IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23^RD DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE RAJESH RAI K WRIT APPEAL NO. 1801 OF 2024 (KLR-LG)

BETWEEN:

1. STATE OF KARNATAKA REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPT. OF REVENUE, M S BUILDING, BENGALURU 01.

2. THE DEPUTY COMMISSIONER UDUPI DISTRICT, UDUPI 576101

3. THE SPECIAL TAHSILDAR BRAHMAVAR, UDUPI DISTRICT 576101 Digitally …APPELLANTS signed by (BY SRI. M.N.SUDEV HEGDE, AGA)

VASANTHA KUMARY B K Location: AND:

HIGH COURT OF KARNATAKA 1. SHALINI B HEGDE W/O BALAKRISHNA HEGDE, AGED ABOUT 70 YEARS, RESIDING AT SHIRIYAR VILLAGE, BRAHMAVARA TALUK, UDUPI DISTRICT 576101 …RESPONDENT (BY SRI. PRAKASH B N., ADVOCATE)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, PRAYING TO ALLOW THE WRIT APPEAL BY SETTING ASIDE THE ORDER DATED 19/09/2022 PASSED IN WP NO.37404/2013, ETC.

THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE RAJESH RAI K

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE D K SINGH)

The present writ appeal has been filed by the State impugning the judgment and order dated 19.09.2022 passed by the learned Single Judge in W.P.No.37404/2013 (KLR-LG), filed by the respondent.

2. For the sake of convenience, the parties are referred to as per their rankings before the learned Single Judge.

3. The petitioner was granted in all 9 acres 15 cents of agricultural lands in different extent in Sy.No.296/A measuring 8.46 acres and land bearing Sy.No.279/2 measuring 0.64 acres in Shiriyar Village and land bearing Sy.No.145/A measuring 0.05 acres in Yedthady Village of Udupi Taluk under the provisions of Rule 2(5) of the South Kanara District Lease of Lands for Cashew Cultivation Rules,1957. This grant was conferred on the petitioner in the year 1958. Clause (2) of the said grant of the land would read as under :-

"2) The Grantee has to be option for the renewal of the lease on the expiry of the thirty year period if he has fulfilled the terms and conditions of the grant satisfactorily. The grantee shall also have the option to acquire permanent ownership of the land on the expiry of the thirty years on payment of the value of the land fixed at the time of the grant itself. The land value is fixed at Rs.100/- per acre."

4. The initial grant was for a period of 30 years and thereafter, the respondent was given right to opt for permanent ownership in respect of the land in question on payment of market value of the land. Under the terms of the grant, the market value of the land was fixed at Rs.100/- per acre. In the year 1999 i.e., vide order dated 10.05.1999 the revenue authorities demanded a sum of Rs.35,000/- per acre for granting permanent ownership in respect of the said land in favour of the petitioner.

5. The petitioner had filed W.P.No.20975/1999 impugning the said demand. This Court vide judgment dated 02.07.2003 quashed the impugned order dated 10.05.1999 and directed the authorities to reconsider the matter after giving an opportunity of hearing to the grantee. A direction was also given to determine the market value in accordance with law declared in W.P.No.5796/1995 and connected matters.

6. Pursuant to the said judgment and order dated 02.07.2003 passed in W.P.No.20975/1999, the Deputy Commissioner vide order dated 23.07.2021 had fixed the market value at Rs.2,10,000/- per acre. Pursuant thereto the grantee had paid the market value of Rs.2,10,000/- per acre to become permanent owner of the said land. Thereafter on payment of the said amount at Rs.2,10,000/- per acre, saguvali chit was granted on 23.07.2012. However, the saguvalu chit contained one condition i.e., the grantee shall not alienate the land for a period of 25 years from the date of order dated

23.07.2012 passed by the Deputy Commissioner.

7. The said condition came to be challenged by the grantee in W.P.No.37404/2013. The learned Singl