Writ Petition No. 13072 of 2020 · The High Court
Case Details
- 1 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.13072 OF 2020 (LB-BMP) BETWEEN: SRI. ASHWIN GOPALA KRISHNAN S/O A. GOPALAKRISHNAN AGED ABOUT 32 YEARS R/AT NO. 1587, 36TH CROSS BSK 2ND STAGE, BENGALURU -560 070 REP. BY HIS FATHER GPA HOLDER A. GOPALAKRISHNAN S/O M. ARUMUGAM R/AT NO. 1587, 36TH CROSS BSK 2ND STAGE BENGALURU -560 070 (BY SRI. DORAI BABU S FOR CIVIL LAW INC.,.,ADVOCATE) …PETITIONER AND: Digitally signed by GAVRIBIDANUR SUBRAMANYA GUPTA SREENATH Location: HIGH COURT OF KARNATAKA 1. THE STATE OF KARNATAKA THE URBAN DEVELOPMENT DEPARTMENT VIKASA SOUDHA DR B R AMBEDKAR VEEDHI BENGALURU -560 001 REP. BY ITS SECRETARY 2. THE STATE OF KARNATKA THE LABOUR DEPARTMENT VIKASA SOUDHA DR B R AMBEDKAR VEEDHI BENGALORE-560 001 REP. BY ITS UNDER SECRETARY - 2 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR 3. BRUHAT BANGALORE MAHANAGARA PALIKE N.R SQUARE BENGALURU -560 001 REP. BY ITS COMMISSIONER 4. THE ASSISTANT DIRECTOR TOWN PLANNING (SOUTH) OFFICE OF THE ASSISTANT DIRECTOR TOWN PLANNING (SOUTH) BBMP COMPLEX, 9TH CROSS 9TH MAIN ROAD, JAYANAGAR 2ND BLOCK, BENGALURU -560 011
Legal Reasoning
(BY SRI.H.K.KENCHEGOWDA., AGA FOR R-1 & R-2; SRI.K.N.PUTTEGOWDA .,ADVOCATE FOR R-3 & R-4) …RESPONDENTS THIS W.P. IS FILED UNDER ARTILCES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE CIRCULAR DTD 04.09.2015 ISSUED BY THE R-3 VIDE ANNX-E IN SO FAR THE PETITIONER IS CONCERNED; QUASH THE GOVERNMENT ORDER DTD 18.01.2007 AND THE CORRIGENDUM ORDER DTD 28.02.2007 ISSUED BY THE R-2 MANDATING UPFRONT COLLECTION OF LABOUR WELFARE CESS VIDE ANNX-F IN SO FAR THE PETITIONER IS CONCERNED. THIS PETITION, COMING ON FOR HEARING ON I.A., THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The petitioner is seeking for the following reliefs: i) Issue a Writ or Order by way of Certiorari quashing the Circular dated 04.09.2015, bearing No.Heninayo/JD(N)/DM3/PR/320/2015-16 issued - 3 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR by the Respondent No.3 vide ANNEXURE-E in so far the Petitioner is concerned. ii) Issue a Writ or Order by way of Certiorari quashing the Government Order bearing No.LD/300/LET/2006 dated 18.01.2007 and the Corrigendum order bearing No.LD/300/LET/2006 dated 28/02/2007 issued by the Respondent No.2 mandating upfront collection of labour welfare cess vide ANNEXURE-F in so far the Petitioner is concerned. iii) Issue a Writ or Order by way of Certiorari quashing the demand notice dated 07.11.2020 bearing No. BBMP/Ad.Com/SUT/0318/20-21, issued by the Respondent No.4 vide ANNEXURE-D for demanding in so far it is concerned to Labour Cess, Ground Rent, Security Deposit, Revised License Fee and Scrutiny Fee and etc., as illegal, without jurisdiction and arbitrary. iv) Issue a Writ or Order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the fresh Sanction Plan for construction of Commercial Professional Office in the Schedule Property without insisting the Labour Cess, Ground Rent, Security Deposit, - 4 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR Revised License Fee, Scrutiny Fee and etc., for 1800 Sq.Ft. of Proposed Construction AND v) Pass any such other Orders/s as this Hon'ble Court deem fits under the facts and circumstances of the case, in the interest of justice and equity . 2. It is brought to the notice of this Court that across the Bar, the issue is dealt by the Co-ordinate Bench in the reported judgment in W.P.No.36017/2018 and connected matters. The Co-ordinate Bench, while deciding the issue, has held that the bye-laws under which Ground Rent, License Fee, Building License fee, Scrutiny fee are levied are ultra vires the Act. The Co-ordinate Bench also quashed the circular dated 04.09.2015 and Government circulars dated 27.01.2017 and 30.03.2017. Therefore, this Court deems it fit to cull out the operative portion of the order, which reads as under; "O R D E R
Decision
a) All the Writ Petitions are allowed. - 5 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR b) The bye-laws under which Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, Security Deposit are all held ultravires the Act and are resultantly rendered unenforceable. c) The Circular bearing No.ºÉ¤£ÀAiÉÆÃ/eÉ.r(G)/rJªÀiï3/¦Dgï/320/2015- 16 dated 04.09.2015 stands quashed. d) The Circular bearing No.£ÀCE 36 ¨ÉªÀÄ¥Áæ 2016 (¨sÁUÀ) dated 27.01.2017 and the Circular bearing No. ºÉ¤£ÀAiÉÆÃ/¦Dgï/1533/2016-17 dated 30.03.2017 demanding Lake Rejuvenation Fee are quashed. e) Imposition of labour cess under the Welfare Cess Act is upheld, but its demand for payment upfront in terms of Government Orders dated 18.01.2007 and 28.02.2007 stands quashed. f) The State or the BBMP is not precluded from bringing in the impugned levies under the provisions of the Act or the Rules by making suitable amendments to the Act and the Rules. 368 g) Petitioners in all these petitions who have deposited certain amounts in terms of the interim order passed by this Court before this - 6 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR Court are entitled to refund of the amounts so deposited. h) Insofar as refund in other cases who have paid to the Corporation under protest, they shall be entitled to such refund only if the same is not collected from the consumers of the apartments, businesses as the case would be. i) Insofar as all other payments made, they would all be at liberty to give representation to the BBMP and the BBMP would consider the refund of the amounts, in accordance with law and the findings of this Court. j) If representations are made by the petitioners for refund, the BBMP shall pass appropriate orders within 12 weeks from the date of such representations. In view of disposal of the petitions, all pending Interlocutory Applications also stand disposed." 3. In the considered view of this Court, the issues raised in the present writ petition stand squarely covered by the authoritative pronouncement rendered by the Co- ordinate Bench of this Court in W.P.No.36017/2018 and connected matters. The Co-ordinate Bench, after - 7 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR examining the statutory framework and the impugned levy mechanisms adopted by the BBMP, categorically held that the imposition of Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, and Security Deposit lacked statutory sanction and were ultra vires the Karnataka Municipal Corporations Act, 1976. The Co-ordinate Bench further held that Clause 3.8 of the BBMP Building Bye- laws, 2003, which provided for imposition of Ground Rent, was also devoid of legal authority and consequently struck it down. The Court also quashed the impugned Circular dated 04.09.2015 issued by respondent No.4, as well as the Government Orders dated 27.01.2017 and 30.03.2017, which had directed collection of such fees without statutory backing. With specific reference to labour welfare cess, the Co-ordinate Bench upheld the competence of the State to levy the cess under the Building and Other Construction Workers’ Welfare Cess Act, 1996, but set aside the directive mandating its upfront collection through Government Orders dated - 8 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR 18.01.2007 and 28.02.2007, thereby rendering the demand raised in anticipation of sanction of building plans unlawful. The Co-ordinate Bench also clarified that the only charging provision available under the Act was sub- section (20-b) of Section 423, which merely enabled collection of fees for services relating to burial grounds and crematoria, and could not be relied upon for the imposition of unrelated charges such as ground rent or scrutiny fee. In light of these clear and binding findings, the controversy raised in the present writ petition does not survive for independent adjudication, as the grievance of the petitioner is directly addressed and resolved by the said judgment. Therefore, this Court is of the considered opinion that the present writ petition deserves to be allowed by applying the ratio and operative portion of the judgment rendered in W.P.No.36017/2018 and connected matters. - 9 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR 4. In view of the above, this Court proceeds to pass the following; i) ii) ORDER The writ petition is allowed. The impugned demand notice dated 07.11.2020 issued by respondent No.4 as per Annexure-D is hereby set-aside. iii) Respondent- BBMP is hereby directed to issue fresh sanction plan. iv) Respondent- BBMP is hereby directed to forthwith process the petitioner's application seeking building license and sanction of the building plan/ occupancy certificate, strictly in accordance with law. v) It is made clear that the issuance of the building license and approval plan shall not be withheld merely on the ground that the BBMP is - 10 - NC: 2025:KHC:21859 WP No. 13072 of 2020 HC-KAR contemplating to file an appeal against the reported judgment. vi) If the building license and sanction plan are issued, the same shall be subjected to the outcome of any appeal that may be filed by the BBMP against the judgment. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE GSS List No.: 2 Sl No.: 20