Karnataka High Court
NARAYANA REDDY - Appellant
Versus
STATE OF KARNATAKA - Respondent
Decided On : 06-18-91
W.P. : 17775 of 1986
( 1 ) IN these writ petitions, the petitioners have challenged the legality of the acquisition of land under the Provisions of the Land Acquisition Act ('the act' for short), in favour of certain house building co-operative societies, inter alia, on the ground that though apparently the acquisition of lands is stated to be for carrying out housing schemes sponsored by them for the benefit of their members, in truth, it is not so, and that the persons incharge of management of the society have joined hands with builders and contractors to do real estate business with the object of making enormous profit taking advantage of the demand for building sites in the city and inspite of the said factual position the state government has proceeded to acquire the land under the act and therefore the notifications arc liable to be quashed on the ground that it is an instance of colourable exercise of power.
( 2 ) EXCEPT for a few specific points raised, which are special to some of the petitions, there are general common questions of law and fact arising for consideration in these petitions and therefore they were heard together and are being disposed of by this common Order,
( 3 ) BRIEFLY stated the facts of the case in general, are as follows: the petitioners in each of the petitions are agriculturists, holding agricultural lands within the Bangalore city metropolitan area. Preliminary notifications under Section 4 of the act were issued proposing to acquire the lands belonging to them and others, in favour of the respondent-societies on various dates. Subsequently, final notifications were also issued under Section 6 of the act. The particulars relating to the issue of the notifications are as below:
Date of preliminary notification
Date of final notification
Names of the sociciies in whose favour the land is acquired
17-12-1984
21-2-1986
Vyalikaval House Building Co-operative
Society
12-7-1988
11-8-1989
H. M. T. Employees' Co-op. Society.
18-1-1985
28-2-1986
Bank Officers' Co-op. Society
16-9-1986
3-10-1987
REMCO Employees' House Building Co-op. Society
3-12-1986
8-1-1988
Amarajyothi Co-op. Society
4-9-1986
22-1-1988
Bangalore Chickpet House Building Co-op. Society ,
6-11-1986
23-1-1988
Jayanagar House Building Co-op. Society.
( 4 ) THE learned counsel for the petitioners urged the following contentions: (1) in view of the classification of co-operative societies into two categories in the land acquisition Act, 1894, after its amendment in 1984, namely, those falling within the definition of the word 'state' under Article 12 of the Constitution of India and those falling within the meaning of 'company', the impugned acquisition is invalid, as according to part-vii of the Act, acquisition of land in favour of a company could be only for formation of sites and their distribution among the employees of a society. (2) even assuming that the lands could be acquired for formation of sites for distribution of sites among the members of a society, which is 'company' as defined under the Act, before giving consent for acquisition, the Karnataka land acquisition (companies) rules, 1973, ought to have been followed and as the same had not been followed, the impugned acquisition is invalid. (3) even on the basis that acquisition of land for a housing scheme prepared by a co-operative society, which is a company, is a public purpose and cannot be regarded as an acquisition for a company unless a housing scheme was prepared and submitted by the society concerned and the government accorded previous approval to such scheme, the acquisition would be invalid and in the present case as such a procedure was not followed, in that, no housing scheme was prepared and submitted for approval, the impugned acquisitions are invalid. (4) before granting previous approval and issuing preliminary notifications, the owners of lands should have been heard and as no such hearing was given, the approval given is invalid for violation of the rules of natu
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