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2022 Supreme(Kar) 144

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ALOK ARADHE, MS. J.M. KHAZI, JJ.
Karnataka Industrial Area Development Board – Appellant
Versus
Franciscan Service Society of Bangalore Rep. By its Secretary – Respondent
W.A. No.604 of 2020 (LA-KIADB) in W.P.No.34032 of 2019 (LA-KIADB)
Decided on : 30-05-2022

Advocates:
Advocate Appeared:
For the Appellant : MR. BASAVARAJ V. SABARAD, FOR MR. H.L. PRADEEP KUMAR, ADV.,)
For the Respondent: MR. C.M. NAGABUSHANA, FOR C/R1 MR. S. RAJASHEKAR, Adv

Headnote:

Constitution of India, 1950 - Article 300-A - Karnataka High Court Act, 1961 - Section 4 - Karnataka Industrial Areas Development Act, 1966 - Section 28, 28(1), 28(3), 28(4) – Appeal - Acquisition of land - Appeal briefly stated are that appellant No.1 is Board constituted under Section 5 of Act and is engaged in promoting and assisting in rapid and orderly establishment, growth and development of industries - Appellant also develops industrial areas and provides industrial infrastructure facilities and amenities in industrial areas. The respondent No.1 is a society established for religious and charitable purposes for benefit of Christian community – Held, Judge has quashed notification on ground that final notification was not issued within reasonable period of two years. The learned Single Judge has failed to appreciate that at the instance of the society, an enquiry was initiated which remained pending up to the year 2016. Even though rights of Society in respect of land in question were adjudicated by an order passed under Section 28(3) of Act, yet no challenge was made to said order in writ petition. In facts and circumstances of case, delay cannot be said to be unexplained and inordinate delay. During the pendency of this appeal, a notification under Section 28(4) has been issued - So far as the reliance placed by the learned counsel for Society in a Division Bench decision of this Court in WA is concerned, suffice it to say in said decision, this Court quashed the notification issued under Section 28(1) of the Act on the ground that there was a delay of 14 years in issuing the notification under Section 28(4) of Act which was not explained. Therefore, the aforesaid decision is of no assistance to Society in facts of the case. So far as submission that Society has no locus to challenge the proceeding for acquisition of land is concerned, it is noteworthy that order passed in W.P. has attained finality and pursuant to the aforesaid order, the Board has conducted the enquiry. Therefore, aforesaid contention does not deserve acceptance. In the instant case, the delay caused in issuing the notification under Section 28(4) has been explained and the same is not inordinate. In any case, large chunks of land has been acquired for establishment of an industrial area and therefore, no interference is called for, at the instance of the society which owns a small piece of land - Appeal allowed.

JUDGMENT :

This intra court appeal under Section 4 of Karnataka High Court Act, 1961 has been filed against an order dated 12.02.2020 passed by the learned Single Judge by which the preliminary notification dated 16.12.2006 and the notification under Section 28(3) of the Karnataka Industrial Areas Development Act, 1966 (hereinafter referred to as 'the Act') have been held to be abandoned and lapsed and the writ petition preferred by Respondent No.1 has been allowed.

2. Facts leading to the filing of this appeal briefly stated are that the appellant No.1 is Board constituted under Section 5 of the Act and is engaged in promoting and assisting in the rapid and orderly establishment, growth and development of industries. The appellant also develops the industrial areas and provides industrial infrastructure facilities and amenities in industrial areas. The respondent No.1 (hereinafter referred to as 'the Society' for short) is a society established for religious and charitable purposes for the benefit of Christian community.

3. One Nanjappa was the owner of the land bearing Sy.No.100/2 and Sy.No.101/2 measuring 1 Acre and 28 Guntas each, situate at Hoovinayakanahall, Jala Hobli, Bengaluru North Taluk, who got the aforesaid lands converted, by an order dated 07.02.2004, for non agricultural residential purposes. One Smt. Hanumakka was the owner of the land bearing Sy.No.95/2 measuring 3 Acres. Aforesaid Smt.Hanumakka and her children got the land converted vide orders dated 17.03.2004 and 05.06.2004 for non agricultural purposes. The Society purchased the lands bearing Sy.Nos. 100/2, 101/1 and 95/2 (hereinafter referred to as the lands in question' for short) vide registered sale deeds dated 17.02.2004 and 26.02.2004.

4. Section 28 of the Act deals with acquisition of land. Section 28 of the Act is reproduced below for the facility of reference:

    28. Acquisition of land.-

(1) If at any time, in the opinion of the State Government, any land is required for the purpose of development by the Board, or for any other purpose in furtherance of the objects of this Act, the State Government may by notification, give notice of its intention to acquire such land.

(2) On publication of a notification under sub-section (1), the State Government shall serve notice upon the owner or where the owner is not the occupier, on the occupier of the land and on all such persons known or believed to be interested therein to show cause, within thirty days from the date of service of the notice, why the land should not be acquired.

(3) After considering the cause, if any, shown by the owner of the land and by any other person interested therein, and after giving such owner and person an opportunity of being heard, the State Government may pass such orders as it deems fit.

(4) After orders are passed under sub-section (3), where the State Government is satisfied that any land should be acquired for the purpose specified in the notification issued under sub-section (1), a declaration shall, by notification in the official Gazette, be made to that effect.

(5) On the publication in the official Gazette of the declaration under subsection (4), the land shall vest absolutely in the State Government free from all encumbrances.

(6) Where any land is vested in the State Government under sub-section (5), the State Government may, by notice in writing, order any person who may be in possession of the land to surrender or deliver possession thereof to the State Government or any person duly authorised by it in this behalf within thirty days of the service of the notice.

(7) If any person refuses or fails to comply with an order made under subsection (5), the State Government or any officer authorised by the State Government in this behalf may take possession of the land and may for that purpose use such force as may be necessary.

(8) Where the land has been acquired for the Board, the State Government, after it has taken possession of the land, may transfer the land to the Board f

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