M/S. Royal Orchid Hotels Ltd & Anr vs G. Jayarama Reddy & Ors

The facts relating to the acquisition of land and details of the 3 cases decided by the High Court in 1991:

7. After receiving compensation in respect of 2 acres 30 guntas land comprised in Survey No.122 of Kodihalli village, respondent No.1 and his brothers filed applications under Section 18 of the Act for making reference to the Court for determination of the compensation. During the pendency of reference, the Corporation invited bids for allotment of 5 acres land including 2 acres 30 guntas belonging to respondent No.1 and his brothers for putting up a tourist resort. M/s. Universal Resorts Limited gave the highest bid, which was accepted by the Corporation and lease agreement dated 21.4.1989 was executed in favour of the bidder. Thereafter, the Corporation approached the State Government for grant of permission under Section 20 of the Urban Land (Ceiling and Regulation) Act, 1976 for leasing out a portion of the acquired land to M/s. Universal Resorts Limited. The State Government granted the required permission vide order dated 17.6.1991. After 6 months, registered lease deed dated 9.1.1992 was executed by the Corporation in favour of M/s. Universal Resorts Limited through its Managing Director, Sri C.K. Baljee purporting to 12 lease out 5 acres land for a period of 30 years on an annual rent of Rs.1,11,111/- per acre for the first 10 years.

8. In the meanwhile, Shri C.K. Baljee, Managing Director of M/s. Universal Resorts Limited filed suit for injunction against respondent No.1 and his brothers by alleging that they were trying to forcibly encroach upon the acquired land. He also filed an application for temporary injunction. By an ex parte order dated 29.10.1991, the trial Court restrained respondent No.1 and his brothers from interfering with the plaintiff's peaceful possession and enjoyment of the suit schedule property. After about two years, the brothers of respondent No.1 filed Writ Petition Nos.2379 and 2380 of 1993 for quashing the acquisition of land measuring 0.29 guntas and 0.38 guntas respectively, which came to their share in the family partition effected in 1968. They relied upon the judgments of the Division Bench in Mrs. Behroze Ramyar Batha and others v. Special Land Acquisition Officer (supra) and Writ Appeal No.2605 of 1991 - Smt. H.N. Lakshmamma and others v. State of Karnataka and others decided on 3.10.1991 and pleaded that once the acquisition has been quashed at the instance of other landowners, the acquisition of their land is also liable to be annulled. The appellants, who were respondents in those cases, pleaded that the writ petitions should be dismissed because 5 acres land had been leased out by adopting a 13 transparent method and there was no justification to nullify the acquisition after long lapse of time. The learned Single Judge did notice the judgments of the Division Bench on which reliance was placed by the writ petitioners but distinguished the same by making the following observations:

Lastly, what remains to be seen is what is the effect of fraud. Does it render the entire acquisition bad or is it to be held to be bad only in so far as these appellants are concerned? We are of the view that if fraud unravels everything, it cannot be valid in part and invalid in other parts. But, we need not go to that extent because there are other Writ Petitions including a Writ Appeal in which this question may arise direct. We do not want to prejudice those petitioners/appellants. Therefore, this question we relegate to those cases."

18. In Dehri Rohtas Light Railway Company Limited v. District Board, Bhojpur (1992) 2 SCC 598, this Court set aside the judgment of the Patna High Court whereby the writ petition filed by the appellant against the demand notice 26 issued for levy of cess for the period 1953-54 to 1966-67 was dismissed only on the ground of delay. The facts of that case show that the writ petition filed by the appellant questioning the demand for 1967-68 to 1971-72 was allowed by the High Court. However, the writ petition questioning the demand of the earlier years was dismissed on the premise that the petitioner was guilty of laches. While dealing with the question of delay, this Court observed:

(emphasis supplied)

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28. In the result, the appeals are dismissed. Respondent No.1 shall, if he has already not done so, fulfil his obligation in terms of the impugned judgment within a period of 8 weeks from today. The appellant shall fulfil their obligation, i.e. return of land to respondent No.1 within next 8 weeks.