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2022 Supreme(Online)(Kar) 30515

1

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 29TH DAY OF MARCH, 2022

BEFORE

THE HON’BLE MR. JUSTICE HEMANT CHANDANGOUDAR

W P NO.24/2014 C/W W P No.1066/2014 (LB-BMP)

W P No.24/2014:

Between:

M/S.M M Developers

No.2, 1st Cross, M.R.C.R. Layout

Govindarajanagar, Bangalore-560079

GPA Holder – G Sharathreddy. ...Petitioner

(By Sri A Venkatswamy, Advocate)

And:

1.

The Commissioner

Bruhat Bangalore Mahanagara Palike

N R Square, Bangalore-560 002.

2.

The Joint Director

Town Planning (Squad)

Bruhat Bangalore Mahanagara Palike

N R Square, Bangalore-560 002. ...Respondents

(By Sri K N Puttegowda, Advocate)

This writ petition is filed under Article 226 and 227 of the

Constitution

of

India

praying

to

quash

the

impugned

endorsement dated 2.7.2013 passed by the R2 – Joint Director,

Town Planning (Squad) BBMP, Bangalore vide Annexure-F and

direct the R1 & R2 to refund the security deposit amount of

Rs.15,60,000/- together with interest thereon at 2% per month

from 17.7.2008 (date of deposit) till the date of refund of the

amount.

2

W P No.1066/2014:

Between:

M/s. VARS Builders Pvt. Ltd.,

A Company Registered under the

Companies Act, and having its

Office at Flat No.01, VARS ALL

SEASONS Apartments, Off Old

Airport Road, 4th Main

Konenaagrahara, Bangalore-560017

Represented by its Managing Director

Mr.V Venkata Krishna Reddy. ...Petitioner

(By Sri A. Madhusudhana Rao, Advocate)

And:

1.

Bhruath Bangalore Mahanagara Palike

Hudson Circle, Bangalore-560002

Represented by its Commissioner.

2.

The Joint Commissioner

Bhruath Bangalore Mahanagara Palike

Mahadevapura Zone,

Bangalore–560002.

3.

The Assistant Director

Town Planning

Bhruath Bangalore Mahanagara Palike

Mahadevapura Zone,

Bangalore–560002. ..Respondents

(By Sri S J Puranik, Advocate)

This writ petition is filed under Articles 226 and 227 of the

Constitution of India praying to quash the impugned condition

found at Sl.No.6 in the occupancy certificate dated 13.3.2013

issued by respondent No.3 vide Annexure-G forfeiting the

security deposit and also direct the respondents to refund the

security deposit of Rs.6,12,700/- paid by the petitioner to

respondents in respect of sanction of the building plan issued to

3

the petitioner in respect of BBMP Khatha No.543, Kundalahalli

village, Krishnarajapura Hobli, Bangalore.

These writ petitions having been heard and reserved on

19.1.2022 for order and coming on for pronouncement of order,

this day HEMANT CHANDANGOUDAR J., made the following:

Since the issue involved in these writ petitions is similar,

the same are taken up together and disposed of by common

order.

The

petitioner

submitted

an

application

with

respondent – BBMP for sanctioning of plan for construction of

residential apartment in the property bearing No.2, 1st Cross,

MRCR Layout, Govindaraj Nagar, Bengaluru. The said plan was

sanctioned on 17.7.2008 and the commencement certificate was

issued on 18.6.2009. At the time of applying for grant of license

and sanctioned plan, the petitioner had deposited a sum of

Rs.15,60,000/- with respondent – BBMP which was refundable

within three years or within thirty days from the date of

production of completion certificate, whichever was earlier. The

condition specified for refund of security deposit was that the

building should be constructed without any deviation.

4

In pursuance of the sanctioned plan and the

commencement certificate issued in favour of the petitioner, the

petitioner constructed the residential apartment building on the

property in question. Thereafter, the petitioner submitted an

application with the respondent – BBMP to issue occupancy

certificate. The respondent – BBMP upon inspection of the

building, found that there was some deviation in the construction

which was within the permissible limit.

Since the deviation in the construction of the building

was within the permissible limit, the said deviation was

regularized in terms of the Building Bye laws 2003 by imposing

a penalty of Rs.9,14,000/-. The respondent – BBMP having

regularized the deviation which was within the permissible limits,

after imposing penalty issued an occupancy certificate subject to

certain terms and conditions and one of the terms specified was

that the security deposit is forfeited since the construction put up

by the petitioner was in deviation of the sanctioned building plan.

4.

The petitioner through its counsel issued a notice

dated 26.4.2013 calling upon the respondent – BBMP to refund

the security deposit of Rs.15,60,000/- together with interest,

5

failing which, appropriate action would be taken. In turn, the

respondent – BBMP issued a communication dated 2.7.2013

stating that the petitioner is not entitled for refund of security

deposit since the construction put up by the petitioner was in

deviation from the sanctioned plan. Taking exception to the

same, this petition is filed.

WP No.1066/2014:

5.

On an application submitted by the petitioner for

sanctioning of building plan for construction of residential

apartment complex in land bearing Sy.No.19/2 of Kudalahalli

village, Krishnarajapura Hobli, Benglauru, the respondent –

BBMP issued a notice calling upon the petitioner to pay a sum of

Rs.21,48,441/-

which

included

security

deposit

Rs.6,12,700/-. In pursuance of the same, the petitioner

deposited a sum of Rs.6,12,700/- and the petitioner was granted

the sanctioned building plan and also the commencement

certificate.

6.

After completing the construction of the building, the

petitioner submitted an application with the respondent – BBMP

so as to issue occupancy certificate. The respondent – BBMP

upon inspection of the building found that there was deviation of

6

4.80% in the net built up area when compared to the sanctioned

plan. The deviation made by the petitioner which was within the

permissible limits was regularized upon payment of penalty of

Rs.9,46,800/-. Thereafter, the respondent – BBMP issued the

occupancy certificate but forfeited the security deposit since the

construction put up was in deviation from the sanctioned plan.

7.

The petitioner represented the respondent – BBMP so

as to refund the security deposit. The petitioner’s grievance is

that the forfeiture of security deposit is without authority of law.

Hence, this petition.

8.

Learned

counsel

appearing

for

petitioners

submits that the construction put up by the petitioners was not

in deviation of the sanctioned plan since the respondent – BBMP

has regularized the deviation whi

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