Petitioners to pursue remedy in pending suit; BDA ordered to pay Rs. 1 lakh for litigation distress
In a significant ruling, the Karnataka High Court has ordered the Bangalore Development Authority (BDA) to compensate petitioners V.S. Kanakaraj and another with Rs. 1 lakh for exposing them to unnecessary litigation due to a property allotment error. The judgment, delivered by Justice R. Nataraj, addresses a contentious issue where the BDA mistakenly renumbered and re-allotted a site already auctioned and sold to the petitioners, leading to multiple sale deeds and legal complications.
The petitioners had originally purchased site No. 3504/C in a public auction conducted by the BDA and obtained a possession certificate. However, a subsequent visit revealed the site was enclosed by a compound constructed by respondents Nos. 3 and 4, who claimed ownership based on a possession certificate and sale deed issued by the BDA. An encumbrance certificate confirmed that the BDA had renumbered the property as site No. 2293 and conveyed it to the new claimants, prompting the petitioners to challenge the allotment and sale deeds in court.
Respondent No. 1, BDA, acknowledged the mistake and has filed a suit (O.S.No.8253/2025) seeking cancellation of the erroneous allotment and sale deeds. An alternate site has been allotted to respondent No. 6, who purchased the disputed property from respondents Nos. 3 and 4.
Justice Nataraj directed the petitioners to pursue their remedy in the pending suit and granted them the liberty to seek impleadment. The court criticized the BDA for the error, which resulted in litigation distress for the petitioners and misled other purchasers.
The judgment mandates BDA to pay Rs. 1 lakh in compensation to the petitioners, recovering the amount from the salary of the responsible officer, in accordance with the law. This decision reflects a call for accountability and serves as a cautionary tale for public authorities to exercise due diligence in property transactions.
Bottom line:-
Bangalore Development Authority (BDA) - Allotment of site already auctioned and sold - Mistake committed by BDA in renumbering and allotting the same property to different parties - Petitioners directed to pursue remedy in pending suit filed by BDA for cancellation of the allotment - Compensation of Rs. 1,00,000 awarded to petitioners for being exposed to unwanted litigation, recoverable from the salary of the responsible officer.
Statutory provision(s):
- Bangalore Development Authority Act, provisions related to property allotment and sale
- Judicial remedies in civil suits for cancellation of property allotments
