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2023 Supreme(Kar) 782

IN THE HIGH COURT OF KARNATAKA
Krishna S. Dixit, J.
R. Padma – Appellant
Versus
State of Karnataka – Respondent
Writ Petition No. 32602 of 2017 (LA-KHB)
Decided On : 24-01-2023

Advocates appeared:
S.V. Giridhar, Advocate, Sridhar Hegde, Advocate, Pushpakantha, Advocate, R. Hemanth Raj, Advocate

The court emphasized the requirement of transparency in public property disposal and the limitations on the Housing Board's authority to dispose of its property.

Headnote:

Reconveyance - Housing Board - Sec. 54 of the Transfer of Property Act, 1882, Sec. 38 of the Karnataka Housing Board Act, 1962, Rule 9(3) of the Karnataka Housing Board Rules, 1964, SACHIDANANDA PANDEY vs STATE OF WEST BENGAL, AIR 1987 SC 1109 - The court declined indulgence in the matter, emphasizing that the subject properties were purchased by the Housing Board without a right to reconveyance. The court also highlighted the requirement of transparency in public property disposal and the limitations on the Housing Board's authority to dispose of its property.

Fact of the Case:

Petitioners sought quashment of orders by the Karnataka Housing Board asking for payment of 'Guidance Value' for reconveyance of scheduled lands. The Housing Board opposed, stating that the Petitioners, having sold their properties, cannot seek reconveyance without a condition of enablement in the Conveyances or the law giving such a right.

Finding of the Court:

The court declined indulgence, agreeing with the Housing Board's submission that the properties were sold without a right to reconveyance. It emphasized the requirement of transparency in public property disposal and the limitations on the Housing Board's authority to dispose of its property.

Issues: Whether the Petitioners had a right to seek reconveyance of the properties sold to the Housing Board.

Ratio Decidendi: The court held that the properties were sold without a right to reconveyance, emphasizing the requirement of transparency in public property disposal and the limitations on the Housing Board's authority to dispose of its property.

Final Decision: The Writ Petitions were dismissed, with a warning to the Respondent- State and the Respondent- Housing Board against reconveying the properties bought by sale except by public auction and in accordance with law. Any amount deposited by the Petitioners for reconveyance shall be refunded.

JUDGMENT/ORDER

1. Petitioners are knocking at the doors of Writ Court seeking quashment of two orders both dtd. 21/9/2015 passed by the 2nd Respondent - Karnataka Housing Board whereby they were asked to make payment of 'Guidance Value', if they wanted reconveyance of scheduled lands in their favour. Both the learned counsel appearing for the petitioners submit that in similar matters Respondent - Housing Board, has reconvyed the lands to other land owners after getting the sale price back with some interest and therefore, their clients cannot be discriminated against as if they are the children of the stepmother. So contending, they seek indulgence of the Writ Court.

2. Learned AGA appearing on behalf of Respondent - State and the learned panel counsel appearing for the Housing Board opposed the Petitions making submission in justification of the impugned orders. They contend that admittedly the Petitioners having sold their properties and having received the agreed price, they cannot now seek reconveyance in the absence of a condition of enablement in the Conveyances or the law giving such a right. Learned AGA adds that, in matters like this there is no justiciable right which arguably may avail where properties are taken by compulsory purchase under the Land Acquisition laws. So contending, they seek dismissal of the Writ Petitions.

3. Both the cases are taken up together with the concurrence of the Bar since they have substantially common fact matrix and relief columns. Having heard the learned counsel for the parties and having perused the petition papers, this Court declines indulgence in the matter broadly agreeing with the submission made by the learned AGA and the Panel Counsel.

4. Indubitably, sale is one of the voluntary modes of transfer of property. Sec. 54 of the Transfer of Property Act, 1882, defines sale as "a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised." This definition indicates that in order to constitute a sale, there must be transfer of ownership from one person to another, i.e., all rights & interest in the properties possessed by the seller are transferred to the buyer and he does not retain any part of his interest or right in the property sold; or else it would not be a sale. An outright sale is distinguished from a sale with an option of reconveyance, which must be evidenced by the Sale Deed itself. If the sale deed is totally silent about that, the transfer would be an outright sale and not a sale with an option of reconveyance vide VITTAL MAHARM PATIL vs. FAKIRA BHAVSINGH PATIL, AIR 2011 NOC BOMBAY 292. Admittedly, the subject properties were purchased by the Housing Board from the owners thereof after paying the agreed prices. No paragraph from the private conveyances is shown to give the right to previous owners to buy back the property. Such a situation, as already mentioned above, constitutes an outright sale or transfer of property bereft of an option for reconveyance.

5. In support of their clients' claim for reconveyance, learned counsel appearing for the Petitioners placed heavy reliance on Sec. 38 of the Karnataka Housing Board Act, 1962. The said sec. reads as under:

"Power to dispose of land.- Subject to any rules made by the State Government under this Act, the Board may retain, lease, sell, exchange or otherwise dispose of, any land, building or other property vesting in it and situate in the area comprised in any housing scheme (or land development scheme) sanctioned under this Act."

The power of the Board to dispose off its property is not absolute, since in so many words, it is conditioned by the rules to be promulgated by the Government under Sec. 74 of the 1962 Act. Rule 9(3) of the Karnataka Housing Board Rules, 1964 provides for sale of land is true. However, such a contention does not come to their aid inasmuch as the aforementioned provisions merely bestow power upon the Board to lease sell or otherwise dispose of any land and no

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