{"id":38409,"date":"2000-01-18T00:00:00","date_gmt":"2000-01-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-bangalore-vs-s-vasudeva-and-ors-on-18-january-2000"},"modified":"2016-12-19T03:57:30","modified_gmt":"2016-12-18T22:27:30","slug":"commissioner-bangalore-vs-s-vasudeva-and-ors-on-18-january-2000","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-bangalore-vs-s-vasudeva-and-ors-on-18-january-2000","title":{"rendered":"Commissioner Bangalore &#8230; vs S. Vasudeva And Ors on 18 January, 2000"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Commissioner Bangalore &#8230; vs S. Vasudeva And Ors on 18 January, 2000<\/div>\n<div class=\"doc_bench\">Bench: B.N. Kirpal, M.B. Shah<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  456-458 of 2000\n\nPETITIONER:\nCOMMISSIONER BANGALORE DEVELOPMENT AUTHORITY\n\nRESPONDENT:\nS. VASUDEVA AND ORS.\n\nDATE OF JUDGMENT: 18\/01\/2000\n\nBENCH:\nB.N. KIRPAL &amp; M.B. SHAH\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>2000 (1) SCR 275<\/p>\n<p>The Judgment of the Court was delivered by<\/p>\n<p>KIRPAL, J. Civil Appeal Nos, 456-458 of 2000 (arising out of Special Leave<br \/>\nPetitions Nos. 19742-44\/1999)<\/p>\n<p>Special leave granted.\n<\/p>\n<p>Aggrieved by allotment of land to 34 persons by the Bangalore Development<br \/>\nAuthority (hereinafter referred to as the &#8220;BDA&#8221;), respondent No. 1 filed a<br \/>\nwrit petition in the Karnataka High Court challenging not. only the said<br \/>\nallotment but also some of the transfers of land which had been effected by<br \/>\nsome of the said allottees. These 34 respondents were stated to be ex-<br \/>\nLegislators, ex-Ministers, etc. who were members of the Legis-lators<br \/>\nHousing Co-operative Society Ltd. (for short &#8220;the respondent-Society&#8221;). In<br \/>\nthe writ petition, it was averred that out of turn allotment had been given<br \/>\nto these 34 persons and in violation of the Rules some of them had<br \/>\ntransferred the land and, therefore, that land should be resumed by the<br \/>\nGovernment.\n<\/p>\n<p>The aforesaid writ petition was filed in the High Court by an Advo-cate who<br \/>\nstated that he had no personal interest in the matter but was aggrieved by<br \/>\nthe breach of the rule of law stated to have been committed by the<br \/>\nGovernment of Karnataka and the BDA. The appellant (BDA) herein as well as<br \/>\nthe State of Karnataka represented before the High Court that the<br \/>\nallotments had been made in accordance with the provisions of the Bangalore<br \/>\nDevelopment Authority Act, 1976 (hereinafter referred to as &#8220;the Act&#8221;) and<br \/>\nthe Rules framed thereunder. It was stated that the respondent-Society had<br \/>\nbeen registered in the year 1981 and bulk allotment had been made to the<br \/>\nSociety which, in turn, allotted plots of land to its members, The details<br \/>\nwith regard to allotment of land by the BDA to the said Society are as<br \/>\nunder :\n<\/p>\n<p>Authority Resolution No. &amp; Date\tGovernment Order No.  &amp; date\tNo of sites<br \/>\napproved for allotment\tName of the Layout<\/p>\n<p>272\/2.4.81\tHUD 225 MNX 81 Dt. 10\/14.7.81\t.100\tFurther Extn, of<br \/>\nMattadahalli<br \/>\n139\/17.7.86\tHUD 339 MNX 86 Dt. 24.10.86\t56\tKoramangala, 4th<br \/>\n&#8216;B&#8217; Block<br \/>\n251\/23.10.86\tHUD 339 MNX 86 Dt. 30.1.87\t99\tKoramangala,<br \/>\nGangenahalli, &amp; Sarakki<br \/>\n587\/3.7.87\tHUD 339 MNX 86 Dt. 30.9.87\t100\tRajmahal Vilas<br \/>\n(Lottergollahalli)<br \/>\n379\/16.1.87\tHUD 347 MNX 88 Dt. 14.12.88\t249\tRajmahal Vilas II<br \/>\nStage (Bhoopasandra) and Hosur Sarjapur Road<\/p>\n<p><span class=\"hidden_text\">Total                                           604<\/span><\/p>\n<p>It was also contended by the respondents that the writ petition should be<br \/>\ndismissed on the ground of laches, inasmuch as allotment of land had taken<br \/>\nplace between 1981 and 1987 whereas the writ petition itself was filed in<br \/>\n1996. It was also contended that third party interest had arisen and it<br \/>\nwould be unfair and unjust that allotment of land should be cancelled<br \/>\nespecially when some, if not most, of the allottees had already spent<br \/>\nconsiderable amount of money and raised construction on the plots so<br \/>\nallotted. Defend-ing the allotment made to the respondent- Society, the BDA<br \/>\nrelied upon the provisions of Section 38-B which was introduced in the Act<br \/>\nwith effect from December 1975 which in terms permitted bulk allotment of<br \/>\nland to Housing Co-operative Societies for allotment to its members. The<br \/>\nHigh Court came to the conclusion that allotment of land was not validly<br \/>\nmade to the respondent-Society. It also held that at this belated stage the<br \/>\nviolations which had been committed should not render the allotment invalid<br \/>\nbut nevertheless it observed that the said allotment re-quired<br \/>\nreconsideration of the cases. The High Court then issued the following<br \/>\ndirections :\n<\/p>\n<p>&#8220;Under the circumstances of the case and keeping in view the position of<br \/>\nlaw as noticed hercinabove, these petitions are allowed by issuance of the<br \/>\nfollowing declarations and directions :\n<\/p>\n<p>(I)  Respondent No. 3 is directed to constitute a high power Committee for<br \/>\nthe purpose of examining all the allotments made so far to the Members of<br \/>\nRespondent No. 39- Society keeping in view the provisions of the Act. the<br \/>\nRules, the Regulations, the Orders issued in that behalf and the<br \/>\nobservations and findings recorded in this Judgment. Such Committee should<br \/>\ncomprise of experts in the fields and may be headed by a person of judicial<br \/>\nbackground preferably a former Judge of this Court, Such a Committee shall<br \/>\nbe constituted within a period of one month from today with direction to<br \/>\nsubmit its Report to the Authority within a period of four months from the<br \/>\ndate of its constitution. It is needless to say that such a Committee shall<br \/>\nexamine all individual cases after notice to the concerned allottees.\n<\/p>\n<p>(II)  Consequent upon the submission of the Report by the Committee,<br \/>\nRespondent No. 3 shall initiate legal process for cancellation of the<br \/>\nallotments wherever needed, obviously in accordance with the provisions of<br \/>\nthe Act, Rules, Regulations and after compliance of the principles of<br \/>\nnatural justice.\n<\/p>\n<p>(III) To facilitate an early report, Respondent No. 3 shall notify the<br \/>\nconstitution of the Committee, its functions and the place of sitting by<br \/>\nmeans of publication of a notice in three daily newspapers published from<br \/>\nBangalore having vide circulation in the State of Karnataka. Out of these<br \/>\nthree newspapers one shall be in Kannada language. Such publication shall<br \/>\nbe deemed sufficient notice to all concerned. The Committee shall, however,<br \/>\nin its discretion be entitled to issue personal notice to the concerned.\n<\/p>\n<p>(IV) Respondent No, 27, who was allotted a site measuring 50&#8242; x 80&#8242; at HSR<br \/>\nLayout is proved to have violated the terms of the lease-cum-sale agreement<br \/>\nand the provisions of law, thus incurring a liability of cancellation of<br \/>\nthe site. The allotment of a site No, L-1118 of Hosur Sarjapur L.H. Colony<br \/>\nmade in favour of Respon-dent No. 27 is hereby cancelled with direction to<br \/>\nRespondent No. 3 to resume the site and take its immediate possession.<br \/>\nRespondent No, 27 is held entitled to the payment of such amount as is<br \/>\npermissible to him under Rule 14 of the Allotment Rules only<br \/>\nnotwithstanding the amounts spent by him on the construction of a Hotel in<br \/>\nviolation of the provisions of law.\n<\/p>\n<p>(V) All permissions granted to the Respondents for alienation of land are<br \/>\nheld to be in violation of Rule 13 of the Allotment Rules and the<br \/>\nconditions of lease-cum-sale agreement executed between the parties. Such<br \/>\npermissions insofar as the concerned Respondents are concerned are declared<br \/>\nto be nullity, void and inoperative not affecting the rights of the<br \/>\nRespondent No. 3-Authority. Consequent upon the setting aside of the<br \/>\npermissions granted for alienation, Respondent No. 3 is directed to take<br \/>\nimmediate consequential action under the provisions of the Act, Rules<br \/>\nissued thereunder and the agreement executed between the parties. So far as<br \/>\nthe other allottees of the sites, who have been granted permission of<br \/>\nalienation, but are not parties before us, a direction is issued to<br \/>\nRespondents 1 and 3 to immediately initiate process for cancellation of<br \/>\nsuch permission after notice to the concerned and compliance of the<br \/>\nprinciples of natural justice. Appropriate action shall be initiated within<br \/>\none month and effective orders be passed with respect to all concerned<br \/>\nwithin a period of three months.\n<\/p>\n<p>(VI) The alienations made by the allottees in favour of the third parties<br \/>\nwould not come in the way of Respondents I to 3 to implement the directions<br \/>\nof this Court. It is, however, directed that in all such cases where the<br \/>\nname of the transferees are notified, the Respondents 1 to 3 shall pass<br \/>\neffective orders after notice to :the concerned transferees also.\n<\/p>\n<p>(VII) That pending amendment of the Rules, no further per-mission shall be<br \/>\ngranted to any allottee for transfer of the site to any person under any<br \/>\ncircumstances.\n<\/p>\n<p>(VIII) Even after the Rules are amended as recommended by Respondent No. 3-<br \/>\nAuthority, the allottees of the sites from the B.D.A are held not eligible<br \/>\nto transfer the vacant site to any person for any reason. Allottees of such<br \/>\nsites shall however upon proof of the conditions specified under Rule 14(3)<br \/>\nof the Allotment Rules be eligible to surrender the sites in favour of the<br \/>\nAuthority on receipt of the amount as provided under the aforesaid Rule.\n<\/p>\n<p>(IX) The allottees of the sites who have put up buildings shall be<br \/>\npermitted to sell the sites only upon declaration of their status regarding<br \/>\ninsolvency or impecuniosity by a competent Court of jurisdiction and in the<br \/>\nlight of the findings returned by us in this judgment.\n<\/p>\n<p>(X)  Such of the allottees of the sites who are unable to reside in the<br \/>\ncity of Bangalore shall be required to surrender the site whether any<br \/>\nconstruction is raised or not in favour of Respondent No. 3-Authority on<br \/>\nreceipt of the amounts calculated as per terms of Rule 14(3) of the<br \/>\nAllotment Rules.\n<\/p>\n<p>(XI)   Respondent No. 3 is further directed to immediately appoint an<br \/>\nofficer to ascertain within one week regarding the position of the sites so<br \/>\nfar as the construction of the building in terms of lease-cum-sale<br \/>\nagreements is concerned. Such officer shall submit his Report positively<br \/>\nwithin a period of two weeks.\n<\/p>\n<p>(XII) Pending Report of the Committee appointed in terms of direction No.<br \/>\n1, no allottee of any site, which is in dispute and allotted at the<br \/>\ninstance of Respondent No. 39 shall be permitted to commence or carry on<br \/>\nany construction on the site.\n<\/p>\n<p>(XIII) The directions issued and law laid down in this case shall mutatis<br \/>\nmutandis apply to B.D.A. Act and Rules whether directly :or through Housing<br \/>\nSocieties.&#8221;\n<\/p>\n<p>The aforesaid judgment of the: High Court and the directions issued by it<br \/>\nhave been challenged in this appeal and the connected petitions which have<br \/>\nbeen filed. At the outset, we are of the opinion that the High Court<br \/>\ntravelled way beyond the scope of the writ petition which was before it.<br \/>\nThe prayer in the writ petition was for quashing the out of turn allotments<br \/>\nin favour of MLAs, MPs and others who were impleaded as respondents Nos. 4<br \/>\nto 38 before the High Court. The further prayer was that permission which<br \/>\nhad been granted to some of these MLAs, MPs and others to transfer plots of<br \/>\nland which had been allotted to them should also be quashed. It is<br \/>\npertinent to note that in this writ petition there was no challenge either<br \/>\nto the registration of the respondent-Society with the BDA or to the<br \/>\nallotment of land to the Society as such. As already noted, the challenge<br \/>\nwas to the allotment to the 34 persons who were stated to be members of the<br \/>\nsaid Society. The High Court, on the other hand, not only came to the con-<br \/>\nclusion that bulk allotment of land was not permissible but also directed<br \/>\nthe constitution of a Committee to go into all allotments made by the BDA.<br \/>\nThe effect of this would be that the Committee which was sought to be<br \/>\nconstituted was empowered to carry out a roving and fishing inquiry with<br \/>\nregard to allotments of land made by the BDA since the time it was<br \/>\nconstituted in the year 1976, There was neither any prayer in the writ<br \/>\npetition to this effect nor do we find any affidavit having been filed by<br \/>\nthe respondents before the High Court in relation to such allotments of<br \/>\nland to the Society and others. The writ petitioner had not chosen to<br \/>\nenlarge the scope of the writ petition by amending his petition and,<br \/>\ntherefore, the High Court, in our opinion, was not justified in issuing the<br \/>\ntype of direc-tions which it did.\n<\/p>\n<p>Coming to the merits of the case and without going into the question of<br \/>\nlaches, we find that during the pendency of the hearing of the writ<br \/>\npetition, two of the respondents, namely, Jagannatha Rao Chandraki and K.G.<br \/>\nRamaswamy had expired. The High Court ordered their deletion from the array<br \/>\nof respondents. In addition thereto, it was found that some of the persons<br \/>\nwho were originally impleaded as respondents were not Legislators and on a<br \/>\nmemo being filed by the writ petitioner 13 such respondents were deleted<br \/>\nfrom the array of respondents vide Court&#8217;s order dated 27th August, 1998.<br \/>\nWe are thus concerned with the remaining ex-Legislators and Ministers to<br \/>\nwhom allotment had been made by virtue of their being members of the<br \/>\nrespondent-Society.\n<\/p>\n<p>In justification of allotment of land, the appellant BDA has placed strong<br \/>\nreliance on Section 38B of the Act which reads as under :\n<\/p>\n<p>38B. Power of Authority to make bulk allotment. &#8211; Notwithstand-ing anything<br \/>\ncontained in this Act or Development Scheme sanc-tioned under this Act, the<br \/>\nAuthority may, subject to any restriction, condition and limitation as may<br \/>\nbe prescribed, make bulk allotment by way of sale, lease or otherwise of<br \/>\nany land which belongs to it or is vested in it or acquired by it for the<br \/>\npurpose of any develop-ment scheme, &#8211;\n<\/p>\n<p>(i) to the State Government; or (ii) to the Central Government; or<\/p>\n<p>(iii) to any Corporation, Body or Organisation owned or con-trolled by the<br \/>\nCentral Government or the State Government; or<\/p>\n<p>(iv) to any Housing Co-operative Society registered under the Karnataka Co-<br \/>\noperative Societies Act, 1959 (Karnataka Act 11 of 1959)&#8217;<\/p>\n<p>(v) to any society registered under the Karnataka Societies Registration<br \/>\nAct, 1960 (Karnataka Act 17 of 1960); or<\/p>\n<p>(vi) to a Trust created wholly for charitable, educational or religious<br \/>\npurpose:\n<\/p>\n<p>Provided that prior approval of the Government shall be ob-tained for<br \/>\nallotment of land to any category listed above.\n<\/p>\n<p>It may here be noticed that Section 38 of the Act gives power to the<br \/>\nAuthority to lease, sell or transfer property, inter alia, for building<br \/>\npur-poses or for the purposes of any development scheme. It appears that<br \/>\nthe Karnataka High Court had in an earlier decision interpreted this Act to<br \/>\nmean that the BDA could not make bulk allotment. This resulted in the<br \/>\npassing of the Bangalore Development Authority (Third Amendment) Act, 1993.<br \/>\nBy Section 5 of the said Amending Act, Section 38B was inserted in the<br \/>\nprincipal Act with effect from 20th December, 1975. A plain reading of this<br \/>\nSection shows that bulk allotment of land by way of sale, lease or<br \/>\notherwise can be made, inter alia, to any Housing Co-operative Society.<br \/>\nThis being so, the allotment of land made in favour of the respondent-<br \/>\nSociety between 1981 and 1987 would come within the ambit of Section 38B.<br \/>\nThere is no material on record to indicate that there was any society or<br \/>\norganisation or anybody else who had been registered with the BDA prior to<br \/>\nthe date of registration of the respondent-Society and who had not been<br \/>\nallotted land. In the absence of any averment in this behalf or any<br \/>\nspecific finding in regard thereto, the allotment of land which consisted<br \/>\nof 604 sites in favour of the respondent-Society cannot be held to be<br \/>\ninvalid. It is not in dispute that the respondents whose allotment was<br \/>\nchallenged were members of the respondent-Society and if this being so they<br \/>\nwould be entitled to allotment of sites from out of the land which had been<br \/>\nallotted to the said Society.\n<\/p>\n<p>We now come to the question of transfer of sites by the allottees. There<br \/>\nwere 11 persons who were not members of the respondent-Society, who had<br \/>\napplied to the BDA for permission to sell the land allotted to them. The<br \/>\nBDA had recommended to the Government that approval be accorded to them to<br \/>\ntransfer the land. This approval was granted and there is no challenge to<br \/>\nthe same in the present proceedings. The challenge, however, is to the<br \/>\napproval which was granted to 13 other members of the .Society, who were<br \/>\nimpleaded as respondents in the writ petition, and who were permitted to<br \/>\nsell the sites which had been allotted to them.\n<\/p>\n<p>Rule 14 of the Bangalore Development Authority (Allotment of Sites) Rules,<br \/>\n1984 provides for restrictions and conditions on sales of sites. The said<br \/>\nRule which was in existence in 1994-95, when permission was granted to the<br \/>\nex-Legislators to transfer the land, reads as follows:\n<\/p>\n<p>14. Restrictions, conditions on sales of sites &#8211;\n<\/p>\n<p>(1)  Notwithstanding anything contained in these rules, the Commissioner<br \/>\nmay at the request of the allottee of a site execute a deed of conveyance<br \/>\nsubject to the restrictions, conditions and limitations specified in sub-<br \/>\nrule (2).\n<\/p>\n<p>(2)  The conveyance of site by the Commissioner in favour of an allottee<br \/>\n(hereinafter referred to as the purchaser) shall be subject to the<br \/>\nfollowing restrictions, conditions and limitations namely :\n<\/p>\n<p>(a) in the case of a site on which a building has not been constructed :\n<\/p>\n<p>(i) the purchaser shall construct a building on the site within such period<br \/>\nas may be specified by the Authority as per plans, designs, and conditions<br \/>\nto be approved by the Authority or in conformity with the provisions of the<br \/>\nKarnataka Municipal Cor-porations Act, 1976 and the Bye-laws made<br \/>\nthereunder.\n<\/p>\n<p>(ii) the purchaser shall not without the approval of the Authority<br \/>\nconstruct on the site any building other than a build-ing for the<br \/>\nconstruction of which the site was allotted, granted or sold.\n<\/p>\n<p>(iii) the purchaser shall not alienate the site within a period of ten<br \/>\nyears from the date of the conveyance except by mortgage in favour of the<br \/>\nGovernment of India or the Government of Kar-nataka, the Life Insurance<br \/>\nCorporation of India or the Karnataka Housing Board or any Company or Co-<br \/>\noperative Society approved by the Authority or any Corporation set up owned<br \/>\nor controlled by the Stale Government or the Central Government to secure<br \/>\nmoney advanced by such Government, Corporation, Company, Board, Society or<br \/>\nCorporation, as the case may be for the con-struction of the building on<br \/>\nthe site.\n<\/p>\n<p>(b)  in the case of a site on which a building has been con-structed, the<br \/>\npurchaser shall not alienate the site and the building constructed thereon<br \/>\nwithin a period of ten years from the date of agreement except by mortgage<br \/>\nin favour of the Government of India, the Government of Karnataka, the Life<br \/>\nInsurance Corpora-tion of India, or the Karnataka Housing Board or any<br \/>\nCompany or Co-operative Society approved by the Authority to secure moneys<br \/>\nadvanced by such Government, Corporation, Board or Society or Company for<br \/>\nthe construction of the building on the site.\n<\/p>\n<p>(c)  in the event of the purchaser committing breach of any of the<br \/>\nconditions in clause (a) or clause (b) the Authority may at any time, after<br \/>\ngiving the purchaser reasonable notice, resume the site free from all<br \/>\nencumbrances. The purchaser may remove all things which he has attached to<br \/>\nthe earth.\n<\/p>\n<p>Provided that if he has left the site in the state in which he received it,<br \/>\nall transactions entered into in contravention of the conditions specified<br \/>\nin clauses (a) and (b) shall be null and void ab-initio.\n<\/p>\n<p>Explanation &#8211; In this rule, references to the authority shall be deemed to<br \/>\ninclude the references to the commissioner when authorised by the general<br \/>\nresolution to exercise any power vested in the authority.\n<\/p>\n<p>(3) Notwithstanding anything contained in sub- rule (2) but without<br \/>\nprejudice to the provisions of rule 13 where the lessee applies that for<br \/>\nreasons beyond his control he is unable to reside in the City of Bangalore<br \/>\nor by reasons of his insolvency or im-pecuniosity it is necessary for him<br \/>\nto sell the site and the building, if any, he may have put up thereon the<br \/>\nBangalore Development Authority may, with the previous approval of the<br \/>\nState Govern-ment, either :\n<\/p>\n<p>(a) require him to surrender the site, where there is no building in its<br \/>\nfavour; or<\/p>\n<p>(b)  where there is a building put up permit him to sell the vacant site<br \/>\nand building :\n<\/p>\n<p>Provided that &#8211;\n<\/p>\n<p>(i) in case covered by clause (a) the Authority shall pay to the lessee the<br \/>\nallotted value of the site and an additional sum equal to the amount of<br \/>\ninterest at twelve per cent per annum thereon; and<\/p>\n<p>(ii) in case covered by clause (b) the lessee shall pay to the authority a<br \/>\nsum equal to the amount of interest at twelve per cent per annum on the<br \/>\nallotted value of the site.&#8221;\n<\/p>\n<p>The said Rule did not permit transfer of site on which building had not<br \/>\nbeen erected. According to sub-rule (3), under certain conditions art<br \/>\nallottee could only surrender the site in which case he was entitled to<br \/>\nreceive the value of the site plus 12 per cent interest thereon. It is only<br \/>\nif a building was erected that permission could be given to sell the vacant<br \/>\nsite and building subject to payment of interest at the rate of 12 per cent<br \/>\non the allotted value of the site. It is represented before us that the BDA<br \/>\npermitted that allottees to sell the sites, inasmuch as under Section 65 of<br \/>\nthe Act the Government of Karnataka had issued a direction requiring the<br \/>\nBDA to permit the said transfers. Section 65 of the Act gives power to the<br \/>\nGovernment to issue directions to the Authority and reads thus :\n<\/p>\n<p>65. Government&#8217;s power to give directions to the Authority. &#8211; The<br \/>\nGovernment may give such directions to the Authority as in its opinion are<br \/>\nnecessary or expedient for carrying out the purposes of this Act, and it<br \/>\nshall be the duty of the Authority to comply with such directions.\n<\/p>\n<p>As we read the above Section, the Government has no power to issue any<br \/>\ndirections which are in conflict with the provisions of the Act and, by<br \/>\nnecessary implication, in conflict with the Rules framed under the said<br \/>\nAct. The directions which can be given under Section 65 are such which are<br \/>\nnecessary or expedient for the carrying out of the purposes of the Act.<br \/>\nWhen Rule 14, as it stood in the year 1994-95, did not permit sale of<br \/>\nvacant sites by an allottee to anybody else, even after getting permission<br \/>\nfrom the BDA, the Government could not have permitted or directed the said<br \/>\nland to he sold or transferred. This being the position, the transfer of<br \/>\nland by 13 such ex-Legislators and ex-ministers who were members of the<br \/>\nrespon-dent-Society, and whose names are included in the BDA&#8217;s letter dated<br \/>\n27th\/28th October, 1995 written to the Principal Secretary to Government,<br \/>\nHousing &amp; Urban Development Department, Bangalore, was clearly illegal and<br \/>\nthe permission so granted and the consequent transfer of land would become<br \/>\nliable to be set aside.\n<\/p>\n<p>Rule 14 has now been amended by Notification dated 6th February, 1998. Rule<br \/>\n5 of the Bangalore Development Authority (Allotment of Sites) (Amendment)<br \/>\nRules, 1997 which makes the amendment in Rule 14 reads thus :\n<\/p>\n<p>5. Amendment of Rule-J4: &#8211; In ruIe-14 of the said Rules. -(i) after sub-<br \/>\nrule (2), the following shall be inserted namely :-\n<\/p>\n<p>&#8221;2A. Notwithstanding anything contained in sub- rule (2), where a lessee<br \/>\nhas alienated the site in contravention of sub-clause (iii) &#8220;of clause (a)<br \/>\nsub-rule (2), the authority may on application of the purchaser of such<br \/>\nsite and subject to payment by the purchaser an amount equal to twenty-five<br \/>\nper cent of the sital value determined at the rates specified by the State<br \/>\nGovernment from time to time for the purpose of registration, order for<br \/>\nregularisation of such alienation and may also convey title to such<br \/>\npurchaser,&#8221;\n<\/p>\n<p>(2) in sub-rule (3),<\/p>\n<p>(i) after clause (a), the following clause shall be inserted namely:\n<\/p>\n<p>&#8220;(aa) permit the allottee to sell the site during the lease period of ten<br \/>\nyears.&#8221;\n<\/p>\n<p>(ii) in the proviso, after clause (i), the following clause shall be<br \/>\ninserted namely:\n<\/p>\n<p>&#8220;(ia) in case covered by clause (aa), mentioned above, the lessee shall pay<br \/>\nto the Authority an amount equivalent to fifteen per cent of the sital<br \/>\nvalue determined at the rates specified by the State Government from time<br \/>\nto time for the purpose of registration.\n<\/p>\n<p>As a result of the Rules as they now stand were there has been alienation<br \/>\nof site in contravention of sub-rule (2), then on an application being made<br \/>\nby the purchaser the said sale or alienation in his favour can be<br \/>\nregularised on the purchaser paying an amount equal to 25 per cent of the<br \/>\nsital value determined at the rates specified by the State Government from<br \/>\ntime to time. Inasmuch as the permission which was granted in 1994 and 1995<br \/>\nfor transferring the land was illegal, the effect would be that the<br \/>\noriginal allottees had transferred the land in violation of the provisions<br \/>\nof sub-rule (2) of Rule 14 and now after the amendment of the said Rule<br \/>\nregularisation of the said alienation can take place by the purchaser<br \/>\npaying the amount referred to in sub-rule (2A). If this payment is not<br \/>\nmade, the result obviously would be that the alienation will not be<br \/>\nvalidated and the allotment of land itself would stand cancelled. It is<br \/>\nobvious that under Rule 14 permission to transfer can be granted under the<br \/>\ncircumstances provided by sub-rule (3). The said sub-rule provides that an<br \/>\napplication for transfer can be made by an allottee on the ground that (a)<br \/>\nfor reasons beyond his control he is unable to reside in the city of<br \/>\nBangalore; or (b) by reasons of his insolvency or impecuniosity, it is<br \/>\nnecessary for him to sell the site and the building. The High Court has<br \/>\ninterpreted this Rule to mean that it is only for reason of insolvency that<br \/>\npermission under sub-rule (3) can be granted. This does not appear to be<br \/>\ncorrect because on the ground that the allottee is unable to reside in the<br \/>\ncity of Bangalore and also on the ground of impecuniosity, permission can<br \/>\nbe granted to sell the land or the land and the building constructed<br \/>\nthereon, after the amendment of the Rule of 1998,<\/p>\n<p>For the aforesaid reasons, these appeals are allowed and the judg-ment of<br \/>\nthe High Court is set aside. We, however, direct that the BDA will give an<br \/>\nopportunity to the purchasers of land referred to in its letter dated<br \/>\n27\/28th October, 1995 who had purchased the same from the members of the<br \/>\nrespondent-Society to get the transfer regularised on payment of 25 per<br \/>\ncent of the sital value determined at the rates specified by the<br \/>\nGovernment. Notice to this effect should he issued within eight weeks from<br \/>\ntoday and the notice would indicate that if the amount so determined is not<br \/>\ndeposited, the land in question will stand resumed by the BDA. No other<br \/>\ndirections are called for.\n<\/p>\n<p>No costs.\n<\/p>\n<p>Civil Appeal Nos. 459-461, 462-463, 464 and 465 of 2000 (arising out of<br \/>\nSpecial Leave Petition (Civil) Nos. 1419-1421, 3418-3419, 3444 and 7820 of<br \/>\n1999)<\/p>\n<p>Special leave granted.\n<\/p>\n<p>For the reasons stated above, these appeals are disposed of in terms of the<br \/>\ndirections given above.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Commissioner Bangalore &#8230; vs S. Vasudeva And Ors on 18 January, 2000 Bench: B.N. Kirpal, M.B. Shah CASE NO.: Appeal (civil) 456-458 of 2000 PETITIONER: COMMISSIONER BANGALORE DEVELOPMENT AUTHORITY RESPONDENT: S. VASUDEVA AND ORS. DATE OF JUDGMENT: 18\/01\/2000 BENCH: B.N. KIRPAL &amp; M.B. SHAH JUDGMENT: JUDGMENT 2000 (1) SCR 275 The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-38409","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner Bangalore ... vs S. 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