Karnataka High Court
Judges : A.R.Somnath Iyer,Ahmed Ali Khan
C.S.NARAYANA RAO - Appellant
Versus
CITY IMPROVEMENT TRUST BOARD, BANGALORE - Respondent
Writ Petn. 566 Of 1968
Decided On : 11/19/1968
Trust Board - Property Allotment - Agreement - Construction Commencement - Resumption Order - Alienation - Transfer of Khata - Illegal Demands - Direction for Transfer - Dismissal of Sale Deed Execution
Fact of the Case:
The case involved the allotment of a property by the Trust Board, failure to commence construction within the specified time, subsequent alienation of the property, and a dispute over the transfer of khata and execution of a sale deed.
Finding of the Court:
The court found that the order of resumption by the Trust Board was not sustainable, as the power to resume the property was abandoned after a long period of inaction. The court also held that the petitioner had the right to transfer the property and directed the Trust Board to transfer the property to the petitioner's name. However, the court dismissed the prayer for a direction to execute a sale deed.
Issues: The issues involved the legality of the Trust Board's actions, the rights of the allottee and the petitioner regarding the property, and the enforcement of the terms of the agreement.
Ratio Decidendi: The court determined that the Trust Board's order of resumption was invalid due to the extended time for construction and the abandonment of the power to resume the property. The court also upheld the petitioner's right to transfer the property and directed the Trust Board to effect the transfer.
Final Decision: The court dismissed the prayer for a direction to execute a sale deed and ordered the transfer of the property to the petitioner's name. No costs were awarded.
( 1 ) A small site measuring 30 feet by 50 feet in Jayanagar was allotted on December 14, 1949 by the City Improvement Trust Board to a certain Abdul Razack. The terms and conditions under which that allotment was made were incorporated in an agreement executed on May 26, 1952. The third condition in that agreement stated that the allottee should commence the construction on the site allotted to him within six months from the date on which possession was delivered, and that that construction shall be completed within two years thereafter. Possession was delivered to the allottee on June 18, 1953, but the allottee did not commence the construction. Instead, he sold the site to the petitioner before us on March 1, 1967.
( 2 ) ON April 24, 1967 the allottee made an application to the Trust Board for the transfer of the khata of the site to the name of the petitioner. On July 12, 1967 the Trust Board informed the allottee that that transfer would be made provided he paid the various sums of money set out in that communication. The transferee was asked to pay a small sum of Rs. 10/- by way of transfer fee, a sum of Rs. 54/- which was 61/4% of the value of the site and another sum of Rs. 2,000/which was the market value of the site on the date on which its transfer was sought. The allottee was also informed that the other condition subject to which the transfer of the khata would be made was that the transferee shall construct a building on the site before December 30, 1967.
( 3 ) IN a communication addressed by the petitioner's advocate to the Trust Board on August 16, 1967 it was asserted on behalf of the petitioner that the demand made for the payment of the sums of money, to which we have already referred, was an illegal demand, and the Trust Board was called upon to execute the title deed on production of the stamp duty and registration charges. This advocate's letter which was sent to the Trust Board proved unfortunate to the petitioner. The Trust Board informed the allottee on October 24, 1967 that, in supersession of its earlier letter of July 12, 1967 in which the Trust Board stated that it would be willing to make a transfer of the khata on fulfillment of the conditions enumerated in that letter, the site had been resumed by the Board for breach of the third condition of the agreement executed by the allottee in favour of the Board.
( 4 ) THIS Writ petition is the sequel to that communication, and there is more than one prayer in it. The first is that we should quash the order of resumption. The second is that we should quash the demand for the payment of the sums of money referred to in the letter addressed by the Board on july 12, 1967. The third is that there should be a direction for registration of the petitioner as the khatedar, and the fourth is that we should issue a direction to the Trust Board that it should execute a registered deed of conveyance in favour of the petitioner. (In para 5 of the order it was held that the prayer for a mandamus requiring the Board to execute the sale deed could not be granted for the reason that the petitioner had not even offered to produce requisite stamped paper. Which he was bound to do under the terms. In paras 6 to 8 the board's demand of the various sums was quashed on the ground that the terms did not authorise such a demand and after the prohibited period of ten years the allottee could as of right alienate the property to whomsoever he likes. The order then proceeds:)
( 5 ) THE next question is whether we should quash the order of resumption which was made on october 24, 1967. It is clear that that order of resumption cannot be sustained. The allotment was made as long ago as in the year 1949 and possession of the property was delivered on June 18, 1953. The allottee, under the third condition of the agreement, had to commence the construction on or before December 18, 1953 and had to complete it on or before December 18, 1955. When the Trust Board ad
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