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Karnataka Co-Operative Milk ... vs Sri. Sathyanarayana
2022 Latest Caselaw 7953 Kant

Citation : 2022 Latest Caselaw 7953 Kant
Judgement Date : 2 June, 2022

Karnataka High Court
Karnataka Co-Operative Milk ... vs Sri. Sathyanarayana on 2 June, 2022
Bench: Alok Aradhe, J.M.Khazi
                               1



     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

          DATED THIS THE 2ND DAY OF JUNE 2022

                         PRESENT

         THE HON'BLE MR. JUSTICE ALOK ARADHE

                              AND

           THE HON'BLE MS.JUSTICE J.M. KHAZI

             W.A. NO.4829 OF 2010 (LA-RES)
                          IN
             W.P.No.19526 OF 2002 (LA-RES)

BETWEEN:

KARNATAKA CO-OPERATIVE MILK
PRODUCERS FEDERATION
DR. M.H. MARIGOWDA ROAD
BANGALORE 560029
REP. BY TIS MANAGING DIRECTOR
MR. A.S. PREMANATH.
                                       ... APPELLANT
(BY MR. UDAYA HOLLA, SR. COUNSEL FOR
    MR. CHANDRASHEKAR S, ADV.,)

AND:

1.     SRI. MUNISHAMAPPA
       AGED ABOUT 78 YEARS.

       (R1 DELETED).

2.     SRI. SATHYANARAYANA
       S/O MUNISHAMAPPA
       AGED ABOUT 40 YEARS
       R/AT NO.120, NAGASHETTIHALLI
       BANGALORE
       REP BY GPA HOLDER
       SRI. N. SREENIVAS.
                             2




3.    THE STATE OF KARNATAKA
      REPRESENTED BY THE CHIEF SECRETARY
      VIDHANA SOUDHA, BANGALORE.

4.    THE LAND ACQUISTION OFFICER
      BANGALORE SUB DIVISION
      BANGALORE.

5.    DEPUTY COMMISSIONER
      BANGALORE DISTRICT
      BANGALORE.

6.    STATE OF KARNATAKA
      BY ITS SECRETARY
      REVENUE DEPARTMENT
      VIDHANA SOUDHA, BANGALORE.

7.    KARNATAKA DAIRY DEVELOPMENT CORPORATION
      REP BY ITS SECRETARY
      DR. M.H. MARIGOWDA ROAD
      BANGALORE 29.

                                           ... RESPONDENTS
(BY MR. GIRISH G.N. ADV., FOR R2
    MR. S. RAJASHEKAR, AGA FOR R3-R6
R7 SERVED
    MR. A.G. HOLLA, ADV., FOR IMPLEADING APPLICANT
(GPA FOR R2 KEPT UNDER PENDING AS PER SLP
NO.17362-17363/14 DTD:31.102014)
R1 DELETED)
                             ---

      THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA

HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER PASSED IN

THE    WRIT   PETITION   NO.19526/2002     (LA-RES)   DATED

22/11/2010.
                                 3



      THIS W.A. COMING ON FOR FINAL HEARING, THIS DAY,

ALOK ARADHE J., DELIVERED THE FOLLOWING:



                          JUDGMENT

This intra court appeal takes an exception to order

dated 22.11.2010 passed by learned Single Judge, by which

preliminary and final notifications dated 15.01.1978 and

09.03.1978 respectively as well as award dated 05.06.1979

have been quashed and the writ petition preferred by

respondent Nos.1 and 2 has been allowed. In order to

appreciate the grievance of the appellants, few facts need

mention, which are stated infra.

2. Facts leading to filing of this appeal briefly stated are

that the Appellant (hereinafter referred to as 'the Federation'

for short) is a federation of Milk Producers Cooperative

Society Union in the State of Karnataka and is a Federation

owned by the State having programmes and projects to

strengthen the rural economy of the State. The appellant has

been established with a view to develop the infrastructure for

procurement and processing of milk produced primarily by

the people of rural areas. The appellant requires lands for

carrying out its programmes and projects which fall within

the ambit and scope of public purpose.

3. The respondent Nos.1 and 2 were the owners of

land bearing Sy.No.59/4 measuring 17,080 square feet

(hereinafter referred to as 'the schedule property' for short)

situate in Nagashettihalli Village, Kasaba Hobli, Bangalore

North Taluk. The schedule land including other lands was

required by the Bangalore Development Authority

(hereinafter referred to as 'the BDA' for short) for formation

of 'Raj Mahal Vilas Extension II Stage Layout'. A notification

dated 03.01.1977 was issued by the BDA under Section

17(1) of the Bangalore Development Authority Act, 1976

(hereinafter referred to as 'the 1976 Act' for short).

4. Thereafter, on 15.01.1978 the Government of

Karnataka issued a notification under Section 4 read with

Section 17(1) of the Land Acquisition Act, 1894 (hereinafter

referred to as 'the 1894 Act' for short)notifying the aforesaid

land as well as other lands measuring 27 acres in all, for the

benefit of Karnataka Diary Development Corporation Limited.

The said notification was published in the gazette dated

23.02.1978.

5. The BDA after issuance of the notification under

Section 4(1) of the 1894 Act issued the final notification

under Section 19(1) of the 1976 Act on 03.03.1978.

However, after issuance of the notifications under Section

17(1) and 19(1) of the 1976 Act, the BDA neither passed any

award nor took possession of the schedule land. Thereafter,

the State Government issued a final notification on

09.03.1978 under Section 6 of the 1894 Act and the

possession of the schedule land was handed over to

Karnataka Diary Development Corporation Limited on

05.06.1979. After issuance of notices under Section 9 and 10

of the 1894 Act, an award was passed on 05.06.1979 in

respect of schedule land. The amount of compensation was

deposited in the court on 12.11.1979 in respect of land in

question.

6. Two of the land owners of other survey numbers

viz., Sy.No.60/1 and Sy.No.60/4 filed a writ petition viz.,

W.P.No.4697/1978 c/w W.P.No.4495/1978, in which

challenge was made to the validity of preliminary as well as

final notifications dated 15.01.1978 and 09.03.1978 issued

under the 1894 Act. Learned Single Judge of this court vide

order dated 19.10.1980 inter alia held that the land in

question is not a waste land, therefore, the invocation of

power under Section 17(1) of the 1894 Act was held to be

bad in law and the notifications issued under Section 4(1)

and 6(1) of the 1894 Act were quashed in its entirety.

7. The said order passed by the learned Single

Judge was challenged in a writ appeal viz., W.A.Nos.363-

364/1980. A division bench of this court by an order dated

29.10.1980 confined the benefit of the quashment of

notifications only to the extent of the lands held by

respondents therein.

8. Thereafter, some other land owners challenged

the acquisition proceeding initiated under the 1894 Act in a

writ petition viz., W.P.No.20407/81. The said writ petitions

were dismissed as withdrawn as the owners of the land

withdrew the amount of compensation.

9. As the schedule lands were notified for benefit of

the Federation, it submitted a representation to the

Government stating that notifications issued in favour of BDA

in respect of schedule land be dropped from acquisition.

Thereupon, the State Government by an order dated

18.04.1995 passed under Section 48 of the 1894 Act

withdrew the notifications in favour of BDA in respect of

schedule lands.

10. The owners of the land tried to put up

construction on schedule lands and the said action was

resisted by the Federation. The owners of the schdule lands

thereafter filed a writ petition viz., W.P.No.32491/1997

seeking a declaration that the respondents in the writ

petition had no authority in law to demolish or interfere with

the possession of the owners over the schedule land.

However, in the said writ petition the proceeding for

acquisition under the 1894 Act was not challenged. The said

writ petition was withdrawn by the owners on 04.03.1998

and the same was dismissed. Thereafter, the owners filed a

civil suit viz., O.S.No.2128/1998 before the City Civil Court

seeking the relief of permanent injunction, which was

dismissed on 13.03.1998.

11. After a period of 24 years, the owners filed writ

petition viz., W.P.No.19526/2002 in which challenge was

made to the validity of preliminary as well as final notification

dated 15.01.1978 and 09.03.1978 and the award dated

05.06.1979. The learned Single Judge by an order dated

22.09.2010 inter alia held that the possession of the

schedule land was taken before an award was passed.

Therefore, the preliminary as well as final notifications dated

15.01.1978 and 09.03.1978 and the award dated 05.06.1979

cannot be sustained in the eye of law . It was further held

that owners are entitled to the benefit of the order dated

29.10.1980 passed in WP No.4495/78 and the notifications

were quashed. In the aforesaid factual background, the

Federation has filed this appeal.

12. Learned Senior counsel for the appellant

submitted that the learned Single Judge grossly erred in

holding that the benefit of the decision of the learned single

judgein WP No.4495/1978 in respect of other lands bearing

Sy.No.60/1 and Sy.No.60/4 is also available to the owners of

the land. It is further submitted that the finding that actual

physical possession of the schedule land has not been taken,

is contrary to the material available on record. It is also

submitted that the learned Single Judge ought to have

appreciated that the writ petition suffers from inordinate

delay and laches and therefore, the same could not have

been entertained. Similarly, the owners of the land had filed

a writ petition challenging the validity of notifications issued

under Section 4 and 6 of the 1894 Act and had withdrawn

the same. It is also pointed out that the owners of the land

had filed a suit for injunction, which was dismissed. It is also

pointed out that since, provision of Section 17(1) of the 1894

Act was invoked, therefore, it was permissible for the State

to take possession prior to passing of an award. In support

of the contention that the writ petition as liable to be

dismissed on the sole ground of inordinate delay and laches,

reliance has been placed on decisions of Supreme Court in

STATE OF ORISSA VS DHOBEI SETHI (1995) 5 SCC 583,

URABN IMPROVEMENT TRUS, UDAIPUR VS BHERU LAL

AND OTHERS (2002) 7 SCC 712,MUNICIPAL

CORPORATION OF GREATER BOMBAY VSINDUSTRIAL

DEVELOPMENT CO. PVT LTD AND OTHERS (1996) 11

SCC 501, SS BALU AND OTHERS VS STATE OF KERALA

(2009) 2 SCC 479 AND GHULAM RASOOL LONE VS

STATE OF JAMMU AND KASHMIR AND OTHERS (2009)

15 SCC 321.

13. On the other hand, learned Senior counsel for the

owners submitted that since, the notification dated

03.01.1977 was already issued under Section 17(1) of the

1976 Act by the BDA, therefore, the State Government could

not have invoked the provisions of 1894 Act for acquisition of

the schedule land. It is submitted that a notification dated

18.04.1995 was issued under Section 48 of the 1894 Act

and the schedule land was released in favour of the owners.

Therefore, the entire proceeding initiated under 1894 Act is

void ab initio and the benefit of the quashment of the

proceeding has to accrue to all the owners of the land. It is

also urged that impugned notifications and the award passed

under 1894 Act is ab initio void, therefore, the question of

delay and laches on the part of the owners is not an

impediment in granting the relief to the owners of the land. It

is also argued that the Federation does not require the

schedule land as another land has already been acquired for

the Federation.

14. Learned Additional Government Advocate has

supported the stand taken by learned Senior counsel for the

Federation and has submitted that the order passed by the

learned Single Judge cannot be sustained in the eye of law.

15. We have considered the submissions made on

both sides and have perused the record. Before proceeding

further, we deem it appropriate to refer to well settled legal

principles with regard to delay and laches. The Supreme

Court while dealing with a challenge to the land acquisition

proceedings, held that when a person challenges a

Notification issued under Section 4 of the Land Acquisition

Act on any ground, it should be challenged within a

reasonable period and if the acquisition is challenged at a

belated stage, the petition deserves to be dismissed only on

this ground. [See: 'HARI SINGH AND ORS. VS. STATE OF

U.P.', AIR 1984 SC 1020]. A constitution bench of the

Supreme Court in 'AFLATOON AND ORS.VS.

L.T.GOVERNOR. DELHI AND ORS. AIR 1974 SC 2077

dealing with the issue of challenge to land acquisition

proceedings has held "......to have sat on the fence and

allowed the government to complete the acquisition on the

basis that Notification under Section 4 and the declaration

under Section 6 were valid and then to attack the Notification

on the ground which were available to them at the time when

the Notification was published, would be putting a premium

of dilatory tactics. The writ petitions are liable to be

dismissed on the ground of laches and delay on the part of

the petitioner. Similar view was reiterated by Supreme Court

in 'STATE OF MYSURU VS. V.K.KANGAN', AIR 1975 SC

2190, 'STATE OF ORISSA VS. DHODEI SETHI AND

ANR.', (1995) 5 SCC 583, 'STATE OF TAMILNADU VS.

L.KRISHNAN', AIR 1996 SC 497 AND 'C.PADMA AND

ORS. VS. DEPUTY SECRETARY TO GOVERNMENT OF

TAMILNADU AND ORS.', (1997) 2 SCC 627.

16. In 'MUNICIPAL CORPORATION OF GREATER

BOMBAY VS. INDUSTRIAL INVESTMENT DEVELOPMENT

CO. LTD. PVT. LTD. AND ORS.', AIR 1997 SC 482 the

Supreme Court has held that "If the interested person allows

the grass to grow under his feet by allowing the acquisition

proceedings to go on and reach its terminus in the award and

possession is taken in furtherance thereof and vest in the

State free from all encumbrances, the slumbered interested

person would be told off the gates of the court that his

grievance should not be entertained when there is inordinate

delay in filing the writ petition and when all steps taken in

the acquisition proceedings have become final, the court

should be loath to quash the notifications.

17. In 'STATE OF RAJASTHAN AND ORS. VS.

D.R.LAXMI AND ORS.', (1996) 6 SCC 455, it has been

held that delay in challenging the Notification under Section 4

of the Act is fatal and writ petition entails with dismissal on

the ground of laches and if there is inordinate delay in filing

the writ petition and when all the steps taken in the

acquisition proceedings have become final, the court should

be loathe to quash the Notification. It has further been held

that even though the order may be void, but if the party

does not approach the court within a reasonable time, which

is always a question of fact and have the order invalidated or

acquiesced or waived, the discretion of the court has to be

exercised in a reasonable manner.

18. In view of the aforesaid well settled legal principles,

the facts of the case on hand may be examined. The

following dates, which are relevant for the purpose of

controversy involved in this appeal are extracted below for

the facility of reference:

Sl.No.                Particulars                      Date

         Preliminary      Notification   under
                                                   15.01.1978
  1      Section 4 read with Section 17 of the
         1894 Act
         Final Notification under Section 6 of     09.03.1978

         the 1894 Act
         Notices issued under Section 9 and
                                                   28.03.1978
  3      10 of the 1976 Act issued to the
         owners of the schedule land
         Mahazar drawn regarding delivery of       15.04.1978

         possession
         Award passed in respect of schedule       05.06.1979

         land
                                                   04.03.1998
  6      Order passed in earlier writ petition
         preferred by the owners
         The judgment and decree passed in
                                                   13.03.1998
  7      civil suit viz., O.S.2128/1998 by the
         owners




           Date of filing of the petition                18.04.2002




19. Thus, in the instant case, the writ petition filed by

owners of the land was filed after an inordinate delay of 24

years, for which no explanation was offered. The finding

recorded by the learned Single Judge that on coming to know

about the impugned notification, the owners have filed this

petition within a reasonable time and since, the impugned

notifications are void ab initio, the question of delay is not an

impediment in granting relief to the owners is not only in

contravention of aforesaid legal position but is also without

any basis. The learned Single Judge has completely failed to

appreciate that the petitioners had earlier filed a writ petition

viz., W.P.No.32491/1997 in which they had not challenged

the validity of the notifications impugned herein and had

withdrawn the same on 04.03.1998. Thereafter, they filed a

civil suit viz., O.S.No.2128/1998 seeking the relief of

permanent injunction, which was dismissed. The writ petition

was filed after an inordinate delay of 24 years challenging the

validity of the notifications under Section 4(1) and

declaration under Section 6(1) of the 1976 Act as well as the

award, for which no explanation was offered. It is not the

case of the owners of the schedule land that they were not

aware about the proceeding for acquisition. The writ petition

preferred by the owners of the land suffers from inordinate

delay and laches and therefore, challenge to the validity of

notifications under Section 4(1) and 6(1) as well as an award

passed under the 1894 Act could not have been entertained.

The writ petition is liable to be dismissed on the ground of

delay and laches alone.

20. The learned Single Judge has held that the

notifications are ab initio void as the same were already

quashed by this court in a writ petition at the instance of

other owners of land. It is pertinent to note that owners of

other lands bearing Sy.No.60/1 and Sy.No.60/4 had filed a

writ petition viz., W.P.No.4495/78. The said writ petition was

allowed by the learned Single Judge by an order dated

29.10.1980 and the notifications were quashed in entirety.

Para 13 of the order passed by the learned Single Judge

reads as under:

13. The facts in this case are similar to the facts in respect of Sy.Nos.60/4 in W.P.No.469/1978 having regard to the evidence produced in this case, it is not possible to accept the contention of the respondents could not invoke the provisions of Section 17(1) of the Act and acquire the lands on the ground of urgency. Since it is established in respect of these survey numbers that they are fit for habitation it cannot be said that these lands fell within the description of waste land much less arable lands. Therefore, the notification issued under Section 17(4) of the Act and there is urgency and that it is needed for public purpose by not making a provision of Section 5A of the Act is inapplicable, illegal and invalid in law and therefore the preliminary notification as per Ex.L and also final notification as per Ex.K cannot be sustained in law. Both the notifications are liable to be quashed. Accordingly, they are quashed.

21. The said order was challenged in W.A.Nos.363 &

364/1980, which was decided by division bench of this court

by an order dated 29.10.1980. The relevant extract of the

order reads as under:

             6.     The    learned        Judge   has   however
     quashed       the     entire        impugned   notification

comprising lands other than those of belonging to the respondents herein. Hence, we make it clear that the order of learned Single Judge would apply only to the land belonging to the two respondents in these appeals and should not apply to land of others mentioned in the impugned notification.

Subject to the above clarification we dismiss these appeals. But the dismissal of these appeals will not come in the way of the state Government initiating fresh proceedings for acquiring the lands in question.

22. Thus, it is evident that the division bench has

confined the benefit of quashment of impugned notification

only to the extent of the owners of the land who were the

respondents in the appeal and not to others. In view of the

aforesaid direction issued by the division bench, the finding

recorded by the learned Single Judge that the owners are

entitled to the benefit of the order in W.P.Nos.4695-

4697/1978 is contrary to the direction issued by the division

bench. Even otherwise, it ought to have been appreciated

that the judgment of the learned Single Judge passed in

W.P.Nos.4695-4697/1978 did not exist and had merged with

the judgment of the division bench dated 29.10.1980.

Therefore, the finding that the notifications were ab initio

void and that the owners of the land are entitled to the

benefit of the order dated 11.10.1979 passed in WP

No.4695-97/1978 is without any basis.

23. It is pertinent to note that the possession of the

land in question was taken by preparation of mahazar on

15.04.1978 and the compensation in respect of schedule land

was deposited on 12.11.1979. It is also pertinent to note that

some other land owners had challenged the validity of

acquisition proceedings way back in the year 1981 and had

withdrawn the writ petition in the year 1981. The proceeding

in the land acquisition had attained finality and challenge to

the same after an inordinate delay of 24 years could not

have entertained. It is also pertinent to mention that in the

previous writ petition filed by the owners viz.,

W.P.No.32491/1997 only a declaration was sought that

respondents do not have the authority to demolish or

interfere with the schedule lands and no challenge was made

to the validity of the land acquisition proceeding in the

previous writ petition. The aforesaid writ petition was

withdrawn by the owners and therefore, the challenge in the

subsequent writ petition to the land acquisition proceeding

was also barred on the principles of constructive res judicata.

The civil suit filed by the owners of the land was also

dismissed. The notification dated 18.04.1995 by which

acquisition in favour of the BDA was withdrawn has attained

finality and has not been challenged by parties. Therefore,

the award passed under the 1894 Act, does not suffer from

any infirmity.

24. As far as submission made by learned counsel for

the owners that the Federation does not need the land in

question and the object of acquisition of land has been

satisfied is concerned, suffice it to say that there is no

material on record to arrive at such a conclusion. In any

case, the aforesaid subsequent development cannot have a

bearing on the validity of the land acquisition proceeding,

which has been held in accordance with law and which has

attained finality.

25. An application seeking impleadment has been

filed in this appeal. Learned Senior Counsel for the

impleading applicant as well as the learned counsel or the

parties submit that the aforesaid application be disposed of

with the liberty to the impleading applicants as well as the

parties to this appeal to raise all such contentions as may be

available to them in law in the regular first appeal which is

pending before this Court. It is noteworthy that the subject

matter of this appeal is land bearing Sy.No.59/4 whereas the

impleading applicant had filed a civil suits namely

O.S.No.8894/1997 and O.S.No.8520/1997 in respect of

property bearing Sy.No.60/4 seeking the relief of permanent

injunction. The judgment and decrees passed in the aforesaid

suits filed by the impleading applicants have been made

subject to the decision of this intra court appeal. However, it

is stated at the bar that the Regular First Appeals are

pending before this Court. Therefore, the impleading

applications are disposed of with the liberty to the impleading

applicant as well as the parties to this appeal to raise all such

contentions as may be available to them in law.

For the aforementioned reasons the impugned order

dated 22.11.2010 passed by the learned Single Judge is

hereby quashed and set aside. In the result, the appeal is

allowed.

Sd/-

JUDGE

Sd/-

JUDGE

SS

 
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