In Manchegowda v. State of Karnataka reported in AIR 1984 SC 1151, the validity of Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands) Act, 1978 was challenged. The petitioners therein were purchasers of lands which had been originally granted by the State, to persons belonging to Scheduled Castes or Scheduled Tribes. Such lands had been originally granted to the abovesaid persons, under the provisions of law or on the basis of rules or regulations governing such grant. After the passing of the Act in question, notices have been issued by the appropriate authority to the transferees of such lands to show cause as to why the lands transferred to them should not be resumed for being restored to the original grantees or their legal heirs or for distribution otherwise to the members of Scheduled Castes and Scheduled Tribes in accordance with the provisions of the statute and in view of the provisions of the Act, it was also indicated that the transfers in their favour have become null and void. In the above reported case, the main grounds urged by the petitioner, before the Supreme Court and summarised at Paragraph 8, are as follows:
"1. Granted lands which had been transferred by the grantee in contravention of the prohibition imposed on the transfer of any granted land under the terms of the grant, under the rules relating to such grant, or under any law governing such grant, renders the transfer voidable and not void and it is not permissible to nullify such transfers and to declare them void by any provisions of the Act;
2. The power conferred on the authority to recover possession of the granted land on the basis of the provisions contained in the Act defeating the vested rights of the purchasers who have acquired such lands bona fide for consideration and have been in enjoyment and possession thereof for years is unconscionable, unjust and invalid;
3. Sections 4 and 5 of the Act which empower the authority to take possession of the granted lands without payment of any compensation are violative of Article 19(1)(f) of the Constitution.
4. Sections 4 and 5 of the Act contravene Article 31 and the second proviso of clause (1) of Article 31-A of the Constitution and are, therefore, void.
5. Invalidation of transfers of land granted to persons belonging to only Scheduled Castes and Scheduled Tribes and resumption of only such granted lands are discriminatory and they infringe Article 14 of the Constitution.
37. Sections 4 and 5 of the Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands) Act, 1978, are extracted hereunder:
"4. Prohibition of transfer of granted lands.(1) Notwithstanding anything in any law, agreement, contract or instrument, any transfer of granted land made either before or after the commencement of this Act, in contravention of the terms of the grant of such land or the law providing for such grant, or sub-section (2) shall be null and void and no right, title or interest in such land shall be conveyed or be deemed ever to have conveyed by such transfer.
(2) No person shall, after the commencement of this Act, transfer or acquire by transfer any granted land without the previous permission of the Government.
(3) The provisions of sub-sections (1) and (2) shall apply also to the sale of any land in execution of a decree or order of a civil court or any award or order of any other authority.
5. Resumption or restitution of granted lands. (1) Where, on application by any interested person or on information given in writing by any person or suo motu, and after such enquiry as he deems necessary, the Assistant Commissioner is satisfied that the transfer of any granted land is null and void under sub-section (1) of Section 4, he may,
(a) by order take possession of such land after evicting all persons in possession thereof in such manner as may be prescribed:
Provided that no such order shall be made except after giving the person affected a reasonable opportunity of being heard;
(b) restore such land to the original grantee or his legal heir. Where it is not reasonably practicable to restore the land to such grantee or legal heir, such land shall be deemed to have vested in the Government free from all encumbrances. The Government may grant such land to a person belonging to any of the Scheduled Castes or Scheduled Tribes in accordance with the rules relating to grant of land.
(2) Any order passed under sub-section (1) shall be final and shall not be questioned in any Court of law and no injunction shall be granted by any court in respect of any proceeding taken or about to be taken by the Assistant Commissioner in pursuance of any power conferred by or under this Act.
(3) For the purposes of this section, where any granted land is in the possession of a person, other than the original grantee or his legal heir, it shall be presumed, until the contrary is proved, that such person has acquired the land by a transfer which is null and void under the provisions of sub-section (1) of Section 4.