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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M. NAGAPRASANNA
Bogineni Hospitality India Private Limited – Appellant
Versus
Karnataka Industrial Areas Development Board (KIADB) – Respondent
ORDER :
1. The petitioner, a company registered under the Companies Act, 2013 is before this Court calling in question an order dated 15-06-2024 by which allotment of Plot No.61-P to the extent of one acre in Hi-tech Defence and Aerospace Park (IT-Sector), Bengaluru, coming within the precincts of the Karnataka Industrial Areas Development Board (hereinafter referred to as ‘the Board’ for short)in favour of the petitioner, stands cancelled.
2. Heard Sri K.N. Phanindra, learned senior counsel appearing for the petitioner and Sri K.Shashikiran Shetty, learned Advocate General appearing for the respondent.
3. Facts, in brief, germane are as follows:-
The petitioner initially operated as M/s.Infinity Enterprises - a proprietorship concern, and while so operating, it has received a communication from the respondent/Board on 01-10-2009 that the project proposal of M/s.Infinity Enterprises to establish service apartments was accepted and a decision was taken to allot 1 acre of land in its favour. In terms of the said communication M/s.Infinity Enterprises was required to file an application with the Board and make initial deposit to the Board. Accordingly, M/s.Infinity Enterprises submits an
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.
Non-compliance with payment schedules in allotment agreements leads to automatic cancellation of rights to the property.
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.
Non-payment of lease salami within stipulated time does not automatically cancel allotment; requires active governmental cancellation, establishing a directory interpretation of time limits.
Petitioners cannot assert rights for land allotments when their claims are contingent on another party's pending applications, especially after such approvals have expired.
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