MYSORE URBAN DEVELOPMENT AUTHORITY vs. K.M. CHIKKATHAYAMMA

Case Type: Civil Appeal

Date of Judgment: 07-09-2018

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Full Judgment Text

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 9182­9188 OF 2018 (Arising out of S.L.P.(C) No.24560­24566 of 2018)  (D.No.31403 of 2017) Mysore Urban Development Authority          ….Appellant(s) VERSUS K.M. Chikkathayamma & Ors. ….Respondent(s) WITH CIVIL APPEAL NO.9190­9191  OF 2018 (Arising out of S.L.P.(C) No.24569­24570 of 2018)  (D.No.30522 of 2017)                   J U D G M E N T Abhay Manohar Sapre, J. 1) S.L.P(C)No.……….(D.No.31403   of   2017) are directed against the final judgment and order dated Signature Not Verified 09.11.2016 passed by the High Court of Karnataka at Digitally signed by ANITA MALHOTRA Date: 2018.09.07 17:36:22 IST Reason: Bengaluru in W.A. Nos. 899/2016 and 982­987 of 1 2016 whereby the High Court dismissed the appeals filed by the appellant herein and, in consequence, upheld the judgment dated 10.03.2016 of the Single Judge   in   W.P.Nos.38868­38874/2015     which   had allowed the writ petitions filed by the respondents herein. 2) So  far  as   S.L.P.(C)No……..   (D.No.30522/2017) are concerned, these are] directed against the final judgment and order dated 20.10.2016 passed by the Division Bench of the High Court of Karnataka in W.A. Nos. 6829­6830 of 2013 which arise out of the order dated 10.10.2013 of the Single Judge passed in writ petition Nos.27994/2001 and 18756/2001. 3) Leave granted. 4) In   order   to   appreciate   the   issues   involved   in these appeals, few relevant facts need mention  infra . 5) The   appellant­Mysore   Urban   Development Authority (hereinafter referred to as "MUDA") was the 2 respondent whereas the respondents herein were the writ petitioners before the High Court.  6) In   exercise   of   the   powers   conferred   under Section 17 (1) of the Karnataka Urban Development Authorities Act, 1987 (hereinafter referred to as "The Karnataka Act"), the MUDA issued a notification No. LAQ   66/91­91   dated   19.12.1991   on   completion  of one   development   scheme   prepared   under   Section 15/16 of the Karnataka Act. 7) By   this   notification,   the   MUDA   proposed   to acquire the large area of the land along with other adjoining   lands   situated   in   Dattagalli   village (Karnataka).   The notification was published in the official   State   gazette   on   26.12.1991.   The   State Government   vide   its   order   dated   27.01.1992 approved   the   scheme   framed   by   the   MUDA   under Section 18(3) of the Karnataka Act and issued final notification   No.VaNaE   833   MIB   92   on   10.12.1992 3 mentioning   therein   that   the   lands   in   question   are needed   for   public   purpose,   viz.,     “formation   of Dattagalli extension”. This was followed by an award passed by the Special Land Acquisition Officer (SLAO) on   27.01.1994   wherein   he   determined   the compensation payable to the landowners. This was followed by issuance of notices to the land owners under   Section   12   (2)   of   the   Land   Acquisition   Act, 1894 (hereinafter referred to as “the LA Act”) calling upon the land owners to deliver possession of their respective   lands.   The   MUDA   then   issued   a notification on 18.09.2000 as required under Section 16  (2) of   the   LA  Act.     In  between,   there   was  one litigation but it is not necessary to mention the same in detail. 8) In 2001, the respondents (writ petitioners) felt aggrieved   by   the   acquisition   proceedings   and   filed writ petitions questioning the legality and correctness 4 of   the   notification   dated   19.12.1991   and consequential  notifications   issued   thereafter  in  the High Court of Karnataka at Bangalore. The MUDA and   State   contested   the   writ   petitions   on   several factual and legal grounds. 9) By   order   dated   15.12.2003,   the   Single   Judge allowed   the   writ   petitions   and   quashed   the   entire acquisition proceedings  inter alia  on the ground that there was a delay on the part of the MUDA in taking possession   of   the   acquired   land   and   hence   the acquisition proceedings are rendered illegal. 10) The MUDA felt aggrieved and filed intra Court appeals before the Division Bench out of which these SLPs  arise. In  the appeals, the  writ petitioners  as respondents, filed an application (I.A. No.11 of 2016) and   prayed   therein   for   dismissal   of   the   MUDA’s appeals   as   having   rendered   infructuous.   It   was contended   that   the   MUDA   has   resolved   on 5 02.07.2016 to drop the lands in question from the acquisition proceedings and, therefore, in the light of such decision having been taken, there is no need to examine the legality and correctness of the order of the Single Judge impugned in the appeals on merits. 11) By   impugned   order   in   both   the   matters,   the Division Bench dismissed the appeals as not pressed and   withdrawn.   The   order   impugned   dated 09.11.2016 reads as under: “An application is moved by the respondents seeking for dismissal of the writ appeals on the   ground   that   the   Mysore   Urban Development   Authority   (for   short   “MUDA”) decided,   in   their   Board   meeting   on   July   2, 2016,   to   drop   the   lands   covered   by   this litigation   from   the   acquisition   process.     A copy   of   the   resolution   is   annexed   to   the application. 2. After hearing Mr. Uday Holla, learned senior advocate  appearing   for  the   respondents  and Mr.   P.S.   Manjunath,   learned   advocate appearing for the appellants, we have got a clear   indication   that   the   authorities   have decided not to proceed with the writ appeals. 6 3. Therefore, the writ appeals are dismissed as withdrawn. 4.     It   shall   be   open   to   the   authorities   to proceed further in the matter.  We, however, express no opinion.” 12) It   is   against   this   order,   the   MUDA   has   felt aggrieved  and   filed  the  present  appeals  by  way  of special leave before this Court. 13) Heard learned counsel for the parties. 14) Mr.   Dushyant   Dave,   learned   senior   counsel appearing for the appellant (MUDA) essentially made two submissions.  15) In   the   first   place,   learned   counsel   contended that   the   Division   Bench   erred   in   dismissing   the MUDA’s appeals as withdrawn.  16) According to him, there was neither any basis nor   ground   much   less   justification   to   dismiss   the MUDA’s appeals “as not pressed”.  It was urged that in fact the Division Bench was under legal obligation to decide the appeals on merits.    7 17) In the Second place, learned counsel contended that  the  resolution dated   02.07.2016  relied   on  for dismissal of MUDA’s appeals, "as not pressed" was wrongly interpreted by the Division Bench. Learned counsel   pointed   out   that   the   resolution   dated 02.07.2016, if read properly, does not show that any express decision was taken to withdraw the appeals or that any decision was taken to drop the lands in question from the acquisition proceedings.   18) Learned   counsel   further   submitted   that   even otherwise the MUDA was not competent to take such decision without obtaining the sanction of the State Government as provided under Section 19 (7) of the Karnataka Act.  19) Learned   counsel   pointed   out   that   neither   the MUDA and nor the State Government ever intended to withdraw from the acquisition proceedings as is clear from the letter dated 26.06.2018 of the State 8 Government and the letter dated 14.11.2017 of the Commissioner.   It   was   urged   that   these   letters indicate   that   both   i.e.   the   State   and   the   MUDA wanted   to   pursue   the   appeals   on   merits   since inception before the High Court as also in this Court. 20) Learned counsel urged that in the light of these submissions, impugned order in both the matters are not legally sustainable and the matter be remitted to the Division Bench for deciding the appeals on merits in accordance with law. 21) In   reply,   Mr.   Mukul   Rohtagi   and   Mr.   Gopal Subramanian,   learned   senior   counsel   for   the respondents   (writ   petitioners)   while   supporting   the reasoning   and   the   conclusion   arrived   at   by   the Division   Bench   contended   that   no   fault   could   be noticed in the impugned order.  22) It   was   their   submission   that   firstly,   the Government did not choose to file any appeal against 9 the   order   of   the   Single   Judge   and,   therefore,   the MUDA   had   no   independent   locus   to   pursue   the matter   in   appeals;   Secondly,   the   MUDA   having resolved to wriggle out of the acquisition proceedings, the Division Bench was justified in dismissing the appeals as not pressed; Thirdly, there was, therefore, no need to decide the appeals on merits; and lastly, after the dismissal of the appeals, the respondents (writ petitioners) altered their position in relation to the lands in question by spending substantial money and, therefore, this is not a fit case to entertain the special  leave  to  appeals    under  Article  136  of  the Constitution. 23) The   short   question,   which   arises   for consideration   in   these   appeals,   is   whether   the Division Bench was right in dismissing the appeals “as not pressed”.  10 24) Having heard the learned counsel for the parties and on perusal of the record of the case, we find force in the submissions urged by the learned counsel for the appellant.  25) In our opinion, the Division Bench should have decided   the   appeals   on   merits   in   accordance   with law. 26) On perusal of the resolution dated 02.07.2016, Government letter dated 26.06.2018 and the letter dated 14.11.2017 of the Commissioner and further keeping   in   view   the   relevant   provisions   of   the Karnataka Act, we are of the view that the appeals filed by the MUDA could not have been dismissed “as not pressed”.  In other words, the High Court should have   dismissed   the   respondents’   application (I.A.No.11/2016) as being misconceived and decided the appeals on merits in accordance with law.  11 27) In our opinion, neither there was any express prayer   made   by   the   MUDA   and   nor   it   could   be inferred from the document relied on by the Division Bench   at   the   instance   of   respondents   (writ petitioners) for forming an opinion “not to press the appeal”. In other words, the opinion formed by the High   Court   for   dismissing   the   appeals   “as   not pressed” had no basis. Such dismissal, in our view, certainly   deprived   the   MUDA   of   their   right   to prosecute the appeals on merits. 28) A right of appeal is a valuable right of a litigant. He is entitled to prosecute this right as it enables him to seek adjudication of the issues on merits, which are   subject   matter   of   the   appeal   by   the   Appellate Court. He can, however, forgo such right but it has to be done with express authority and free will.   The respondents, however, cannot compel the appellant to give up the right of prosecuting the appeal unless 12 the   respondents   are   able   to   show   any   express provision   in   law   in   that   behalf   or   valid   reasons acceptable in law which deprive the appellant from prosecuting his grievance in appeal. 29) If the appellant is a juristic entity created under the Act, they have to ensure strict compliance of the relevant provisions of the Act under which they are created coupled with ensuring compliance of relevant provisions of the Code of Civil Procedure for forgoing their right to prosecute the appeal on merits. 30) If, for some reasons, there are two rival groups in a juristic entity, one prays for withdrawal and the other insisting for hearing the appeal then it is the duty of the Court to first resolve this issue in the light   of   the   relevant   provisions   of   law   and   then proceed to decide the appeal accordingly.  Similarly, when  such   prayer   is   made   at  the   instance   of   the respondent   and   is   opposed   by   the   appellant,   the 13 same has to be dealt with strictly in accordance with law by the Appellate Court. 31) The  submissions  urged  by  the  learned  senior counsel for the respondents (writ petitioners), which are detailed  supra , have no merit. 32) In our opinion, any act done by the parties in relation to the subject matter of the appeals after the impugned order, cannot be pressed into service to support the impugned order.   In other words, the legality and correctness of the impugned order has to be examined in the light of reasoning contained in the impugned order and not on the basis of the acts done   by   the   parties   subsequent   to   the   passing   of impugned order.  It is for this reason the acts done by the party subsequent to passing of the impugned order  are   of  no  relevance  for  deciding  the   present appeals.   14 33) In   view   of   the   foregoing   discussion,   we   are unable   to   concur   with   the   reasoning   and   the conclusion arrived at by the Division Bench in the impugned order.  34) The appeals thus succeed and are accordingly allowed. Impugned order in both the matters are set aside. The writ appeals out of which these appeals arise   are   accordingly   restored   to   their   original numbers.  The High Court is requested to decide the appeals on merits in accordance with law.  35) We make it clear that we have not applied our mind to the merits of controversy having formed an opinion to remand the case to the High Court.  The High   Court   would,   therefore,   decide   the   appeals without being influenced by any of our observations.  36) We also make it clear that any step(s), if claimed to   have   been   taken   by   the   respondents   (writ petitioners) subsequent to the impugned order, the 15 same   would   not,   in   any   way,   influence   the   High Court while deciding the appeals on merits.  37) The parties are at liberty to claim refund of their money, if they claimed to have paid/deposited with the appellant in relation to the subject matter of the appeals. ………...................................J. [ABHAY MANOHAR SAPRE]                                      …...……..................................J.          [S. ABDUL NAZEER] New Delhi; September 07, 2018  16