TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 2150
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....aka Gazette dated 26.01.2017 issued under Sections 3[1], 1[3] and 28[1] of the KIAD Act, as well as the notification dated 20.07.2018 published in the Karnataka Gazette dated 09.08.2018 issued under Section 28[4] of the KIAD Act, in so far as the petitioners' lands are concerned. 3. The petitioners are claiming to be the owners of lands in Thippedasarahalli, Bahujanahalli and Kodithimmanahalli Villages, Kora Hobli, Tumakooru Taluk and District, the details of which are as under: Sl. No. Name Village Survey Number Extent 1 S. Jalaja Thippedasarahaili A G 2 K. Siddappa Bahujanahalli 6/2 2 13 3 K. Karibasavaiah Bahujanahalli 15/1/B 3 01 4 Dodda Chinnappra Kodithimmanahalli 27 3 02 22/1P 1 00 Total 9 16 4. The Government of Karnataka-respondent No. 2 herein had issued a notification dated 23.07.2010 under Section 28[4] of the KIAD Act, for the purpose of establishing Machine Tools Industry Park by Indian Machine Tools Manufactures Association, acquiring an extent of 1,424 Acres 29 ½ guntas of land in Vasanthnarasapura, Kempanadodderi, Bathasandra, Bahujanahalli, Kempadalihalli and Doddanapa....
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....n. 6. Learned Senior counsel Sri. Ashok Haranahalli representing the learned counsel for the respondent-Board contended that Entry 24 of List-II i.e., the State List deals with "Industries subject to the provisions of entries 7 and 52 of List-I". The KIAD Act is enacted in terms of the powers vested with the State Legislation under Entry 24 of the State List i.e., List-II. It was argued that unlike the Land Acquisition Act, 1894 which provides for making of an award under Section 11 and taking of possession of lands under Section 16, the KIAD Act in terms of Section 28[5] has a vesting clause. In terms of the same, the lands proposed for acquisition stand vested in the state free of all encumbrances. The actual physical possession too is taken in terms of Section 28[6] and 28[7] of the KIAD Act. The provisions of the KIAD Act in so far as it relates to acquisition of lands are in tune with Section 17 of the Land Acquisition Act, 1894 and this Act has received presidential assent on 14.05.1966. The acquisition provisions of KIAD Act stand at a different footing as compared to the Land Acquisition Act, 1894 and further substantiates that the acquisition provisions are an integral pa....
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....for infrastructure projects, which includes the following, namely, [i] xxxxx [ii] xxxxx [iii] project for industrial corridors or mining activities, national investment and manufacturing zones, as designated in the National Manufacturing Policy." Section 3[za] of the Act, 2013 reads thus: "Public purpose" means the activities specified under sub-section [1] of Section 2;" 10. Section 107 of the Act, 2013 reads thus: "107. Power of State Legislatures to enact any law more beneficial to affected families.-Nothing in this Act shall prevent any State from enacting any law to enhance or add to the entitlements enumerated under this Act which confers higher compensation than payable under this Act or make provisions for rehabilitation and resettlement which is more beneficial than provided under this Act." 11. The main object of KIAD Act is: "Statements of Objects And Reasons: I. Act 18 of 1966: It is considered necessary to make provision for the orderly establishment and development of Industries in suitable areas in the State. To achieve this object, it is proposed to specify suitable areas for Industrial Development and establish a Board to develop such areas and make....
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....ustries in the State of Maharashtra do not fall within Entry 7 and Entry 52 of the Union List. Establishment, growth and development of industries in the State is within the State List of industries. Furthermore,-to effectuate the purposes of the development of industries in the State it is necessary make land available. Such land can be made available by-acquisition or requisition. The Act in the present case deals with acquisition of land by the State and on such acquisitions the State may transfer the land to the Corporation which again may develop it itself and establish industrial estates or may develop industrial areas. Acquisition or requisition of land falls under Entry 42 of the Concurrent List. In order to achieve growth of industries it is necessary not, only to acquire land but also to implement the purposes of the Act. The Corporation is therefore established for carrying out the purposes of the Act. 'De pith and substance of the Act is establishment, growth and Organisation of industries, acquisition of land in that behalf and carrying out the purposes of the Act by setting up the Corporation as one of the limbs or agencies of the Government. The powers and functi....
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....with that of Section 23 of the LA Act which lays down the manner for determination of the compensation to be paid." 16. Having regard to the scheme of KIAD Act relating to acquisition and compensation, Section 28 deals with the Acquisition of Land. Sub-section [1] to [8] of Section 28 contemplates the different stages of acquisition. Sub-section [1] of Section 28 provides for issue of notification, giving notice after State Government of its intention to acquire such land for the purpose of development by the Board, or for any other purpose in furtherance of the objects of the Act. Subsection [2] deals with the service of notice by the State Government upon the owner/occupier to show cause within thirty days from the date of service of notice why the land should not be acquired. In terms of Subsection [3], after considering the cause, if any, shown by the owner of the land and by any other person interested therein, the State Government may pass such orders as it deems fit after giving such owner and person an opportunity of being heard. In terms of Subsection [4], on the State Government being satisfied that any land should be acquired for the purpose satisfied in the notificatio....
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....n or believed to be interested herein to appear before him and state their respective interests in the said land. 18. Section 30 of the KIAD Act contemplates that the provisions of the Land Acquisition Act, 1894 [Central Act 1 of 1894] shall mutatis mutandis apply in respect of the enquiry and award by the Deputy Commissioner, the reference to Court, the apportionment of compensation and the payment of compensation, in respect of lands acquired under the Chapter VII. 19. The KIAD Act, 1966 has received the presidential assent on 14.05.1966. The argument of the learned counsel for the petitioners that Section 28[4] and [5] of the KIAD Act are unconstitutional and violative of further proviso to Article 31A is wholly misplaced. The first proviso to Article 31A states that where such law is made by the Legislature of a State, the provisions of the Article, 31A shall not apply thereto unless such law, having been reserved for the consideration of the President, has received his assent. The further proviso makes it clear that where any law makes any provision for the acquisition by the State of any estate and where any land comprised therein is held by a person under his personal cult....
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....ted by us are only illustrative, the purpose of referring to the distinction is primarily to demonstrate that they are two different statutes operating in different fields, the provisions of which are required to be utilized by the authorities concerned for the object sought to be achieved under the respective Acts and accordingly upheld the vires of the MRTP Act rejecting the ground of repugnancy raises. Applying the doctrine of pith and substance, it is clear that KIAD Act is aimed at planned establishment and development of Industries in suitable Areas in the State unlike that Central Act enacted with the object to acquire land and disburse compensation in accordance with law. The State is competent to enact such a law under Entry 24 of List-II. It is not in dispute that the KIAD Act is a comprehensive law pertaining to establishment of the Industries in the State of Karnataka which is enacted in furtherance of Entry 24 of the State List. The acquisition of the lands under the said enactment is an ancillary issue and the main purpose is of enacting the growth and development of the industries in the State of Karnataka. Entry 24 of List-II i.e., State List deals with "Industries ....
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.... KIAD Act relates to the visible distinction inasmuch as award of compensation under the two enactments and apprehension of denial of the higher compensation which otherwise the petitioners are legitimately entitled to, under the Act, 2013. This grievance of the petitioners is addressed by the Board wherein, a specific stand has been taken in the Statement of Objections filed by the Board, in paragraph 17, that the Board constituted under the KIAD Act, in its meeting has resolved that the compensation as regards lands acquired under the KIAD Act, shall be in tune with the New Act, 2013. The said paragraph is quoted hereunder for ready reference: "17. Without prejudice to the aforementioned the doctrine of Severability is applicable where though an enactment as a whole is within the legislative competence of a legislature, particular provisions of the enactment go outside the scope of the legislative entry under which the legislature enacted the law. It is submitted that the repugnancy in the KIAD Act, 1966 with the New Act, 2013 are in connection with only the provisions relating to the compensation accorded to the land loser. It is submitted that dwelling upon the said issue the....