R. V. RAVEENDRAN, J.

( 1 ) KARNATAKA Industrial Areas Development Board, the first respondent herein, is a statutory body established under the Karnataka Industrial Areas Development Act, 1966 ('the Act' for short ). It has established and developed an industrial layout in Chickaballapur known as Chickaballapur Industrial Area.

( 2 ) THE Board allotted Plot No. 1a and 1b in the said layout each measuring 4122 Sq. M. to the two petitioners. The Board issued confirmatory letters of allotment to the petitioners 4/6-2-1993 and 12-1-1993 respectively. The Board delivered possession of the said plots to, the petitioners on 6-2-1993 and 24-6-1993. The Board entered into lease-cum-sale agreements with the petitioners on 18-8-1993 and 19-8-1993. By clause 2 (p) (1) of the said agreements, the petitioners covenanted with the Board to complete the civil construction work and erection of the factory within 12 months, and to commence production within 24 months, from the date of confirmatory letter of allotment. Clause 4 of the said agreements provides that, if the allottee/ lessee committed breach of any of the lessee's covenants, the Board (lessor) may re-enter upon the leased premises.

( 3 )

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