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2010 Supreme(Kar) 917

High Court of Karnataka
THE HONOURABLE MR. JUSTICE RAM MOHAN REDDY
S Venkoji Rao
Versus
The Bangalore Development Authority
Writ Petition No.15903 of 2010 (BDA)
Decided on : 28-09-2010

Advocates Appeared:
For the Petitioner:R.S. Hegde, Advocate.
For the Respondent:M.N. Ramanjaneya Gowda, Advocate.

Headnote:BANGALORE DEVELOPMENT AUTHORITY ACT, 1976 - Section 69 & Bangalore Development Authority (Allotment of Sites) Rules, 1984, Rule 13(7): [Rammohan Reddy,J] Cancellation of allotment on ground of violation of conditional sale - Allotment was made on condition for construction of an industrial site within prescribed period of 2 years - Allottee having not put up construction of industrial building during period of 10 years - BDA instead of initiating action at earliest opportunity against original allottee for breach of rules, assisted him by executing a conditional sale deed and had accepted conveyance in favour of petitioner - Held, BDA having failed to take action against either allottee or petitioner, had acquiesced its rights in favour of petitioner. Procedure followed by BDA not being consistent with Rules cancellation of allotment is not Proper.

       BANGALORE DEVELOPMENT AUTHORITY (ALLOTMENT OF SITES) RULES, 1984 - Rule 13(7): [Ram Mohan Reddy, J] Cancellation of allotment - Held, In the light of the admitted facts, the allottee having not put up the construction of the building during the period of 10 years lease, the BDA took no action at the earliest over the violation/breach of condition of allotment or terms of the lease-cum-sale agreement. In addition though there was a specific bar not to alienate the industrial site during the lease period, the BDA, for reasons not known, executed a conditional sale deed on 6.2.1987, much after the expiry of the period during which the Industrial Building had to be constructed. There is no explanation of the BDA as to why such a course of action was taken and why the allotment was not cancelled for violation/breach of the terms of the lease-cum-sale agreement. After the execution of the conditional sale deed, the allottee did not put up construction and the BDA, did not take action against the allottee. Significantly, the BDA accepted the conveyance of the site under the sale deed dated 12.2.1987 in favour of the petitioner by the person claiming to be the son of the allottee, as is animated from the katha certificate date 16.3.1991. Yet again, the BDA failed to take action against either the allottee or the petitioner for violation/breach of the terms and conditions of the lease-cum-sale agreement as well as the conditional sale deed. The BDA in fact acquiesced in the right of the petitioner by receiving from him the taxes on the property. The power to cancel the conditional sale deed undoubtedly vests with the Court and cannot be exercised by the BDA in the light of Section 31 of the Specific Relief Act,1963. Having regard to the covenants in the conditional sale deed that the allottee is entitled to exercise absolute and full ownership rights in the property conveyed, the act of respondent-BDA in cancelling the conditional sale deed without taking recourse to the provisions of the Specific Relief Act, is illegal. In the backdrop of admitted facts, the allotment in the year 1981 coupled with delivery of possession and the execution of the lease-cum-sale agreement, the conditional sale deed, and the sale of the site by the allottee acquiesced in by the BDA, the action of the respondent-BDA smacks of abuse of power. In the light of the observations and the fact that a long period of 29 years having rolled by, it is needless to state that the initiation of proceeding by the BDA amounts to unreasonableness, unfairness and arbitrary, and hence unsustainable.

       SPECIFIC RELIEF ACT, 1963 - Section 31: [Rammohan Reddy,J] Power of Bangalore Development Authority (BDA) to cancel conditional sale executed by it - Cancellation of sale made by BDA pursuant to allotment of site for breach of conditions of allotment - Held, Power to cancel conditional sale vests with Court and cannot be exercised by BDA.

Judgment :-

This writ petition is filed under article 226 of the constitution of India praying to Quash the impugned order dated 28.4.2010 vide Ann-N issued by the respondent as illegal and without authority of law; and etc. Industrial Site No.80/E, Industrial Suburb II Stage in the layout formed by the Bangalore Development Authority (for short ‘BDA’), was allotted to one Kulle Gowda, S/o. Yalakki Gowda and put in possession under Possession Certificate dated 25.02.1981 Annexure-“A” on a lease for 10 years. It appears that the respondent - BDA executed and lodged for registration a conditional deed of sale dated 6.2.1987 Annexure-“B” conveying the property in question to the allottee, for a valuable consideration including the lease rentals for the period 12.01.1981 to 11.01.1991, entitling the allottee to exercise absolute and full ownership rights over the property conveyed, however, with a condition to put up construction within the period specified under the lease-cum-sale agreement or such further period as may be allowed by the BDA in terms of the lease-cum-sale agreement dated 12.01.1981. Thereafterwards, one K.T. Gowda, claiming to be the son of the allottee, executed a sale deed dated 12.02.1987 conveying the property in favour of the petitioner for a valuable consideration. The BDA having accepted the sale deed conveying the property in favour of the petitioner, issued a Katha certificate dated 16.03.1991 Annexure-“D” certifying that the katha of the property was changed to the name of the petitioner and thereafterwards issued property tax challans in the name of the petitioner, who paid the taxes. The site having fallen within the territorial jurisdiction of the BBMP, the petitioner paid taxes as acknowledged by the BBMP. Years rolled by but the industrial building was not erected though a condition in the allotment of the site. The BDA, by show cause notice dated 7.1.2010 Annexure-“M”, proposed cancellation of the site for violation of the condition in not erecting the building within the time stipulated in the lease-cum-sale agreement and sought an explanation within seven days which was promptly responded to by reply dated 11.01.2010 Annexure-“M1” of the petitioner interalia contending that though the plan was approved for construction of the building, nevertheless, due to inadequate financial support from Banks and ill health, the petitioner again made an unsuccessful attempt in the year 2001 since there was recession and his children were unable to assist him as they were pursuing studies, was unable to put up the construction. In addition, it was stated that a borewell was installed and a compound wall erected and that Kulle Gowda to whom the notice was addressed, was not the owner. It is also stated that the petitioner’s son is returning after having studied abroad and intends to start a design and consultancy business and that a portion of that site is intended to be gifted to a charitable institution for construction of a Prarthana Mandir as the petitioner has promised his Guru and therefore, there is no violation of the conditions of allotment. Lastly it is stated that he has filed an application for change of land use by which a portion will be put to use for public purpose and the remaining for construction of an office. The BDA did not take kindly to the explanation offered and by order dated 28.04.2010. Annexure-“N”, cancelled the allotment. Hence, this writ petition.

2. Petition is opposed by filing Statement of objections interalia admitting the fact of allotment of the sale and that the original allottee Kulle Gowda having violated the conditions of allotment, the notices issued on 21.04.1988 and 20.06.2000 whence no reply was received and therefore, the Commissioner, by order dated 2.1.2010, directed issue of yet another show cause notice to the petitioner on 7.1.2010 for violating the condition of allotment. The failure to put up construction of an industrial building in the industrial suburb is t














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