STATE OF KARNATAKA Vs. SHANKARA TEXTILES MILLS LIMITED

JUDGEMENT

(1.) The respondent is a public limited company and owned a total land of 49 acres and 38.25 guntas in Davanagere village. At the relevant time, it had its factory in an area of 13 acres and 32.25 guntas which was converted into non-agricultural land under S. 95(2) of the Karnataka Land Revenue Act ( hereinafter referred to as the 'Revenue Act ). The remaining land, viz., 36 acres and 6.5 guntas was not converted into non-agricultural land (hereinafter referred to as the 'disputed land') with the result that for the purposes of the Revenue Act, it continued to be considered as agricultural land.

(2.) Two questions arise in this appeal. The first is whether the land can be deemed to have been permitted to be converted for non-agricultural use merely because it was used for non-agricultural purposes although, admittedly, no permission under S. 95(2) of the Revenue Act was taken to do so. The second question is whether under S. 79-B of the Act, the land vests in the State Government prospectively from the date of the notification or retrospectively from the date of the coming into operation of the Act. The first question has been answered by the High Court in the affirmative while on the second question, the High Court has taken the view that the land vests in the Government from the date of the notification. According to us, both the answers are wrong in law.

(3.) Section 95(2) of the Revenue Act at the relevant time read as follows: