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2025 Supreme(Kar) 2365

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
E.S.INDIRESH, J.
Mariyamma W/o Late Venkate Gowda – Appellant
Versus
Executive Engineer Karnataka Industrial Areas Development Board – Respondent
Writ Petition No. 11578 of 2022, Writ Petition No. 14493 of 2020
Decided On : 02-12-2025

Advocates Appeared:
For the Appellant : Ajoy Kumar Patil
For the Respondents: Ashok N. Naik, A. Madhusudhana Rao

The acquisition proceedings under the Right to Fair Compensation Act lapsed due to non-payment of compensation and failure to take possession, rendering subsequent notifications void and constituting fraud by public authorities.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Sections 24(2), 28(1), and 28(5) - Karnataka Industrial Areas Development Act, 1966 - Section 28 - Land acquisition proceedings challenged on grounds of delay, fraud, and misrepresentation - The High Court found that acquisition proceedings initiated were void due to failure to take possession and pay compensation, concluding that the actions of the KIADB constituted a clear case of fraudulent exercise of power intended to benefit a third party. (Paras 4, 26, 30, 38)

(B) Administrative Law - The powers of State and public agencies should not be exercised arbitrarily to aid private interests, and any notification not adhering to statutory procedures is susceptible to judicial scrutiny and quashing. (Paras 11, 34)

Facts of the case:
The petitioners claimed to be the rightful owners seeking to quash acquisition proceedings against their land initiated under various notifications by the respondent KIADB, arguing the fraud in the allotment of land for commercial purposes to a private entity without lawful possession or compensation.

Findings of Court:
The Court reiterated that failure to follow legal procedures in land acquisitions rendered the acquisition null and void, emphasizing that the KIADB’s actions facilitated private interests unlawfully at the expense of rightful landowners.

Issues: The main issues were whether the acquisition proceedings had lapsed under the 2013 Act due to non-payment of compensation and non-possession, and the validity of the actions taken by the KIADB based on alleged fraud involving third parties.

Ratio Decidendi: The court held that, as possession had not been taken, and no compensation was paid as required by law, the acquisition was void, and the actions of the KIADB were arbitrary, warranting judicial intervention to uphold the rights of the petitioners.

Result: Writ Petitions allowed; acquisition proceedings declared void.

Table of Content
1. nature of the parties and purpose of the petitions. (Para 1 , 2 , 3)
2. background of land ownership and previous legal actions. (Para 4)
3. details of ongoing possession claims and previous eviction notices. (Para 5)
4. summary of additional legal representation. (Para 6)
5. petitioners’ argument against the kiadb regarding acquisition issues. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13)
6. further legal representations regarding jurisdiction and evictions. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20)
7. respondents' arguments against maintainability of writ petitions. (Para 21 , 22 , 23)
8. arguments regarding successful completion of acquisition processes. (Para 24 , 25)
9. court’s analysis and application of legal principles. (Para 26 , 27 , 28 , 29 , 30 , 32 , 33 , 34 , 35 , 36)
10. court's finding on the fraudulent actions and their impact. (Para 38)

ORDER :

1. In writ petition No.11578 of 2022, the petitioners are challenging the orders dated 05th April, 2022 (Annexure-M) passed in Miscellaneous Appeal No.39 of 2021 by the VI Additional District and Special Judge, Mysuru and Order dated 28th October, 2021 (Annexure-H) passed by the respondent No.1; inter alia sought for a direction to the respondents not to dispossess petitioners from the land in question.

2. In writ petition No.14493 of 2020, petitioners are challenging the order dated 21st December, 2019 (Annexure-A) passed by the respondent No.4 and Order dated 20th December, 2019 (Annexure-F10) passed by the respondent No.1; inter alia sought for declaration that the entire acquisition proceedings initiated as per the Final Notification dated 26th November, 2005 (Annexure-G) is void.

3. For the sake of convenience, the parties in these petitions are referred to as per their ranking before this Court in Writ Petition No.14493 of 2020.

FACTS OF THE CASE:

4. The relevant facts for adjudication of Writ Petition No.14493 of 2020 are as follows:

4.1. Petitioners claim to be the legal heirs of late Venkategowda and the land in question has been granted to the grandfather of petitioners viz., Bundegowda as per the order dated 14th March, 1980 passed by the Land Tribunal. After the demise of the said Bundegowda, the revenue records in respect of the land in question transferred in favour of his son late Venkategowda (father of the petitioners). During the year-1981, the respondent-Karnataka Industrial Areas Development Board proposed to acquire the land in question to an extent of 2 acre 20 guntas out of 4 acre 37 guntas in Survey No.92 of Hootagalli Village, Kasaba Hobli, Mysuru Taluk for industrial purpose. It is also stated that the father of petitioners viz., late Venkategowda, during the year-1984 borrowed loan from one Mulagi M. Patel by executing a nominal Sale Deed without delivering the physical possession of the land. Thereafter, the said late Venkategowda cleared the loan and as such, the possession of land to an extent of 2 acre 17 guntas in Survey No.92 of Hootagalli Village, remained with late Venkategowda and his children. Further, it is averred in the writ petition that, son of the said Mulagi M. Patel viz., H.M. Patel filed Original Suit Nos.54 of 2004 and 94 of 2004 against late Venkategowda and others seeking relief of declaration and permanent injunction in respect of the land in question. Thereafter, the said late Venkategowda and others, being a defendants in the aforesaid suits filed written statement and contended that the Sale Deed dated 15th June, 1984 is only a nominal Sale Deed and as such, the said suits came to be dismissed on 04th September, 2012.

4.2. It is further stated in the writ petition that the respondent-KIADB tried to interfere with the possession of late Venkategowda, father of petitioners in the land in question and therefore, father of petitioners filed Writ Petition No.2570 of 2006. This Court, by order dated 18th August, 2008 (Annexure-C), dismissed the Writ Petition No.2570 of 2006, holding that the father of petitioners had already instit

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