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2007 Supreme(Kar) 720

S.R. BANNURMATH AND A.S. BOPANNA, JJ.
SPECIAL LAND ACQUISITION OFFICER, KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD, BANGALORE AND ANOTHER – Appellants
Versus
STATE OF KARNATAKA AND OTHERS – Respondents
Writ Appeal No. 288 of 2006
Writ Appeal No. 289 of 2006
Decided on : 30-10-2007

Advocates appeared
Sri S.T. Mahesh, Advocate for Appellants in W.A. No. 288 of 200G and for Respondents-2 and 3 in W.A. No. 289 of 2006.
Smt. Kavitha H.C., Advocate for Appellant in W.A. No. 289 of 2006 and for Respondent-2 in W.A. No. 288 of 2006.
Smt. Vidhya, Government Advocate for Respondents- 1 and 4 in W.A. No. 288 of 2006 and for Respondents-1 and 5 in W.A. No. 289 of 2006.
M/s. Sreevatsa Associates. Advocates for Respondent-:3 in W.A. No. 288 of 2006 and for Respondent-4 in W.A. No. 289 of 2006;
Sri G. Krishnamurthy, Advocate for Respondents-5 and 6 in W.A. No. 288 of 2006 and for Respondents- 6 and 7 in W.A. No. 289 of 2006;
Sri J. Prashanth, Advocate for Respondent-7 in W.A. No. 288 of 2006;
M/s. Lex firm, Advocates for Respondents-8 to 14 in W.A. No. 289 of 2006;
Respondents-8, 9, 14, 16 and 18 are served through paper publication but unrepresented in W.A. No. 288 of 2006.
Sri M.Y. Vedhachala, Advocate for Respondents-10, 11, 12, 13, 15, 17 and 19 in W.A. No. 288 of 2006;
Respondents- 14 to 17 are served through paper publication in W.A. No. 289 of 2006.
Respondents-18 to 20 are served in W.A. No. 289 of 2006.

Headnote:KARNATAKA INDUSTRIAL AREAS DEVELOPMENT ACT, 1966 - Section 3 (1): [S.R. Bannurmath & A.S. Bopanna, J] Acquisition of property within the jurisdiction of the BDA - Property indicated as park and residential area in CDP - Declaration made under section 3(1) - Section 28(4) - Notification issued under - Section 28(6) - Notice under - Challenge to the acquisition - Finding of the Single Judge that acquisition was not for public purpose - Allotment not made in accordance with the provisions of KIADB Act - Judicial review - Held, Though Notification under Section 3(1) of the KIADB Act would be issued in the furtherance of the power of eminent domain, the same would still remain within the sweep of judicial review and scrutiny. Order of Single Judge, held, justified.

JUDGMENT (S.R. Bannurmath, J.)

The appellants in W.A. No. 288 of 2006 were respondents 2 and 4 in W.P. No. 4148 of 2005, respondents 2 and 3 in W.P. No. 1058 of 2005 and respondent 2 in W.P. No. 1393 of 2005. The appellant in W.A. No. 289 of 2006 was respondent 3 in W.P. No. 4148 of 2005 and W.P. No. 1393 of 2005. The petitioners in the said writ petitions had questioned the notification dated 27-1-2004 issued under Section 3(1) of the Karnataka Industrial Areas Development Act, 1966 (hereinafter referred to as the 'KIADB Act' for short) whereunder the lands in Sy. Nos. 110 (3 acres 15 guntas), 112 (3 acres 38 guntas), 113/1 (00-07 guntas), 113/2 (00-07 guntas), 113/3 (1 acre 2 guntas), 113/4 (00-23 guntas), 114 (1 acre 25 guntas), 115 (1 acre 35 guntas), 116 (1 acre 14 guntas), 126 (1 acre 20 guntas) and 127 (00-20 guntas), situate at Mahadevapura Village, K.R. Puram Hobli, Bangalore South Taluk, were declared as Industrial Area. Further, the notification dated 4-12-2004 issued under Section 28(4) and the notices under Section 28(6) of the KIADB Act were also questioned and consequential relief was also sought. The learned Single Judge on considering the rival contentions has allowed the writ petitions by order dated 24-1-2006. The appellants in both the above appeals claiming to be aggrieved by the said order have filed these appeals.

2. We have heard Sri Jayakumar S. Patil and Sri Nanjunda Reddy, learned Senior Counsel appearing for the respective appellants, Sri G.S. Visweswara and Sri S. Vijayashankar, learned Senior Counsel and Sri G. Krishnamurthy, learned Counsel for the respective respondents.

3. The learned Single Judge while disposing the writ petition has raised points for consideration and has answered the same seriatim. The learned Counsel while assailing the order had referred to the same in the sequence of the points raised. Hence, the relevant arguments addressed and the decisions cited would be referred as and when such point is discussed. However, one additional aspect which requires consideration is that the respondents have raised the question of maintainability of these appeals by filing an application and lengthy arguments are addressed. Hence, the said issue requires to be considered at the outset.

4. Sri Vijayashankar, learned Senior Counsel contended that the State Government which is the acquiring authority has not filed any appeal Therefore, it has accepted the order of the learned Single Judge and as such the correctness or otherwise cannot be examined at the instance of the beneficiary or the KIADB. It is contended that unlike Land Acquisition Act, 1894 beneficiary can challenge orders quashing the acquisition proceedings, the same is not applicable to acquisition under the KIADB Act as the concept under KIADB Act is different as compared to the Land Acquisition Act. The learned Senior Counsel taking us through the relevant provisions of the KIADB Act starting from the Preamble till the requirement under Section 28(6), contended that the entire satisfaction is that of the State Government and it is only with regard to Section 28(8), the KIADB steps in for the first time. Though the appellants have stated in the appeal memo that the KIADB is a delegatee of the Government, Rule 14 of the Karnataka Industrial Areas Development Rules, 1966 does not provide for delegation of powers under Section 28(1) and (4). Section 38(c) of the Act, and the Karnataka Government (Allocation of Business) Rules, 1977 were also referred and contended that all administrative decisions should be under the order of the Minister-in-charge. Even the KIADB functions under the directions of the Government under Section 17 of the Act and as such impleading of the State Government as the first respondent is contrary to the interest of the Government. Till the transfer of land, the KIADB would not have any right and till allotment process is complete the beneficiary would not acquire right. In this regard, the decisions in the case o






































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