- (1.) These appeals are directed against two sets of judgments and orders passed by the Division Benches of the Karnataka High Court whereby the acquisition of lands by the State Government for the benefit of the appellant was quashed. Civil Appeal Nos. 7425-26/2002 are directed against judgment dated 16.03.1998 passed by the High Court in Writ Appeal No. 9913/1996 and order dated 09.07.1999 passed in Civil Petition No. 366/1998. Civil Appeal Nos. 774-78/2005 are directed against judgment dated 06.02.2004 passed in Writ Appeal No. 4246/1998, C/W W.A. No. 6039/1998 and orders dated 11.02.2004 and 15.09.2004 passed in I.A. No. 1 for rectification in Writ Appeal No. 4246/1998, C/W W.A. No. 6039/1998 and Review Petition Nos. 166 and 170 of 2004, respectively.
(2.) Although, the High Court quashed the acquisition proceedings mainly on the grounds of violation of the provisions of the Land Acquisition Act, 1894 (for short, 'the 1894 Act') and the manipulations made by the appellant through the Estate Agent for acquiring the land, during the pendency of these appeals the parties filed voluminous papers and arguments were advanced by both the sides by relying upon those documents as also the records summoned by the Court from the State Government.
(3.) For appreciating the contentions of the parties in a correct perspective, it will be useful to notice the events which culminated in the acquisition of the lands belonging to the private respondents and others. 3.1 Bangalore Development Authority (BDA) was constituted by the State Government under Section 3 of the Bangalore Development Authority Act, 1976, (for short, 'the 1976 Act'), which was enacted by the State legislature for ensuring planned development of the City of Bangalore and areas adjacent thereto. In terms of Section 15 of the 1976 Act, the BDA is empowered to draw up detailed schemes for the development of the Bangalore Metropolitan Area and with the previous approval of the Government, undertake works for the development of the Bangalore Metropolitan Area and incur expenditure therefor. Under Section 15(2), the BDA can take up new or additional development schemes either on its own or on the recommendations of the Local Authority or as per the directions of the State Government. Section 16 lays down that every development scheme shall, within the limits of the area comprised in the scheme, provide among other things for the acquisition of any land necessary for or affected by the execution of the scheme. Section 16(3) lays down that the scheme may provide for construction of houses. Sections 17 and 18 contain the procedure for finalization and sanction of the scheme. Section 19 provides for the acquisition of land for the purposes of the Scheme. 3.2 In exercise of the powers vested in it under Section 15 and other relevant provisions of Chapter III of the 1976 Act, the BDA has been preparing the development schemes and forming layouts for the purpose of allotment of houses/plots to various sections of the society. 3.3 Due to unprecedented increase in the population of Bangalore City (by 1981, the population of the Bangalore City had swelled to 29.13 lakhs), the State Government realized that it may not be possible for the BDA to meet the demand of developed residential sites and, therefore, it was decided to encourage formation of private layouts which is permissible under Section 32 of the 1976 Act, by the house building cooperative societies (for short, 'the housing societies'). For this purpose the existing guidelines, which were being followed by the erstwhile City Improvement Trust Board and the BDA for the approval of private layouts were revised vide Circular No. HUD 260 MNX 82 dated 3.3.1983, the relevant portions of which are extracted below: "1. The area proposed for a layout should be within the residential zone of the Outline Development Plan/Comprehensive Development Plan approved by Government. In special cases where lands are reserved for purposes other than green belt and which are suitable for residential purpose, layouts may be considered after obtaining prior approval of Government for the change in land use. 2. The Co-operation Department shall register the names of the Housing Societies only after getting the opinion of the planning Authority (BDA) which shall verify whether the lands proposed for the societies are in the residential zone or are suitable for residential purpose as indicated in para 1, or whether they are required by Bangalore Development Authority. 3. If the Housing Society has purchased land, no objection certificate from the competent authority, Urban land ceiling should be produced. 4. The Housing Societies/Private developers should produce the title deeds to prove ownership of the land. 5. The Bangalore City Corporation, the HAL Sanitary Board, ITI., Notification area, Yelahanka and Kengeri Municipal authorities and such other authorities shall not approve any bifurcation of land into plots or any private layout. Such approval should be done only by the planning Authority (BDA) according to the Karnataka Town & Country Planning Act, 1961. 6. Khatha shall not be issued by the Revenue Section of the Bangalore City Corporation and the Bangalore Development Authority HAL Sanitary Board, I.T.I. Notified area, Yelahanka Town Municipality, Kengeri Town Municipality/ Panchayaths and such other authorities, unless the layout is approved by the Bangalore Development Authority. 7. The following minimum land allocations shall be insisted in the approval of private layouts by the Bangalore Development Authority. Residential Not Exceeding 50% Parks & Playgrounds 15% Roads 25% to 30% Civic amenities 50% to 10% 8. (a) Except in case of layouts for economically weaker sections standard road width shall be enforced line 12 metre (40 feet) 18.5 metres (60 feet), 24.5 metres (80 feet) and 30.5 metres (100'). (b) While working out the road pattern of the private layouts, major road pattern of the outline Development Plan/Comprehensive Development Plan should not be affected. Minor roads may be designed suitable within the framework of roads approved in the Outline Development Plan/Comprehensive Development Plan. The civic amenity sites earmarked should be for specific purposes determined by Bangalore Development Authority. In cases where it is found necessary to allot sites for other purpose, proper justification will have to be furnished. 10. The purpose for which the sites are proposed shall not be violated by the housing societies/private developers. 11. Underground drainage and electricity works in private layouts shall be carried out only by the Bangalore Water Supply & Sewerage Board and Karnataka Electricity Board. Bangalore Development Authority may permit the Housing societies to carry out the civil works only in case of societies getting the work done by Civil Engineers of the required competence. 12. After the formation of sites, allotment of sites to individual members of the housing societies must be in accordance with the eligibility conditions of allotment of the Bangalore Development Authority which are in force including the lease-cum-sale conditions. 13. Conditions shall be enforced in the approval of layouts in favour of housing societies that the sites should be allotted only to the members of the societies and not to other individuals for purposes of land speculation. A list of members shall be submitted by the societies along with the application for approval of private layouts." 3.4 The aforesaid decision of the State Government was misused by the housing societies which started purchasing lands directly from the landlords for forming the layouts resulting in uncontrolled, unplanned and haphazard development of the city. It also created acute problem of providing civic amenities, transport facilities etc. Therefore, by an order dated 18.6.1985, the State Government abandoned the existing policy of acquiring land through the Revenue Department and entrusted this task to the BDA for the Bangalore Metropolitan Area. The State Government also stopped registration of the housing societies and conversion of agricultural lands in favour of the existing societies. Simultaneously, the State Government constituted a Three Men Committee (TMC) consisting of the Registrar of Cooperative Societies, Karnataka, T. Thimme Gowda, Secretary, BDA and the Special Deputy Development Commissioner to scrutinize the land requirements of the housing societies which had already been registered and also fixed 30.6.1984 as the cut off date for consideration of the applications made by the housing societies for the acquisition of land. The constitution of the committee was made known to the public vide Order No. HUD 113 MNXA 85 dated 23.6.1986. It was also made clear that only those persons will be eligible for allotment of sites who had been enrolled as members of the housing societies before the cut off date. Subsequently, the cut off date was extended to 30.6.1987. 3.5 The Executive Director of the appellant submitted representation dated 7.12.1984 to the Minister for Revenue, Government of Karnataka for the acquisition of 238 acres 27 guntas land at Vajarahalli and Raghuvanahalli villages for formation of a layout for its members. The relevant portions thereof are extracted below: "We are happy to inform you that our society was registered under Section 7 of the Mysore Cooperative Societies Act, 1959 by the Registrar of Cooperative Societies, Bangalore, during the year 1927 vide No. 1737 C.S. dated 12.9.1927. 2. The object of the society is to provide house sites to its members who belong to working class and other backward class people belonging to weaker sections of the society. The members are poor people and they are siteless. They are residents of Bangalore City for several decades. 3. Because of the restrictions imposed by Land Reforms Act and other enactments, the activities of our society have come to stand still, with the result the society is not in a position to discharge its primary obligations entrusted as per the bye-laws. 4. Your Hon'ble authority is fully aware that it is humbly impossible to secure residential sites in these days of soaring prices of lands and sites which have gone up beyond all proportions. 5. The lands which are now requested by the society for acquisition are not fit for agricultural purposes and they are laying in the vicinity of residential layout abutting Bangalore City and there are no proposals for acquisition of these survey numbers by the Bangalore Development Authority for any of its developmental activities, as per endorsement issued by B.D.A. 6. Due to our sincere efforts we are able to locate suitable land in the village Vajarahalli and Raghuvanahalli, Uttarahalli Hobli, Bangalore south Taluk to an extent of 250 acres. A list showing the sy. numbers and extent of lands is enclosed. 7. We request your kindself to acquire these lands in favour of our society and handover possession to form layout to distribute sites to the members who are in great need of sites to construct their own houses. 8. We have collected sital amounts from the members. The cost of acquisition will be met by the society. Necessary amount towards compensation will be deposited with the acquisition authorities on receipt of intimation and after obtaining approval of Government. It is submitted that the society is agreeable to abide by all terms and conditions to be laid down by the Government in the matter." 3.6 The Revenue Department of the State Government vide its letter dated 29.12.1984 forwarded the aforesaid representation to Special Deputy Commissioner, Bangalore for being placed before the TMC constituted vide letter No. RD- 109 AQB 84 dated 26.7.1984. 3.7 Between January, 1985 and 1987 the appellant's application made several rounds before the TMC, the State Level Coordination Committee (SLCC), constituted by the State Government and the officers of the Cooperative Department. The Assistant Registrar, Cooperative Societies issued several notices to the appellant to furnish the details of its members and supply other particulars along with copy of the agreement entered with the Estate Agent engaged for formation of the layout, but the needful was not done. After lapse of long time, the President of the appellant submitted memorandum dated 17.9.1987 to the Joint Registrar, Cooperative Societies (for short, 'the Joint Registrar') stating therein that the appellant had engaged M/s. Manasa Enterprises (Estate Agent) for procuring 250 acres land from the landowners. The copies of agreements dated 1.6.1984 and 4.12.1984 executed with M/s. Manasa Enterprises were also submitted along with the memorandum. Along with letter dated 26.3.1987, the appellant furnished additional information to the Joint Registrar. 3.8 The appellant's application was considered in the meeting of the TMC held on 5.10.1987 and the Joint Registrar was asked to conduct verification of the information supplied by the appellant. After conducting the necessary inquiry, the Joint Registrar sent report dated 9.10.1987, of which the salient features were as follows: i. The appellant had neither collected sital deposit from the members nor it had paid any advance to the Estate Agent or the landowners upto 30.6.1984. ii. During 1984-85, the appellant collected Rs.20,72,500/- from the members and paid Rs.3,50,000/- to the Estate Agent as an advance for procurement of the land from the landowners. iii. During 1985-86, another sum of Rs.5,45,500/- was collected from the members towards sital deposit and Rs.10,00,000/- were paid to the Estate Agent. iv. Upto 30.6.1986, the total amount collected from the members was Rs.26,18,000/- and the total amount paid to the Estate Agent was Rs.13,50,000/- for procurement of 235 acres land in Vajarahally. v. Letter dated 24.10.1986 of the Estate Agent revealed that it had made advance payment of Rs.16,70,000/- to 17 landowners. 3.9 In its meeting on 17.10.1987, the TMC directed the Joint Registrar to conduct an investigation about the land available with the appellant before the cut off date. This was done in the wake of the information supplied by the appellant about the death of the proprietor of M/s. Manasa Enterprises in a car accident on 28.2.1987. However, before the Joint Registrar could make the necessary investigation, the appellant's application was considered in the meeting of the SLCC held on 24.10.1987 and the following proceedings were recorded: "The Deputy Commissioner, Bangalore raised a question as to whether the entitlement for acquisition would depend upon the number of enrolled members as of the cut off date of 30.4.1984 or the number of enrolled members who had paid the sital value by that date. The Revenue Commissioner clarified that as per the GO, the entitlement depended on the total number of enrolled members irrespective of whether they had applied for a site. The Secretary, HUD also agreed with this and stated that as per the bye-laws of these societies, all members would be eligible for grant of sites so long as they had paid the membership fees prior to the cut off date. The Deputy Commissioner however pointed out that the previous and even the present Three Member Committee had based its recommendations disregarding those members who had not paid the sital value. The SLCC decided that as it would not be equitable or fair to follow two different sets of principles for determining extent of land entitlement for acquisition, the number of members who had paid required sital fee would be the sole guiding factor in determining land to be cleared for acquisition in the 1 st stage. But the Secretary, Cooperation may keep the Chief Minister informed of this decision and report back to the SLCC before pending cases are taken up for 2 nd stage of scrutiny as per GO dt. 30.4.1987." 3.10 The appellant's case was again considered in the meeting of the TMC held on 27.11.1987 and the following points were recorded: "a. Society had 3821 members as on 30.6.1987 and sital value had been paid by 1362 as per which the Society's land requirement is 184 acres 11 guntas. If the SLCC decides that the Society is eligible for entitlement on this basis the Society will have to be allowed to select lands to this extent and furnish survey number-wise details. b. The question of survey numbers and violation of various Acts does not arise as the Three Man Committee considers that the Society is not eligible for any entitlement as there are no agreements and also no member had paid the sital value as on 30.6.1984. c. The JRCS reported that the Society had, in pursuance of an agreement, paid Rs. 13.5 lakhs to the estate agent who died in a car crash. But even this amount was paid after the cut off date." 3.11 In its 14 th meeting held on 28.11.1987, the SLCC considered the cases of various societies and opined that the appellant was not eligible for acquisition of land in 1 st and 2 nd stages of scrutiny because it did not have valid agreements as on the cut off date i.e., 30.6.1984. However, in the next meeting of the SLCC held on 22.12.1987 cognizance was taken of the clarification given by the Chief Minister of the State that eligibility of the housing societies should be considered on the strength of the members enrolled as on 30.06.1984 in respect of the 1 st stage of scrutiny and as on 30.6.1987 in respect of the 2 nd stage of scrutiny, irrespective of the fact whether the enrolled members had paid sital fee or not and, accordingly, decided that the appellant's case be examined by taking note of the members enrolled by it. 3.12 On 21.2.1988, the appellant entered into an agreement with M/s. Rajendra Enterprises whereby the latter promised to secure the acquisition of land on payment of the specific amount. Paragraphs 1 to 8 of the agreement, which have bearing on consideration of one of the issues arising in these appeals read as under: "1. THIS AGREEMENT entered into on this the 21 st (Twenty first) day of February 1988 between The Bangalore City Co-operative Housing Society Limited, No.2, Seethapathi Agrahara, Bangalore- 560002, a Cooperative Societies Act, represented by its President and the Executive Director and hereinafter referred to as the 'FIRST PARTY', which term shall mean and include its successors, assigns in office, administrators etc. and M/s. Shri Rajendra Enterprises, No.4507, 5th Floor, High Point-IV, 4, Palace Road, Bangalore-560 001, represented by its Managing Partner M. Krishnappa, Estate Agent and Engineering Contractor, hereinafter called the Agent of the 'SECOND PARTY' which term shall mean and include its successors in interest and successors in office, assigns, administrators etc., witnesseth:- 2. WHEREAS THE FIRST PARTY has selected about 228 acres land as detailed in the schedule, in Vajarahalli village and Raghuvanahalli village, Uttarahalli Hobli, Bangalore South Taluk, more fully described in the schedule hereunder and hereinafter, referred to as the 'Schedule Land' for making house sites for the benefit of its members for the construction of dwelling houses with various amenities including road, water supply, sewerage facilities, street lighting, etc. 3. WHEREAS the Second Party has offered his services to the First Party to negotiate and complete the acquisition and development of schedule land for the said purpose to form a layout, make sites in accordance with the rules and regulations in force and hand over the said sites to the First Party. 4. WHEREAS NOW that the Managing Partner of M/s. Manasa Enterprises, First Party's earlier promoters died of an accident and as such work could not be continued and subsequently M/s. Landscape, Layout promoters agreed to take over the entire project with all its advanced to M/s. Manasa Enterprises i.e. Rs.13,50,000/- (Rupees Thirteen Lakhs Fifty Thousand only) for procuring lands from the agriculturists in favour of the First Party, at the time of the agreement. The said Agreement dated 31.12.87 was signed between the First Party and M/s. Landscape. But this Agreement was cancelled with effect from 1.2.1988 as M/s. Landscape failed to furnish the agreed Bank Guarantee of Rs.13,50,000/-. 5. NOW the Second Party, M/s. Rajendra Enterprises have come forward and agreed to take over the entire project for the formation of the proposed layout and start the work 'ab initio' with all its previous liabilities and have furnished the required Bank Guarantee No.4/88 dated 8.2.1988 from Syndicate Bank, Vijaynagar Branch, Bangalore-560 040 of Rs.13,50,000/- (Rupees Thirteen Lakhs Fifty Thousand only) already advanced to previous promoters M/s. Manasa Enterprises (for procuring lands from the agriculturists). 6. WHEREAS the Second Party has agreed to provide all the required services towards the acquisition of scheduled land for the First Party, obtain all necessary approvals for forming the layout, roads, water lines, electric lines, drainage, sewerage connection, etc., and to carry out on the said land the items of work such as laying of roads with culverts, drainages, etc., provision of borewells, ground level and overhead tanks, water lines, etc., for the provision of water laying of electrical lines, sewerage lines, etc., and in accordance with the details approved by the respective Statutory and Government authorities on the schedule lands in consideration of the amount to be paid by the First Party as per the B.D.A. rate prevailing at the time of execution of the above specified works. 7. WHEREAS the Second Party at the behest of the First Party is taking action to move various Government and Statutory authorities towards the publication of Notification in the Official Gazette under Section 4(1) of the Land Acquisition Act, for the acquisition of the schedule lands. 8. NOW the First Party and the Second Party agree to undertake the above works as detailed below: - SECOND PARTY PROCUREMENT OF LANDS FIRST PARTY 1) To get Notification under Section 4(1) of the LAR within four months 1) At the time of execution of the Agreement of Rs. 1.5 lakhs and upto issue of 4(1) Notification Rs. 15/- per Sq. Yd. against Bank Guarantee. 2) Issue of Notification under Section 4(1) and subsequent enquiry under Section 5(1) completed within 4 months 2) Rs. 25/- per Sq. Yd. including the award amount paid to Government. 3) Issue of Notification under Section 6(1) within 3 months of the completion of enquiry under Section 5(1) 3) Rs. 26/- per Sq. Yd. 4) Submission of layout plan to BDA within 4 months after the issue of notification under Section 6(1) 4) Rs. 5/- per Sq. Yd. 5) Sanction of layout plan within 3 months of its submission. 5) Rs. 4/- per Sq. Yd. The Second Party has agreed to complete the above mentioned works within 18 months from the day of the agreement subject to any delay caused at the BDA and other authorities in procuring land sanctioning or issuing of layout plan." (The amount which the appellant had agreed to pay to the Estate Agent for securing the acquisition of 228 acres land and submission and sanction of layout plan by the BDA was Rs.5,42,37,652/-). 3.13 Within five days of the execution of the aforesaid agreement, the SLCC reconsidered the appellant's case in its 20 th meeting held on 26.2.1988 and declared that it is eligible for the acquisition of 208 acres 18 guntas land. The relevant portion of the minutes of that meeting are reproduced below: "7) BANGALORE CITY HBCS: The Society is eligible for acquisition of 208 acres 18 guntas in stage I/III. As against this they have given survey number-wise details for 250 acres. They should therefore be given time upto 15th March, 1988 to select the specific lands to be acquired on their behalf to the extent of 208 acres." 3.14 In furtherance of the recommendations made by the SLCC, the State Government sent letter dated 21.5.1988 to Deputy Commissioner, Bangalore and directed him to initiate proceedings for the acquisition of 207 acres 29 guntas land in Vajarahalli and Raghuvanahalli for the appellant by issuing notification under Section 4(1) of the 1894 Act. The contents of that letter are reproduced below: "The Deputy Commissioner, Bangalore. Sub: Acquisition of land in Vajarahalli and Raghuvanahalli villages of Uttarahalli hobli, Bangalore South Taluk in favour of the Bangalore City Co-operative, Housing Society Ltd., Bangalore. I am directed to state that the State Level Coordination Committee has recommended for acquisition of 208 acres 18 guntas of land in Ist/IIIrd stage in favour of Bangalore City Cooperative Housing Soceity. As against this the society has furnished S.No. wise details for 207 acres 29 guntas (list enclosed) which is within the extent recommended by State Level Coordination Committee. Hence you are directed to initiate acquisition proceedings by issue of notification under Section 4(1) for an extent of 207 acres 29 guntas of land as recommended by S.L.C.C. in the village of Vajarahalli and Raghuvanahalli in favour of Bangalore City House Building Cooperative Society Ltd., Bangalore subject to the following conditions: i) The extent involved (if any) under Section 79(A) and B may be excluded while issue of 4(1) notification for the present, which can be notified after the pending proceedings under the said Act are finalised. (ii) Move the Spl. Deputy Commissioner, ULC to finalise the proceedings pending under ULC Act before 31.5.1988. Yours faithfully, (MAHDI HUSSAINA) Under Secretary to Government Revenue Department." 3.15 On 7.8.1988, the Executive Director of the appellant entered into an agreement with the State Government, the relevant portions of which are extracted hereunder: " AGREEMENT An Agreement made on this Eighth day of July, One Thousand Nine Hundred Eighty Eight between the Executive Director, The Bangalore City Co-operative Housing Society Limited, No.2, Seethapathi Agrahara, Bangalore-560002 (hereinafter called the Society which expression shall unless excluded by or repugnant to the context, be deemed to include its successors and assigns) of the ONF PART and the GOVERNOR OF KARNATAKA on the OTHER PART. AND WHEREAS the Society has applied the Government of Karnataka (hereinafter referred to as "THE GOVERNMENT") that certain land more particularly described in the schedule hereto annexed and hereinafter referred to as "THE SAID LAND" should be acquired under the provisions of LAND ACQUISITION ACT, 1894 (I of 1894) hereinafter referred to as "THE SAID ACT", for the following purpose namely :- Formation of Sites and Construction of Houses to the members of the Bangalore City Co-operative Housing Society Ltd., No.2, Seethapatha Agrahara, Bangalore-560002. AND WHEREAS The Government, having caused an enquiry be made in conformity with the provisions of the SAID ACT and being satisfied as a result of such inquiry that the acquisition of the SAID LAND is needed for the purpose referred to above, has consented to the provisions of the SAID ACT, being put in force in order to acquire the SAID LAND for the benefit of the Society Members, to enter into an agreement hereinafter contained with the GOVERNMENT. How, these presents witness and it is hereby agreed that GOVERNMENT shall put in force the provisions of the said Act, in order to acquire the SAID LAND for the benefit of the Society Members on the following conditions namely: 1. The Society shall pay to the GOVERNMENT the entire costs as determined by the GOVERNMENT of the acquisition of the SAID LAND including all compensation damages, costs, charges and other expenses whatsoever, which have been OR may be paid OR incurred in respect of OR on account of such acquisition OR in connection with any litigation arising put of such acquisition either in the original or APPELLATE COURTS, and including costs on account of any establishment and salary of any Officer OR officers of the GOVERNOR who the GOVERNMENT may think it necessary to employ OR deputation Special duty for the purpose of such acquisition and also including the percentage charges on the total amount of compensation awarded as prescribed by GOVERNMENT. The monies which shall be payable by the Society under this clause shall be paid to the Special Deputy Commissioner of Bangalore (hereinafter called the "SPECIAL DEPUTY COMMISSIONER") within fourteen days after demand by the SPECIAL DEPUTY COMMISSIONER in writing of such amount or amounts as the SPECIAL DEPUTY COMMISSIONER shall from time to time estimate to be required for the purpose of paying OR disbursing any compensation, damages, costs, charges, OR expenses herein before referred to, for which the COMPANY has made provision in their finance. 2. On payment of the entire cost of the acquisition of the SAID LAND as hereinabove referred to the whole of the said land shall as soon as conveniently may be transferred to the SOCIETY as to vest in the COMPANY subject to the provision of the Karnataka Land Revenue Act (hereinafter called the SAID ACT) and the rules made thereunder subject also to the provisions of this agreement as to the terms on which the land shall be held by the Society. 3. The SAID LAND when so transferred to and vested in the SOCIETY shall be held by the SOCIETY if its property to be used only in furtherance of the and for purpose for which it is acquired, subject nevertheless to the payment or agricultural, non-agricultural OR other assessment if and so far as the said land is OR may from time to time be liable to such assessment under the provisions of the SAID ACT and the rules made thereunder, and the local fund cess, as the case may be, THE SOCIETY shall :- (i) not use the SAID LAND for any purpose other than that for what it is acquired. (ii) Undertake the work of construction of the building within three years from the date on which possession of the land handed to the Society and complete the same within three years from the aforesaid date; (iii) AT ALL TIMES, KEEP AND MAINTAIN the said land and the building OR buildings effected thereon in good order and condition, maintain all records of the SOCIETY properly to the satisfaction of the DEPUTY COMMISSIONER and supply to the GOVERNMENT punctually such. (iv) Returns and other information as may from time to time be required by the GOVERNMENT. (v) Not use the SAID LAND or any building that may be erected upon it for any purpose which in the opinion of GOVERNMENT is objectionable. 5. The Society shall from time to time and at all times permit the GOVERNMENT or any officer or officers authorised by the GOVERNMENT in that behalf to inspect the SAID LAND any works of the SOCIETY upon the SAID LAND whether in the course of construction or otherwise and shall furnish to the Government from time to time on demand correct statements of the monies spend by SOCIETY upon its said land. 6. In case the SAID LAND is not used for the purpose which it is acquired as herein refers recited or is used for any other purpose 01 in case the SOCIETY commits a breach of any of conditions thereof, the SAID LAND together with the buildings, if any erected thereon shall be liable to resumption by the Government subject however to the conditions that the amount spent by the SOCIETY for the acquisition of the SAID LAND or its value as undeveloped land at the time of resumption, whichever is less (but excluding the cost of value of any improvements made by the SOCIETY to the SAID LAND or on any structure standing on the SAID LAND shall be paid as compensation to the SOCIETY. Provided that the SAID LAND and the buildings, if any, erected thereon shall not be so resumed unless due notice of the breaches complained of the been given to the Company and the Society has failed to make good the break or to comply with any directions issued by the GOVERNMENT in this behalf, within the time specified in the said notice for compliance therewith. 7. If at any time or times, the whole or any part of the SAID LAND is required by GOVERNMENT or for the purpose of making any new public road or for any purpose connected with public health, safety, utility or necessary the Company on being required by the GOVERNMENT in writing shall transfer to the GOVERNMENT the whole or part of the SAID LAND as the GOVERNMENT shall specify to the necessary for any of the aforesaid purposes the SOCIETY A SUM equal to the amount of the compensation awarded under the said Act, and paid by the SOCIETY IN respect of the land to transferred including the percentages awarded under Section 23(2) of the SAID ACT, together with such amount as shall be estimated by the SOCIETY whose decision in the matter shall be final as to the cost of the development of the land so transferred which shall include the value at the date of transfer of any structures standing thereon and when part of a building is on the land so transferred and part is on an adjoining land, reasonable compensation for the injuries effected of the part of the building on the adjoining land. 8. All the cost and expenses incidental to the preparation and execution of these presents shall be paid by the SOCIETY. 9.(a) The Deputy Commissioner/Special Deputy Commissioner should make a token contribution towards the compensation framed by Assistant Commissioner/Special Land Acquisition Officer at the rate of Rs. 100.00 in respect of each Land Acquisition Case of the Society. (b) The Special Deputy Commissioner shall after taking over possession of the land U/s. 16(1) Land Acquisition to the Society should report to the Government the fact of having taken physical possession of the land for clearance of the Government. The Society should agree unconditional to pay the compensation as awarded or if enhanced by the Court decides in favour of land owners. (c) The Society shall not from the layouts without getting the plan duly approved by the Town Planning Wing of Bangalore Development Authority keeping in view the zoning regulations. In respect of places other than Bangalore, the approval of Planning Authority, Municipality as the case may shall be obtained. (d) In case the violation of any of the conditions Government will be competent to resume the lands acquired in favour of Societies. (e) The expenditure incurred in this behalf shall be debited to the Head of the Account - 253" + District Administration-5, Other expenditure-E. Acquisition of land on behalf of other acquiring bodies (Non-Plan)." 3.16. In furtherance of the direction given by the State Government, Deputy Commissioner, Bangalore issued notification dated 23.8.1988, which was published in the Official Gazette on 1.9.1988, under Section 4(1) of the 1894 Act for the acquisition of 201 acres 17 guntas land including the land comprised in Survey Nos. 49 and 50/1 belonging to Smt. Geetha Devi Shah, who shall hereinafter be referred to as respondent No. 3 and Survey Nos. 7/1 and 8/1 belonging to the predecessor of P. Ramaiah, Munikrishna, Keshava Murthy, Smt. Nagaveni and Smt. Chikkathayamma (respondent Nos. 3 to 7 in Civil Appeal Nos. 774-778/2005). 3.17 Respondent No. 3 filed detailed objections against the proposed acquisition of her land and pointed out that the same were garden lands; that she and her predecessor had planted 165 fruit bearing mango trees, 75 coconut plants, 15 lime plants, 15 guava trees, 100 papaya trees, 40 eucalyptus trees, 6 custard apple trees, 100 teakwood trees, 3 neem trees, one big tamarind tree, 2 gulmohar trees, 10 firewood trees and 10 banana plants. She also pointed out that there was a residential house and a pump house with electric connection and the area had been fenced by barbed wires and stone pillars. Shri P. Ramaiah also filed objections dated 6.9.1988 and claimed that the proposed acquisition was contrary to the provisions of the 1894 Act and that the lands comprised in Survey Nos. 7/1 and 8/1 were the only source of livelihood of his family. 3.18 The objections filed by respondent No. 3 were considered by the Special Land Acquisition Officer along with the reply of the acquiring body and the following recommendation was made: "There are AC Sheet houses and since there are good number of Malkies: Mango, etc, Government may take suitable decision". 3.19 The objections raised by Shri P. Ramaiah were also considered and the following recommendation was made: "There are no valid ground in the objections raised, the lands may be acquired." 3.20 Thereafter, the Special Land Acquisition Officer issued declaration under Section 6(1) which was published in the Official Gazette dated 25.9.1989. 3.21 During the currency of the acquisition proceedings, Shri G.V.K. Rao, Controller of Weights and Measures and Recovery Officer was asked to conduct an inquiry into the membership of the appellant. He submitted report dated 7.11.1988 with the finding that the appellant had admitted 40 persons who were not residing within its jurisdiction and recommended that their names be removed from the rolls of the appellant and the committee of the management, which is responsible for admitting such ineligible persons should be proceeded against. 3.22 It appears that similar reports had been received by the Government in respect of other societies. After considering these reports, Joint Secretary to the Government, Housing and Urban Development Department prepared a note on the basis of the decision taken by the Executive Council in its meeting held on 31.5.1989. The name of the appellant was shown in Annexure 3B of the note which contained the list of housing societies responsible for admitting ineligible persons as their members. 3.23 Before publication of the declaration issued under Section 6(1) of the 1894 Act, the State Government vide its letter dated 23.6.1989 informed Respondent No. 3 to remain present for spot inspection of her land. After publication of the declaration issued under Section 6(1), notices dated 6.1.1990 and 7.3.1990 were issued to Respondent No. 3 and others that the Special Deputy Commissioner would conduct spot inspection. A memo dated 11.5.1990 was issued to Respondent No. 3 that Special Deputy Commissioner would inspect Survey Nos. 49 and 50/2 on 14.5.1990. However, no one appears to have gone for inspection and to this effect letter dated 16.5.1990 was sent by Respondent No. 3. 3.24 Special Land Acquisition Officer, Bangalore passed award dated 23.6.1990 and determined market value of the acquired land. The award was approved by the State Government on 11.3.1991. However, before the possession of the acquired land could be taken, the State Government issued notification dated 3.8.1991 under Section 48(1) of the 1894 Act and withdrew the acquisition proceedings in respect of land comprised in Survey No. 50/2. Vide letter dated 9.10.1991, the Revenue Department requested Special Deputy Commissioner, Bangalore to examine the representation made by Respondent No. 3 for withdrawal of the acquisition of Survey No. 49. To the same effect letter dated 29.1.1992 was sent by the Secretary, Revenue Department to the Special Deputy Commissioner. However, no final decision appears to have been taken on these communications. 3.25 After one year and over six months of the passing of the award, the State Government issued Notification dated 7.1.1992 under Section 16(2) in respect of various parcels of lands including Survey No. 49. The possession of 150 acres 9 guntas of land of Vajarahalli and Raghuvanahalli is said to have been handed over by the Special Land Acquisition Officer to the Secretary of the appellant-Society. However, as will be seen hereinafter, the entire exercise showing taking over of possession of the respondents' land and transfer thereof to the appellant was only on papers and physical possession continued with them. THE DETAILS OF THE LITIGATION BEFORE THE HIGH COURT A. Smt. Geetha Devi Shah's case. ;