Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 7372-7428 of 2004, Judgment Date: Dec 16, 2015

                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL NOS.7372-7428 OF 2004

K.B. RAMACHANDRA RAJE URS
(DEAD) BY LRS.                                                 ...APPELLANTS

                                  VERSUS

STATE OF KARNATAKA & ORS.
ETC.                                                          ...RESPONDENTS
                                    WITH

                        CIVIL APPEAL NO. 453 OF 2007
                            [PRADEEP KUMAR & ORS.
                                   VERSUS
                 MYSORE URBAN DEVELOPMENT AUTHORITY & ORS.]


                                  JUDGMENT

RANJAN GOGOI, J.


1.          The appellant is the writ petitioner  who  had  instituted  Writ
Petition No.14726 of 1994 before the High  Court  of  Karnataka  challenging
therein the preliminary notification dated  21st  June,  1985  issued  under
Section 16(1) of the City  of  Mysore  Improvement  Act,  1903  (hereinafter
referred to as 'the 1903 Act”) for proposing to acquire a total area  of  94
acres 28 gunthas of land located in Vijayashreepura village,  adjoining  the
‘Vijayanagar  Extension’,  as  mentioned  in  the   Schedule   thereto   for
improvement of Mysore city.

2.           The  final  notification  dated  29th  April,  1988  issued  in
exercise of powers conferred under Section 18(1) and (2) of  the  1903  Act;
the awards relating to the acquisition of land in question as  well  as  the
Government approval dated 28th May, 1988 for allotment of 55 acres  of  land
to the respondent No.28 –  J.S.S.  Mahavidyapeetha  [for  short  “respondent
No.28-Society] was also challenged in the Writ  Petition  No.14726  of  1994
filed by the appellant.

3.       The appellant as the  writ  petitioner  had  filed  a  second  writ
petition i.e. Writ Petition No.31449 of 1994  by  which  the  public  notice
dated  27th  June,  1994  inviting  applications   for   regularization   of
unauthorized  constructions  made  in  several  villages  including  in  the
Vijayashreepura village was challenged.

4.          The learned single  judge  by  judgment  and  order  dated  22nd
February, 2001 held that the  impugned  acquisition  of   94  acres  and  28
gunthas was illegal and bad and so was the allotment dated  26th  September,
1988 of 55 acres of land made in favour of the  respondent  No.28  -Society.
However, in view of the long eclipse of time and  taking  into  account  the
interim order dated 13th September, 1994 passed in  Writ  Petition  No.14726
of 1994, wherein it was observed that any construction raised by  Respondent
No. 28 will be at his risk  and  cost  and  all  other  relevant  facts  and
circumstances of the case, the learned single judge  thought  it  proper  to
mould the relief in the present case by refusing to quash and set aside  the
acquisition notifications  though  holding  the  acquisition  itself  to  be
untenable in law.   However, the order of allotment of 55 acres of  land  in
favour of the respondent No.28 made out of the acquired land was  interfered
with and the said respondent was  directed  to  handover  the  land  to  the
Mysore Urban Development Authority  (“MUDA'  for  short).   So  far  as  the
appellant  is  concerned,  it  was  held  that  he  would  be   liable   for
compensation under the Land Acquisition  Act,  1894.   As  for  the  reliefs
sought in Writ Petition No.31449 of 1994 the same was allowed  holding  that
the MUDA was not authorized either under the provisions of the 1903  Act  or
under the  provisions  of  the  Karnataka  (Regularization  of  Unauthorised
Constructions in Urban Areas)  Act,  1991  to  regularize  the  unauthorized
constructions upon the land in question.

5.          Appeals were filed against the said order  by  the  appellant  –
writ petitioner as well as a group of persons who were  shown  as  occupancy
tenants of a part of the  land  in  the  impugned  preliminary  notification
issued under the provisions  of  the  1903  Act.   Some  of  the  subsequent
purchasers of the plots from such  occupancy  tenants  had  also  moved  the
Division Bench of the High Court.  The  Division Bench of the High Court  by
the impugned  common  judgment  and  order  dated  08.04.2004  reversed  the
findings of the learned single judge as to the legality and validity of  the
acquisition as well as allotment  of  the  land  to  the  respondent  No.28-
Society is concerned and the consequential directions.

6.           Aggrieved,  these  appeals  have  been  filed   by   the   writ
petitioners.

7.           We  have  heard  Shri  A.K.  Ganguli,  learned  Senior  Counsel
appearing for the appellants, Shri Basavaprabhu  S.  Patil,  learned  Senior
Counsel appearing for the State of Karnataka, Shri  P.  Vishwanatha  Shetty,
learned Senior Counsel appearing  for  the  MUDA  and  Shri  Huzefa  Ahmadi,
learned Senior Counsel appearing for the respondent  No.28-Society  and  the
learned counsels for rest of the contesting respondents.

8.          Shri A.K. Ganguli, learned  Senior  Counsel  appearing  for  the
appellants has placed before the Court the Scheme  under  the  1903  Act  to
contend that the entire process of acquisition resorted to  in  the  present
case is contrary to the provisions of the  1903  Act.   Specifically  it  is
argued by Shri Ganguli that the preliminary notification  dated  21st  June,
1985 was issued even prior to  the  publication  of  a  Scheme  which  is  a
condition precedent to the issuance of the Notification under Section  16(1)
of the 1903 Act.  In this regard, Shri Ganguli has specifically pointed  out
the findings of the learned single judge as recorded in paragraph 11 of  the
judgment and  order  dated  22nd  February,  2001  to  the  effect  that  on
consideration of the relevant file  it  is  clear  that  no  scheme  was  in
existence or available at the point of time contemplated  by  the  Act  i.e.
before the dates of  the  Notification  under  Section  16(1)  of  the  Act.
According to Shri Ganguli, though there is a reference in  the  Notification
dated   21st   June,   1985   that   the    Scheme    is    available    for
inspection/verification, no such  scheme  was  actually  published.   It  is
further submitted by Shri Ganguli that the provisions of Section 17  of  the
1903 Act have been bypassed  and  the  final  notification  published  under
Section 18 of the 1903 Act does  not  have  the  required  sanction  of  the
Government  inasmuch  as  the  Notification  itself  states  that  the  said
notification is subject to approval of  the  Government.  Shri  Ganguli  has
further submitted that no notice contemplated by Sections 9 and  10  of  the
Land Acquisition Act, 1894  was  issued  to  the  appellants.  Though  under
Section 23 of the 1903 Act the land  vests  in  the  Government  only  after
publication of the award and  payment  of  costs  of  acquisition  and  only
thereafter the land could have been transferred  to  MUDA,  in  the  instant
case, even  before  such  vesting  had  taken  place  by  operation  of  the
provisions of Section 18(4) of the  1903  Act,  the  land  was  allotted  to
respondent No.28-Society by MUDA.  In fact, with regard to  such  allotment,
Shri Ganguli has drawn  our  attention  to  the  several  communications  on
record by and between the MUDA and  the  respondent  No.28-Society  and  the
functionaries of the State of Karnataka to show that the sole object of  the
acquisition under the 1903 Act was for allotment of the land in question  to
the  respondent  No.28-Society.   In   this   regard,   Shri   Ganguli   has
specifically    drawn    the    attention    of    the    Court    to    the
communications/correspondence dated 09th April, 1986, 20th May,  1986,  15th
June, 1986, 20th September, 1986, 8th November, 1986,  26th  November,  1986
and 18th December, 1986 exchanged between the respondent No.28-Society,  the
Chief Minister and the Minister of Urban Development of  the  Government  of
Karnataka for allotment of 100 acres of land in  S.No.1  of  Vijayasreepura,
Kasaba Hobli, Mysore Taluk  to the respondent  No.28-Society.  Shri  Ganguli
has further submitted that acquisition of land under the 1903  Act  for  the
purpose of benefiting  the  respondent  No.28-Society  is  not  contemplated
inasmuch as acquisition of land under the 1903 Act is  for  improvement  and
future expansion of the city of Mysore as  the  preamble  of  the  1903  Act
would indicate.  Shri Ganguli has further submitted that  on  the  basis  of
the correspondence exchanged between the respondent  No.28-Society  and  the
respondent State as early as on 6th April,  1987  the  Board  has  passed  a
resolution allotting 55 acres of land to the  respondent  No.28-Society  out
of 94 acres and 28 gunthas notified under Section 16(1)  of  the  1903  Act.
In this regard, it is pointed out that the Notification under Section  16(1)
earlier published on 21.6.1985 was  gazetted  subsequently  on  30th  April,
1987.  It is also pointed out that the real purpose of  the  acquisition  is
evident from the draft notification dated 20th August,  1987  under  Section
18 of the Act which is in the following terms:

      “the properties specified below, the same, a little more or  less  are
needed for a public purpose to wit for formation of a layout  of  sites  and
for development of Jayachamarajendra College of Engineering.”

            The aforesaid recital was subsequently corrected  in  the  Final
Notification dated 29th April, 1988 issued  under  Section  18  wherein  the
words “for development of  Jayachamarajendra College  of  Engineering”  were
dropped.

9.          The arguments advanced on behalf of  the  appellants  have  been
refuted by Shri Basavaprabhu S. Patil, learned Senior Counsel appearing  for
the State of Karnataka, Shri P. Vishwanatha Shetty, learned  Senior  Counsel
appearing for the MUDA  and  Shri  Huzefa  Ahmadi,  learned  Senior  Counsel
appearing for the respondent No.28-Society.

10.         The arguments advanced on  behalf  of  the  respondents  may  be
summarized as hereunder.
            The respondents contend that the acquisition  of  the  land  for
the respondent No.28-Society for the purposes of development of  Engineering
College is not foreign  to  the  provisions  of  the  1903  Act.   In  fact,
according to the learned counsels, the object of the 1903 Act is to  acquire
land for a public purpose as in the  case  of  acquisition  under  the  Land
Acquisition Act, 1894.  Relying on a decision of this Court in The State  of
Bombay versus Ali Gulshan[1], it is pointed out  that  acquisition  of  land
for setting up of educational  institutions  by  private  benefactors  is  a
public purpose.  Reliance in this regard has also been placed on a  judgment
of this Court in Smt. Venkatamma  and  others  versus  City  Improvement  of
Trust Board, Mysore and others[2]  to contend that it has been held by  this
Court that acquisition under the 1903 Act is permissible even for a  private
organization as long as the purpose of such acquisition  is  improvement  of
the  city  of  Mysore.   It  is  contended  that  the  development  of   the
Engineering College on the  outskirts  of  the  city  of  the  Mysore  would
certainly be a step in the development of the city of Mysore.

11.         The learned counsels for the respondents have further  contended
that it would not be correct to contend that no scheme was in  existence  on
the date when the preliminary notification dated 21st June, 1985 was  issued
or on the date of publication of the said notification in the  Gazette  i.e.
30th April, 1987.  Insofar as the findings of the learned  single  judge  in
this regard are  concerned  it  is  contended  that  the  reference  to  the
Notifications by the learned single judge in paragraph 11  of  his  judgment
are in  respect  of  the  notification  as  corrected  after  the  stage  of
consideration of objections under Section 16(2) was over.   Viewed  in  this
light, the dates mentioned by the learned single judge are  not  in  respect
of the Notification under Section 16(1) of the Act of  1903.  In  any  case,
according  to  the  learned  counsels,  the  appellant  did  not  take   any
objections with regard to the availability of the Scheme in  the  objections
filed by him on 12th June, 1987.   In  fact,  in  the  said  objections  the
appellant had accepted the acquisition  sought  to  be  made  and  had  only
prayed that out of 94 acres and 28 gunthas sought to be acquired an area  20
acres of land be made available to him  to  enable  him  to  tide  over  his
personal difficulties.   It is further contended that in the  writ  petition
filed also, no specific objection in this regard was taken.

12.    According to the  learned  counsels  for  the  respondents  the  writ
petition is inordinately delayed.  The writ petition has been filed  in  the
year 1994 though the acquisition of land was  finalized  in  the  year  1988
and, in fact, the possession of the land  to  the  respondent  No.28-Society
was handed over as far back as on  26th  September,  1988.   It  is  further
pointed out that the fact that the acquisition was being made, in part,  for
the respondent No.28-Society is amply clear from the recitals  contained  in
the order dated 31st July, 1987, by which the objections  of  the  appellant
under Section 16(2) was rejected.  In this regard, it is  also  pointed  out
that in the course of the objection hearing the  appellant  was  represented
by his counsel.  It is therefore contended that the statement  made  by  the
writ petitioner – appellant that he came to know about the allotment of  the
land for the  respondent  No.28-Society  when  the  said  Society  had  made
attempts to construct a wall  on  the  land  in  the  year  1994  is  wholly
incorrect and the entire premise on the basis of  which  the  writ  petition
has been filed is false.  Therefore, on the aforesaid twin grounds of  delay
and lack of bona fides of the  writ  petitioner,  the  present  appeals  are
liable to be dismissed. It is further submitted by the learned counsels  for
the respondents that the slight infirmities in the  process  of  acquisition
as pointed out on behalf of the appellants are  minor  deviations  from  the
process contemplated under the 1903 Act and the  State  Government  on  28th
May, 1988 accorded its consent to the resolution dated 6th  April,  1987  of
the Board allotting 55 acres of land to the respondent No.28-Society.

13.         Lastly it is pointed out by Shri Huzefa Ahmadi,  learned  Senior
Counsel appearing for the respondent No.28-Society that while it is  correct
that in the interim order passed in the Writ  Petition  on  13th  September,
1994 it was observed that further constructions, if raised, would be at  the
risk and cost of the respondent No.28 – Society, over a  period  of  time  a
full-fledged University campus has come up on the  land  in  question  which
needs to be protected in the exercise of the equitable jurisdiction of  this
Court. In this regard, the decision of this Court in U.G. Hospitals  Private
Limited versus State of Haryana and others[3]   has  been  relied  upon.  In
this regard Shri Ahmadi has specifically  urged  that  construction  on  the
land allotted to respondent No.28 began much earlier  to  the  date  of  the
interim order of the High Court. In fact by the time the said order came  to
be passed the respondent No.28 had no option of turning back and it  had  no
choice but to go ahead in view of the stage at which the construction  stood
and the commitments already made.

14.         To appreciate the rival stand advanced  before  us  it  will  be
useful to notice the Scheme under the 1903 Act at the outset.
The 1903 Act has been enacted  for the purpose  of  improvement  and  future
expansion of the city of Mysore.  Section 14 vests in the  Board  the  power
to draw up detailed schemes for such improvement or expansion  or  both,  as
may be, in respect of the areas to which the 1903 Act applies.

15.         Section 15  provides for the particulars to be provided  for  in
an improvement scheme.  It reads as under:

15. Particulars to  be  provided  for  in  an  improvement  scheme.--  Every
improvement scheme under Section 14.- (1) shall, within the  limits  of  the
areas comprised in the scheme, provide for.-

(a)   the acquisition of any land which will, in the opinion of  the  Board,
be necessary for or affected by the execution of the scheme.

(b)    re-laying  out  allot  any  land  including  the   construction   and
reconstruction of buildings and the formation and alteration of streets;

(c)   draining streets so formed or altered;

(2)   may, within the limits aforesaid provide for.-

(a)   raising any land which the board may deem expedient to raise  for  the
better drainage of the locality;

(b)   forming open spaces for the better ventilation of the  area  comprised
in the scheme or any adjoining area;

(c) the whole or any part of the sanitary arrangements required;

(d)    the  establishment  or  construction  of  markets  and  other  public
requirements or conveniences; and

(3)   may,  within  and  without  the  limits  aforesaid,  provide  for  the
construction of buildings for the accommodation of the  poorer  and  working
classes, including the whole or part of such classes to be displaced in  the
execution of the scheme. Such  accommodation  shall  be  deemed  to  include
shops.”



16.         After a Scheme is  prepared,  under  Section  16  the  Board  is
obligated to draw up a notification stating that the scheme has  been  made;
the limits of  the  area  comprised  therein  and  to  name  a  place  where
particulars of the scheme; a map of the  area  comprised  therein;  and  the
details of the land which is proposed to be acquired or in respect of  which
a betterment fee is proposed to  be  imposed  may  be  seen  and  inspected.
Under Section  16(1)(b), the notification is required  to  be  published  in
the Gazette and also posted in the office  of  the  Deputy  Commissioner  or
Municipal Council or such other place as may be considered  necessary  under
Section 16(2).  Within a period of 30 days following the publication of  the
notification in the Gazette the Board is required to serve notice  on  every
person  whose name appears in the assessment list  of  the  Municipality  or
the local body concerned or in the  land  revenue  register  requiring  such
person to file objections, if any.  Under Section 17 the  Board  is  obliged
to consider the  objections/representations  received  in  response  to  the
communication/notices issued under Section 16(2) and on  the  basis  thereof
carry out such modification  in  the  scheme  earlier  prepared  as  may  be
necessary.  The scheme with or  without  modifications  is  required  to  be
forwarded to the Government for sanction and on receipt  thereof  a  ‘final’
notification under Section 18 is required to be issued  stating the fact  of
such sanction and mentioning that the land proposed to be  acquired  by  the
Board for the purposes of the scheme is required for a public  purpose.  The
said Notification is required to be published in the Official Gazette.

17.         Under Section 23 of  the  1903  Act,  acquisition  of  land,  if
resorted to, has to follow the  provisions  of  the  Land  Acquisition  Act,
1894. Section 23, inter alia, provides that after the  land  has  vested  in
the Government under Section 16  of  the  Land  Acquisition  Act,  1894  the
Deputy Commissioner shall upon payment of cost of acquisition  transfer  the
land to the Board whereupon the land will vest in the Board.
18.         In the present case, the principal ground of  attack  on  behalf
of the appellants is that there was no scheme prepared and the reference  to
the availability of a scheme for inspection in the preliminary  notification
dated 21st June, 1985 as published in the Gazette on 30th April, 1987  is  a
hollow declaration.  The findings  of  the  learned  single  judge  in  this
regard has already been noted.  To resolve the controversy, this  Court  had
required the State to place before it the  records  in  original  containing
the scheme as framed and the communications and correspondence exchanged  in
this regard. The Chief Secretary of the State  of  Karnataka  was  entrusted
with the responsibility of ensuring that the said record is  made  available
to the Court. In the affidavit of Chief Secretary dated 29th  October,  2015
it has been admitted that the  said  record  has  been  destroyed  and  such
destruction had taken place during the pendency of  the  present  case.   It
would hardly be necessary to state that in view of  the  clear  findings  of
the learned single judge  in  this  regard;  the  absence  of  any  positive
material to show that a scheme as framed had existed at the  relevant  point
of time; and the actions of the respondent State in destroying  the  records
can be led to only one conclusion which necessarily has  to  be  adverse  to
the respondents.

19.         In view of the clear language of Section 16(1) of the  1903  Act
and the scheme of the 1903 Act there can be no  manner  of  doubt  that  the
requirement of  the  existence  of  the  plan/development  scheme  prior  to
publication of the preliminary notification under Section 16(1) of the  1903
Act is a mandatory requirement.  From the facts placed before the  Court  it
is clear that such mandatory requirement has not  been  followed.  Not  only
that, there is no material to show that the question of  modification(s)  in
the scheme were duly considered in the light of the objections received  and
that the scheme was sent to the State Government for  sanction  as  required
under Section 17 of the 1903 Act.  In  fact,  the  whole  position  is  made
abundantly clear by the terms of the notification  dated  29th  April,  1988
under Section 18(1) and 18(2) of the  1903  Act  which  recites  that  “This
development  scheme  is  subject   to   administrative   sanction   by   the
Government.”.   There is, therefore, a clear infringement of  the  mandatory
requirement under Section 18 of the 1903  Act.  The  correspondence  between
the respondent No.28-society and the State of Karnataka  referred  to  above
which is a part of the record of the case, on which  there  is  no  dispute,
would go to show that the provisions of the 1903 Act in respect of 94  acres
and 28 gunthas of land were invoked at the request of the respondent  No.28-
Society who wanted allotment of a total of 100 acres of land specifying  the
said requirement to be in S.No.1 of  Vijayasreepura,  Kasaba  Hobli,  Mysore
Taluk.  The communications  on  record  also  go  to  show  that  the  Chief
Minister of the State had intervened  and  issued  necessary  directions  in
this regard and it is pursuant to the same that the provisions of  the  1903
Act were invoked to acquire the  land  in  question.   However,  as  already
referred to, even before  the  notification  dated  21st  June,  1985  under
Section 16(1) of the 1903 Act was  published  in  the  Gazette  as  required
under the 1903 Act (published on 30th April, 1987), on 6th April,  1987  the
Board had passed a resolution allotting 55 acres of land to  the  respondent
No.28 – Society out of 94 acres and 28 gunthas covered  by  the  preliminary
notification dated 21st June, 1985.  It is, thereafter, by letter dated  2nd
September, 1987 that the Board informed the Government  that  the  remaining
area of land can be utilized for developing a layout and a  separate  scheme
will be prepared and approval of the Government sought for  with  regard  to
final notification.  Thereafter it appears that on  28th  May,  1988,  which
document is also available  on  record,  the  Government  had  accorded  its
consent/approval to the resolution  dated  6th  April,  1987  of  the  board
allotting 55 acres of land to the respondent  No.28-Society.  Possession  of
the said land was given to the respondent No.28-Society on  26th  September,
1988.  The above sequence of events demonstrates  State  action  which  does
not conform  to  the  requirements  of  law.  Furthermore,   the  Government
approval to the resolution of the Board to handover 55 acres of land to  the
respondent No.28-Society on 28th May, 1988 and handing  over  of  possession
of such land on 26th September,  1988  is  also  contrary  to  the  specific
provisions contained in Section 23(4)  of  the  1903  Act  inasmuch  as  the
aforesaid provision of the 1903 Act contemplates vesting of the land in  the
Government after an award is passed and compensation is  paid  and  only  on
such vesting of the land in the Government the same can  be  transferred  to
the Board. If this is what the 1903 Act  contemplates  it  is  difficult  to
understand how on 28th May, 1988, even before an award was  passed  and  the
land had vested in the Government and the question of transfer to  the  MUDA
had not even arisen in law, the Government could have approved  the  Board’s
Resolution to allot the land to Respondent No.28 and how the  possession  of
the land could have been handed  over  by  MUDA  to  the  respondent  No.28-
Society on 26th September, 1988.

20.         In the light of the above facts  and  the  conclusions  that  we
have reached we do not consider it necessary to decide the  question  as  to
whether the acquisition of land for the purposes of Engineering  College  is
within  the  four  corners  of  the  1903  Act  or   such   acquisition   is
alien/foreign thereto.  Even if this issue is to be hypothetically  answered
in favour of the MUDA  and  the  respondent  No.28-Society  by  holding  the
acquisition to be for a purpose contemplated by the object of the  1903  Act
there is no escape from the fact that the mandatory provisions of  the  1903
Act  as  detailed  herein  above  have  been  breached  in  the  process  of
acquisition which has  to  result  in  invalidation  of  the  same  and  the
acquisition made on the basis thereof.

21.         It has been vehemently argued on behalf of the respondents  that
the writ petition ought not to have been entertained and any  order  thereon
could not have been passed as it is inordinately delayed and  the  appellant
has made certain false statements in the pleadings  before  the  High  Court
details of which have been  mentioned  hereinabove.   This  issue  need  not
detain the Court.  Time and again it has been  said  that  while  exercising
the jurisdiction under Article 226 of the Constitution  of  India  the  High
Court is not bound by any strict rule of limitation.  If substantial  issues
of public importance touching upon the fairness of  governmental  action  do
arise the delayed approach to reach the Court will not stand in the  way  of
the exercise of jurisdiction by the Court.  Insofar as the knowledge of  the
appellant – writ petitioner with regard to the allotment of the land to  the
respondent  No.28-Society  is  concerned,  what  was  claimed  in  the  writ
petition is that it is only in the year  1994  when  the  respondent  No.28-
Society had attempted to raise construction on the land  that  the  fact  of
allotment of such land came to be known to the writ petitioner –  appellant.
 A mere  recital  of  the  fact  that  a  part  of  the  land  proposed  for
acquisition is contemplated to be allotted to the Respondent No. 28  in  the
order dated 31st July, 1987 rejecting the  objections  filed  by  the   writ
petitioner – appellant in response to the notice issued under Section  16(2)
of the 1903 Act, in our considered  view,  cannot  conclusively  prove  that
what was asserted in the writ petition has to be necessarily  understood  to
be  false  and  incorrect.   At  the  highest,  the  fact  claimed  by   the
respondents that the appellant had previous  knowledge  may  be  a  probable
fact.  The converse is also  equally  probable.   Taking  into  account  the
above position and the contentious issues raised  and  the  conduct  of  the
State Authorities and the MUDA, we are of the view that  the  said  fact  by
itself i.e. delay should not come in the way of an adjudication of the  writ
petition on merits. We, therefore, hold that  the  impugned  acquisition  by
MUDA under the provisions of the 1903 Act is invalid in law and  has  to  be
so adjudged.

22.         There is one incidental but important issue  that  needs  to  be
dealt with at this  stage.   Shri  P.  Vishwanatha  Shetty,  learned  Senior
Counsel appearing for the MUDA  has vehemently  and  repeatedly  urged  that
the appellant – writ petitioner is not the owner of the properties  and  the
same are State properties inasmuch as the appellant –  writ  petitioner  who
claims to be a descendant of the Maharaja of Mysore cannot have the  benefit
of suit property as the same was not included as  the  private  property  of
the Maharaja in the  instrument of accession executed at the time of  merger
of the princely State of Mysore with the Union. Shri Shetty has  offered  to
lay before the Court the relevant documents in this regard which,  according
to him, would clearly disclose the absence of ownership of the  appellant  –
writ petitioner in the  property  in  question.   Shri  Shetty  has  further
submitted that the above determination should be made by this Court  in  the
exercise of its jurisdiction under Article 136 of the Constitution of  India
inasmuch as substantial questions of public interest arise  therefrom  as  a
person who is not the owner  is  claiming  properties  that  belong  to  the
State.  We are afraid we cannot go into the said question as  not  only  the
same was not an issue before the High Court; it had not also been raised  by
any person, body or authority in any forum at any point of time.  It  is  an
issue raised at the fag end of the lengthy oral discourse made on behalf  of
the contesting parties. Furthermore,  the  above  stand  taken  before  this
Court on the one hand and resort to the process of acquisition on the  other
is also self-contradictory.  Except what is stated above, we do not wish  to
dilate on the said point and leave the matter for a  just  determination  by
the appropriate forum as and when the same is raised by a person  aggrieved,
if at all so raised.

            We are told that the Respondents No. 4 to 27 had raised a  claim
to be occupancy tenants in respect  of  the  entire  land  of  94  acres  28
gunthas.  The said claim had been rejected by the learned Revenue  Tribunal.
The matter is presently pending in a writ appeal before the  Division  Bench
of the High Court of Karnataka i.e. Writ Appeal No.1654  of  2008.   As  the
said matter is pending, we do not consider  it  necessary  to  go  into  the
above issue except to state the obvious, namely, that the  judgment  of  the
High Court in the said writ appeal as and when passed  will  naturally  take
its own effect in accordance with law. In this  regard,  we  may  also  take
note of the fact that it is admitted by Shri Shetty, learned Senior  Counsel
appearing  for  the  MUDA  that  out  of  remaining   40   acres   of   land
approximately, about 16 acres and 30 gunthas is presently lying  vacant  and
there are encroachers on the remaining land.  Insofar as  the  encroachments
are concerned, we need hardly to emphasize that all such encroachments  need
to be dealt with in accordance with law so that full effect  of  this  order
and the consequential directions contained herein can be given effect to.

23.         The next and the final question that needs to  be  now  answered
is the relief(s) which should be accorded in the present case.

24.    The acquisition under the 1903 Act and the allotment of 55  acres  of
land to the respondent No. 28 having  been  found  to  be  contrary  to  law
consequential orders of handing  over  of  possession  of  the  entire  land
should normally follow.  However,  in  granting  relief  at  the  end  of  a
protracted  litigation,  as  in  the  present  case,  the  Court  cannot  be
unmindful of facts and events that may have occurred during the pendency  of
the litigation. It may, at times, become necessary to balance  the  equities
having regard to the fact situation and  accordingly  mould  the  relief(s).
How the relief is to be moulded, in the light of  all  the  relevant  facts,
essentially lies in  the  realm  of  the  discretion  of  the  courts  whose
ultimate duty is to uphold and further the mandate of law.  If the issue  is
viewed from the aforesaid perspective the several decisions cited on  behalf
of the respondents in this regard, particularly by the  respondent  No.  28,
i.e.,  Competent Authority Vs. Barangore Jute Factory  and  Others[4],  U.G.
Hospitals Pvt. Ltd.  Vs. State of  Haryana  and  Others[5]  ,  Gaiv  Dinshaw
Irani and Others Vs. Tehmtan  Irani  and  Others[6]  and  Bhimandas  Ambwani
(Dead) Through Lrs. Vs. Delhi Power Company Limited[7] can at best  indicate
the manner of exercise of the judicial discretion in the  facts  surrounding
the particular cases in question.

25.   Adverting to the facts of the present case, we find that  out  of  the
94 acres and 28 guntas of land that was acquired way  back  in  1985-88,  55
acres have been allotted to the respondent No. 28. The  layout  proposed  by
MUDA was in respect of the balance land i.e. about 40  acres.  Of  the  said
approximately 40 acres of land, according to the MUDA, about  16  acres  and
30 guntas is  presently  vacant  whereas  there  are  encroachments  on  the
remaining land.  Though even on the land not allotted to respondent No.  28,
no developmental work, in consonance with the object of  the  1903  Act  has
been undertaken we are not  certain  if  the  same  is  on  account  of  the
smallness of the area  available  or  for  any  other  good  and  acceptable
reasons.  However, keeping in mind that even if we  are  to  set  aside  the
acquisition, re-acquisition can be resorted  to  in  which  event  the  land
would continue to vest in the MUDA and the land owner would be  entitled  to
compensation, though at an enhanced rate, we are of the view that  it  would
be just, fair and equitable to direct that the land vacant as on  today  and
all such lands under encroachments, after being made free therefrom, may  be
retained by  the  MUDA  for  developmental  works  in  consonance  with  the
object(s) of the 1903 Act and the owner thereof be entitled to  compensation
in terms of the directions that follow. All proceedings  connected  to  such
encroachments will be completed within six months from  today  by  all  such
forums before which the same may be pending. In  the  event  MUDA  does  not
consider it feasible to utilize the land for the  purpose  of  the  Act  the
same be handed over to  the  person  entitled  to  receive  such  possession
depending upon the outcome of Writ Appeal No. 1654 of 2008.

26.   Insofar as the 55 acres of land allotted to the respondent No.  28  is
concerned, we have taken note of the fact that  despite  the  interim  order
dated 13th September, 1994 passed in Writ Petition No. 14726 of 1994 by  the
High Court of Karnataka, referred  to  above,  the  respondent  No.  28  has
raised constructions on the land.  It is not necessary for  us  to  go  into
the question as to whether such constructions had to be raised as  the  said
respondent, by the time the interim order came to be passed,  was  committed
to undertake such constructions and had  no  choice  in  the  matter.   What
however  cannot escape from notice is that  notwithstanding  the  illegality
in the allotment made and the risk undertaken by the respondent  No.  28  in
raising the constructions despite the interim order  dated  13th  September,
1994, a  full-fledged  academic  campus  consisting  of  several  buildings,
details of which are mentioned below, have come up on the land in question.
1.    JSS Polytechnic
2.    JSS Public School
3.    JSS Polytechnic for the differently     Abled
4.    JSS Polytechnic for Women
5.    JSS Polytechnic for Women’s Hostel
6.    SJCE Ladies Hostel
7.    JSS NODAL Centre
8.    JSS-KSCA Cricket Ground


27.     The judicial power  should  not  be  destructive  if  the  Rule  and
Majesty of law can be upheld by suitable  and  appropriate  adaptations  and
modifications in the eventual order that may be passed by  the  Court  in  a
given case.  In the present case, that a full-fledged academic  campus  have
come up on the 55 acres  of  land;  that  a  large  number  of  persons  are
utilizing the benefit of the said  infrastructure  and  facilities  provided
therein; that the infrastructure raised on the allotted  land  is  providing
avenues of employment to many and a host of other such circumstances  cannot
be overlooked by the Court.  On a perusal of the materials laid  before  the
Court, particularly, the Google Map showing the layout of the  buildings  on
the 55 acres of land in question which, was specifically sought for  by  the
Court, we find that even today there are large tracts of vacant land  within
the  said  55  acres  notwithstanding  the  constructions  raised.  In  such
circumstances, it is our considered view that the  respondent  No.28  should
be asked to surrender to MUDA a compact area  of  a  minimum  of  15  acres,
which vacant land the MUDA will take  possession  of  within  a  month  from
today.  The return of the said land will be once again made  to  the  person
or persons entitled to receive such possession depending  upon  the  outcome
of Writ Appeal No.1654 of 2008. Insofar as the remaining 40  acres  of  land
allotted to respondent No.28 is concerned, we direct that  compensation,  in
respect  thereof,  to  the   person/persons   entitled   to   receive   such
compensation under the Land Acquisition Act,  will  follow  the  outcome  of
Writ Appeal No.1654 of 2008. The compensation under the Act will be paid  by
taking the date of the order of the learned Single Judge of the  High  Court
i.e. 22.02.2001 to be the date of the Notification under Section 4  of  Land
Acquisition Act. The aforesaid  date,  which  represents  the  midway  point
between earlier and subsequent  dates  (the  earlier  date  of  notification
under Section 16(1) of the Act of 1903 or the date  of  the  present  order)
that could have been opted for, has been preferred by the court  to  balance
the equities in a situation where the landowner is being denied  the  return
of the land and the beneficiary of an  illegal  allotment  is  permitted  to
retain the same (in part) in larger public interest. We further direct  that
alongwith the market value of the land as on the said  date  i.e.  22.2.2001
the person or persons  found  to  be  entitled  will  be  also  entitled  to
compensation under all other heads including  interest  in  accordance  with
the provisions of the Land Acquisition Act. The  provisions  of  Section  18
and other provisions of the Act  for  enhanced  compensation  will  also  be
applicable.  The same directions  and  principles  will  govern  the  matter
concerning compensation in respect of the vacant land (16 acres  30  guntas)
and the land under encroachment referred to above after  such  encroachments
are dealt with in terms of the directions contained herein.  In view of  the
long efflux of time the process of determination and grant  of  compensation
shall be completed by all forums within a period of one year from today.

28.   Consequently and in the light of what has been  discussed  above  both
the appeals are allowed to the extent indicated.

Civil Appeal No.453 of 2007 –

29.         In the light of the  above,  Civil  Appeal  No.453  of  2007  is
disposed of.


                                                     ....................,J.
                                                              (RANJAN GOGOI)



                                                     ....................,J.
                                                               (N.V. RAMANA)

NEW DELHI
DECEMBER 16, 2015
-----------------------
[1]    [(1955) 2 SCR 867]
[2]    [(1973) 1 SCC 188]
[3]    [(2011) 14 SCC 354]
[4]    [(2005) 13 SCC 477]
[5]    [(2011) 14 SCC 354]
[6]    [(2014) 8 SCC 294]
[7]    [(2013) 14 SCC 195]