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2025 Supreme(Online)(Kar) 32784

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: M. KRISHNAPPA, T. SWAROOP, D. R. RAJASHEKARAPPA, ABHIJITH HARANAHALLI
For the Respondents: Smt. VAHEEDA, Sri ABHIJITH HARANAHALLI, SRI D. R. RAJASHEKARAPPA

The Court emphasized that allotments must honor seniority rules strictly, allowing only applicants for specific sites, thus ensuring legal compliance and fair allocation.

Headnote:(A) Karnataka Agricultural Marketing (Regulation of Allotment of Property in Market Yard) Rules, 2004 - Issue of Notification for site allotment - Petitioners challenged allotment of sites in APMC Yard based on seniority guidelines set forth in the Allotment Rules - Court found the applications for specific choices raise valid concerns for site determination under seniority rules. (Paras 1-4)

(B) Jurisdiction of Court in allotment disputes - The Court clarified the definition of 'offer' in the context of site allotment under seniority provisions of the Allotment Rules, elaborating that applications must pertain to specific sites only. (Paras 7-10)

Facts of the case:
The petitioners contended the third respondent's site allotments did not honor seniority rankings leading to grievances in our petition. The issue heightened when some of their choices deviated from requests documented by the applicants. Issues raised were primarily about compliance with the allotment rules and the legitimacy of site choices.

Findings of Court:
The Court ruled against the petitioner Yoga Narasimha Swamy and Co. while allowing the petition from Ruchi Trading Company for site B-64 which highlighted seniority entitlement.

Issues: The primary question was on the legitimacy of choices made in site allotments within the procedural framework of the Allotment Rules.

Ratio Decidendi: Court emphasized that only sites applied for can be considered for allocations to prevent manipulation, ensuring compliance with seniority as mandated by existing regulations.

Result: The petition by M/s. Yoga Narasimha Swamy and Co. rejected, and the petition of M/s. Ruchi Trading Company was allowed with orders for site allotment.

Table of Content
1. submission of petitions for challenging notified allotments. (Para 1 , 2 , 3)
2. discussion on validity of applicant choices in allotments. (Para 4 , 5 , 6)
3. court's interpretation of allotment offer and conditions. (Para 7 , 8)
4. finalization of legal standings and decisions impacting site allocation. (Para 9 , 10)
5. conclusion on petition outcomes with directives for legal compliance. (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 ch

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