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
| 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
AI
The court affirmed that under the applicable agricultural regulations, deviation from designated property use constituted a violation justifying forfeiture of the property.
The intention of the legislature is to prevent an allottee from possessing more than one plot in the market yard, and the conversion under Rule 12(2) of the Rules must be considered as a fresh allotm....
A registered lease without bank permission is illegal, and unregistered sale agreements do not confer property rights.
Express conditions in a lease must be strictly adhered to; violation justifies cancellation based on section 111(g) of the Transfer of Property Act.
The automatic cancellation of allotment in case of default in payment and the applicability of Section 34B of the Act only after execution of a lease-cum-sale agreement.
The Government can terminate leases for public purposes under the Kerala Government Land Assignment Act, provided adequate notice is given, affirming the principle of substantial compliance.
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