IN THE HIGH COURT OF KARNATAKA
B. Veerappa, J.
Anu Industries Ltd. – Appellant
Versus
Karnataka Industrial Areas Development Board – Respondent
Writ Petition No. 2166 of 2017
Decided On : 12-06-2019
Karnataka Industrial Areas Development Act, 1966 - Section 34(B)(1) - Quash - Manufacture of automobile - Karnataka Industrial Areas Development Act (KIAD Act for short) to petitioner- petitioner replied to said notice by his reply dated and requested to grant six months time to implement project- first respondent without considering reply and without following procedure as contemplated has cancelled allotment of land by passing an impugned order - Hence present writ petition is filed –Held, Order clearly indicates that have not followed procedure as contemplated under provisions of Section - Before resumption even though petitioner appeared before authorities they have not followed procedure as contemplated provisions of KIAD - In support of same no material is produced Court- principles of natural justice- A notice in terms of contractual stipulation may be generous beyond requirements of doctrine and would not entitle party concerned to enforce in writ jurisdiction of this Court- A grievance based upon non-adherence to any such stipulation may however be permissible in a civil action- What this Court is concerned with is to see whether bare minimal requirement of a hearing and notice has been complied with by authority- requirement of any such hearing and notice does not necessarily extend notice as contemplated by Clause lease-cum-sale agreement- No such shorter notice was also ever issued to petitioner any time after issue of resumption order resumption order is in circumstances on it in violation of principles of natural justice and hence unsustainable order passed by first respondent as per Annexure "F" is hereby quashed matter is remanded to respondent for re-consideration after following procedure and providing an opportunity of being heard petitioner and pass appropriate orders strictly in accordance with provisions of KIAD Act and in accordance with law - Petition disposed
JUDGMENT :
B. Veerappa, J.
1. By consent of learned counsel appearing for the parties, the matter is taken up for final hearing.
2. The petitioner filed the present writ petition for a writ of certiorari to quash the order dated 21.12.2016 in No. 19785/14040/16-17 passed by the first respondent as per Annexure "F" resuming the Site No. 206-A situated at II Phase, Harohalli Industrial Area.
3. It is the case of the petitioner that he is engaging in manufacture of automobile components with an intention to setup an Industrial Unit for the manufacture of automobile components in Bengaluru. He applied for allotment of land to the first respondent on 23.04.2011, the first respondent after considering the application of the petitioner has allotted 4004 square meters of land in Plot No. 206-A, Phase-II, Harohalli Industrial Area on 29.07.2011. On 23.02.2012, the first respondent issued "Confirmatory Letter of Allotment" after receipt of Rs. 60 Lakhs from the petitioner as tentative costs. Thereafter, on 09.04.2012, the first respondent handed over the allotted land to the possession of the petitioner. Subsequently, on 18.07.2012, the first respondent executed a registered lease- cum-sale agreement in favour of the petitioner.
4. The things stood thus, the first respondent issued a notice dated 21.07.2016 under Section 34(B)(1) of the Karnataka Industrial Areas Development Act, 1966 (KIAD Act for short) to the petitioner. The petitioner replied to the said notice by his reply dated 20.08.2016 and requested to grant six months time to implement the project. The first respondent without considering the reply and without following the procedure as contemplated has cancelled the allotment of land by passing an impugned order dated 21.12.2016. Hence, the present writ petition is filed.
5. Respondent Nos.1 and 2 filed statement of objections denying the averments made in the writ petition and contended that after issuing a notice to the petitioner under Section 34B(1) of KIAD Act, the petitioner has attended the hearing fixed by the authorities on 2.12.2016 and requested time to implement the project. After considering the entire material on record, the first respondent passed orders strictly in accordance with law and therefore sought for dismissal of the writ petition.
6. I have heard the learned counsel appearing for the parties to the lis.
7. Sri K.S. Ganesh, learned counsel for the petitioner contended that the impugned order passed by the first respondent resuming the land allotted to the petitioner is erroneous and contrary to the material on record cannot be sustained. He would further contend that the impugned order passed by the first respondent is an utter violation of the principles of natural justice. No show cause notice has been issued before passing the impugned order or given an opportunity of being heard the petitioner. He further contended that, the first respondent has not followed the procedure as contemplated under the provisions of Section 34B(2) of KIAD Act. Therefore, the same cannot be sustained. He would further contended that in the order sheet produced by the learned counsel for the respondents as per Annexure "R5" clearly depicts that, the case was called on 21.10.2016 and recorded as final orders could not be made ready and post the matter for hearing on 11.11.2016. On 11.11.2016, the case was not at all called; instead, the case was called on 2.12.2016. Therefore, it clearly indicates that the order sheet procedure adopted by the respondents is against the provisions of KIAD Act and in utter violation of principles of natural justice and it cannot be sustained. There is no compliance of the provision as contemplated under Section 34B(2) of the KIAD Act. Therefore, he sought to allow the writ petition.
8. Per contra, Sri B.B. Patil, learned counsel for the respondent Nos. 1 and 2 - KIADB, while reiterating the statement of objections sought to justify the impugned order and vehemently contended that the Board issued no
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