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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
VIBHU BAKHRU, C.M.JOSHI
Shiksha Infotech Private Limited – Appellant
Versus
State of Karnataka – Respondent
JUDGMENT :
VIBHU BAKHRU, CJ.
1. The appellant has filed the present appeal impugning an order dated 02.06.2025 [impugned order] passed by the learned Single Judge in Writ Petition No. 17778/2024 (GM-KIADB) captioned, M/s. Shiksha Infotech Private Limited v. State of Karnataka & Ors.
2. The appellant had filed the aforementioned writ petition impugning an order dated 12.06.2024 passed by respondent No.3, inter alia, directing the appellant to handover the possession of Plot No.34 to respondent No.6, the Executive Engineer-3, Karnataka Industrial Areas Development Board [KIADB]. Further, respondent No.3 had directed that in the event the appellant fails to handover the possession of the subject plot before 11.07.2024, respondent No.6 would take over the possession of the same by drawing a mahazar in terms of Section 34 -B(5) of the Karnataka Industrial Areas Development Act, 1966 [the KIAD Act].
3. The appellant had also impugned an order dated 12.08.2022 and the notice dated 15.11.2023. In terms of the impugned order dated 12.08.2022, the appellant was permitted to implement the project within a period of nine months from the date of the said order subject to payment of penalty of `25,
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.
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.
Possession without formal allotment does not confer rights; non-compliance with statutory conditions justifies resumption of land under the Karnataka Industrial Areas Development Act.
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.
Authorities must complete land acquisition proceedings within a reasonable timeframe; prolonged inaction constitutes a violation of constitutional rights under Article 300A.
The KIADB is the sole authority for issuing building plan permissions in industrial areas, superseding local bodies like the Grama Panchayat.
The competent authority ought to have dealt with that application first, before it issued the order cancelling the lease.
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