The main legal point established in the judgment is that the prohibition of holding agricultural land by a company under Section 79-B (1) of the Act applies from the date of the commencement of the Amendment Act and applies to companies holding lands on that date.

( 1 ) THIS Writ Petition is directed against the order made by the Karnataka Appellate Tribunal, bangalore, dated 30-10-1984 vide Annexure-B setting aside the order passed by the Special deputy Commissioner, Bangalore, dated 24-1-1984 vide Annexure-A, which vested the 1st respondent's agricultural land in the State.

( 2 ) THE petitioner is aggrieved by the order of the Tribunal because it held that the provisions of section 79-B (1) of the Karnataka Land Reforms Act, 1961 (hereinafter referred to as the 'act') are only prospective in operation and do not apply to the agricultural lands held by the first respondent-company.

( 3 ) THE facts of the case are as follows ; Senapathy Whitely Ltd. , Achalu, Ramanagaram, which is respondent No. 1 in this petition is the owner of 2 acres of agricultural land (dry) in Sy. No. 35/1 of Achalu village, Kailancha Hobli, Ramanagaram Taluk. The said company purchased the land on 9-7-1968 from the Vendor Thimmaiah alias Gettaiah by virtue of a registered sale deed dated 27-6-68 and the Company has been in possession and enjoyment of the land ever since the date of purchase. The Special Deputy Commissioner Bangalore, initiated proceedings under Section 79-B (3) of the Act on receiving a declaration filed by the Company under the provisions of section 79-B (2) (a) of the Act. Thereafter, the Special Deputy Commissioner, Bangalore, proceeded to pass the impugned order dated 24-1-1984 declaring that the land in question shall vest in the State Government free from all encumbrances. Power was exercised by him under the provisions of Section 79-B (3) of the Act. The 1st respondent was aggrieved by the said order and preferred an appeal before the Karnataka Appellate Tribunal, Bangalore, in Appeal No. 120/1984 (LRF ). After hearing the appellant and the respondents, therein, the Tribunal reversed the order of the Special Deputy Commissioner and held that the provisions of Section 79b are not retrospective and therefore inapplicable to the agricultural land held by the first respondent-Company. The petitioner is aggrieved by the impugned order of respondent-2.

( 4 ) THE short point which arises for consideration is whether the provisions of Section 79-B (1) of the Act apply to the lands held by the first respondent-company and whether the non-vesting of the agricultural land of the 1st respondent in the State is Valid.

( 5 ) SECTION 79-B (1) of the Act reads as follows:

"79-B. Prohibition of holding agricultural land by certain persons. (1) With effect on and from the date of commencement of the Amendment Act, except as otherwise provided in this Act, ( a) no person other than a person cultivating land personalty shall be entitled to hold land; and (b) it shall not be lawful for, (i) an educational, religious or charitable institution or society or trust, other than an institution or society or trust referred to in Sub-section (7) of Section 63, capable of holding property; (ii) a company ; (iii) an association or other body of individuals not being a joint family, whether incorporated or not; or (iv) a co-operative society other than a co-operative farm, to hold any land. "

It is also necessary to refer to Section 79-B (2) of the Act also. The said provision reads:

" (2) Every such institution, society, trust, company, association, body or co-operative society, (a) which holds lands on the date of commencement of the Amendment Act and which is disentitled to hold lands under Sub-section (1), shall, within ninety days from the said date furnish to the tahsildar within whose jurisdiction the greater part of such land is situated a declaration containing the particulars of such land and such other particulars as may be prescribed; and (b) which acquires such land after the said date shall also furnish a similar declaration within the prescribed period. "

According to Section 79-B (1) of the Act, no person other than a person cultivating land personally shall be entitled to hold land; a