Karnataka High Court
Ifb Industries Ltd vs The State Of Karnataka on 13 July, 2018
Author: Aravind Kumar
Bench: Aravind Kumar
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 13TH DAY OF JULY, 2018
BEFORE
THE HON'BLE MR.JUSTICE ARAVIND KUMAR
W.P.NO.18647/2016 (LA-KIADB)
BETWEEN:
IFB INDUSTRIES LIMITED
#16/17, VISVESWARAIAH INDUSTRIAL
ESTATE, 1ST MAIN ROAD, OFF WHITEFIELD
ROAD, MAHADEVPURA,
BANGALORE-560 048
REP. BY ITS AUTHORIZED REPRESENTATIVE
MR. SIDDHARTHA CHATTERJEE
... PETITIONER
(BY SRI.DHYAN CHINNAPPA. SR. COUNSEL
A/W SRI. CHINTON CHINNAPPA, ADVOCATE)
AND:
1. THE STATE OF KARNATAKA
REP. BY ITS PRINCIPAL SECRETARY
DEPARTMENT OF INDUSTRY AND
COMMERCE, GOVERNMENT OF
KARNATAKA, M.S. BUILDING
BENGALURU-560 001.
2. THE SPECIAL LAND ACQUISITION OFFICER
KARNATAKA INDUSTRIAL AREA
DEVELOPMENT BOARD
NRUPATHUNGA ROAD
RACE COURSE ROAD
KANIJA BHAVAN
EAST GATE, BENGALURU-01.
3. BENGALURU METRO RAIL
CORPORATION LTD.,
BMTC COMPLEX
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3RD FLOOR, KH ROAD
SHANTHINAGAR
BENGALURU-27
REP.BY ITS MANAGING DIRECTOR
... RESPONDENTS
(BY SRI.DILDAR SHIRALLI, HCGP FOR R-1;
SRI. P.V. CHANDRASHEKAR, ADV., FOR R-2;
SRI. N.N HARISH, ADVOCATE R-3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO
QUASH THE PRELIMINARY NOTIFICATION DATED
27.04.2015 ISSUED BY THE R-1 UNDER SECTION 28(1) OF
THE KARNATAKA INDUSTRIAL AREA DEVELOPMENT ACT,
1966 INSOFAR AS IT RELATES TO SL.NO.99 &
IDENTIFICATION NUMBER AS R-IE-199 ANNEXURE-M AND
FINAL NOTIFICATIONS ISSUED AND ALL CONSEQUENT
PROCEEDINGS IN RELATION THERETO AND ETC.,
THIS PETITION COMING ON FOR ORDERS THIS DAY,
THE COURT MADE THE FOLLOWING:
ORDER
Petitioner has called in question preliminary notification dated 27.04.2015 - Annexure-M issued under Section 28(1) of the Karnataka Industrial Area Development Act, 1966 (for short 'Act') and has also sought for quashing of the notice dated 04.02.2016 - Annexure-R issued under Section 28(6) of the Act and for a writ of mandamus to the respondents to drop the acquisition proceedings in relation to the schedule 3 property belonging to the petitioner under preliminary notification dated 27.04.2015 - Annexure-M.
2. Petitioner and third respondent - BMRCL have filed a joint memo dated 04.07.2018 whereunder it is stated that parties have settled their disputes and it is agreed by third respondent that in lieu of 1710.04 sq.mtrs. of land belonging to petitioner sought to be acquired under the impugned notification an extent of 131.357 sq.mtrs is being excluded from said acquisition as remaining land would suffice for its project. As such, parties namely, petitioner and third respondent have agreed for the extent of land as specified or indicated in the joint memo being acquired and it is further agreed that compensation to said extent of land acquired would be paid by third respondent in terms of settlement arrived at between the parties. The terms so agreed upon reads as under:
"7. (i) Out of the total notified extent of 1710.04 sq.mtrs (18,406.7 sft), BMRCL has agreed to reduce an extent of 66.3 sq.mtrs. on the southern side and 65.057 sq.mts. on the northern side (totally measuring 4 131.357 sq.mts.). The extent of reduction is indicated in blue colour in the accompanying Sketch-Plan at Annexure-I and also stated in the Schedule to the instant memo.
(ii) IFBIL and IFBAPL agree that they have no objection to the acquisition in respect of the Schedule B property and agree that BMRCL shall be entitled to utilise the same for the Bangalore Metro Rail Project.
(iii) BMRCL agrees that the acquisition of the extent of land totally measuring 131.357 sq.mts. i.e. 66.3 sq.mts. on the southern side and 65.057 sq.mts. on the northern side indicated in blue colour in the accompanying sketch at Annexure-1 and stated in the Schedule may be quashed by this Hon'ble Court and prays accordingly.
(iv) Owing to the exclusion of the aforementioned two (2) portions of land measuring 66.3 sq.mts. on the southern side and 65.057 sq.mts. on the northern side totally measuring 131.357 sq.mts.
BMRCL will pay gross compensation amount of Rs.19,55,84,401/- and net compensation of Rs.17,60,25,961/- after deduction of TDS at 10% in favour of IFBIL, within 15 working days from the date of the Order of this Hon'ble Court (hereinafter referred to as "compensation").
(v) BMRCL shall construct a service road of the width of 7 mts. around the peripheral area of the Vishveshwaraiah Industrial Area Metro Station (hereinafter referred to as 'Station') so as to enable the workers, vehicles (small and heavy vehicles) etc. to enter the factory of IFBIL. The service road will be a perpetual service road and will not be altered.
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(vi) BMRCL shall also set out a line of demarcation at the Schedule Property indicating the extent of acquisition, the service road, location of pillars, structures,etc. this will enable IFBIL and IFBAPL to construct a new boundary wall and gates, so as to secure their respective factories.
(vii) BMRCL will shift the following transformers and equipments from the existing transformer yard to the newly proposed place at their cost and also provide a mobile generator at their cost during the shutdown period to enable IFBIL and IFBAPL to run their respective factories;
1. 2000 kva Transformer
2. 1000 kva Transformer
3. VCB (Vacuum Circuit Breaker)
4. Meter Cubical
5. LT Panel.
By following: 1. Proper Fencing arrangements, 2. Need to complete the required civil works before shifting, 3. New Underground RCC Cable Trench with covers for HT/LT Cables.
(viii) BMRCL will not commence any demolition work, in pursuance of the acquisition, till IFBIL secure their factories by constructing a new wall and installing gates on the agreed line of demarcation and IFBIL shall carry out the said work of construction of compound wall and fixing of gates within a period of 30 days from the date of the order passed by this Hon'ble Court and the gross compensation amount of Rs.19,55,84,401/- that is net compensation of Rs.17,60,25,961/- after deduction of TDS at 10%, is paid in favour 6 of IFBIL which forms the entire amount of compensation payable to IFBIL and IFBAPL.
(ix) KIADB shall issue the requisite TDS Certificate."
3. Under clause (iv) of the joint memo, it is agreed that total compensation payable would be ` 19,55,84,401/- and after deduction of TDS @ 10%, net compensation payable would be ` 17,60,25,961/- and it is agreed that third respondent would pay the said amount within 15 working days from the date of order of this Court. However, under clause (ix), it is stated that KIADB would issue requisite TDS Certificate. Thus, these two clauses being contrary to each other, Sri P.V.Chandrashekhar, learned Advocate appearing for second respondent - KIADB is justified in contending that when payment would not be forthcoming from KIADB, question of said authority issuing TDS certificate would not arise and hence, he prays for suitable orders being passed.
4. Having regard to the terms agreed to between the parties and there being no dispute between 7 the parties that land sought to be acquired by third respondent belongs to the petitioner and extent of land required and to be acquired for said project now having been agreed upon and is restricted to the extent mentioned herein above, it is ordered that tax to be deducted at source is required to be paid by the payor under Section 194 read with Section 204 of Income Tax Act, 1961. Since, it is agreed that BMRCL would be paying the compensation amount, necessarily, BMRCL- third respondent will have to issue such TDS Certificate in favour of petitioners. However, if for any reason, third respondent were to deposit the compensation payable to the petitioner with second respondent and in such an event second respondent disbursing compensation to petitioner by issuing cheque to the petitioner, then, necessarily second respondent- KIADB will have to issue TDS Certificate in favour of petitioner for tax so deducted. If such a situation arises, compensation shall be paid by KIADB in accordance with law after petitioner produces the documents if any sought for by KIADB from petitioner and shall disburse 8 the compensation in favour of petitioner expeditiously, at any rate, within 15 days from the date of production of documents if any called for and shall also issue TDS certificate.
5. In the light of aforestated facts, I proceed to pass the following:
ORDER
(i) Writ petition is hereby allowed in part by accepting Joint memo dated 04.07.2018 filed by petitioner and third respondent.
(ii) Preliminary notification dated 27.04.2015 issued under Section 28(1) of the Act, *Final declaration dated 29.12.2015 passed under Section 28(4) and notice dated 04.02.2016 issued under Section 28(6) of the Act are hereby quashed insofar as it relates to acquisition of land to the extent of 131.357 sq.mtrs namely, 66.3 sq.mtrs on the southern side and 65.057 sq.mtrs on the northern side of the *Inserted V.C.O. dated 03-10-2018 9 land bearing No.16/17, Vishveshwaraiah Industrial Area, 1st Main road, Off white field Road, Mahadevapura, Bangalore-560 048 i.e., land described in 'B' schedule to the joint memo and as reflected in the sketch appended to joint memo which is granted to be part of joint memo by petitioner and third respondent and for the remaining extent of land which is impugned in the notifications and notices acquisition of same is upheld.
SD/-
JUDGE *sp