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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M. Nagaprasanna
Shiksha Infotech Private Limited – Appellant
Versus
State Of Karnataka – Respondent
ORDER :
M. Nagaprasanna, J.
The petitioner is before this Court calling in question an order dated 12-08-2022 passed by the 3rd respondent, a notice dated 15-11-2023 issued under Section 34B of the Karnataka Industrial Areas Development Board Act , 1966 (hereinafter referred to as ‘the Act’ for short) by the 5th respondent and the allotment made in favour of the 6th respondent in terms of the order dated 12-06-2024. As a consequence thereof, the petitioner seeks restoration of possession of the land in its favour and the lease deed executed thereon.
2. Heard Sri Raghavendra B. Hanjer, learned counsel appearing for the petitioner, Sri Mohammed Jaffar Shah, learned Additional Government Advocate appearing for respondents 1 and 2, Sri B.B. Patil, learned counsel appearing for respondents 3 to 6 and Sri Shivaprasad Shantanagoudar, learned counsel appearing for respondents 7 and 8.
3. Facts, in brief, germane are as follows: -
The petitioner is said to be a Company registered under the Companies Act, 1956 and is in the business of providing information technology services to several customers enumerated in the petition like Oracle, Microsoft etc. The petitioner desirous of setting up of
The court upheld the board's statutory authority to resume land allocation due to the petitioner's failure to commence construction and comply with lease conditions.
The court ruled that allotment cancellation for non-payment is valid without prior notice, as applicable law requires notice only post-lease execution, which was not applicable here.
Lessees must strictly comply with contractual obligations and timelines stipulated in lease agreements; failure to do so justifies cancellation of lease and resumption of possession.
Petitioners cannot assert rights for land allotments when their claims are contingent on another party's pending applications, especially after such approvals have expired.
Resumption of industrial plot for non-fulfilment of terms and conditions of allotment is justified.
The court ruled that resumption of industrial land must consider actual utilization for intended purposes, rejecting technical approaches that undermine industrial growth.
The competent authority ought to have dealt with that application first, before it issued the order cancelling the lease.
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