & Ors.
DATE OF JUDGMENT: 18/08/2006
BENCH:
K.G. Balakrishnan,G.P. Mathur & Tarun Chatterjee
JUDGMENT:
J U D G M E N T
(Arising out of Special Leave Petition (C) Nos.9394-9403 of 2004)
With
C.A. Nos. 3542,3541 and 3543 of 2006
(@ SLP (C) Nos.22798-22800/04, 22869/04 and 6072/05)
G.P. MATHUR, J.
Leave granted.
2. These appeals, by special leave, have been filed challenging the
judgment and order dated 6.4.2004 of a Division Bench of Karnataka
High Court by which writ appeals filed by the appellants were
dismissed and the judgment and order dated 28.1.2004 of the learned
Single Judge dismissing the writ petitions was affirmed. The subject
matter of challenge in the writ petitions were two notifications issued
under Section 28(1) and 28(4) of Karnataka Industrial Areas
Development Board Act, 1966 (hereinafter referred to as ’the Act’).
3. The impugned notifications were issued for acquisition of land
for establishment and development of industries by the Karnataka
Industrial Areas Development Board. Before adverting to the
contention raised by the learned counsel for the parties, it will be
convenient to reproduce the impugned notifications. The first
notification bears No.CI:289:SPQ:2001 and was issued on
10.12.2001, relevant part whereof, is reproduced below :
"INDUSTRIES AND COMMERCE SECRETARIAT
NOTIFICATION
NO:CI:289:SPQ:2001, Bangalore, Dated 10th Dec 2001
The below mentioned lands specified are required for the State
government for establishment and development of industries by the
Karnataka Industrial Areas Development Board.
With an intention of acquiring the lands notification is
hereby published according to Section 28(1) (Act No.18 of
1966) of the Karnataka Industrial Areas Development Act,
1966.
According to Section 25 of the Act .........................
................................................... (Omitted as not relevant)
From the date of publication of this notification .....
................................................... (Omitted as not relevant)
The map of the lands comprised therein is kept in the
office of the Special Land Acquisition Officer, KIADB."
The second notification under Section 28(4) of the Act bears
No.CPMG/KA/BG-GPO/13/2003-05 and was issued on 23.10.2003.
The relevant part of the notification is being reproduced below :
Notification under Section 28(4)
Where as it appears, to the State Government that the
Lands are to be acquired specified in the schedule here to
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likely to be needed for the purpose stated in the
notification No. CI-289 SPQ 2001 dated 10.12.2001
published in Karnataka Gazette part 3-1 page 4 to 11 in
exercise of powers conferred according to section 28(1)
of the Karnataka Industrial Areas Development Board
(Karnataka Act No. 18 of 1966).
The State Government is satisfied that Lands
specified in the schedule of Notification be acquired for
the purpose specified as such orders are passed according
to section (3). In exercise of the powers conferred
according to section 28(4) (Act No. 18 of 1966) of the
Karnataka Industrial Areas Development Act, 1966 the
Karnataka Government is acquiring said Lands below for
the purpose specified in the notification as such a
declaration is made."
By the notification under Section 28(1) of the Act 110.30 acres
of land was proposed to be acquired but by the notification under
Section 28(4) of the Act, the acquisition was restricted to an extent of
106 acres 12.3/4 guntas of land. Some of the land owners had
challenged the preliminary notification by filing writ petitions under
Article 226 of the Constitution before the Karnataka High Court after
orders had been passed under Section 28(3)of the Act. The writ
petitions were allowed and the orders passed under Section 28(3) of
the Act were quashed giving liberty to proceed with the acquisition
from the stage of preliminary notification. Thereafter, the Land
Acquisition Officer, after giving an opportunity of hearing to the
landowners on the objections filed by them, passed a detailed order
and then the notification under Section 28(4) of the Act was issued.
4. Shri Shanti Bhushan, learned senior counsel for the appellants,
has challenged the impugned notifications on several grounds and the
principal ground is that the land has been acquired in order to benefit
a company, namely, Vikas Telecom (P) Ltd. (respondent no.9) who
had submitted a project report for setting up a software technology
park which included an I.T. Training Institute/Engineering College,
Research and Development Centre, Educational Centre, Commercial
and Residential Buildings and Service Apartments, Convention
Centre, Hotel, Shopping Mall, etc. In the notification under Section
28(1) of the Act, the purpose of acquisition, namely, the purpose for
which the company, Vikas Telecom (P) Ltd. wanted the land, as
enumerated above, was not mentioned and, therefore, the appellant
landowners were kept in dark and did not get an adequate opportunity
to make an effective objection against the proposed acquisition.
Learned counsel has submitted that the notification being absolutely
vague and cryptic, it deprived the landowners of a valuable right of
making an effective representation and in these circumstances the
entire acquisition proceedings are illegal and the impugned
notifications are liable to be struck down.
5. Shri L. Nageshwara Rao, learned senior counsel for Karnataka
Industrial Areas Development Board (respondent no.2) (hereinafter
referred to as ’KIADB’), has submitted that the land was actually
acquired by the State Government for industrial development and
after acquisition of the land, the same vests with the KIADB which
has the authority to give the same on leasehold basis or outright sale
to entrepreneurs or companies for the purpose of industrial
development and the basic object of acquisition is to promote the
establishment and orderly development of industries in that area.
Learned counsel has further submitted that the impugned notification
did not suffer from any vagueness and clearly indicated the purpose
for which the land was sought to be acquired and there is no illegality
in the same. He has also urged that the mere fact that a substantial
area of the land was subsequently given on lease to a company, Vikas
Telecom (P) Ltd., it was not at all obligatory to specifically mention
the details of the project which the said company wanted to establish.
Learned counsel for the State of Karnataka and also Shri A.
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Sundaram, learned senior counsel for Vikas Telecom (P) Ltd.
(respondent no.9) supported the stand taken by learned counsel for
KIADB and submitted that the impugned notifications fully satisfied
the requirements of the Act and the Act did not contemplate that at the
time of acquisition of the land, the details of the project which was to
be set up by the lessees or the subsequent purchasers from the KIADB
should also be mentioned in the notifications.
6. In order to examine the contentions advanced by learned
counsel for the parties, it is necessary to notice the provisions of the
Karnataka Industrial Areas Development Act. The preamble of the
Act reads as under :
"An Act to make special provisions for securing the
establishment of industrial areas in the State of Karnataka
and generally to promote the establishment and orderly
development of industries therein, and for that purpose to
establish an Industrial Areas Development Board and for
purposes connected with the matters aforesaid."
Some of the provisions of the Act, which are relevant for the
decision of the issue involved, are as under: -
"Section 2 \026 Definitions: -
In this Act, unless the context otherwise requires,-
(1) "amenity" includes road, supply of water or
electricity, street lighting, drainage, sewerage,
conservancy, and such other convenience, as the State
Government may, by notification specify to be an
amenity for the purposes of this Act;
(2) "Board" means the Industrial Areas Development
Board established under this Act;
(3) .........................................................................
(4) ........................................................................
(5) "development" with its grammatical variations means
the carrying out of levelling, digging, building,
engineering, quarrying or other operations in, on, over or
under land, or the making of any material change in any
building or land, and includes re-development; and "to
develop" shall be construed accordingly;
(6) "industrial area" means any area declared to be an
industrial area by the State Government by notification
which is to be developed and where industries are to be
accommodated and industrial infrastructural facilities and
amenities are to be provided and includes, an industrial
estate;
(7) "industrial estate" means any site selected by the State
Government where factories and other buildings are built
for use by any industries or class of industries;
(7a) "industrial infrastructural facilities’’ means facilities
which contribute to the development of industries
established in industrial area such as research and
development, communication, transport, Banking,
Marketing, Technology parks and Townships for the
purpose of establishing trade and tourism centres; and
any other facility as the State Government may by
notification specify to be an industrial infrastructural
facility for the purposes of this Act.
Section 3 - Declaration of industrial areas: -
(1) The State Government may, by notification,
declare any area in the State to be an industrial area for
the purposes of this Act.
(2) Every such notification shall define the limits of
the area to which it relates.
Section 5 - Establishment and incorporation: -
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(1) For the purposes of securing the establishment of
industrial areas in the State of Karnataka and generally
for promoting the rapid and orderly establishment and
development of industries and for providing industrial
infrastructual facilities and amenity in industrial areas in
the State of Karnataka, there shall be established by the
State Government by notification a Board by the name of
the Karnataka Industrial Areas Development Board.
(2) The said Board shall be a body corporate with
perpetual succession and a common seal, and may sue
and be sued in its corporate name, and shall subject to the
provisions of this Act and the rules made thereunder be
competent to acquire, hold and dispose of property, both
movable and immovable, and to contract and do all
things necessary for the purposes of this Act.
Section 14 - General powers of the Board: -
Subject to the provisions of the Act, the Board
shall have power:-
(a) to acquire and hold such property, both movable
and immovable as the Board may deem necessary for the
performance of any of its activities and to lease, sell,
exchange or otherwise transfer any property held by it on
such conditions as may be deemed proper by the Board;
(b) ........................................................................
(c) to provide or cause to be provided amenities,
industrial infrastructural facilities and common facilities
in industrial areas and construct and maintain or cause to
be maintained works and buildings therefor;
Section 28 - Acquisition of land: -
(1) If at any time, in the opinion of the State
Government, any land is required for the purpose of
development by the Board, or for any other purpose in
furtherance of the objects of this Act, the State
Government may by notification, give notice of its
intention to acquire such land.
(2) On publication of a notification under sub-section
(1), the State Government shall serve notice upon the
owner or where the owner is not the occupier, on the
occupier of the land and on all such persons known or
believed to be interested therein to show cause, within
thirty days from the date of service of the notice, why the
land should not be acquired.
(3) After considering the cause, if any, shown by the
owner of the land and by any other person interested
therein, and after giving such owner and person an
opportunity of being heard, the State Government may
pass such orders as it deems fit.
(4) After orders are passed under sub-section (3),
where the State Government is satisfied that any land
should be acquired for the purpose specified in the
notification issued under sub-section (1), a declaration
shall, by notification in the official Gazette, be made to
that effect.
(5) On the publication in the official Gazette of the
declaration under sub-section (4), the land shall vest
absolutely in the State Government free from all
encumbrances.
(6) .........................................................................
(7) .........................................................................
(8) Where the land has been acquired for the Board,
the State Government, after it has taken possession of the
land, may transfer the land to the Board for the purpose
for which the land has been acquired."
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Section 29 provides that where the land is acquired by the State
Government under Chapter VII (Sections 27 to 31), the compensation
for acquisition shall be paid in accordance with the provisions of the
Act. Section 30 provides that the provisions of the Land Acquisition
Act shall mutatis mutandis apply in respect of the enquiry and award
by the Deputy Commissioner, the reference to Court, the
apportionment of compensation and payment of compensation in
respect of lands acquired under this Chapter. It is important to note
that the Land Acquisition Act is not applicable at the stage of
acquisition of the land but becomes applicable only in the matter of
payment of compensation on account of Section 30 of the Act.
Therefore, the provisions of Sections 4 and 6 of the Land Acquisition
Act have no application here and acquisition of land has to be done in
accordance with the provisions of the Act.
7. The Preamble of the Act shows that it has been enacted to make
special provisions for securing the establishment of industrial areas
and generally to promote the establishment and the orderly
development of the industries in such industrial areas. Section 2(7a)
defines industrial infrastructural facilities. This provision was
inserted on 19.2.1997 by an amendment made by Act No.11 of 1997.
The Statement of Objects and Reasons of the amending Act has some
relevance and the same is being reproduced below :
"After the liberalization of economic and industrial
policies in the year 1991 increased emphasis has been
given for Private Sector Investment not only in the
Industrial Sector but also in the Infrastructural Sectors.
As such a number of proposals, both from indigenous
and foreign companies have been received for
considerable investments in infrastructural areas like
establishment of power projects, express highways, ports,
airports, townships, industrial parks etc. These projects
need considerable extent of land for implementation.
Therefore, it is considered necessary to amend the
Karnataka Industrial Areas Development Act, 1966, to
enable the Board to acquire land for providing Industrial
Infrastructural Facilities."
As the definition shows, anything which contributes to the
development of industries in industrial areas like technology parks,
townships for the purpose of establishing trade and tourism centres
and any other facility as the State Government may notify, will be an
industrial infrastructural facility. It, therefore, shows that the object of
the Act is not only to secure establishment of industrial areas and
orderly development of industries therein, but also to create facilities
which contribute to the development of industries which may include
technology parks, townships, trade and tourism centres, etc.
9. The provision for acquisition of land under the Act is contained
in Section 28 which is somewhat different from the provisions
contained in Sections 4, 5A and 6 of the Land Acquisition Act. The
legislature in its wisdom thought it proper to make a specific
provision for acquisition of the land in the Act itself rather than to
take recourse to Sections 4 and 6 of the Land Acquisition Act. A
plain reading of sub-section (1) of Section 28 would show that land
can be acquired for the purpose of (i) development by the Board, or
(ii) for any other purpose in furtherance of the objects of the Act.
Sub-section (3) of Section 28 is similar to Section 5A of the Land
Acquisition Act and the final notification is issued under sub-section
(4) of Section 28. The necessary precondition for a valid notification
under sub-section (4) of Section 28 is that the State Government
should be satisfied that the land is required for the purpose specified
in the notification issued under sub-section (1), viz., for the purpose
of (i) development by the Board, or (ii) for any other purpose in
furtherance of the objects of the Act. Therefore, in order to judge the
validity of the notification what is to be seen is whether the
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acquisition of land is being made for securing the establishment of
industrial areas or to promote the establishment or orderly
development of industries in such areas. In view of wide definition
of the words "industrial infrastructural facilities" as contained in
Section 2 (7a) of the Act, making of a technology park, research and
development centre, townships, trade and tourism centres or making
provisions for marketing and banking which would contribute to the
development of industries will meet the objectives of the Act and
acquisition of land for such a purpose would be perfectly valid.
10. Shri Shanti Bhushan, learned senior counsel for the appellants,
has strongly urged that as the impugned notification under Section
28(1) of the Act did not mention that the land was sought to be
acquired for a technology park, research and development centre,
shopping mall, engineering college, residential apartments, etc., the
landowners could not make a proper and effective representation
under Section 28(2) of the Act which deprived them of a valuable
right given to them under the Act of showing cause against the
proposed acquisition and consequently the notification is bad.
Learned counsel has also submitted that the notification is very vague
and cryptic. We are unable to accept the contention raised. Sub-
section (1) of Section 28 clearly shows that the land can be acquired
for (i) development by the Board; or (ii) for any other purpose in
furtherance of the objects of the Act. Under sub-section (8) of Section
28, the State Government is empowered, after it has taken possession
of land, to transfer the same to the Board for the purpose for which the
land has been acquired. Section 32 empowers the State Government
to place at the disposal of the Board any land vested in it and the
Board is enjoined to deal with the land in accordance with the
regulations made and directions given by the State Government in this
behalf. This stage when the Board gets the authority to deal with the
land comes at a later stage which is after the land has been developed
by it. An entrepreneur or a company may give a proposal to the State
Government for setting up an industry or infrastructural facility and
the Government may thereafter acquire the land and give it to the
Board. It is also possible that after the land has already been acquired
and developed by the Board, it may be allotted to an entrepreneur or a
company for setting up an industry or infrastructural facility.
Therefore, the scheme of the Act does not show that at the time of
acquisition of the land and issuing a preliminary notification under
Section 28(1) of the Act, the complete details of the nature of the
industry or infrastructural facility proposed to be set up should also be
mentioned. At that stage what is to be seen is whether the land is
acquired for development by the Board or for any other purpose in
furtherance of the objects of the Act, as mentioned in sub-section (1)
of Section 28 of the Act. In fact, if the contention raised by the
learned senior counsel for the appellants is accepted, it would mean
that even at the stage of preliminary notification under Section 28(1)
of the Act, the nature of the activity which may be done by some
entrepreneur or a company which may give a proposal for setting up
an industry or infrastructural facility much after land has been
acquired should also be taken note of and specifically mentioned in
the notification, which is well nigh impossible. While interpreting the
provisions of the Act, the Court should not only take into
consideration the facts of the present case but should also have in
mind all possible contingencies. Therefore, on a plain reading of the
language used in the Act, it is not possible to accept the contention of
the learned senior counsel for the appellants that the impugned
notification is vague or cryptic as the complete details of the project
which was proposed to be established by Vikas Telecom (P) Ltd.
(respondent no.9) were not mentioned and on account of the aforesaid
lacuna, the landowners were deprived of their right to make a proper
representation or to show cause against the proposed acquisition.
11. Learned senior counsel for the appellant has placed strong
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reliance on a Three Judge Bench decision of this Court in Munshi
Singh & Ors. v. Union of India (1973) 2 SCC 337 in support of his
submission that the impugned notifications are vague and are,
therefore, liable to be struck down. In this case a notification was
issued under Section 4 of the Land Acquisition Act by the State
Government on 16.7.1960 declaring its intention to acquire 34,000
acres of land in 50 villages of Ghaziabad. By a subsequent
notification dated 9.2.1962, the proposed area was reduced from
34,000 acres to 6,158 acres. The appellants Munshi Singh and others
made an application on 4.7.1962 to the Special Land Acquisition
Officer for supplying a copy of the Scheme of the planned
development to enable them to make an effective representation at the
time of hearing of the objections under Section 5A of the Land
Acquisition Act, but the same was rejected by an order which
mentioned that "the scheme of the planned development is not
necessary for a notification under Section 4 of the Act, as such, no
such scheme of the planned development is available in this office."
The Master Plan was sanctioned subsequently on 4.9.1962. The
notification was challenged on the ground that the words in the
notification, viz. "for planned development of the area", gave no
indication whatsoever as to the purpose for which the land was
acquired and the same was vague. It was held that there was no
indication whatsoever in the notification whether the development
was to be of residential area and building cities or of commercial and
industrial plots nor was it possible for anyone to find out what kind of
planned development was under contemplation i.e. whether the land
was to be developed by the Government or whether the owners of the
properties would be required to develop a particular area in a specified
way. It was also held that if the Master Plan which came to be
sanctioned on 4.9.1962 had been available for inspection by the
persons interested or even if the knowledge of its existence on the part
of the appellants had been satisfactorily proved, the position may have
been different, as in that situation the landowners could not claim that
they were unable to file objections owing to the lack of any indication
in the notification under Section 4 of the nature of the development
for which the area was being acquired. In our opinion, the authority
cited is clearly distinguishable on facts. The Scheme of the planned
development was not available when the notification was issued and
in fact the Master Plan itself was sanctioned much after the
publication of the notification and in these circumstances the words
"planned development of the area" were clearly vague. Such is not
the case here as the impugned notification clearly mentions that the
land is sought to be acquired for establishment and development of
industries by KIADB. The second case relied upon by the learned
counsel for the appellants is M.P. Housing Board v. Mohd. Shafi &
Ors. (1992) 2 SCC 168. In this case, a notification was issued under
Section 4 of the Land Acquisition Act to acquire 2.298 hectares of
land in city/village Mandsaur, Tehsil and Distt. Mandsaur and in the
column for purpose only "residential" was mentioned. The
notification was struck down on the ground that no khasra number,
locality or any other particulars of the land sought to be acquired was
mentioned when Mandsaur city was spread over a large area of 25 sq.
kilometers. It was also held that the word "residential" was
hopelessly vague as it conveyed no idea about the purpose of
acquisition. In our opinion, this case can be of no assistance to the
appellants for the obvious reason that the no details or particular of the
land like khasra number and locality had been mentioned and the
word "residential" by itself did not show that the acquisition was
being made for a public purpose, which is essential for a valid
notification under Section 4 of the Land Acquisition Act. The next
decision relied upon by the learned senior counsel for the appellants is
State of Tamil Nadu & Ors. v. L. Krishnan & Ors. (1996) 1 SCC 250.
In this case, after referring to some earlier decisions including that of
Munshi Singh (supra), it was held that whether the public purpose
stated in a particular notification is vague or not, is a question of fact
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to be decided in each case and cannot be treated as a question of law.
12. Shri Nageshwara Rao, learned senior counsel for KIADB has,
on the other hand, relied upon a Constitution Bench decision in Babu
Barkya Thakur v. State of Bombay AIR 1960 SC 1203, wherein it was
held as under :
"It is not absolutely necessary to the validity of the land
acquisition proceedings that the statement that the land to
be acquired was needed for a public purpose should find
a place in the notification actually issued. The
requirements of the law will be satisfied if, in substance,
it is found on investigation, and the appropriate
Government is satisfied as a result of the investigation
that the land was needed for the purpose of a company,
which would amount to a public purpose under Part VII."
In Union of India v. Jaswant Rai Kochhar (1996) 3 SCC 491, it
was held that when the notification mentioned that the land is sought
to be acquired for a housing scheme but actually it is to be used for a
district centre, the public purpose does not cease to be a public
purpose and the notification could not be quashed on the ground that
the land is sought to be used for a commercial purpose. This authority
has been cited to show that even a change of purpose (from residential
to commercial) would not result in invalidating the notification.
Strong reliance has also been placed on Pratibha Nema & Ors. v. State
of M.P. & Ors. (2003) 10 SCC 626, where the notification was
challenged on the ground that it was vague and reliance was placed on
the decisions rendered in M.P. Housing Board (supra) and Munshi
Singh (supra) where it was observed that the public purpose "needs to
be particularized" to satisfy the requirements of law. The Bench held
as under in para 38:
"38. When no prejudice has been demonstrated nor
could be reasonably inferred, it would be unjust and
inappropriate to strike down the notification under
Section 4(1) on the basis of a nebulous plea, in exercise
of writ jurisdiction under Article 226. Even assuming that
there is some ambiguity in particularizing the public
purpose and the possibility of doubt cannot be ruled out,
the Constitutional Courts in exercise of jurisdiction under
Article 226 or 136 should not, as a matter of course, deal
a lethal blow to the entire proceedings based on the
theoretical or hypothetical grievance of the petitioner. It
would be sound exercise of discretion to intervene when
a real and substantial grievance is made out, the non
redressal of which would cause prejudice and injustice to
the aggrieved party. Vagueness of the public purpose,
especially, in a matter like this where it is possible to take
two views, is not something which affects the jurisdiction
and it would therefore be proper to bear in mind the
considerations of prejudice and injustice."
It is necessary to emphasize that all the decisions cited by
learned counsel for the parties deal with notifications issued under
Land Acquisition Act and as demonstrated earlier, the Scheme of the
Act under our consideration is different. Even on the principle laid
down in the authorities which were cited by learned counsel for the
parties and which have been discussed above, it cannot be held that
the impugned notifications are vague or cryptic or that they suffer
from any infirmity. The challenge raised to the notifications on the
aforesaid grounds must fail.
13. Learned counsel for the appellant has next submitted that the
notification under Section 28(1) was published on 10.12.2001 and the
notification under Section 28(4) was published on 23.10.2003 and
thus there was a delay of more than 1 year and 10 months in
publication of the second notification. As already discussed, the
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Scheme of the present Act is different and there is no similar
provision like the one contained in proviso to sub-section (1) of
Section 6 of the Land Acquisition Act which lays down a period of
limitation of one year for making a declaration under Section 6(1) of
the Act. In absence of any specific provision to that effect in the Act,
and the time gap being not very long, it is not possible to hold that the
notification under Section 28(4) of the Act is invalid.
14. Shri Shanti Bhushan, learned senior counsel for the appellants,
has also submitted that Vikas Telecom (P) Ltd. (respondent no.9)
were themselves owners of nearly 90 acres of land as three members
of a family who were promoters and directors of the company had
purchased agricultural land in the year 1995-96. They being not
agriculturists, proceedings under the Karnataka Land Reforms Act
were initiated against them, whereunder the land would have been
forfeited to the State Government without payment of any
compensation. In order to save their land, they manipulated with the
Government and got their own land acquired whereunder they would
be entitled to compensation. It is thus submitted that the whole
proceedings for acquisition of the land whereunder not only the land
of promoters and directors of Vikas Telecom (P) Ltd. but also the land
of the appellants, who are agriculturists, was acquired is clearly mala
fide. This point has been considered in detail by the High Court and
has been repelled. Initially, proceedings initiated under Sections
79A, 79B and 80 of the Karnataka Land Reforms Act, 1961 against
Devi Das Garg, one of the promoters of the company were dropped by
the order of the Assistant Commissioner dated 23.5.2001. The
Assistant Commissioner passed an order of forfeiture of the land
against Santosh Kumar Garg on 29.12.2002 and a similar order was
passed against Devi Das Garg on 31.12.2003. It may be noted that
the order for forfeiture of the land was passed much after the
preliminary notification under Section 28(1) of the Act had been
issued on 10.12.2001. That apart, the appellants herein are interested
in saving their own land from acquisition and have no concern with
the land belonging to promoters of Vikas Telecom (P) Ltd. They have
not laid any foundation in the writ petition to show that the action of
the State Government in acquiring their land was a mala fide one.
Even assuming that the promoters of Vikas Telecom (P) Ltd.
somehow succeeded in getting their own land acquired in order to
save it from being forfeited by the State Government in view of the
provisions of Karnataka Land Reforms Act, that by itself cannot be a
ground to strike down the impugned notifications insofar as the land
of the appellants is concerned.
Shri Nageshwara Rao, learned senior counse for KIADB has
also submitted that the Karnataka Industrial Areas Development
Board has only executed a lease deed in favour of Vikas Telecom (P)
Ltd. for a period of 11 years for a consideration of Rs.25,71,50,781/-
and the lessee has to pay a rent of Rs.1,000/- per annum from the date
of taking over possession of the land. The lease has been granted on
stringent conditions and under clause 10(d) the lessor has the right to
terminate the lease and resume the possession of the scheduled
property in the event the lessee fails to implement the project within
the stipulated period or extended period, if any. Clause 14 contains a
condition that the lessor shall be entitled to determine the lease and
resume possession of the land if and when there is breach of any of
the covenants and obligations contained in the lease deed. The fact
that the lease deed has been executed only for a limited period of 11
years clearly shows that the land after acquisition has not been
reverted back to Vikas Telecom (P) Ltd. conferring proprietary rights
on them but they are merely lessees and the ownership and title
thereof still vests with the Board. In such circumstances it is not
possible to accept the plea of mala fide raised on behalf of the
appellants.
15. It is lastly submitted that the State Government had acted in a
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discriminatory manner in de-notifying some of the lands which had
been earlier included in the preliminary notification under Section
28(1) of the Act and whosoever was in a position to approach the
concerned authority of the State Government, his land was exempted
from acquisition. It has been urged that survey no.9/4 which was
earlier included in the notification under Section 28(1) of the Act was
specifically de-notified. We are afraid that this plea cannot be
examined by us for want of sufficient details. The acquisition of the
appellants’ land cannot be struck down on the ground that some of the
land which was initially included in the notifications issued under
Section 28 of the Act was de-notified.
16. For the reasons discussed above, there is no merit in these
appeals, which are hereby dismissed. No order as to costs.