IN THE HIGH COURT OF KARNATAKA
Suraj Govindaraj, J.
B.R. Umapataiah & Ors. – Appellants
Versus
State of Karnataka & Ors. – Respondents
WP No. 25246 of 2023
Decided On : 16-11-2023
Writ - Auction of Shops - The court addressed the legality of a publication for auctioning shops occupied by petitioners, emphasizing the expired license period and the petitioners' right to participate in the auction, while ensuring compliance with procedural requirements.
Fact of the Case:
The petitioners sought to quash a publication for auctioning shops they occupied, arguing that the auction notice was issued before their representation was considered and before the license period had expired.
Finding of the Court:
The court found that the license period had indeed expired, but allowed the petitioners to participate in the auction, waiving the requirement for a deposit due to time constraints.
Issues: Whether the auction notice was valid given the petitioners' claims regarding the license period and their representation.
Ratio Decidendi: The court interpreted the Karnataka Public Premises Eviction of Unauthorised Occupants Rules, 1980, affirming the petitioners' right to participate in the auction while clarifying the implications of their potential success or failure in the auction process.
Final Decision: The writ petition was disposed of, granting the petitioners the liberty to participate in the auction with specific conditions regarding compliance and potential outcomes.
ORDER
1. Learned HCGP accepts notice for respondent No.1. Sri.Mahesh.S, learned counsel accepts notice for respondent No.2.
2. The petitioners are before this Court seeking for the following reliefs:
ii) And pray for writ of mandamus by directing the R2 to consider the representation of the petitioners dated 06.11.2023 produced at Annexure-AN.
iii) Pass such other order or direction under the facts and circumstances of the case by allowing the petition of the petitioner in the interest of justice and equity.
3. The contention of the petitioners is that even before the expiry of the period of licence, the respondents are proposing to auction the shops as detailed in the paper publication dated 17.11.2023 at Annexure-A. Apart there from, he submits that the said paper publication is issued even prior to consideration of representation of the petitioners dated 6.11.2023 and it is in that background that the petitioners are before this Court seeking for the aforesaid reliefs.
4. Sri.Mahesh.S, learned counsel for respondents No.2 submits that the period of licence has already expired inasmuch as though the possession notice indicated the period to be 12 years from 1.04.2012 to 31.03.2023, the same appears to be a typographical error which can be seen from the licence agreement entered into wherein it is clearly stated that it is from 1.04.2011 to 31.03.2023. The said period having expired on 31.03.2023, the impugned paper publication has been issued calling for auction. By relying upon the Karnataka Public Premises Eviction of Unauthorised Occupants Rules, 1980, he submits that the petitioners would always have an option to participate in the said auction or exercise first right of refusal in relation thereto.
5. In that view of the matter, I pass the following:
ORDER
ii. In the event of any compliances to be made by the petitioners to participate in the said auction, respondent No.2 shall grant extension of time to the petitioners till 10.00 a.m. tomorrow.
iii. Insofar as any deposits to be made, there being no time for doing the needful, the requirement of making any deposit is waived insofar as petitioners are concerned.
iv. Needless to say, in the event of the petitioners succeeding in the auction, they will have to comply with all requirements and will be entitled to continue their possession in respect of their respective shops. However, in the event the petitioners not being successful in the auction or while exercising right to first refusal, the petitioners would have to vacate the premises within a period of 30 days from the date of confirmation of auction in favour of the successful bidders.
v. It is further made clear that the petitioners would be entitled to participate in the auction only in respect of their respective shops and not in respect of any other shops and the participation will be by themselves and not through any other relative, agency or the like.
vi. Counsel for respondent No.2 is directed to inform respondent No.2 about the above order and act on the same even if copy of the same is not received by respondent No.2.
The court established that the expiration of the license period allowed for the auction of the shops, while ensuring that the petitioners retained the right to participate and comply with auction req....
Tenants have a Right to First Refusal in public auctions of commercial properties, which must be exercised within prescribed timelines.
Writ of Certiorarified Mandamus allows future participation in auction despite prior allocations.
A writ petition can be dismissed for lack of representation and if the prayers become infructuous.
The State and its instrumentalities, including the respondent Corporation, must act in a fair and reasonable manner, adhering to the principles of natural justice and fairness, even in the field of c....
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