SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Kar) 1996

IN THE HIGH COURT OF KARNATAKA AT DHARWAD
ANANT RAMANATH HEDGE, J.
Manjunath Basappa Mudaraddy – Appellant
Versus
The State of Karnataka – Respondent
Writ Petition No. 148779 of 2020
Decided On : 12-12-2025

Advocates Appeared:
For the Appellants : Jayakumar S. Patil, F.V. Patil
For the Respondents: Praveen K. Uppar, C.S. Patil, Gopal B. Patil

The court affirmed that under the applicable agricultural regulations, deviation from designated property use constituted a violation justifying forfeiture of the property.

Headnote:(A) Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 - Provisions and Karnataka Agricultural Produce Marketing (Regulation of Allotment of Property in Market Yards) Rules, 2004 - Lease-cum-sale agreement - Petitioner sought to lease property to Andhra Bank contrary to the terms of the lease - Forfeiture of property upheld due to violation of lease terms. (Paras 8, 24, 27)

(B) Compliance - The Committee authorized to take action for forfeiture of the property as per terms of the lease-cum-sale agreement. (Paras 13, 26)

(C) Authority - Approval from the Director of Agricultural Marketing needed before leasing premises, and violation noted. (Paras 36, 29)

Facts of the case:
The petitioner challenged the order of forfeiture of property for leasing part of it to Andhra Bank without proper approval, claiming permission was granted by the Committee. The lease-cum-sale agreement mandated specific use and conditions.

Findings of Court:
The court upheld the forfeiture ruling, emphasizing that the Act and Rules do not allow deviations from specified use and that violation occurred with the rental agreement.

Issues: The core issue was whether the petitioner could lease property to a bank under the lease agreement terms and if the Committee's forfeiture ruling was justified.

Ratio Decidendi: The court ruled that no provision in the Act allows for the property to be used for banking purposes; the property was required to be used for agricultural-related activities only.

Result: Petition is allowed in part, and the order of forfeiture is set aside, but the violation is confirmed, and the respondent must follow legal procedure for hearings regarding the property.

Table of Content
1. petition challenges earlier orders (Para 1 , 2 , 3)
2. lease-cum-sale agreement terms (Para 4 , 5 , 6 , 7)
3. approval for rental use denied (Para 8 , 9)
4. arguments regarding authority and notice (Para 10 , 11 , 12 , 13 , 14)
5. legal analysis of lease conditions (Para 15 , 16 , 17 , 18 , 19 , 20 , 21)
6. procedures for allotment cancellation (Para 22 , 23 , 24)
7. violation of lease agreement terms (Para 25 , 26 , 27)
8. enquiry for alleged violations ordered (Para 28 , 29 , 30 , 31 , 32)
9. refund and rental directives issued (Para 33 , 34 , 35)
10. court order conclusion (Para 36)

ORDER :

1. Heard the learned Senior counsel Sri Jayakumar S Patil appearing for the petitioner, Sri Praveen K. Uppar, learned Additional Government Advocate for respondents No.1 to 4 and Sri C S Patil, learned counsel appearing for respondents No.5 and 6.

2. This petition is filed assailing the order dated 09.12.2020, passed by respondent No.2, in Appeal No.2/2017.

3. The petitioner, in the appeal referred to above had questioned the order dated 08.09.2016 passed by respondent No.4-Additional Director of Agricultural Marketing.

4. Learned Senior Counsel appearing for the petitioner would contend that on 30.11.2007, a registered lease-cum-sale agreement was executed in favour of the petitioner by respondent No.5-Committee, which enabled the petitioner to occupy the petition property to carryout certain businesses specified in the said lease-cum-sale agreement.

5. The petitioner sought permission from respondent No.5-Committee (Committee) to lease/rent the part of the petition premises in favour of Andhra Bank. The petitioner urged that to meet the business demands of the people who transact in APMC yard, a banking facility in the APMC yard is required and requested the Committee to permit the petitioner to lease/rent the premises to Andhra Bank.

6. It is stated that the permission was granted by the Committee and thereafter, the petitioner rented half portion of the premises in favour of the Andhra Bank and remaining half portion is used for the purpose of carrying out the business for which the petition property was allotted to the petitioner on lease-cum-sale agreement.

7. It is urged that Committee having as per the resolution dated 08.09.2015, resolved to permit the petitioner to use the part of the premises for banking purpose, sought approval from the Director of Agricultural Marketing.

8. Respondent No.4-Additional Director of Agricultural Marketing has declined to grant approval to the resolution on the premise that the provisions of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 (Act, 1966) do not enable such use of the property and also directed the Committee to take further steps in accordance with law to forfeit the premises.

9. Said order is called in question by filing of an appeal. The Appellate Authority has dismissed the appeal in terms of the impugned order and has upheld the order passed by the respondent No.4- Additional Director of Agricultural Marketing directing forfeiture of the property.

10. Learned Senior counsel appearing for the petitioner would submit that the petitioner rented the premises to the Andhra Bank after obtaining permission of Committee to rent half portion of the premises and resolution is passed providing for such rent and thereafter, the Andhra Bank is inducted in the half portion of the premises as a tenant and the said bank is carrying on the business for the benefit of all who transact in the APMC yard Hubballi and there is no violation of any provision of law.

11. In addition, learned Senior counsel appearing for the petitioner would also urge that the order for forfeiture is without notice to the petitioner and more than anything else, it was beyond the scope of authority of respondent No.4 who was only required to consider whether the approval sought by the Committee can be granted or not. If the proposal of the Committee is to be rejected then, the petitioner ca

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top