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2025 Supreme(Online)(Kar) 29911

KARNATAKA HIGH COURT
B M SHYAM PRASAD, J
RAJA RAJESHWARI TRADERS MERCHANTS – Appellant
Versus
THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION – Respondent
WRIT PETITION NO. 16929 OF 2021 (APMC)



Advocates:
For the Appellants/Petitioners: SRI. M. KRISHNAPPA, SRI. T. SWAROOP, SRI. ABHIJITH HARANAHALLI, SRI. D.R. RAJASHEKARAPPA
For the Respondents: SMT. VAHEEDA, SRI T. SWAROOP, SRI. ABHIJITH HARANAHALLI, SRI. D.R. RAJASHEKARAPPA

The court held that allotments in agricultural market yards must adhere strictly to the specified applications and seniority rules, prohibiting arbitrary choices by committees.

Headnote:(A) Karnataka Agricultural Marketing [Regulation of Allotment of Property in Market Yard] Rules, 2004 - Notification dated 22.07.2021 challenged - Petitioners argue that the allotment of sites did not consider seniority appropriately as per their applications - Court found that sites must be allotted based on applications submitted for specific sites - Court ruled that an applicant must identify a particular site in their application and that the Market Committee has no unfettered discretion to allot sites - Concluded with specific directions regarding the allotment for M/s. Ruchi Trading Company and the fifteenth respondent. (Paras 4-11)

(B) Application for allotment - Proper procedure must be followed - Court reiterated that applications must specify a singular site, and multiple choices are not permitted under the current rules. (Paras 2, 5, 10)

Facts of the case:
Petitioners challenged a notification for site allotment at Bandipalya Market Yard, arguing the allotment was not done according to their ranks in the seniority list in the allotment process.

Findings of Court:
The court ruled that the allotments must respect the order of seniority and that the Market Committee cannot allot sites arbitrarily.

Issues: The main issues included whether the court should direct the third respondent to allot preferred sites based on application rankings, and the implications of site allotment rules.

Ratio Decidendi: The court established that site/applicant allotments must reflect strict adherence to seniority and the rules governing applications. The interpretation of the allotment rules emphasised the necessity of application specificity concerning sites.

Result: The petition at the instance of M/s. Yoga Narasimha Swamy and Co., is rejected, while the petition of M/s. Ruchi Trading Company is allowed.

Table of Content
1. petition challenge regarding site allotment notification. (Para 1)
2. court's observations on application and allotment procedures. (Para 2 , 3 , 7 , 8)
3. arguments regarding allotment choices based on ranks. (Para 4 , 5)
4. court's ruling on seniority and specific site applications. (Para 10)
5. final directions and court's conclusion on application allotment. (Para 11 , 12)

ORAL ORDER

A set of seven petitioners have filed this petition for quashing the Notification dated 22.07.2021 [Annexure-A] issued by the third respondent. The third respondent has issued the impugned Notification allotting certain sites in Block A and Block B of Bandipalya Market Yard, Mysuru. However, the petitioners, except the second and the fourth petitioner, have got the petition at their instance dismissed vide Order dated 18.01.2023, and as such, only these two petitioners who are now mentioned by name in the course of this order prosecute this petition.

2. M/s. Yoga Narasimha Swamy and Co. [the second petitioner] has submitted its application for allotment of a site indicating multiple choice of sites. This petitioner has indicated the site in No.A-316/B as its first choice, the site in No. B-18 as the second choice, the site in No. B-86 as the third choice and the site No. B-104 as the fourth choice. M/s. Ruchi Trading Company [the fourth petitioner], has filed its application for allotment of only the site in No. B-64. The third respondent has allotted sites in terms of Annexure-A based on seniority. M/s. Yoga Narasimha Swamy and Co. is ranked '72' and M/s. Ruchi Trading Company is ranked '58'. The third respondent has allotted the site in No. B-434 to M/s. Yoga Narasimha Swamy and Co. but not a site of its choice. Similarly, the third respondent has allotted to M/s. Ruchi Trading Company the site in No. D-56 which is not its choice.

3. M/s. Ruchi Trading Company’s choice [the site in No. B-64] is allotted to the fifteenth respondent, which is ranked '158' as against M/s. Ruchi Trading Company which is ranked '58'. M/s. Yoga Narasimha Swamy and Co. cannot have any grievance with the allotment of either the site in Nos.A-316/B or B-18 as it is allotted to those who are seniors in the Seniority List, and therefore, its grievance is as against allotment of sites in Nos.B-86 and B-104 to the twelfth and thirteenth respondents who are ranked '102' and '104' respectively below in the Seniority List. The question, therefore, is:

[a] Whether this Court must interfere directing the third respondent to allot to M/s. Yoga Narasimha Swamy and Co either site in Nos.B-86 or B-104 instead of site in No. B-434, and

[b] Whether the third respondent must be directed to allot to M/s. Ruchi Trading Company’s choice site in No. B-64 instead of D-56.

Sri M. Krishnappa, the learned counsel for these two petitioners, Sri T Swaroop, the learned counsel for the third respondent, Sri D R Rajashekarappa, the learned counsel for the fifteenth respondent, and Sri Abhijit Haranahalli, the learned counsel for the twelfth and thirteenth respondents, are heard for final disposal of the petition based on these questions.

4. Sri M Krishnappa submits that M/s. Yoga Narasimha Swamy and Co. should have been granted either site in Nos.B-86 or B-104 in terms of the choice stated in the application because this Entity is ranked much higher than both the twelfth and the thirteenth respondents, and that it would be permissible in terms of the Karnataka Agricultural Marketing [Regulation of Allotment of Property in Market Yard] Rules, 2004 [for short, ‘the Allotment Rules'] to apply making multiple choices and the allotment must be decided based on the seniority.

5. Sri T Swaroop, the learned counsel for the third respondent, who is supported by Sri Abhijit Haranahalli, submits that in terms of Form No.3 of the Allotment Rules, an applicant must apply for a specific site and has no liberty to submit the application showing choices, especially multiple choices. The learned counsels

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