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.

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 application to the Board seeking allotment of land in its favour. Thereafter, M/s.Infinity Enterprises, proprietorship concern was converted as a partnership concern with two partners. Thus, the name comes to be changed and registered as M/s. Bogineni Enterprises. The change is said to have been intimated to the Board/Karnataka Udyog Mitra in terms of its communication dated 09-03-2011. After which, the present set up sought allotment of plot Nos.100 and 101 in the said area to establish service apartments, on 28-09-2012. Along with the communication the petitioner is said to have remitted Rs. 36/- lakhs towards initial cost of the allotment. Once again, there appears to be a change in the formation of the petitioner. The partnership concern is now converted into private limited company, the present petitioner. The said change is also said to have been communicated to the Board, on 12-12-2012. In turn, a communication comes about on 05-03-2013 that the project of the petitioner was pending consideration before the State Level Single Window Clearing Committee and requested the Company to be present at the meeting and deliberations to be held on 08-03-2014. Pursuant to the deliberations, it appears that on 26-06-2014, allotment letter was issued in favour of the present set up of plot No.61P in the Bengaluru IT Park near BIAL, measuring 1 acre for setting up of a Hotel. The petitioner again knocked at the Board to issue allotment letter in favour of the present petitioner, on 01-07-2014. In response thereto, the Board is said to have approved the change of name, on 13-11-2014. But, with regard to lease period, it was intimated that after coming into force of the new policy of the Government, it would be intimated.

4. In terms of the communication dated 28-02-2015, intimation is now made to the petitioner that the period of lease in terms of the aforesaid allotment was 99 years. The petitioner then submits a representation on 16-03-2015, seeking allotment of land on lease-cum-sale basis for a period of 10 years and also places on record details of remittances made by it, prior to coming into force of the new policy. The petitioner also requested to complete all the infrastructure activities in the IT park so that banks would be in a position to render financial assistance. Communications between the two i.e., the petitioner and the Board galore. The pe