Denotification under the Karnataka Industrial Areas Development Act must be legally permissible and not actuated by malafide motives.

JUDGMENT

Krishna S Dixit, J. - There are two sets of challenge in these Petitions: in W.P.Nos. 40343/2004 & 40382/2004, the land owners have laid a challenge to the acquisition proceedings taken up under the provisions of the Karnataka Industrial Areas Development Act, 1966, which commenced with the issuance of Preliminary Notification dated 10.12.2001 issued u/s 28(1) followed by the enquiry under Section 28(3) dated 18.11.2003 and culminating in the issuance of the Final Notification dated 7.5.2004 u/s 28(4) and eventually resulting into the issuance of Possession Delivery Notice dated 3.9.2004 u/s 28(6) of the 1966 Act.

2. Learned counsel appearing for the Petitioner-land owners argued that these lands are not required for the purpose for which they are notified for acquisition; this fact becomes pronounced by virtue of denotification of these lands from the acquisition process; initially, the acquisition was for the benefit of INFOSYS, which has given up its claim; subsequently there being no named beneficiary, Final Notification could not have been issued; the acquisition process is continued only to benefit real estate agents and thus, the same is vitiated by colourable exercise of power; there is no valid scheme preceding the acquisition; even the very Notification declaring the petition lands and other lands as an 'industrial area' itself is without due application of mind; the entire process of acquisition is vitiated because of the involvement of middlemen; part of the lands are reserved as park and open spaces under the provisions of the Bangalore Development Authority Act, 1976 and therefore, these lands cannot be acquired. So contending, they seek invalidation of the acquisition proceedings.

3. In the companion three cases i.e., W.P.No.11727/2006,W.P.No.15452/2007& W.P.No.21456/2009, the beneficiary of acquisition seeks to lay a challenge to the three Notifications dated 21.03.2006, 12.09.2007 & 3.5.2008 issued by the government whereby, the subject lands have been dropped from acquisition process. Learned counsel for the Petitioner vehemently argued that these Notifications are issued with malafide; they are issued without jurisdiction & jurisdictional facts; they are bad in being unilaterally issued with no notice to Petitioner-Company which has already paid a huge money; once the objections of the land owners were overruled and Final Notification was issued, the government is absolutely not justified in issuing the impugned Notifications; the then Deputy Chief Minister/Minister is instrumental in all this for obvious reasons. So contending, he seeks invalidation of the said Notifications, so that the acquisition process would be accomplished and land would fall into the hands of his client.

4. Learned AGA appearing for the government maintained equidistance from the land owners and the beneficiary of acquisition. He made legal submissions substantially based upon the Statement of Objections filed in the Writ Petitions of the land owners. Learned counsel appearing for the beneficiary made submissions in justification of the acquisition process and for the invalidation of denotification of the lands. The contentions which he took up to oppose the land owners petitions are broadly the contentions which the beneficiaries have taken up in its Writ Petitions. Since common questions of law & facts are involved, all these petitions with the concurrence of the Bar were taken up for hearing. Having heard the learned counsel for the parties and having perused the Petition Papers, this Court is inclined to grant indulgence in the challenge to de-notification of the land and to decline interference in the challenge to the acquisition, for the following reasons:

(A) AS TO CHALLENGE BY THE BENEFICIARY COMPANY TO THE DENOTIFICAITON OF LANDS:

(i) The vehement contention of advocates appearing for the land owners that the 'so call