The appeal filed by the Improvement Board against the said order was dismissed on 13 11 1983.
Against the said order of the Appellate Tribunal, the respondent Company approached the High Court by way of a writ petition.
It is aggrieved by the said decision that the State has preferred the present appeal.
Improvement Board, Davanagere, sought to acquire land to the extent of 28 acres and 14 guntas from the disputed land for the purpose of Devraj Urs Layout.
The Special Deputy Commissioner passed an order exempting the disputed land from the provisions of Section 79 B. Against the said order, the State preferred an appeal before the Appellate Tribunal which was allowed with the direction to take action under Section 79 B of the Act.
In spite of this direction, the Divisional Commissioner did number pass any order in the said proceedings.
It further appears that the respondent Company claimed exemption from the provisions of the said Section 79 B, under Section 81 1 b ii of the Act on the ground that the disputed land was mortgaged to the Mysore State Financial Corporation on 3 6 1982.
The acquisition proceedings were started under the provisions of Karnataka Improvement Boards Act, 1976.
Since the Land Acquisition Officer did number make the award in respect of the acquired land, the respondent Company approached the High Court for relief by a writ petition in which an order was passed on 4 2 1983 directing the Land Acquisition Officer to pass the award.
Thereafter, the Land Acquisition Officer made his award.
The remaining land, viz.,
That writ petition was allowed on 19 7 1984 and the Divisional Commissioner was directed to dispose of the proceedings arising out of the award within a period of two months from the date of receipt of the order of the Court.
The Divisional Commissioner did number approve of the award.
In pursuance of the final numberification issued in the year 1977, the possession of the land was taken by the Improvement Board on 9 8 1978.
At the relevant time, it had its factory in an area of 13 acres and 32.25 guntas which was companyverted into number agricultural land under Section 95 2 of the Karnataka Land Revenue Act hereinafter referred to as the Revenue Act .
Since, however, the amount payable under the Award exceeded Rs one lakh, the award was referred to the Divisional Commissioner, Bangalore for approval as provided under the rules on the subject.
Hence the question of the Government exercising its power to withdraw from acquisition of the land did number arise.
During the pendency of these proceedings, the respondent Company filed a declaration under Section 79 B 2 a of the Karnataka Land Reforms Act, 1961 for short the Act stating therein that it held the entire disputed land as agricultural land.
The High Court by the impugned decision allowed the writ petition by holding that the Improvement Board as an agency of the Government having taken possession of the land under Section 16 of the Land Acquisition Act, in the acquisition proceedings, the land had vested in the Government free from all encumbrances.
Hence the Company filed another writ petition seeking a direction to the Divisional Commissioner to deal with the award in accordance with law.
The Judgment of the Court was delivered by SAWANT, J. The respondent is a public limited companypany and owned a total land of 49 acres and 38.25 guntas in Davanagere Village.
36 acres and 6.5 guntas was number companyverted into number agricultural land hereinafter referred to as the disputed land with the result that for the purposes of the Revenue Act, it companytinued to be companysidered as agricultural land.
