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2004(3) Supreme 97
SUPREME COURT OF INDIA
(From Karnataka High Court)
V.N. Khare, CJI., S.B. Sinha & S.H. Kapadia, JJ.
The Printers (Mysore) Ltd. -Appellant
versus
M.A. Rasheed & Ors. -Respondents
Civil Appeal No. 4593 of 1999
Decided on 5-4-2004
Counsel for the Parties :
For the Appellant : Shanti Bhushan, M.L. Verma, Sr. Advocates, S.K. Kulkarni, M. Gireesh Kumar, Ankur S. Kulkarni, Ms. Sangeeta Kumar, Advocates.
For the Respondents : S.N. Bhat, Sanjay R. Hegde, K.H. Nobin Singh, Advocate (NP)/Advocates.
Held : The alienation of the land in question in favour of the appellant herein, as noticed hereinbefore, was questioned only on the ground that no auction was held nor any tender therefor was called for and furthermore no public advertisement was issued prior to making of the impugned allotment. No contention had been raised in the writ petition to the effect that the land could not be alienated by the Authority for setting up of an industrial undertaking. In fact, as noticed hereinbefore, the first respondent in the writ petition accepted that huge industrial area had come up as a result whereof the potentiality of the acquired lands had been increased by leaps and bounds. The thrust of the writ petition was, thus, on legality of the acquisition of the land or amount of compensation payable therefor. The Division Bench of the High Court, in our opinion, misconstrued and misinterpreted the provision of Section 38 of the Act. A bare perusal of the said provision would demonstrate that the Authority has power to lease, sell or otherwise transfer any movable or immovable property belonging to it, subject to such restrictions, conditions and limitations, as may be prescribed. The State of Karnataka has framed three rules under the Act, namely, (i) Bangalore Development Authority (Allotment of Sites) Rules, 1982; (ii) Bangalore Development Authority (Allotment of Buildings under Self Financing Housing Scheme) Rules, 1982; and (iii) Bangalore Development Authority (Disposal of Corner Sites and Commercial Sites) Rules, 1984. It is beyond any cavil that the provisions of the aforementioned three sets of rules were not applicable to the allotment in question. If the provisions of the said rules are not applicable in the instant case, the question of power of the Authority being restricted, conditioned or limited in selling or otherwise transferring the property would not arise. (Paras 13 to 15)
Section 38-B which was inserted by Act No. 17 of 1994 w.e.f. 20.12.1975 cannot have any application to the facts and circumstances of the instant case. The provisions of Section 38 and 38B operate in different fields. By reason of Section 38B of the Act, the legislature contemplated bulk transfer of land in favour of the Authorities mentioned therein which, may carry out the development scheme or deal with the matter in accordance with law. The High Court, in our opinion, has not correctly applied the principles of law governing the field inasmuch as it cannot be said that allotment of a plot measuring 1 acre 20 guntas is a bulk allotment. Whenever an allotment of land is made for industrial purpose, it cannot be restricted to a small peace of land. The extent of land sought to be allotted must be commensurate with the purpose for which the same is made. (Para 22)
Furthermore, the writ petition should not have been entertained keeping in view the fact that it was filed about three years after making of the allotment and execution of the deed of sale. The High Court should have dismissed the writ petition on the ground of delay and laches on the part of the first respondent. The Division Bench of the High Court also does not appear to have considered the plea taken by the appellant herein to the effect that the first respondent had been set up by certain interested persons. In a public interest litigation, the Court should, when such a plea is raised, determine the same. (Para 24)
JUDGMENT
S.B. Sinha, J.-
Introduction :
Validity of a sale deed dated 19.6.1985 executed by the Bangalore Development Authority (hereinafter referred to as the Authority ) in favour of the appellant herein was questioned by the first respondent before the High Court by way of a public interest litigation which has been allowed by reason of the impugned judgment.
Factual Background :
2. The appellant is a company incorporated under the Companies Act engaged in printing and publishing of newspapers and periodicals. For grant of allotment of a suitable plot for establishing an industry, an application was filed by it before the said Authority and upon consideration thereof, a plot admeasuring 1 acre 20 guntas under the Byrasandra-Travaekere-Madivala (BTM) was allotted on a consideration of Rs. 1,87,500/-. On the said amount having been deposited by the appellant, a deed of sale was executed in its favour by the authority on or about 29.6.1985. The appellant was also put in possession thereof. A licence for fencing the property was also obtained by the appellant.
3. In 1988, a public interest litigation was filed by the First Respondent herein, inter alia, on the ground that the impugned alienation was against public policy and, thus, illegal and void having regard to the fact neither any public auction was held therefor; nor any tender was called for; nor any public advertisement for sale of the said land was issued.
4. The contention of the appellant in the aforementioned writ petition, inter alia, was that the said writ petition in the nature of public interest litigation was in fact filed by the First Respondent at the instance of one S.A. Krishnappa who had been unsuccessful at earlier stages in his attempt to stall the acquisition proceedings. It was contended that one Mohd. Ibrahim had also filed a suit to achieve the same purpose but it was dismissed. In the said writ petition the locus of the writ petitioner was also questioned.
5. A learned Single Judge of the High Court allowed the said writ application by an order dated 29.1.1996 holding that the allotment in favour of the appellant herein by the Authority being a bulk one, the same was contrary to the provisions of the Bangalore Development Authority Act (for short the Act ).
6. Aggrieved by and dissatisfied therewith, the appellant preferred a Letters Patent Appeal. A Division Bench of the High Court dismissed the same holding that establishment of an industry cannot be termed as a step towards development of the Bangalore Metropolitan Area. Noticing that under the Act three different sets of rules had been framed and interpreting Section 38 thereof, it was held that the provisions of the rules would govern the transfer of land.
Submissions :
7. Mr. Shanti Bhushan, learned Senior Counsel appearing on behalf of the appellant assailing the impugned judgment, would submit that the High Court committed a manifest error insofar as it failed to take into consideration that there was no legal impediment for allotment of the land by the Authority to the appellant for the purpose of setting up of an industry for printing and publishing of newspapers. The learned counsel would urge that the power to lease, sell or otherwise transfer an immovable property having been conferred on the Authority under the Act, no illegality can be said to have been committed in transferring the land in question in favour of the appellant. Establishment of an industry for printing and publishing newspapers, it was argued, comes within the purview of development of the metropolitan area. Mr. Shanti Bhushan would urge that Section 38 of the Act confers an unrestricted power to lease, sell or transfer movable or immovable property for the purpose of any development scheme.
8. Mr. S.N. Bhat, learned Senior Counsel appearing on behalf of the first respondent, on the other hand, would contend that the land in question having been earmarked for housing, the same could not have been allotted in favour of the appel
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