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2020 Supreme(Kar) 116

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
RAVI MALIMATH, M.I. ARUN, JJ.
The State of Karnataka Department of Revenue by its Principal Secretary – Appellant
Versus
M/s. Anand Investment Private Limited – Respondent
Writ Appeal No. 582 of 2018
Decided On : 14-02-2020

Advocates:
Advocate Appeared:
For the Appellants : Sri. Dhyan Chinnappa, Sri. T.L. Kiran Kumar.
For the Respondents: Sri. K.G. Raghavan, Sri. R. Hemanthraj.

Headnote:

Karnataka Land Reforms Act, 1964 - Sections 79-A and 79-B - Companies Act, 1956 - Sections 391 to 394 - Karnataka Land Reforms Rules, 1974 - Rule 27-A - Possession of lands – Condo nation of delay - Whether it is an export oriented project etc. Nothing is mentioned in order - Case of petitioner is that in spite of said Government order lands were not allotted to it – Hence instant writ petitions were filed seeking for a writ of mandamus directing respondent No. 2 to allot and transfer forthwith acres of land of Village to petitioner pursuant to Government Order and for a writ of certiorari to quash letter of respondent No. 2 namely KIADB – Thereafter KIADB in terms of letter intimated erstwhile petitioner company that a detailed proposal has been sent to Government for allotment of lands to petitioner since it is Government which is appropriate authority to allot lands by a Government order - By an another communication it was resolved to give an approval to send suitable proposals to Department of Revenue to allot lands to erstwhile petitioner company - Learned Single Judge considered scheme of amalgamation of companies and its related issues - Learned Single Judge came to conclusion that petitioner is entitled to take possession of lands in question – Held, If contentions of petitioners were to be accepted then there must be reference in Government Order relatable to contentions being advanced - There has to be a reference as to how acts of petitioner company amounts to public purpose - Nature of employment nature of foreign exchange etc., are not forthcoming in Government Order – Firstly is fact that Section 77 of Act deals with disposal of surplus lands - Rule-27A of Rules deals with disposal of lands under Sub-Section (3) of Section 77 of Act - It is narrated that lands could be reserved by State for any public purpose under Section 77(3) - That said lands may be used by State or may be granted for any public purpose as narrated therein namely clause (i) to clause (vii) - Petitioner company is a registered company under Companies Act - It does not come under any one of categories as stipulated under Rule-27 (A) of Rules - Therefore it is a clear case of an illegal order being passed by Government - Therefore court find that order is unsustainable since no public purpose is involved - It is pleased that land has been given for a public purpose - Court have considered material on record - A reading of Government Order does not indicate any public purpose - It only narrates broad principles being followed by Government of India and Government of Karnataka - It indicates with regard to unemployment and overseas transactions - Government Order would necessarily have to indicate that land is being reserved for a public purpose for a particular cause which in turn would help public - There is no reference in Government Order as to what Company is going to manufacture and how public interest is involved – Therefore there is absence of requirements as enunciated in Section 77 (3) of Act - Court are of view that grant of land itself is illegal - Proceedings for forfeiture has not been questioned by writ petitioner - They have attained finality - In view of fact that petitioner is a person who has violated provisions of Karnataka Land Reforms Act in court considered view State could not have ventured to give very same lands to them - Act of issuing Government Order is a fraud on statute - When statute prohibits a person from holding lands or acquire lands State cannot hide behind another provision of law and allot those very same lands to a violator of law - Grant of surplus lands by State is always to be done in public interest and in terms of provisions of Karnataka Land Reforms Act and its Rules - Lands cannot be granted at whims and fancies of State Government - There are various Regulations as provided under Act as referable under Section 77 and Rules 27 (A), (B) etc. which should act as a guiding force in disposal of surplus lands - Direction to KIADB to grant land to writ petitioner by invoking provisions of Section 77 (3) of Act is a fraud on power of State - So far as review petition is concerned subsequent order passed by State was brought to notice of learned Single Judge - Learned Single Judge was of view that this is a subsequent event and therefore does not constitute a ground for review namely that there is an absence of an error apparent on face of record - On considering order passed in review petition prima facie on application of strict principles there may not be any error apparent - That as on date learned Single Judge passed order in writ petition Government order did not exist - However as law is well settled if a subsequent event is brought to notice of learned Single Judge either in a review petition or otherwise court is duty bound to consider subsequent event and to mould relief - Adopting a hyper technical view in court considered view does not aid cause of justice - Ultimately justice has to be rendered by a court of law - Having been made aware of order being withdrawn necessary orders had to be passed by learned single judge - In court considered view failure to do so has led to gross miscarriage of justice - Therefore appropriate interference is called for – Petition allowed

JUDGMENT :

RAVI MALIMATH, J.

1. Aggrieved by the order dated 01.09.2015, passed in Writ Petition Nos. 21942 of 2013 and 30973-30976 of 2013 and also the order dated 02.01.2018, passed in Review Petition Nos. 361 of 2017 and 364-367 of 2017, by the learned Single Judge, respondent nos. 1 and 3 have filed this appeal.

2. The parties will be referred to as per their ranking before the learned Single Judge in the writ petitions.

3. During the year 1977, M/s. Delicia India Private Limited amalgamated with M/s. The Swadeshi Chemicals Private Limited in terms of the order dated 26.09.1977, passed by the High Court of Bombay in Company Application No. 261 of 1977 in Company Petition No. 518 of 1977. The Company owned various lands. In view of the violation of Sections 79-A and 79-B of the Karnataka Land Reforms Act, 1964 (‘the Act’ for short) the lands bearing Survey Nos. 97/3, 98/3, 99/2, 100/2 and 101 of Shettigere Village, Jalahobli, Bengaluru North (Additional) Taluk, measuring in all 20.13 acres of land were forfeited by the Assistant Commissioner by an order dated 31.07.1978. The same has not been challenged and has attained finality. Thereafter, the Government passed an order 29.08.1992, granting the very lands in question to the KIADB for re-allotment to the erstwhile company M/s. Swadeshi chemicals private limited. The same also indicated that the rate fixed was at Rs. 2000/- per acre or the minimum rate as computed under Section 78(2) of the Karnataka Land Reforms Act. Thereafter, by an order dated 06.05.2011, passed by the High Court of Judicature at Bombay in Company Scheme Petition No. 1 of 2011, along with connected matters, M/s. Swadeshi Chemicals Private Limited was amalgamated with M/s. Anand Investment Private Limited, namely the writ petitioner.

4. The case of the petitioner is that, inspite of the said Government order, the lands were not allotted to it. Hence, the instant writ petitions were filed seeking for a writ of mandamus directing respondent No. 2 to allot and transfer forthwith 20.13 acres of land in Survey Nos. 97/3, 98/3, 99/2, 100/2 and 101 of Shettigere Village, Jalahobli, Bengaluru North (Additional) Taluk to the petitioner pursuant to the Government Order dated 29.08.1992 and for a writ of certiorari to quash the letter of respondent No. 2 namely, the KIADB dated 18.05.2012. Thereafter, the KIADB in terms of the letter dated 06.07.2012 intimated the erstwhile petitioner company that a detailed proposal has been sent to the Government for the allotment of the lands to the petitioner, since it is the Government which is the appropriate authority to allot the lands by a Government order. By an another communication dated 18.05.2012, it was resolved to give an approval to send suitable proposals to the Department of Revenue to allot the lands to the erstwhile petitioner company.

5. Statement of objections were filed by the State and the KIADB.

6. The learned Single Judge considered the scheme of amalgamation of the companies and its related issues. The learned Single Judge came to the conclusion that the petitioner is entitled to take possession of the lands in question. In view of the reasons assigned therein, pertaining to the amalgamation of the petitioner company, liberty was granted to the State to take note of the fact that the lands are not in an industrial layout and therefore, transfer of lands in favour of the petitioner’s company by appropriate orders to that effect etc. To that extent, petitioner had to file a representation with the copy of the decree passed in the amalgamation proceedings. Since, the order of the learned Single Judge was not obeyed, the writ petitioner filed C.C.C. No. 186 of 2017 and various orders were passed thereon. During the pendency of the contempt petition, the State filed Review Petition Nos. 361 of 2017 and 364-367 of 2017.

7. It was contended in the Review Petition by the State that the Government Order dated 28.06.2017 has been passed recalling the earlier Government or

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