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2021 Supreme(Kar) 314

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
P.S. DINESH KUMAR, J.
JINDAL ALUMINUM LTD - Appellant
Versus
THE GOVERNMENT OF KARNATAKA DEPARTMENT OF COMMERCE AND INDUSTRY VIDHANA SOUDHA BENGALURU-560 001 – Respondent
WRIT PETITION No.11036 OF 2020 (LA-KIADB)
Decided on : 09-07-2021

Advocates:
Advocate Appeared:
For the Appellant :SHRI. UDAYA HOLLA, SENIOR ADVOCATE FOR SHRI. GANAPATI HEGDE NARAYAN, ADVOCATE
For the Respondent:SHRI. H.K. BASAVARAJ, SHRI. ASHOK HARANAHALLI, SENIOR ADVOCATE FOR SHRI. P.V. CHANDRA SHEKAR, SHRI. S.S. NAGANAND, SENIOR ADVOCATE FOR SHRI. K. KRISHNA, ADVOCATE

Point of Law; Executive is expected to follow the 'Rule of law'. It cannot be gainsaid that in several cases, where fauity executive decisions are implemented lead to irreversible eventualities as in this case and the citizen shall be compelled to silently endure the ill effects of such decisions. If Civil servants act strictly as per Rule of Law the orders resulting from such exercise would need no interference in judicial review.

Headnote:

Constitution of India,1950 - Articles 226, 300A And 227 - Karnataka Industrial Area Development Act, 19661 - Section 1(3), Section 3(1), and Section 28(1) - Real Estate (Regulation and Development) Act5, 2016 - Section 14(2)(ii) - Joint Development Agreement to develop the land and to construct residential fiats - Petitioner has spent about Rs.54C Crores for the development of project - Industrial Areas Development Board4 - Whether petitioners have been put on proper notice and given a fair hearing - Whether acquiring authority has considered petitioner's objections and passed a reasoned order - whether there was construction beneath land proposed for acquisition - First petitioner is absolute owner of land measuring guntas - Village Bangalore North and site bearing measuring East to West 40 feet - North to South feet on eastern side feet on western side in Ravi Layout - Petitioners have entered into a Joint Development Agreement to develop land and to construct residential fiats - Second petitioner has spent about Rs.54C Crores for development of the project - Bangalore Metro Rail Corporation acquired belonging to first petitioner; State Government have issued Notifications under Sections 1(3), 3(1) and 28(1) of Karnataka Industrial Area Development Act - Acquire land of Village and Village - Petitioner and it is part of apartment project - Karnataka Industrial Areas Development Board4 has issued two notices as per Annexures - Petitioner has replied stating that buildings were already constructed on the lands in question - petitioner has already surrendered of prime iand for Metro station without any demure; ana it desired to know the actual purpose for which the land was again sought to be acquired and requested for a sketch of land proposed for acquisition.

Finding of the Court:

Less said about the said Committee is better because, it is conspicuous that the Committee had no inputs at all but, yet it has cleared the project - Record that there are several island villages in the State and the residents of those villages are disconnected from main land for several months during mansoon for want of bridges, whereas, in this case,, the respondents want to provide a third road to connect between metro station and village - PIL moved in W.P. No inter alia with a prayer to construct Metro Station in Srikantapura has been disposed of, holding that writ court cannot issue any direction as it is a policy matter - Petitioners therein and three others sought to implead themselves in this writ petition - Application has been dismissed - Proposed road is for extraneous consideration cannot be brushed aside in view of the conduct of writ petitioner in PIL seeking impleadment in these proceedings - Suffice to note that manner in which entire acquisition proceeding has been conducted.

Result: Writ petition is allowed

ORDER :

Jindal Alluminium Ltd., and M/s. Prestige South City holdings have jointly presented this writ petition with a prayer inter alia to:

    • Quash three impugned notifications dated 30.06.2020 issued under Section 1(3), Section 3(1), and Section 28(1) of the Karnataka Industrial Area Development Act, 1966['KIAD Act' for short]; and

• Notification dated 05.09.2020 issued under Section 28(4) of the Karnataka Industrial Area Development Act, 1966, all issued by Respondent No.1 (vide Annexure A, B, C and W respectively).

2. Summary of facts averred in the writ petition and submissions of Shri. Uday Holla, learned Senior Advocate are:

    • First petitioner is the absolute owner of land measuring 33 acres 25 guntas in Sy. Nos. 29/2, 28/4, 31/1, 31/2, 36/1, 32/1 and 32/2 of Chikkabidarakallu Village, Dasanapura Hobli, Bangalore North Taluk and site bearing No.332 measuring East to West 40 feet, North to South 62 feet on the eastern side and 63 feet on the western side in Ravi Kirloskar Layout;

• During 2016, petitioners have entered into a Joint Development Agreement to develop the land and to construct residential flats. Second petitioner has spent about Rs.540 Crores for the development of the project;

• In the year 2016, The Bangalore Metro Rail Corporation Ltd, [Respondent No.4; 'BMRCL' for short], has acquired 3850 sq. mtrs. (38 guntas) belonging to the first petitioner;

• On 30.06.2020, State Government have issued Notifications under Sections 1(3), 3(1) and 28(1) of Karnataka Industrial Area Development Act['KIAD Act' for short], proposing to acquire 1863.19 sq. mtrs. of land of Chikkabidarakallu Village and 44.27 sq. mtrs. in Srikantapura Village. Out of that, 1503.67 sq. mtrs. in Sy. No.28/4 of Chikkabidarakallu village, belongs to first petitioner and it is part of the apartment project. On 01.07.2020, Karnataka Industrial Areas Development Board['KIADB' for short] has issued two notices as per Annexures -M & N under Section 28(2) of KIAD Act, calling upon the petitioner to file objections, if any. The said notices were served on 08.07.2020. First petitioner has replied on 09.07.2020 stating that the buildings were already constructed on the lands in question; first petitioner has already surrendered 3344 sq. mtrs. of prime land for Metro station without any demure; and it desired to know the actual purpose for which the land was again sought to be acquired and requested for a sketch of the land proposed for acquisition;

• First petitioner, also wrote to BMRCL on 27.07.2020. It wrote a second letter to KIADB on 03.08.2020. Neither KIADB nor BMRCL gave any reply;

• On 03.08.2020, a sham hearing was conducted and an order was passed on 17.08.2020. Thereafter, on 18.08.2020, BMRCL has replied to first petitioner's letter dated 03.08.2020 stating that Metro rail project is committed to provide first and last mile connectivity and the proposed land was sought to be acquired to provide connectivity to residents of the villages;

• There is no application of mind on the part of SLAO and the Government. The decision is arbitrary;

• There was no effective hearing;

• In the order passed under Section 28(3) of the KIAD Act, petitioner's objections have not been considered;

• There are two existing roads on the eastern side of the project connecting the Metro Station on the National Highway No.4 and the Anchepalya road. Hence there is no need for a third road;

• Respondent-BMRCL has attempted to mis-lead the Court and it has not come with clean hands;

• In its first Statement of Objections, it has stated that what is sought to be acquired is only vacant land. After submission of report by the Court Commissioner, BMRCL has changed its stand in its additional Statement of objections and admitted that there is basement structure beneath the land sought to be acquired;

• As per Section 14(2)(ii) of The Real Estate (Regulation and Development) Act['RERA' for short], 2016, consent of 2/3rd of allottees other than the promoter is necessary to make any alterati

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