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J U D G M E N T WITH Civil Appeal No. 1416 of 1999 Civil Appeal No. 1417 of 1999 A.K. MATHUR, J.

This appeal and connected appeals were filed against the order passed by the Division Bench of the Karnataka High Court dated 2nd July, 1998 whereby the Division Bench disposed of Writ Appeal No. 1955 of 1993 alongwith Writ Appeal No. 777 of 1993.

Facts which are necessary for disposal of these appeals are  the Respondent Association Koramangala Residents Vigilance Group filed a Public Interest petition challenging the building licence issued for construction of multi-storeyed/ multi-apartments on Site Nos. 403 and 443 in IInd and IIIrd Cross in III Block, Koramangala Layout, Bangalore, on the ground that it is illegal, void and prayed for quashing of the licence and direction to demolish the building already constructed on the site. It was submitted that the residents in the area had acquired sites and built houses on the understanding and under the bona fide belief that the lay out would be developed and maintained in accordance with law. Grievance of the Association was, the menace of multi-storeyed and multi-apartments buildings in the Bangalore city particularly in Koramangala lay-out which is considered to be a posh and prestigious lay-out, had been increasing. Many property developers, investors in buildings and speculators in real estate were alleged to have started their activities which are detrimental to the quality of life of the residents of the area. Multi-storeyed buildings and multi-apartment buildings were causing strain on the public amenities. It was alleged that the property developers by using their influence and money are getting licences against the statutory prohibitions. The appellant relied upon the decision given in case of Chandrashekar Hegde Vs. B.C.C. [ILR 1988 Karnataka 356], (Single Bench) to contend that the Corporation was not empowered to grant licences to the owners of the sites to build multi-storeyed and multi-family dwelling units. It was alleged that the scheme under the City of Bangalore Improvement Act, 1945 and Bangalore Development Authority Act, 1976 provided for construction of residential houses and not for exploitation of those sites for construction of buildings in violation of law and with the object of inflating the money market of the builders. It was alleged that in Writ Petition No. 7599 of 1987, the Karnataka High Court directed the Corporation not to issue licences to any third party for putting up multi-storeyed and multi-family dwelling apartments in the sites allotted by the B.D.A. It was further alleged that after the judgment in December, 1987, one of the appellants represented to Respondent Nos.1 and 2 to re-examine the licences already issued for putting up multi-storeyed building and multi-family apartments in the light of the law laid down by the Karnataka High Court. In response to that, respondent sent communications to all the licensees to stop further construction. The Writ Appeal No. 306 of 1988 filed against the order of the learned Single Judge was dismissed by the Division Bench on 14th December, 1988 which is noted as Pee Kay Constructions Vs. Chandrashekar Hegde, [ILR 1989 Karnataka, 241].

(iv) Grant such other or further relief that this Hon'ble Court may deem fit under the circumstances including costs."

This was contested by the Respondents and the learned single Judge after hearing the parties held  "I have no hesitation to hold that licences granted to Respondent No. 4 in these Writ Petitions are contrary to law in view of the law laid down in the case of Pee Kay Constructions."

But the learned Single Judge felt that the petition filed by the Writ Petitioner suffered from laches and delay and, therefore, dismissed the Writ Petition on the grounds of delay and laches. It was observed that the dismissal of Writ Petitions will not prevent the Corporation from taking any action permissible under the law. Aggrieved against the present order passed by the learned Single Judge, the present Writ Appeal was filed and it was alleged that the Writ Petition does not suffer from any delay or laches nor any third party interest was created. However, the respondents contested this Writ Appeal, they did not file the appeal against the aforesaid order but submitted that the law laid down in Pee Kay Constructions case (Supra) was not a good law and the learned Single Judge was not justified in holding that licence granted to respondents was contrary to law. The Division Bench after hearing the parties observed that the law laid down in Chandrashekar Hegde Vs. B.C.C. [ILR 1988 Karnataka 356] and Pee Kay Constructions case (Supra) is correct law. Thereafter, the Division Bench examined the question of delay and laches. After reviewing the facts the Division Bench held that there is no delay and laches in preferring the writ petition. It was held that building licence was issued in favour of appellant-builder on 19th August, 1987 and on 3rd October, 1987. The Commencement Certificate was issued on 13th October, 1987 and 23rd November, 1987 and the Chandra Shekhar Hegde's Case was decided on 14/15/16th December, 1987 wherein it was held that the Corporation was not justified in granting licence to the owners of the sites to put up multi-storyed/multi-family dwelling units and the appeal was dismissed on 14th December, 1988. On 4th April, 1988, the Respondent  Corporation issued a letter to the builders directing them to stop construction. The construction remained suspended upto 26th March, 1991, when letter was issued to builder revoking to stop construction order, permitting them to proceed with the construction. This Writ Petition was filed in the first week of November, 1991, as public interest litigation. The explanation for the delay was that the office bearers made enquiries from the office of Corporation the reasons for withdrawing of direction to stop work but in vain, met the authorities of Corporation Respondent No.3 on several occasions and then by a letter dated 7th October, 1991, requested to furnish the copies of certificate but the copies were not furnished. They protested that there was no justifiable reason for such withdrawal. They also explained that the building is permitted to be constructed at Site No.403 which is a narrow road, the residents of area will be subjected to great inconvenience but without any result. It was also contended that the third party right had not been created. After the grant of permission, the construction proceeded. However, Appellant/Respondent in their turn submitted that the third party interest had already been created because the 4th Respondent has issued shares on 21st May, 1988 and some of the flats have been sold out. However, Division Bench did not accept the plea of the third party interest being created in the matter. The Division Bench observed that when the original files of Corporation were summoned by the Court, it was found that between 4th April, 1988 and 14th February, 1991 nothing transpired. However, the builder on 14th February, 1991 requested for permission to complete the construction mainly on the ground that substantial amount has been spent on purchase of site and on construction of ground with three floor building. This letter was perused by the Deputy Director of Town Planning on 20th March, 1991 which was submitted to Commissioner on 21st March, 1991. It was observed that all similar cases be put up where building is completed with full structural work as per sanctioned plan prior to judgment. It was found that there was no note by the Deputy Director regarding Appellant/Respondent. Thereafter on 25th March, 1991, the order was passed by the Commissioner that he perused the note and discuss the matter with CE and the DDTP and considered the matter, he directed that the notice be withdrawn and permission be accorded to complete the building as per sanctioned plan. The Division Bench observed that these notes clearly show non-application of mind and that the action of the respondent was not in accordance with law and was passed without giving any reasons. Thereafter, the Division Bench concluded that the view taken by the learned Single Judge is right that the licence granted in favour of Respondent Nos. 4 and 5 is contrary to law and liable to be quashed. The Division Bench further held that they did not agree with the view taken by the learned Single Judge that the Writ Petition suffered from delay and laches and accordingly, allowed the Writ Appeal, set aside the order of learned Single Judge dismissing the same on the ground of delay and laches and affirmed the finding that the licence granted in favour of Respondent Nos. 4 and 5 is illegal and quashed the licence issued in favour of Repondent-builder, and also quashed the order of Respondent Corporation dated 26th March, 1991 allowing Respondent-builder to continue with the construction and directed Respondent No.1 to demolish the illegal construction put up on Site Nos. 403 and 443. It was further directed that the construction as raised by them is illegal and they were liable to bear the expenses for demolition of the construction and Respondent Nos. 1 and 3 are liable to pay costs to the writ petitioner.

All the three appeals Civil Appeal No.1415 of 1999, Civil Appeal No. 1416 of 1999 and Civil Appeal No. 1417 of 1999 arise against the order passed by the Division Bench. Civil Appeal No. 1417 of 1999 have been filed by bona fide purchasers of flats in the building, whereas CA 1415/99 & CA 1416/99 have been filed by builders..

Now, in order to appreciate the contention raised by the appellants, it may be necessary to dilate upon some facts of CA 1415/99. Property No. 443, 2nd Cross, 3rd Block, Koramangala Extension, Bangalore, was allotted by the City Improvement Trust Board to Dr. Alice Duraiswamy on 4th March, 1971 and he was also put up in possession of this schedule land. The Bangalore Development Authority, successors in interest of City Improvement Trust Board sold the schedule land in favour of Dr. Alice Duraisamy under a registered Sale Deed dated 27th March, 1981. Dr. Alice Duraiswamy then sold the land in favour of one M/s Batra Developments under a registered Sale Deed dated 12th June, 1987. The development and planning of the City of Bangalore and construction of the building thereon were governed by the Karnataka Town and Country Planning Act, the Outline Development Plan and the Comprehensive Development Plan as well as the Zoning Regulations framed thereunder. The Corporation of the City of Bangalore also framed Bye-Laws in conformity with the Development Plan and the Zoning Regulations. In accordance, therewith, M/s Batra Developments applied for and obtained licence from the Corporation of the City of Bangalore for construction of basement, ground and three upper floors on 3rd October, 1987. And thereafter, the construction commenced and by 3rd April, 1988, the basement and ground floor of the building had been completed. On 4th April, 1988, the construction was stopped on the basis of the decision of the Karnataka High Court in Pee Kay Constructions Case. Thereafter, the High Court of Karnataka in a case known as Happy Home Builders Case held that when once a licence is granted by the Corporation Authorities, the Corporation cannot stop construction of building. M/s Batra Developments thereafter made a representation to the Corporation Authorities and submitted that the substantial portion of the building has been completed and considerable investment have been made and the licence granted thereof is in accordance with the Building Plan and therefore, they may be permitted to complete the construction. The Corporation Authorities after taking into consideration the representation, permitted M/s Batra Developments to proceed with the construction. M/s Batra Development entered into an agreement of sale with M/s Raj Trust on 16th June, 1989. Consequent to the said agreement under the Development Agreement dated 8th May, 1991 between M/s Raj Trust and the appellant, the construction proceeded. When the building was practically completed during November, 1991, the present Writ Petition was filed challenging the very licence issued on 3rd October, 1987. The learned Single Judge dismissed the Writ Petition on the ground of laches. It was pointed out that the building was occupied by 12 families and the grant of licence has been declared to be invalid after 11 years, but the Division Bench did not agree and directed demolition of building on the basis of Pee Kay Constructions case. Therefore, the question now arises for our consideration is whether the issue of licence on 3rd October, 1987 by Corporation was valid or not.

"Delay of 14 days in filing W.A.Nos. 1145 to 1151 of 1989 and 18 days in filing of W.A. No. 1182/89 is condoned as sufficient cause is shown.

2. We have heard the learned counsel and find that in the circumstances of this case, without going into the question of the powers of the authorities to grant licence contrary to section 505 of the Karnataka Municipal Corporation Act, the judgment of the learned Single Judge can be sustained on the ground that there has been an unexplained delay on the part of the Corporation in taking timely action against the builders/owners. The Corporation is estopped from taking any action in view of its own conduct in allowing the builders to raise construction on the basis of the licences which were granted in contravention of the provisions of Section 505 and in allowing the building to be occupied.