Case Note & Summary
The dispute arose from the proposed acquisition of land for a project by respondent No.3 under the Karnataka Industries (Facilitation) Act, 2002. The appellants claimed occupancy rights over the land and objected to the acquisition. The State Government initially approved the project but later withdrew the approval due to the pendency of the occupancy rights case. The appellants sought to be impleaded in the writ petition challenging the withdrawal of approval. The learned Single Judge partly allowed the writ petition, directing the State Government to hear the parties before making a decision. The Division Bench, however, quashed the withdrawal order without hearing the appellants, leading to the present appeals. The Supreme Court found that the Division Bench's decision violated the principles of natural justice, as the appellants had a legitimate interest in the proceedings. The court emphasized that the appellants should have been given an opportunity to present their case before the Division Bench. Consequently, the Supreme Court allowed the appeals, set aside the impugned judgment, and remitted the matter to the High Court for a fresh hearing, instructing it to expedite the process.
Headnote
A) Administrative Law - Natural Justice - Right to be Heard - Karnataka Industries (Facilitation) Act, 2002 - The Division Bench failed to provide the appellants an opportunity to be heard before modifying the learned Single Judge's order, violating the principle of audi alteram partem. The court held that the appellants had a direct interest in the land acquisition and should have been given a chance to contest the appeal (Paras 11-12).
Issue of Consideration
Whether the Division Bench of the High Court of Karnataka could modify the order of the learned Single Judge without issuing notice and giving opportunity of hearing to the appellants.
Final Decision
The Supreme Court allowed the appeals, set aside the impugned judgment, and remitted the matter to the High Court for a fresh hearing, instructing it to expedite the process within two months.
Law Points
- Natural justice
- audi alteram partem
- Karnataka Industries (Facilitation) Act
- 2002
- occupancy rights
- land acquisition


