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[Cites 28, Cited by 23]

Supreme Court of India

Bangalore Development Authority vs The State Of Karnataka on 3 August, 2018

Equivalent citations: AIRONLINE 2018 SC 876

Author: Arun Mishra

Bench: S. Abdul Nazeer, Arun Mishra

                                                                  REPORTABLE
                               IN THE SUPREME COURT OF INDIA
                                CIVIL APPELLATE JURISDICTION


                              CIVIL APPEAL NOS. 7661­63 OF 2018
                         [Arising out of S.L.P. (C) Nos.10216­10218/2018]


                BANGALORE DEVELOPMENT AUTHORITY 
                & ANR.                                     … APPELLANTS
                                            VERSUS


                THE STATE OF KARNATAKA & ANR.              … RESPONDENTS


                                              WITH


                C.A. No.7664/2018 @ S.L.P. (C) No. 10219/2018, C.A. Nos…
                7750­58/2018   @   S.L.P.   (C)   Nos.   10186­10194/2018,   C.A.
                Nos.7759­61/2018 @ S.L.P. (C) Nos. 10182­10184/2018, C.A.
                NO.7762/2018   @   S.L.P. (C) No.  10168/2018, C.A. Nos.7668­
                69/2018 @ S.L.P. (C) Nos. 10198­10199/2018, C.A. Nos.7791­
                92/2018   @   S.L.P.   (C)   Nos.   10339­10340/2018,   C.A.
                NO.7801/2018   @   S.L.P.   (C)   No.   10329/2018,   C.A.
                NO.7743/2018   @   S.L.P. (C) No.  10097/2018, C.A. Nos.7666­
                67/2018   @   S.L.P.   (C)   Nos.   10196­10197/2018,   C.A.
                NO.7742/2018   @   S.L.P.   (C)   No.   10098/2018,   C.A.
                NO.7803/2018   @   S.L.P.   (C)   No.   10327/2018,   C.A.
Signature Not Verified

Digitally signed by

                NO.7763/2018   @   S.L.P. (C) No.  10181/2018, C.A. Nos.7795­
NEELAM GULATI
Date: 2018.08.04
12:38:55 IST
Reason:



                98/2018   @   S.L.P.   (C)   Nos.   10332­10335/2018,   C.A.


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83/2018   @   S.L.P.   (C)   Nos.   10263­10272/2018,   C.A.
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                                  3
                            J U D G M E N T

ARUN MISHRA, J.

1. Delay condoned.

2. Leave granted.

3. The   Bangalore   Development   Authority   (for   short,   “the BDA”) has questioned the orders passed by the Division Bench of the High Court dismissing writ appeals vide judgment and order   dated   28.04.2017,   confirming   the   order   passed   by   the Single   Bench.     The   appeals   have   also   been   filed   against   the orders of the Single Bench directly before this Court as Division Bench has already dismissed the writ appeals arising out of the same scheme/orders.   

4. The   BDA   is   Town   Planning   Authority   for   the   city   of Bangalore, State of Karnataka and a notified developer.   It is entrusted   with   the   task   of   preparation   of   city   development schemes   and   its   execution.     Section   15   of   the   Bangalore Development Authority Act, 1976 (for short referred to as “the BDA Act”) confers power to draw up the development schemes. Section   16   of   the   BDA   Act  provides  for   the  particulars  to   be 4 included in the development scheme. The same is required to be published in terms of provisions contained in Section 17 of the   BDA   Act   in   the   official   gazette   and   in   the   manner prescribed   therein.     On   30.12.2008   the   BDA   published   a scheme and notification under Section 17 of the BDA Act for the   formation   of   the   layout   at   as   "Dr.   K.   Shivaram   Karanth Layout” including link roads.

5. The   scheme   was   approved  by  Government  of  Karnataka vide its orders dated 3.12.2008.  45% of the land covered under the scheme was to be used for the civic amenities, playgrounds, roads   etc.,   and   the   residential   sites   would   be   formed   by utilizing   the   remaining   55%   of   the   land.     Out   of   this   55% developed   residential   area  i.e.  40%   of   55%   will   be   offered   as compensation to the farmers as specified in the scheme and the remaining 60% of 55% will be the share of BDA. The farmers were also given the option to accept either the developed eligible residential   land   or   opt   for   compensation   as   per   the   Land Acquisition Act, 1894 (for short “the LA Act”).   Notice to that effect was thereby given to all concerned in accordance with the provisions of sub­Sections 1 and 3 of Section 17 of the BDA Act and in accordance with Section 36 of the BDA Act. The Special 5 Land   Acquisition   Officer,   Bangalore   Development   Authority, Bangalore, his staff, and workmen were authorized to exercise the   powers   conferred   under   Section   4(2)   of   the   LA   Act   and section 52 of the BDA Act.   Objections were also invited from the   interested   persons   to   be   filed   within   30   days   of   the publication of the notification. It was also mentioned that any sale,   mortgage,   assignment,   exchange   or   otherwise   of   any layout or improvements   made therein without sanction of the Deputy   Commissioner   (Land   Acquisition),   Bangalore Development Authority, Bangalore after the date of publication of   the   notification   shall   under   Section   24   of   the   LA   Act   be disregarded   by   the   Officer   assessing   compensation   for   such parts of the said lands as will be finally acquired.  

6. The BDA has to consider the objections to the preliminary notification   and   submit   them   to  the   Government   as  required under the BDA Act. Under section 18(3) of the BDA Act it is for the Government to sanction the scheme and under Section 19 of   the   said   Act,   it   is   for   the   Government   to   make   a   final declaration and publication.

7. The   BDA   received   a   large   number   of   objections.   State Government also issued a direction to withdraw the acquisition 6 of   the   land   to   the   extent   of   257   acres   and   20   guntas   from various   villages.     Representations   for   deletion   were   also favourably considered for 446 acres and 7 guntas of the land. In the year 2012, with regard to the withdrawal of acquisition of 446   acres   and   7   guntas,   and   action   of   State   Government questions   were   raised   in   the   Assembly   and   the   State Government   ultimately   ordered   an   inquiry   to   be   held   in   the year   14.11.2012   and   yet another  inquiry  was ordered by  the State   Government   into   the   matter   pertaining   to   the   same acquisition on 19.01.2013.  

8. The   writ   petitions   were   then   filed   on   the   ground   that Government and the BDA had not taken any steps to issue a final notification or to develop the land for the last 5 years.  The BDA   refused   to   give   permission   to   develop   the   land   on   the ground of preliminary notification under Section 17 of the BDA Act.     Thus,   right   to   enjoy  the property  has  been taken  away without   finalizing   the   acquisition.    It  was  submitted  that  the preliminary notification shall be deemed to have lapsed.  Now, Right   to   Fair   Compensation   and   Transparency   in   Land Acquisition,   Rehabilitation   and   Resettlement   Act,   2013   has come   into   force.     Therefore,   it   was   urged   that   the   impugned 7 notification  issued   under Section 17(1) and 17(3) of the BDA Act was liable to be quashed, and a prayer was made to direct the respondents to give permission to develop the land.

9. It was contended on behalf of the BDA that while the Land Acquisition Officer was considering the representations under Sections   18(3)   of   the   BDA   Act,   the   State   Government   has directed the  BDA to  withdraw to the extent of 270 guntas of land   from   various   villages.     In   view   of   the   large   number   of representations filed under Section 18(1) of the BDA Act, time has been consumed.  Ultimately deletion of 446 acres 7 guntas of land was favourably considered. In the meanwhile, the Board of BDA ordered an in­house inquiry to consider the findings of the   Special   Land   Acquisition   Officer   regarding   exclusion   of land.     The   State   Government   also   initiated  suo   moto  inquiry vide Government Order dated 24.11.2012 and 19.1.2013 and constituted   a   Committee   consisting   of   Additional   Chief Secretary   and   Development   Commissioner,   based   on   the newspaper   reports   and   questions   raised   at   the   Assembly pertaining   to   illegal   and   discriminatory   proposals   for withdrawal/deletion   of   the land  from  the acquisition.   It was learnt that the Committee has completed the inquiry and issue 8 was before the State Government.   In view of the pendency of the inquiry report before the State Government and in view of the practical difficulty, final notification under Section 19 of the BDA Act could not be issued on time.  

10. It   was   also   contended   by   the   BDA   that   notice   dated 3.5.2014 was issued to the landowners as there was the need for fresh inquiry.  Therefore, the further process would be taken pursuant  to  the   notification.    Thus,  it was  contended  by   the BDA that no interference was called for in the writ petitions.

11. The   Single   Bench   allowed   the   writ   application   and quashed   the   notification   with   respect   to   the   lands   of   the appellants. The Single Judge in Writ Petition No.9640 of 2014 decided   on   26th  November   2014   along   with   other   writ applications has observed that the Division Bench of the High Court   in   the   case   of  H.N.   Shivanna   and   Ors.   vs   the   State   of Karnataka, Department of Industries and Commerce, Bangalore, and Anr.  (2013) 4 KCCR 2793 (DB) considering similar aspect held   that,   even   though   under   Karnataka   Industrial   Area Development Act, no time limit has been prescribed, the period 9 of two years would be appropriate for the purpose of completing acquisition. The Single Judge observed that:

“8. On the legal position as to whether the provisions as contained in the Land Acquisition Act insofar as the time period as fixed therein for passing   the   final   notification   and   the   award thereof   could   be   imported   into   the   BDA   Act which   has   been   raised   by   the   respondents,   a detailed   consideration   would   not   be   necessary. This is due to the fact that the Hon'ble Division Bench of this Court while considering the matter in the case of  Sri H.N. Shivanna and Others vs. State of Karnataka, Department of Industries and Commerce,   Bangalore   and   Another  reported   in 2013   (4)   KCCR   2793   (DB)   has   elaborately considered this aspect of the matter while taking note of the acquisition process which was being done under the KIAD Act wherein also no time limit has been prescribed.   The Hon'ble Division Bench having accepted the position that there is no time limit fixed under the special enactment has   also   taken   into   consideration   the observations   made   by   the   Hon'ble   Supreme Court   in   the   earlier   cases   under   different circumstances   and   has   declared   the   position that even though a time frame is not fixed in the special enactment under which the acquisition is being   made,   the   reasonableness   of   the   delay should be considered in the facts of a case and in that circumstance, a decision is to be taken, but unreasonable delay would not be permitted. While stating so, the Hon'ble Division bench has also   kept   in   view   the   fact   that   the   Land Acquisition Act prescribes a specific time frame even   for   the   enactments,   roughly   the   period   of two years would be appropriate.   Hence, on the legal   aspect,   the   said   decision   would   settle   the issue.   In the light of the judgment as rendered by   the   Hon'ble   Division Bench, the explanation 10 as put forth in the instant case needs to be taken into consideration.”

12. Being aggrieved by the aforesaid decision, the writ appeal was filed before the Division Bench, which has been dismissed. The   Division   Bench   of   the   High   Court   in   the   writ   appeal, observed thus:

“3. Being   aggrieved   by   the   order Dt.26.11.2014   passed   by   the   Hon’ble   Learned Single Judge in Writ Petition No.9640/ 2014 the appellants beg to prefer this appeal.
4. It   is   respectfully   submitted   that   the respondent no.2 who was the appellant, filed the writ   petition   challenging   the   Preliminary notification issued by the Bangalore Development Authority   for   the   formation   of   the   “Dr.   K. Shiarama Karanth Layout”.
5. The Petitioner was amongst the notified Khatedars   of   Sy.   No.15   of   and   Sy.No.31   of Veerasagara Village, Yelahanka Hobli,   Bangalore North   Taluk,   Bangalore.     It   was   contended   that after   issuance   of   the   Preliminary   notification   by the   Bangalore   Development   Authority   for   the formation of the layout no steps have been taken by   the   Bangalore   Development   Authority   for   the completion of the acquisition proceedings.  It was contended   that   their   right   to   enjoy   the   property has   been   curtailed   by   the   issuance   of   the Notification   by   the   Bangalore   Development Authority.     It   was   contended   that   the   action   of Bangalore   Development   Authority   in   not proceeding   further   amounts   to   an   abandonment of   the   acquisition   proceedings   and   hence   the preliminary Notification was sought to be quashed 11 in   so   far   as   the   property   of   the   petitioner   was concerned." 

13. Aggrieved   by   the   aforesaid   decisions,   the   appeals   have been preferred by the BDA in this Court.  The decisions of the Division Bench in  H.N. Shivanna  (supra) has been followed by the Single Judge. 

14. The   BDA   in   the   appeals   has   urged   that   decision   of   the Constitution Bench of this Court interpreting the provisions of Bangalore   Development   Authority   Act,   1976   has   been   totally ignored and overlooked.  This Court has decided the same issue in  Offshore Holdings Private Limited v. Bangalore Development Authority and Others  (2011) 3 SCC 139, after consideration of the previous judgments of this Court in Munithimmaiah v. State of   Karnataka  (2002)   4   SCC   326   and  Bondu   Ramaswamy   v. Bangalore Development Authority & Ors.  (2010) 7 SCC 129.   It was held that the BDA Act is a self­contained code and the time frame   of   two   years   provided   under   Section   11A   of   the   Land Acquisition   Act   is   not   applicable   to   the   BDA   Act.     The   High Court has failed to consider the judgment. This Court has held that the period of five years as prescribed under Section 27 of 12 the   BDA   Act   start   from   the   date   of   publication   of   the declaration under sub­Section (1) of Section 19 of the BDA Act in the Official Gazette.  The High Court has grossly erred in law in holding otherwise.  The learned counsel appearing on behalf of the BDA has relied upon the Constitution Bench decision of this Court in the case of  Offshore Holdings (supra).   The High Court has totally ignored the said decision and had flouted the same.  In the facts and circumstances of the case, there was no delay   as   a   large   number   of   objections   were   filed.     The   Land Acquisition   Officer   considered   deletion   of   certain   land   in   an illegal manner.  The Government had also issued a direction in regard to approx. 257 acres of the land.  Ultimately, there was a question raised about the proposed exclusion of the land in an illegal manner, in the Assembly and the State Government has ordered an inquiry in the year 2012.   Yet another inquiry was ordered in January, 2013.  The in­house inquiry was also conducted by the BDA and ultimately notice was issued in May 2014   that   the   entire   matter   has   to   be   considered   afresh. Thereafter,   the   writ   petitions   were   filed   to   quash   the   initial notification   and   the   notification   was   illegally   quashed   by   the High Court.  Writ appeals were also dismissed.  They have also 13 been illegally dismissed by a laconic order without considering the decision of this Court and also the facts and circumstances. The   land   was   required   for   the   planned   development   of Bangalore   city.     Thus,   the   impugned   orders   are   liable   to   be quashed.

15. It was contended on behalf of the landowners that there was   undue   delay   in   completion   of   the   land   acquisition procedure, as for more than five years the final notification was not issued.  The writ petitions were filed.  There was an undue delay,   even   if   the   period of two  years of  time frame provided under   the   LA   Act,   does   not   apply   for   issuance   of   final notification under Section 19, there cannot be undue delay in taking the steps. The acquisition could not have been kept in lurch for such an unreasonable period as done in the instant case.  Thus, the High Court was fully justified in quashing the final notification. When no time has been fixed under the BDA Act to complete the issuance of final notification under Section 19, it would not mean that with an unreasonable delay such steps can be taken, as there was restraint put upon the owners by issuance of initial notification under Section 17.   Right to enjoyment of the property could not have been denied for an 14 unreasonable period.   As there was a proposal to exclude the land,   and   after   High   Court   has   quashed   the   preliminary notification,   certain   developments   have   been   made   and   the property   has   exchanged   hands.     Thus,   it   would   not   be appropriate to interfere in the matter owing to the delay on the part of the BDA in approaching before the High Court as well as this Court. 

16. First,   we   take   up   the   question   as   to   whether   the   High Court   was   legally   justified   on   merits   in   quashing   the preliminary   notification   issued   under   Section   17.     The Constitution Bench of this Court in  Offshore Holdings  (supra) has   decided   the   question   affirmatively.   The   BDA   has   issued preliminary   notification   for   acquisition   of   the   lands.   Non­ finalization of the acquisition proceedings resulted in the filing of the writ petitions before the High Court of Karnataka by the owners in the year 1987. Certain lands were de­notified and the permission which was granted earlier was withdrawn.  The de­ notification of the land was also withdrawn.  It was urged that the timeframe which was prescribed under section 6 and 11A of the LA Act would form an integral part of the  BDA Act.   This 15 Court   considered   the   scheme   under   the  BDA   Act  and   has observed thus:

“33.   The   provisions  of  the Land  Acquisition  Act, which   provide   for   timeframe   for   compliance   and the   consequences   of   default   thereof,   are   not applicable to acquisition under the BDA Act. They are   Sections   6   and  11A   of  the   Land   Acquisition Act. As per Section 11A, if the award is not made within   a   period   of   two   years   from   the   date   of declaration   under   Section   6,   the   acquisition proceedings   will   lapse.   Similarly,   where declaration   under   Section   6   of   this   Act   is   not issued   within   three   years   from   the   date   of publication of notification under Section 4 of the Land   Acquisition   Act   [such   notification   being issued   after   the   commencement   of   the   Land Acquisition   (Amendment   and   Validation) Ordinance, 1967 but before the commencement of Central Act 68 of 1984] or within one year where Section 4  notification was published subsequent to the passing of Central Act 68 of 1984, no such declaration   under   Section   6   of   the   Land Acquisition   Act   can   be   issued   in   any   of   these cases.
xxx xxx xxx
35. Be that as it may, it is clear that the BDA Act is a self­contained code which provides for all the   situations   that   may   arise   in   planned development   of   an   area   including   acquisition   of land for that purpose. The scheme of the Act does not admit any necessity for reading the provisions of Sections 6 and 11A of the Land Acquisition Act, as part and parcel of the BDA Act for attainment of its object. The primary object of the State Act is to carry out planned development and acquisition is a mere incident of such planned development.

The provisions of the Land Acquisition Act, where the   land   is   to   be   acquired   for   a   specific   public 16 purpose   and   acquisition   is   the   sum   and substance   of   that   Act,   all   matters   in   relation   to the   acquisition   of   land   will   be   regulated   by   the provisions of that Act. The State Act has provided its own scheme and provisions for acquisition of land.

xxx xxx xxx

50. Applying the above principle to the facts of the case in hand, it will be clear that the provisions relating   to   acquisition   like   passing   of  an   award, payment of compensation and the legal remedies available under the Central Act would have to be applied   to   the   acquisitions   under   the   State   Act but  the   bar  contained in Sections 6 and 11A of the Central Act cannot be made an integral part of the State Act as the State Act itself has provided specific time­frames under its various provisions as   well   as   consequences   of   default   thereto.   The scheme, thus, does not admit such incorporation.

xxx xxx xxx

55. The principle stated in Munithimmaiah's case (supra) that the BDA Act is a self­contained code, was   referred   with   approval   by   a   three   Judge Bench   of   this   Court   in   the   case   of   Bondu Ramaswamy   (supra).   The   Court,   inter   alia, specifically discussed and answered the questions whether   the   provisions of Section  6 of  the Land Acquisition Act will apply to the acquisition under the   BDA   Act   and   if   the   final   declaration   under Section 19(1) is not issued within one year of the publication of the notification under Section 17(1) of   the   BDA   Act,   whether   such   final   declaration will be invalid and held as under: 

“79.   This   question   arises   from   the contention   raised   by   one   of   the   appellants that the provisions of Section 6 of the Land Acquisition Act, 1894 ("the LA Act", for short) will apply to the acquisitions under the BDA Act and consequently if the final declaration 17 under Section 19(1) is not issued within one year   from   the   date   of   publication   of   the notification  under Sections 17(1) and (3) of the  BDA  Act, such final declaration will be invalid.   The   appellants' submissions are as under: the notification under Sections 17(1) and  (3)  of the Act was issued and gazetted on   3­2­2003   and   the   declaration   under Section 19(1) was issued and published on 23­2­2004.   Section   36   of   the   Act   provides that the acquisition of land under the BDA Act   within   or   outside   the   Bangalore Metropolitan Area, shall be regulated by the provisions of the LA Act, so far as they are applicable. Section 6 of the LA Act requires that no declaration shall be made, in respect of any land covered by a notification under Section 4 of  the LA Act, after the expiry of one year from the date of the publication of such notification under Section 4 of the LA Act.   As   the   provisions   of   the   LA   Act   have been made applicable to acquisitions under the   BDA   Act,   it   is   necessary   that   the declaration under Section 19(1) of the BDA Act   (which   is   equivalent   to   the   final declaration   under   Section   6   of   the   LA   Act) should also be made before the expiry of one year   from   the   date   of   publication   of notification  under Sections 17(1) and (3) of the BDA Act [which is equivalent to Section 4(1) of the LA Act]. 
80.   The   BDA   Act   contains   provisions relating   to   acquisition   of   properties,   up   to the stage of publication of final declaration.

The   BDA   Act   does   not   contain   the subsequent provisions relating to completion of  the   acquisition, that is, issue of notices, enquiry and award, vesting of land, payment of   compensation,   principles   relating   to determination of compensation, etc. Section 36 of the BDA Act does not make the LA Act 18 applicable in its entirety, but states that the acquisition   under   the   BDA   Act,   shall   be regulated   by   the   provisions,   so   far   as   they are   applicable,   of   the   LA   Act.   therefore   it follows   that   where   there   are   already provisions in the BDA Act regulating certain aspects   or   stages   of   acquisition   or   the proceedings   relating   thereto,   the corresponding   provisions of  the  LA Act  will not apply to the acquisitions under the BDA Act.   Only   those   provisions   of   the   LA   Act, relating   to   the   stages   of   acquisition,   for which there is no provision in the BDA Act, are   applied   to   the   acquisitions   under   the BDA Act

81.   The   BDA   Act   contains   specific provisions   relating   to   preliminary notification and final declaration. In fact the procedure up to final declaration under the BDA   Act   is   different   from   the   procedure under   the   LA   Act   relating   to   acquisition proceedings   up   to   the   stage   of   final notification.   therefore,  having   regard   to   the scheme for acquisition under Sections 15 to 19   of   the   BDA   Act   and   the   limited application of the LA Act in terms of Section 36 of the BDA Act, the provisions of Sections 4   to   6   of   the   LA   Act   will   not   apply   to   the acquisitions under the BDA Act. If Section 6 of   the   LA   Act   is   not   made   applicable,   the question  of  amendment to Section 6 of the LA   Act   providing   a   time­limit   for   issue   of final declaration, will also not apply.” We may notice thatin the above case, the Court declined to examine whether the provisions of Section 11A of the Central Act would apply to the   acquisition   under   the   BDA   Act   but categorically stated that Sections 4 and 6 of the Central   Act   were   inapplicable   to   the   acquisition under the BDA Act.

19

xxx xxx xxx

123. Accepting   the   argument   of   the   appellant would   certainly   frustrate   the   very   object   of   the State law, particularly when both the enactments can   peacefully   operate   together.   To   us,   there appears   to   be   no   direct   conflict   between   the provisions   of   the   Land   Acquisition   Act   and   the BDA Act.  The BDA Act does not admit reading of provisions of Section 11A of the Land Acquisition Act into its scheme as it is bound to debilitate the very object of the State law.  The Parliament has not enacted any law with regard to development the competence of which, in fact, exclusively falls in   the   domain   of   the   State   Legislature   with reference to Entries 5 and 18 of List II of Schedule VII.

124. Both   these   laws   cover   different   fields   of legislation   and   do   not   relate   to   the   same   List, leave   apart   the   question   of  relating   to   the   same Entry.  Acquisition   being   merely   an   incident   of planned   development,   the   Court   will   have   to ignore it even if there was some encroachment or overlapping.   The   BDA   Act   does   not   provide   any provision in regard to compensation and manner of acquisition for which it refers to the provisions of   the   Land   Acquisition   Act.   There   are   no provisions in the BDA Act which lay down detailed mechanism   for   the   acquisition   of   property,   i.e. they   are   not   covering   the   same   field   and,   thus, there   is   no   apparent   irreconcilable   conflict.   The BDA Act provides a specific period during which the   development   under   a   scheme   has   to   be implemented   and   if   it   is   not   so   done,   the consequences   thereof   would   follow   in   terms   of Section 27 of the BDA Act. None of the provisions of   the   Land   Acquisition   Act   deals   with implementation   of   schemes.   We   have   already answered   that   the   acquisition   under   the   Land Acquisition Act cannot, in law, lapse if vesting has taken   place.   therefore,   the   question   of   applying 20 the   provisions   of   Section   11A   of   the   Land Acquisition   Act   to   the   BDA   Act   does   not   arise. Section 27 of the BDA Act takes care of even the consequences   of   default,   including   the   fate   of acquisition,   where   vesting   has   not   taken   place under Section 27(3). Thus, there are no provisions under   the   two   Acts   which   operate   in   the   same field and have a direct irreconcilable conflict.

125. Having said so, now we proceed to record our answer   to   the   question   referred   to   the   larger Bench as follows: 

For   the   reasons   stated   in   this   judgment,   we hold that the BDA Act is a self­contained code. Further, we hold that provisions introduced in the Land Acquisition Act, 1894 by Central Act 68 of 1984, limited to the extent of acquisition of   land,   payment   of   compensation   and recourse to legal remedies provided under the said   Act,   can   be   read   into   an   acquisition controlled by the provisions of the BDA Act but with a specific exception that the provisions of the   Land   Acquisition   Act   in   so   far   as   they provide   different   time   frames   and consequences   of   default   thereof,   including lapsing   of   acquisition   proceedings   ,cannot   be read into the BDA ActSection 11A of the Land Acquisition   Act   being   one   of   such   provisions cannot be applied to the acquisitions under the provisions of the BDA Act.” (emphasis supplied)
17. This Court has emphasized that the primary object of the BDA   Act  is   to  carry  out  planned development.  The State  Act has provided its own scheme. The time constraints of the land acquisition   are   not   applicable   to   the   BDA   Act.   Making 21 applicable   the   time   frame   of   Section   11A   of   LA   Act   would debilitate very object of the BDA Act.   It is apparent that the decision of the Single Judge as well as the Division Bench is directly juxtaposed to the decision of Five Judge Bench of this Court   in  Offshore   Holdings  (supra)   in   which   precisely   the question involved in the instant cases had been dealt with.  By indirect   method   by   making  applicable the   time  period  of  two years of 11A of LA Act mandate of BDA Act has been violated.

However, it is shocking that various decisions have been taken into   consideration   particularly   by   the   Single   Judge,   however, whereas the decision that has set the controversy at rest, has not   even   been   noticed   even   by   the   Single   Judge   or   by   the Division  Bench.   If   this  is the fate of the law of the land laid down by this Court that too the decision by the Constitution Bench, so much can be said but to exercise restraint is the best use of the power.   Least said is better, the way in which the justice   has   been   dealt   with   and   the   planned   development   of Bangalore   city   has   been   left   at   the   mercy   of   unscrupulous persons of Government and the BDA. 

18. It   is   apparent   from   the   fact   that   the   Single   Judge   has relied upon the decision in  H.N. Shivanna (supra) in which it 22 was   observed   by   the   Division   Bench   that   scheme   to   be completed in 2 years otherwise it would lapse.  It was precisely the   question   of   time   period  which  was  dwelt  upon  and  what was   ultimately   decided   by   this   Court   in  Offshore   Holdings (supra)   has   been   blatantly   violated   by   the   Single   Judge   and that too in flagrant violation of the provisions and intendment of the Act.

19. It is also apparent from the facts and circumstances of the case   that   there   were   a   large   number   of   irregularities   in   the course   of   an   inquiry   under   Section   18(1)   of   the   BDA   Act. Government had nothing to do with respect to the release of the land   at   this   stage,   as   the   stage   of   final   notification   had   not reached   but   still   the   landowners   in   connivance   with   the influential   persons,   political   or   otherwise,   managed   the directions in respect of 251 acres of the land and Special Land Acquisition Collector also considered exclusion of 498 acres of the land against which the question was raised in the Assembly and eyebrows were raised in public domain. Two inquiries were ordered on 24.11.2012 and 19.1.2013 by the State Government and based upon that inquiry, it was ordered and a public notice was   issued   on   3rd  May,   2014   that   the   BDA   will   consider   the 23 entire matter afresh.  In the aforesaid backdrop of the facts, the writ petitions came to be filed, it would not be termed to be the bona fide litigation, but was initiated having failed in attempt to get  the  land     illegally   excluded at the  hands of Special Land Acquisition Collector and the State Government and after the inquiries held in the matter and the notice was issued to start the proceedings afresh.   At this stage, the writ petitions were filed.  In the aforesaid circumstances, it was not at all open to the   High   Court   to   quash   the   preliminary   notification   issued under Section 17, as the land owners, State Government and BDA were responsible to create a mess in the way of planned development of the Bangalore city.

20. The scheme which was framed was so much benevolent scheme   that   40%   of   the   55%   of   the   land   reserved   for   the residential purpose was to be given to the landowners at their choice   and   they   were   also   given   the   choice   to   obtain   the compensation, if they so desire, under the provisions of the LA Act. Thus, it was such a scheme that there was no scope for any exclusion of the land in the ultimate final notification.

21. It   is   apparent   from   the   circumstances   that   the   matter cannot  be  left  at the  mercy of unscrupulous authority of the 24 BDA,   the   State   Government   or   in   the   political   hands.  Considering the proper development and planned development of Bangalore city, let the Government issue a final notification with respect to the land which has been notified in the initial notification and there is no question of leaving out of the land in the instant case as option has been given to land owners to claim the land or to claim the compensation under the relevant LA Act which may be applicable in the case.

22. It was contended on behalf of the landowners that certain developments   have   taken   place   after   the   orders   were   passed regarding exclusion of the land and when Section 27 provides a limitation   of   five   years   after   final   notification,   in   case development   was   not   undertaken   within   five   years,   even   the final   scheme   would   lapse.   Thus,   the   principle   enunciated   in Section 27 should be followed by this Court with respect to the lapse of preliminary notification as well. We find that there is a vast   difference   in   the   provisions   and   action   to   be   taken pursuant   to   the   preliminary   notification   and   the   final notification   under   Section   19.   In   the   instant   case,   the   facts indicated that it was in the interest of the public, landowners, BDA and State Government. The scheme had prior approval of 25 State   Government   however   at   the   cost   of   public   interest   yet another   scheme   was   sought   to   be   frustrated   by   powerful unforeseen   hands   and   the   issuance   of   final   notification   had been  delayed.  Three  inquiries were ordered, two by  the State Government and one by the BDA as the release of the land was being   proposed   in   an   illegal   manner.   Hue   and   cry   has   been raised about their illegalities in the Assembly as well as in the public. Thus, for the delay, owners cannot escape the liability, they   cannot   take   the   advantage   of   their   own   wrong   having acted   in   collusion   with   the   authorities.   Thus,   we   are   of   the considered   opinion   that   in   the   facts   of   the   case   the   time consumed would not adversely affect the ultimate development of Bangalore city. The authorities are supposed to carry out the statutory mandate and cannot be permitted to act against the public   interest   and   planned   development   of   Bangalore   city which was envisaged as a statutory mandate under the BDA Act.   The   State   Government,  as  well  as Authorities  under   the BDA   Act,   are   supposed   to   cater   to   the   need   of   the   planned development which is a mandate enjoined upon them and also binding on them. They have to necessarily carry it forward and no dereliction of  duty  can be an escape route so as to avoid 26 fulfilment of the obligation enjoined upon them. The courts are not   powerless   to   frown   upon   such   an   action   and   proper development cannot be deterred by continuing inaction. As the proper   development   of   such   metropolitan   is   of   immense importance,   the   public   purpose   for   which   the   primary notification was issued was in order to provide civic amenities like laying down roads etc. which cannot be left at the whim or mercy of the concerned authorities. They were bound to act in furtherance   thereof.   There   was   a   clear   embargo   placed   while issuing   the   notification   not   to   create   any   charge,   mortgage, assign,   issue   or   revise   any  improvement  and  after  inquiry, it was clear that the notice had been issued in May, 2014, thus, no   development   could   have   been   made   legally.   Notification dated 3rd  May, 2014 was issued that re­inquiry was necessary in the matter.  The development made, if any, would be at the peril   of   the   owners   and   it   has   to   give   way   to   larger   welfare schemes   and   the   individual  interest   and  cannot   come  in   the way of  the larger public interest. The acquisition was for the proper   and   planned   development   that   was   an   absolute necessity for the city of Bangalore.

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23. In the circumstances, we have no hesitation in condoning the delay. Though, it is apparent that the authorities had come with certain delay, in the certain matters and the writ appeals were   also   filed   belatedly   with   the   delay   in   the   High   Court, however,   considering   the   provisions   of   the   scheme   and   the method   and   manner   wrong   has   been   committed,   it   has compelled us not only to condone the delay but also to act in the matter so as to preserve the sanctity of the legal process and decision of this Court in Offshore Holdings (supra).

24. We, therefore, direct the State Government as well as the BDA to proceed further to issue final notification without any further delay in the light of the observations made in the order. The   impugned   orders   passed   by   the   Single   Judge   and   the Division Bench are hereby quashed and set aside. The scheme and notification under Section 17  of the BDA Act  are hereby upheld with the aforesaid directions.

25.  As   noticed   above,   the   Land   Acquisition   Officer   proposed exclusion of 251 acres of land from acquisition on being asked by   the   Government   after   the   preliminary   notification   was issued.   The   Land   Acquisition  Officer,  has  considered  another 28 498   acres   of   land   to   be   excluded   from   being   acquired.   In connection   to   this,   several   questions   were   raised   in   the Karnataka   Legislative   Assembly,   as   a   result   of   which   two inquiries   were   ordered   by   the   State   Government   i.e   on 24.11.2012 and 19.01.2013.   However, result of the inquiry is not forthcoming. Further, it appears that the exclusion of the lands   from   acquisition   was   proposed   in   connivance   with influential persons; political or otherwise.   We are of the view that the BDA and the State Government have to proceed with the acquisition of these lands.  We are also of the view that it is just and proper to hold an inquiry for fixing the responsibility on the officials of the BDA and the State Government for trying to exclude these lands from acquisition.

26.   Therefore,   we   appoint   Hon'ble   Mr.   Justice   K.N. Keshavanarayana, former Judge of the Karnataka High Court as the Inquiry Officer for fixing the responsibility on the officials of the BDA and the State Government who were responsible for the   aforesaid.     The  Commissioner, BDA is hereby directed to consult Inquiry Officer and pay his remuneration. Further, we direct   BDA   to   provide   appropriate   secretarial   assistance   and logistical support to the Inquiry Officer for holding the inquiry. 29 In   addition,   we   authorize   the   Inquiry   Officer   to   appoint requisite staff on temporary basis to assist him in the inquiry and  to fix  their salaries. Further, the BDA is directed to pay their salaries.  The State Government and the BDA are directed to   produce   the   files/documents   in   relation   to   the   aforesaid lands before the Inquiry Officer within a period of four weeks from today.  We request the Inquiry Officer to submit his report to this Court as expeditiously as possible.

27. The State Government and the BDA are further directed to proceed   with   the   acquisition   of   the   aforementioned   lands without excluding land from acquisition and submit a report to this   Court   the   steps   taken   by   them   in   this   regard   within   a period of three months from today.

28. In addition, it was submitted at the Bar that several cases where similar orders of exclusion in relation to lands notified for acquisitions for the formation of ‘Dr. K. Shivarama Karantha Layout’ have been passed by the High Court and that BDA has failed   to   challenge   those   orders   in   connivance   with   the landowners and influential persons.  We hereby direct the BDA to challenge all such orders/seek review of the said orders in 30 accordance   with   law   within   a   period   of   three   months   from today.

29. The appeals are disposed of in the aforesaid terms leaving the parties to bear their own costs.  





                                                ..……………………J.
                                                (Arun Mishra)



New Delhi;                                      ….………………...J.
August 3, 2018.                                 (S. Abdul Nazeer)




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