1993 (3) TMI 350 - SUPREME COURT

Whether the two permissions given by the State Government to the firm on 6.3.1987 and 18.4.1987 to sell land admeasuring 16194 sq.mtrs. and 3444 Sq. mtrs. respectively under Section 20 (1) of Urban Land (Ceiling and Regulation) Act, 1976 are legal?

Held that:- If the vacant lands which have vested in the State are also to be disposed of strictly keeping in view the spirit and object of the Act, how under section 20(1)(b) exemption can be granted to holders of such lands to dispose of such lands in the manner they like, the persons they prefer, the price they dictate, for clearing their debts? If it is conceded that indebtedness amounts to an undue hardship, then it may cover the debts incurred even after the commencement of the Act. Thus provisions of Section 20 [1] (b) of the Act do not permit the State Government to give exemption to the vacant in excess of the ceiling limit for the purposes of transferring the same.

As concluded that the State Government has no power to grant permission to sell the land under Section 20 [1] (b), the orders dated 6.3.87 and 18.4.87 granting exemption and permission to the firm for sale of the land are void ab initio having been passed without jurisdiction. Accordingly, the sale-deed dated 30.9.1987 executed by the 2nd respondent firm in favour of the 3rd respondent-builders is held invalid and inoperative, as the respondent-firm had no legal right to transfer the land in favour of the builders. We accordiigly allow the appeals and set aside the impugned order of the High Court. The respondents State of Karnataka, M/s. Narayanaswamy & Sons and M/s. Reevajethu, Builders & Developers will pay the costs to the appellants in one set.