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2012 Supreme(Kar) 322

High Court of Karnataka
N. KUMAR & H.S. KEMPANNA
M/s. National Technological Institutions (NTI) & Others
Versus
The Principal Secretary To The Government Of Karnataka Revenue Department & Others
Writ Appeal Nos.4371-4405 of 2010
Decided on : 13-06-2012

Advocates appeared:
For the Appellants:Lakshminarayana, Suman, D.L.N. Rao, Senior Counsel A/W, Smt. S.R. Anuradha, Advocates.
For the Respondents:P.P. Rao, Senior Advocate, Vaaru Law Firm, Venkatesh, P. Dalwai, Somanagowda Patil, Smt. Revathi Adinath Narde, AGA, Raviverma Kumar, Senior Counsel A/W, M.S. Harish Kumar, Advocates.

Headnote:LAND ACQUISITION ACT, 1894 - Sections 4(1) & 6(1): [N. Kumar & H.S. Kempanna, JJ] Challenge to acquisition of land - Single Judge quashed impugned notifications in so far as it relates to petitioner’s land and directed the Authorities to restore the lands - Further direction issued to the petitioner’s to refund the award amount - Finding of the Single Judge is that the acquisition is vitiated by fraud, misrepresentation and colourable exercise of power - Appealed against - Held, Fraud avoids all judicial acts, ecclesiastical or temporal. Fraud is a conduct either by letter or words, which induces the other person or authority to take a definite determinative stand as a response to conduct of the former either by words or letter. It is not enough to use such general words as fraud, deceit or machinations. Where fraud is charged against the opposite party, it is plain and basic rule of pleadings that in order to make out a case of fraud, there must be an express allegation of fraud, and all material facts in support of the allegations must be laid down in full and with a high degree of precision. The fraud is purely a question of fact. The plea of fraud is to be pleaded specifically and substantially proved by the party pleading fraud. A litigant who pleads fraud or other improper conduct should not be allowed to proceed with his case unless he places on record the precise particulars as to the charges, even if no objection is taken on behalf of the parties who are interested in disproving the charges. Further, A plea of fraud is to be supported by documentary evidence in Writ Proceedings. Therefore, in Writ Proceedings, the Court has to look into the pleadings, the defence of the opposite party and the documents which are produced before it to find out the case of fraud pleaded is made out or not. It is only when Court is convinced the case of fraud is substantiated by documentary evidence produced along with the writ petitions, may be coupled with some admissions, the Court can record a factual finding of fraud, as a question of fact. Therefore it is necessary, if the Writ Court is going into the question of fact, the judgment should set-out a plea of fraud taken from the pleadings of the parties, then the documents which are produced in support of the plea of fraud is looked into o find out whether the plea of fraud is made out and then record a factual finding. It is only thereafter applying any law to the said facts would arise. If this exercise is not done by the Writ Court and finding of fraud is recorded without setting out the plea of fraud in its order, without referring to the documentary evidence to substantiate the fraud, it would be patently illegal.

Judgment :-

1. These two appeals are preferred against the order dated 10.11.2010 in WP Nos. 1998-2032/2010 passed by the learned Single Judge quashing the impugned notification, in so far as it relates to the lands belonging to the petitioners. Further, he has directed the authorities to restore the possession of the lands to the petitioners and on such restoration, he has directed the petitioners to refund the award amount drawn by them simultaneously.

2. For the purpose of convenience, the parties are referred to as they were referred in the writ petitions.

3. The petitioners are the owners of land. Survey numbers, extent and village where the lands are situated are clearly set out in para 1 of the writ petition. The writ petition is filed on 21.01.2010 seeking quashing of the notification dated 04.01.1985 under Section 4 (1) of the Land Acquisition Act 1894 (hereinafter referred to as "the Act" for short), the final notification dated 25.09.1986 under Section 6 (1) of the Act, the awards dated 28.01.1989 and 31.01.1989 and the notification issued on 12/15.04.1991 and 4/5.11.1992 under Section 16(2) of the Act.

4. The case of the petitioners is that, at the instance of the 4th respondent-Society, the State Government initiated the acquisition proceedings to acquire the lands of the petitioners. The 4th respondent-Society is not a genuine one. There was collusion between the 4th respondent-Society and the Government Authorities in initiating the proceedings under the provision of the Act. The intention of the 4th respondent-Society was not to serve either the public or its alleged members, but the only intention was to sell the land in bulk to the land developers and also allot the sites according to their whims and fancies to the persons of their choice. The acquisition does not conform to the requirements of Section 3(f)(vi), 3(e)(iii), 39, 40, 44-A of the Act. There is no public purpose as defined under the Act. The alleged acquisition proceedings were initiated on the basis of the letter dated 21.10.1982 written by the 4th respondent-Society to the then Honourable Chief Minister of Karnataka. The State Government accorded sanction under the normal rules to initiate land acquisition proceedings in favour of the 4th respondent-Society to an extent of 171.37 acres which is impermissible under the Act. Since, the 4th respondent-Society is a Co-operative Society registered under the Cooperative Societies Act, the provision of Section 3(e) (iii) of the Act are attracted. The State Government has to sanction by invoking the provisions of Chapter VII or Part VII of the Act to initiate acquisition proceedings of the Society. Compliance of the requirement of the Section 40 and 41 are mandatory. Therefore, entire acquisition proceedings initiated by the State Government under normal rules in favour of 4th respondent-Society is vitiated, illegal and void, ab-initio.

5. The 4th respondent-Society requested the Government to accord permission for 66.05 acres of land. But strangely, the State Government accorded sanction for 171.37 acres of land. The Government proposed to acquire the land to an extent of 280 acres without any solid scheme or proper plan. These facts clearly show how the authorities have manipulated the acquisition proceedings at every stage in order to help the 4th respondent-Society. There is no prior approval of the scheme by the State Government, which is a condition precedent and mandatory. Therefore, the entire acquisition proceedings is not justified and the same is a malafide one. Inspite of the same, 4(1) notification came to be issued which is wholly illegal, arbitrary and cannot be sustained. No enquiry as contemplated under Section 5-A of the Act was conducted. The petitioners had no opportunity to file their objections. They were not heard by the authorities.

6. The 4th respondent-Society has entered into an agreement/understanding with some private entities (middlemen) for acquisition of lands. M/s. Vellal






































































































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