Writ Petition No. 14529 of 2020 · The High Court
Case Details
- 1 - NC: 2025:KHC:17617 WP No. 14529 of 2020 C/W WP No. 14546 of 2020 WP No. 14580 of 2020 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 14529 OF 2020 (GM-KIADB) C/W WRIT PETITION NO. 14546 OF 2020 (GM-KIADB) WRIT PETITION NO. 14580 OF 2020 (GM-KIADB) IN WP No. 14529/2020 BETWEEN:
Legal Reasoning
M/S. SUNLIGHT ACTIVE DRUGS INGREDIENTS PRIVATE LIMITED, NO.8-3-318/10, FLAT NO.502, GOKULA KRISHNA APTS., BESIDE SBI BANK, YELLAREDDYGUDA, HYDERABAD - 500 073, REP. BY ITS MANAGING DIRECTOR MR. T. VENKATESWARA RAO. (BY SRI. DORAI BABU S, ADVOCATE FOR CIVIL LAW INC.,) …PETITIONER AND: 1. THE STATE OF KARNATAKA,, DEPARTMENT OF COMMERCE AND INDUSTRIES, VIKASA SOUDHA, DR.AMBEDKAR VEEDHI, BENGLAURU - 560 001, REP. BY ITS PRINCIPAL SECRETARY. 2. KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD, NO.49, 4TH AND 5TH FLOORS, Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:17617 WP No. 14529 of 2020 C/W WP No. 14546 of 2020 WP No. 14580 of 2020 'EAST WINGS', KHANIJA BHAVAN, RACE COURSE ROAD, BANGALORE - 560 001. RE.P ITS SECRETARY. (BY SRI. MAHANTESH SHETTAR, AGA FOR R1; SRI. P.V. CHANDRASHEKAR, ADVOCATE FOR R2) …RESPONDENTS THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-SET ASIDE THE DATED NOTICE IMPUGNED 17.10.2017 VIDE ANNEXURE-H IN RESPECT OF DEMANDING 10 PERCENT INTEREST ON THE BALANCE AMOUNT OF LAND COST I.E., RS.1,24,80,000/- (RUPEES ONE CRORE TWENTY FOUR LAKHS EIGHTY THOUSAND ONLY) AND ETC., PROCEEDINGS DEMAND IN WP NO. 14546/2020 BETWEEN: M/S. SRINIJA DRUGS PVT. LTD., PLOT NO.245, IDA, KONDAPALLY, VIJAYAWADA-521 228, A.P. REP. BY ITS TECHNICAL DIRECTOR, MR. TALLURI LAXMANA RAO. (BY SRI. DORAI BABU S, ADVOCATE FOR CIVIL LAW INC.,) ...PETITIONER AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF COMMERCE AND INDUSTRIES, VIKASA SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU - 560 001, REP, BY ITS PRINCIPAL SECRETARY. 2. KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD, NO.49, 4TH AND 5TH FLOORS, - 3 - NC: 2025:KHC:17617 WP No. 14529 of 2020 C/W WP No. 14546 of 2020 WP No. 14580 of 2020 'EAST WINGS', KHANIJA BHAVAN, RACE COURSE ROAD, BANGALORE - 560 001 REP. ITS SECRETARY. ...RESPONDENTS (BY SRI. MAHANTESH SHETTAR, AGA FOR R1; SRI. P.V. CHANDRASHEKAR, ADVOCATE FOR R2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-SET ASIDE THE IMPUGNED DEMAND NOTICE PROCEEDINGS DATED 17.10.2017 VIDE ANNEXURE-E IN RESPECT OF DEMANDING 10 PERCENT INTEREST ON THE BALANCE AMOUNT OF LAND COST I.E., RS.78,00,000/- (RUPEES SEVENTY EIGHT LAKHS ONLY) AND ETC., IN WP NO. 14580/2020 BETWEEN: M/S. SAANVI LABORATORIES PVT. LTD., NO.10, RELIANCE VILLAS, CHINNTHKATTA, BOWENPALLY, SECUNDERABAD - 500 012, TELANGANA STATE, REP. BY ITS DIRECTOR, MR.DANDE RAM PRASADA RAO. (BY SRI. DORAI BABU S, ADVOCATE FOR CIVIL LAW INC.,) ...PETITIONER AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF COMMERCE AND INDUSTRIES, VIKASA SOUDHA, DR.AMBEDKAR VEEDHI, BENGALURU - 560 001, REP. BY ITS PRINCIPAL SECRETARY. - 4 - NC: 2025:KHC:17617 WP No. 14529 of 2020 C/W WP No. 14546 of 2020 WP No. 14580 of 2020 2. KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD, NO.49, 4TH AND 5TH FLOORS, EAST WINGS, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU - 560 001, REP. ITS SECRETARY ...RESPONDENTS (BY SRI. MAHANTESH SHETTAR, AGA FOR R1; SRI. P.V. CHANDRASHEKAR, ADVOCATE FOR R2) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-SET ASIDE THE IMPUGNED DEMAND NOTICE PROCEEDINGS DATED 17.1.2017 VIDE ANNEXURE-F IN RESPECT OF DEMANDING 10 PERCENT INTEREST ON THE BALANCE AMOUNT OF LAND COST I.E., RS.78,00,000/- (RUPEES SEVENTY EIGHT LAKHS ONLY) AND ETC., THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. Petitioners are before this Court seeking for the following reliefs: W.P.No.14546/2020 WHEREFORE, it is respectfully prayed that this Hon'ble Court may be pleased to; a. Issue a Writ of certiorari by setting aside the Proceedings No. impugned demand notice - 5 - NC: 2025:KHC:17617 WP No. 14529 of 2020 C/W WP No. 14546 of 2020 WP No. 14580 of 2020 KIADB/HO/Allot/Secy-3/30028/10907/2017-18 17.10.2017 dated vide Annexure-H in respect of demanding 10% interest on the balance amount of land cost i.e., Rs.1,24,80,000/-(Rupees One Crore Twenty Four Lakhs Eighty Thousand Only). b. Issue a writ of Mandamus directing the Respondent No.2 to consider the representation of the Petitioner Dtd.08.09.2020 vide Annexure-N. c. Issue a writ of Mandamus directing the Respondent No.2 to accept 80% of the Balance consideration of amount on i.e., Rs.1,24,80,000/- (Rupees One Crore Twenty Four Lakhs Eighty Thousand Only) by waving off 10% interest, in the interest of justice and equity. land cost THIS PRAYER AMENDED: the Respondent No.2 (cc). The Petitioner is seeking writ of mandamus directing to allot any alternative Plots if any available of the cost previous allotment or refund 20% the initial deposit Rs.31,20,000/- (Rupees Thirty One Lakhs Twenty Thousand Only) with interest from the date of deposit till realization. d. Pass any such other order or further orders as this Hon'ble Court deemed fit and proper under the facts and circumstances of the case, in the interest of justice and equity. W.P.No.14529/2020 WHEREFORE, it is respectfully prayed that this Hon'ble Court may be pleased to; Proceedings a. Issue a Writ of certiorari by setting aside the impugned No. demand No.KIADB/HO/ALLOT/SECY-3/21076/10908/2017-18 dated 17.10.2017 vide Annexure-E in respect of demanding 10% i.e., interest on the balance amount of Rs.78,00,000/-(Rupees Seventy Eight Lakhs Only). land cost notice - 6 - NC: 2025:KHC:17617 WP No. 14529 of 2020 C/W WP No. 14546 of 2020 WP No. 14580 of 2020 b. Issue a writ of Mandamus directing the Respondent No.2 to the Petitioner Dtd.28.10.2020 vide Annexure-J. representation of consider the c. Issue a writ of Mandamus directing the Respondent No.2 to accept 80% of the Balance consideration of amount on land cost i.e., Rs.78,00,000/- (Rupees Seventy Eight Lakhs Only), by waving off 10% interest, in the interest of justice and equity. cc). The Petitioner is seeking writ of mandamus directing the Respondent No.2 to allot any alternative Plots if any available of the cost previous allotment or refund 20% the initial deposit Rs.19,50,000/- (Rupees Nineteen Lakhs Fifty Thousand Only) with interest from the date of deposit till realization. d. Pass any such other order or further orders as this Hon'ble Court deemed fit and proper under the facts and circumstances of the case, in the interest of justice and equity. W.P.No.14580/2020 a. Issue a Writ of certiorari by setting aside the impugned demand notice Proceedings No. KIADB/HO/Allot/Secy-3/20993/10906/2017-18, dated 17.10.2017 vide Annexure-F in respect of demanding 10% interest on the balance amount of land cost i.e., Rs. 78,00,000/- (Rupees Seventy Eight Lakhs Only). b. Issue a writ of Mandamus directing the Respondent No.2 to consider the representation the dated.08.09.2020 vide Annexure-N. of Petitioner c. Issue a writ of Mandamus directing the Respondent No.2 to accept 80% of the Balance consideration of amount i.e., Rs.78,00,000/- (Rupees Seventy Eight Lakhs Only) on land cost by - 7 - NC: 2025:KHC:17617 WP No. 14529 of 2020 C/W WP No. 14546 of 2020 WP No. 14580 of 2020 waving off 10% interest, in the interest of justice and equity. (cc). The Petitioner is seeking writ of mandamus directing the Respondent No.2 to allot any alternative Plots if any available of the cost previous allotment or refund 20% the initial deposit Rs.19,50,000/- (Rupees Nineteen Lakhs Fifty Thousand Only) with interest from the date of deposit till realization. d. Pass any such other order or further orders as this Hon'ble Court deemed fit and proper under the facts and circumstances of the case, in the interest of justice and equity. 2. The grievance of the petitioners was that despite the petitioners having paid large amounts of money as initial deposit, the allotment having been made instead of allotting the site, a demand was made for payment of interest at the rate of 10% on the balance amount. It is challenging the same, petitioners are before this Court. 3. Learned counsel for KIADB was called upon to enquire and make submission as to whether any plot are still available and if the same could be allotted as per the demand made by KIADB of interest or otherwise. - 8 - NC: 2025:KHC:17617 WP No. 14529 of 2020 C/W WP No. 14546 of 2020 WP No. 14580 of 2020 4. Learned counsel Sri.P.V.Chandrashekar, learned KIADB 5. 6. submits that no plots are available, as such, no allotment could be made. However, he supports the impugned order and submits that allotment of any site by setting aside the impugned order would not arise and that the amounts paid have been validly forfeited. Heard the learned counsel for the petitioner as well as learned counsel for respondents. Perused the papers. It is not in dispute that the petitioners have paid the initial deposit. It is also not in dispute that the petitioners have not paid the balance amount within the stipulated time as per the conditions. In that background, a demand was raised by the KIADB to make payment of balance amount with interest. It is that demand which is under challenge before this Court. Even if the petitioners were to fail in the petition, it would have been required for the KIADB to allot the plots by collecting the interest accrued which has been rendered infructuous since no plots are available. There would be no purpose in considering - 9 - NC: 2025:KHC:17617 WP No. 14529 of 2020 C/W WP No. 14546 of 2020 WP No. 14580 of 2020 whether the respondents were entitled to cause such a demand or not. There having been no plots available for allotment to the petitioners, I am of the considered opinion that as an alternative, refund of money to the petitioner by them can be allowed. 7. As such, I pass the following:
Decision
ORDER i) Writ Petitions are partly allowed. ii) Respondents to refund the amounts in deposit to the petitioners within a period of ten weeks from the date of receipt of copy of this order. SD/- (SURAJ GOVINDARAJ) JUDGE BNV List No.: 1 Sl No.: 15 CT: BHK