- 1 - HC-KAR NC: 2025:KHC:41815-DB WA No. 1801 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE RAJESH RAI K WRIT APPEAL NO. 1801 OF 2024 (KLR-LG) BETWEEN: 1. STATE OF KARNATAKA REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPT. OF REVENUE, M S BUILDING, BENGALURU 01. 2. THE DEPUTY COMMISSIONER UDUPI DISTRICT, UDUPI 576101 3. THE SPECIAL TAHSILDAR BRAHMAVAR, UDUPI DISTRICT 576101 …APPELLANTS (BY SRI. M.N.SUDEV HEGDE, AGA) AND: 1. SHALINI B HEGDE W/O BALAKRISHNA HEGDE, AGED ABOUT 70 YEARS, RESIDING AT SHIRIYAR VILLAGE, BRAHMAVARA TALUK, UDUPI DISTRICT 576101 …RESPONDENT (BY SRI. PRAKASH B N., ADVOCATE) THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, PRAYING TO ALLOW THE WRIT Digitally signed by VASANTHA KUMARY B K Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:41815-DB WA No. 1801 of 2024 APPEAL BY SETTING ASIDE THE ORDER DATED 19/09/2022 PASSED IN WP NO.37404/2013, ETC. THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE RAJESH RAI K ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE D K SINGH) The present writ appeal has been filed by the State impugning the judgment and order dated 19.09.2022 passed by the learned Single Judge in W.P.No.37404/2013 (KLR-LG), filed by the respondent. 2. For the sake of convenience, the parties are referred to as per their rankings before the learned Single Judge. 3. The petitioner was granted in all 9 acres 15 cents of agricultural lands in different extent in Sy.No.296/A measuring 8.46 acres and land bearing Sy.No.279/2 measuring 0.64 acres in Shiriyar Village and land bearing Sy.No.145/A measuring 0.05 acres in Yedthady Village of Udupi Taluk under the provisions of Rule 2(5) of the South - 3 - HC-KAR NC: 2025:KHC:41815-DB WA No. 1801 of 2024 Kanara District Lease of Lands for Cashew Cultivation Rules,1957. This grant was conferred on the petitioner in the year 1958. Clause (2) of the said grant of the land would read as under :- "2) The Grantee has to be option for the renewal of the lease on the expiry of the thirty year period if he has fulfilled the terms and conditions of the grant satisfactorily. The grantee shall also have the option to acquire permanent ownership of the land on the expiry of the thirty years on payment of the value of the land fixed at the time of the grant itself. The land value is fixed at Rs.100/- per acre." 4. The initial grant was for a period of 30 years and thereafter, the respondent was given right to opt for permanent ownership in respect of the land in question on payment of market value of the land. Under the terms of the grant, the market value of the land was fixed at Rs.100/- per acre. In the year 1999 i.e., vide order dated 10.05.1999 the revenue authorities demanded a sum of Rs.35,000/- per acre for granting permanent ownership in respect of the said land in favour of the petitioner. - 4 - HC-KAR NC: 2025:KHC:41815-DB WA No. 1801 of 2024 5. The petitioner had filed W.P.No.20975/1999 impugning the said demand. This Court vide judgment dated 02.07.2003 quashed the impugned order dated 10.05.1999 and directed the authorities to reconsider the matter after giving an opportunity of hearing to the grantee. A direction was also given to determine the market value in accordance with law declared in W.P.No.5796/1995 and connected matters. 6. Pursuant to the said judgment and order dated 02.07.2003 passed in W.P.No.20975/1999, the Deputy Commissioner vide order dated 23.07.2021 had fixed the market value at Rs.2,10,000/- per acre. Pursuant thereto the grantee had paid the market value of Rs.2,10,000/- per acre to become permanent owner of the said land. Thereafter on payment of the said amount at Rs.2,10,000/- per acre, saguvali chit was granted on 23.07.2012. However, the saguvalu chit contained one condition i.e., the grantee shall not alienate the land for a - 5 - HC-KAR NC: 2025:KHC:41815-DB WA No. 1801 of 2024 period of 25 years from the date of order dated 23.07.2012 passed by the Deputy Commissioner. 7. The said condition came to be challenged by the grantee in W.P.No.37404/2013. The learned Single Judge having considered the provisions of the grant as well as Rule 23(1) of the Karnataka Land Grant Rules 1969 (for short 'the KLG Rules') held the said condition in saguvali chit was violative of the provisions of the grant as well as Rule 23 of the KLG Rules and quashed the said condition in the saguvali chit. 8. Rule 23 (1) of the KLG Rules reads as under :- "Rule 23. Confirmation of lands to persons to whom the lands have been leased temporarily - Notwithstanding anything contained in these rules,- (1) Where, before the commencement of these rules agricultural lands were leased temporarily to any person for purposes of cultivation and the lease contemplated the subsequent grant of the land to the lessee and all the conditions of the lease have been complied with, such lands may be granted to the lessee by the Deputy Commissioner on payment of the price fixed by him in accordance with Rule 12." - 6 - HC-KAR NC: 2025:KHC:41815-DB WA No. 1801 of 2024 9. Sri M.N. Sudev Hegde, learned AGA submits that Government is entitled to impose any condition while conferring permanent ownership on the grantee, after receiving the market value of the land. He further submits that grantee did not raise any objections, while depositing the consideration amount of ₹2,10,000/- per acre and having accepted the order dated 23.07.2012, they could not have challenged the condition of not alieniating the property for a period of 25 years from the date of the issuance of the saguvali chit. 10. We have considered the submissions made by learned counsels on either side. 11. Section 54 of the Transfer of Property Act, 1882 defines 'Sale', which means ”a transfer of ownership in exchange for a price paid or promised or part paid and part promised." If the ownership is transferred then all the rights, title and interest get transferred. Transferee will not have any right to put any condition on a transfer of the - 7 - HC-KAR NC: 2025:KHC:41815-DB WA No. 1801 of 2024 immovable properties on sale, after the transferee has paid the consideration. Further, the condition of non alienation for a period 25 years is against explicit provision of the lease of the grant, as clause (2) of the grant explicitly provides that after expiry of 30 years, the grantee would be entitled to acquire permanent ownership over the land on payment of the value of the land. 12. Once the grantee has opted to become the permanent owner of the land, granted in his favour on payment of the market value of the land, which was determined to be ₹2,10,000/- per acre way back in the year 2012 and the grantee having paid the said consideration, imposition of condition for non alienation of the land for a further period of 25 years is not only against the grant condition but also against Rule 23(1) of the Karnataka Land Grant Rules, 1969, which has been extracted herein above. 13. In view thereof, we are of the considered view that there is no error in the impugned judgment and order - 8 - HC-KAR NC: 2025:KHC:41815-DB WA No. 1801 of 2024 passed by the learned Single Judge. We therefore dismiss this appeal, however with costs. 14. In view of disposal of the appeal, pending I.As, if any, stand disposed of. Sd/- (D K SINGH) JUDGE Sd/- (RAJESH RAI K) JUDGE NG List No.: 1 Sl No.: 6