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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
VIBHU BAKHRU, CJ, C.M. POONACHA
R.S. Kalyani Hotels Pvt. Ltd. – Appellant
Versus
State of Karnataka – Respondent
| Table of Content |
|---|
| 1. appeal against cancellation of land allotment due to non-payment. (Para 1 , 2) |
| 2. details of the land allotment conditions and timeline. (Para 5 , 6 , 8 , 12) |
| 3. appellant's claim on full payment made. (Para 20) |
| 4. reiteration of strict adherence to payment conditions. (Para 21) |
| 5. ruling on the validity of cancellation based on non-compliance. (Para 22 , 24 , 27) |
JUDGMENT :
VIBHU BAKHRU, CJ.
1. The appellant has filed the present appeal, impugning an order dated 25.10.2025 [impugned order] passed by the learned Single Judge in W.P. No. 25036/2015 (GM-KIADB) captioned, M/s. R.S. Kalyani Hotels Pvt. Ltd. v. The State of Karnataka & Others.
2. The appellant had filed the said petition, inter alia impugning a communication dated 22.05.2015/23.05.2015 issued by respondent No.3, whereby the allotment of 'three acres of land in Plot No.51 (Corner) of Bengaluru IT Park near Devanahalli, Bengaluru Rural District' [subject land], was cancelled. The appellant also sought a declaration to the effect that the respondents had no right to change the mode of allotment from lease-cum-sale for a period of ten years to a lease for a period of 99 years after the subject land was allotted.
Non-compliance with payment schedules in allotment agreements leads to automatic cancellation of rights to the property.
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-payment of lease salami within stipulated time does not automatically cancel allotment; requires active governmental cancellation, establishing a directory interpretation of time limits.
The cancellation of allotment was justified due to the petitioner's failure to comply with payment terms, emphasizing the importance of adhering to auction conditions and public interest.
The court reinforced that failure to execute necessary agreements and comply with payment terms nullifies any claims to land allotment rights, even where intentions to pay exist.
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