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2026 Supreme(Online)(Kar) 10408

IN THE HIGH COURT OF KARNATAKA AT BENGALURU


DATED THIS THE 12TH DAY OF MARCH, 2026


BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM


WRIT PETITION NO. 3034 OF 2026 (GM-KIADB)


BETWEEN:

1. M/S RADHA ENGINEERING INDUSTRIES, NO. 142, 4TH MAIN, 1ST PHASE, 1ST STAGE, WEST OF CHORD ROAD, MANJUNATHNAGAR, BENGALURU - 560 010 PRESENTLY OFFICE AT FLAT NO. 904, RENAISSANCE RESERVA, MUNCIPAL NO. 54, MES ROAD, MUTHYALNAGAR, YESHWANTHPUR, BENGALURU, KARNATAKA 560 054 REPRESENTED BY THE PROPRIETRIX, SOLE PROPRIERTORSHIP CONCERNED, SMT. G NIVEDA …PETITIONER


DbSB yH ig A it R a A lly D A si V g A ne N d I


(BY SRI. CHANDAN GOWDA PATIL.,ADVOCATE)


LCK o aoc run art ati t ooa nfk : a High


AND:

1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF INDUSTRIES AND COMMERCE, VIKASA SOUDHA, DR. AMBEDKAR VEEDI, BENGALURU - 560 001

2. THE KARNATAKA INDUSTRIAL AREAS A DEVELOPMENT BOARD (KIADB) GOVERNMENT OF KARNATAKA UNDERTAKING HAVING ITS OFFICER AT NO. 2,2/1 AND 2/3, ACHARYA TULASI MARG, 1ST MAIN ROAD, GANDHINAGAR, BENGALURU 560 009 (REPRESENTED BY CHIEF EXECUTIVE OFFICER AND EXECUTIVE MEMBER)

3. THE JOINT DIRECTOR, KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD, NO. 2,2/1 And 2/3, ACHARYA TULASI MARG, 1ST MAIN ROAD, GANDHINAGAR, BENGALURU- 560 009 …RESPONDENTS


(BY SMT. NAVYA SHEKHAR, AGA FOR R1)


ORDER


i. The writ petition stands dismissed.


ii. However, respondent No.3 shall refund the amount deposited by the petitioner, after deducting 20% of the said amount, in terms of Clause 4(a) of the allotment letter.


iii. The said exercise shall be carried out expeditiously in accordance with law.


Sd/-


(SACHIN SHANKAR MAGADUM)

JUDGE


HDK List No.: 1 Sl No.: 42

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED INTIMATION LETTER BEARING NO. KIADB/HO/ALLOT/23674/19816/2024-25 DTD. 30.01.2025 ISSUED BY THE R-3 ENCLOSED AT ANNX-A., AND ETC.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

ORAL ORDER

The captioned petition is filed seeking the following reliefs:

i. "Issue a writ of certiorari or any other appropriate writ, order or quashing the impugned intimation letter bearing no.KIADB/HO/Allot/23674/19816/2024-25 dated 30.01.2025, issued by the Respondent No.3, enclosed at Annexure-A.

ii. Issue a Writ of Mandamus or any other appropriate writ, order or direction directing the Respondent No.2 and Respondent No.3 to receive the balance amount in tune of Rs.58,45,000/- towards land cost and handover the possession in terms of allotment letter dated 01.01.2022, issued by the Respondent No.3, enclosed at Annexure-C1."

The petitioner submitted a project proposal on 22.10.2021 seeking approval for establishment of a CNC Machining and Fabrication Unit at Avverahalli, Nelamangala Taluk, Bengaluru Rural District. The said project was placed before the District Level Single Window Clearance Committee (DLSWCC) (hereinafter referred to as “the Committee”), which approved the proposal. Pursuant thereto, the petitioner applied for allotment of industrial land with the respondents on 21.12.2021 and remitted a sum of Rs.7,50,000/- on 28.12.2021 towards the land cost, inclusive of the Earnest Money Deposit (EMD). In furtherance of the said application, the respondents issued an allotment letter allotting Plot No.172-D2 situated in Avverahalli Industrial Area, measuring 0.50 acre, in favour of the petitioner.

Subsequently, respondent No.3 issued an intimation letter dated 30.01.2025 informing the petitioner that the initial allotment made in her favour stood cancelled. Aggrieved by the said communication, the petitioner has presented the present writ petition calling in question the legality and validity of the said intimation letter cancelling the allotment.

The principal contention urged by the petitioner is that the impugned cancellation has been effected without issuing any prior notice and without affording an opportunity to the petitioner to remit the balance amount of Rs.58,45,000/- towards the land cost. It is contended that such cancellation, without adhering to the principles of natural justice, is arbitrary and unsustainable. The petitioner further submits that she is ready and willing to deposit the balance amount of Rs.58,45,000/-.

Per contra, learned counsel appearing for the respondents, placing reliance on the terms and conditions of the allotment letter, would contend that the industrial plot was allotted to the petitioner on 01.01.2022 and that the petitioner committed a clear breach by failing to remit the balance amount of Rs.58,45,000/-. It is therefore contended that respondent No.3 was well within its jurisdiction to cancel the allotment and communicate the same to the petitioner. In support of this submission, reliance is placed on the judgment rendered by the Coordinate Bench in M/s. Kamalalayaa Read Estates LLP vs. The Karnataka Industrial Areas Development Board and Another in W.P. No.279/2024. Referring to the said judgment, it is argued that where possession of the allotted land has not been delivered, the authorities are not obligated to issue a prior notice or afford an opportunity of hearing before cancelling the allotment.

Having heard the learned counsel appearing for the parties and upon perusal of the material on record, the following points arise for consideration:

(i) Whether the petitioner has made out a case for setting aside the impugned intimation letter dated 30.01.2025 issued by respondent No.3, as produced at Annexure–A?

(ii) Whether the petitioner has established a legal right to

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