High Court of Karnataka Dismisses Writ Petition Challenging KIADB's Resumption of Allotted Land for Non-Compliance with Allotment Conditions. Petitioner failed to establish industry within stipulated period and sought repeated extensions without substantial progress, leading to lawful resumption by the Board.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The petitioner, M/s First Face Information Technologies Private Limited, was allotted a plot of land by the Karnataka Industrial Area Development Board (KIADB) for establishing an industry. The petitioner failed to comply with the allotment conditions, including setting up the industry within the stipulated time. Despite seeking extensions, no substantial progress was made. Consequently, the KIADB passed orders on 02.12.2016 and 19.12.2016 directing the petitioner to surrender possession and threatening forcible resumption. The petitioner filed a writ petition under Articles 226 and 227 of the Constitution seeking to quash these orders. The court noted that the petitioner had an alternative statutory remedy of appeal under Section 38 of the Karnataka Industrial Area Development Act, 1966, which had not been availed. The court also observed that the petitioner had not made out any exceptional circumstances warranting interference under writ jurisdiction. The petition was dismissed as not maintainable, leaving the petitioner free to pursue the statutory remedy.

Headnote

A) Constitutional Law - Writ Jurisdiction - Alternative Remedy - Availability of statutory appeal under Section 38 of the Karnataka Industrial Area Development Act, 1966 - The petitioner challenged resumption orders without exhausting the statutory remedy of appeal before the State Government under Section 38 of the KIAD Act - Held that the writ petition is not maintainable as an alternative efficacious remedy is available (Paras 1-5).

B) Industrial Law - Allotment of Land - Resumption for Non-Compliance - Sections 28, 29, 38 of the Karnataka Industrial Area Development Act, 1966 - The petitioner failed to establish the industry within the stipulated period and sought repeated extensions without substantial progress - The Board's orders for resumption were based on breach of allotment conditions - Held that the Board was justified in resuming the land (Paras 1-5).

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Issue of Consideration

Whether the orders passed by the Karnataka Industrial Area Development Board (KIADB) directing the petitioner to surrender possession of the allotted land and resuming the land are valid and whether the writ petition is maintainable in view of availability of alternative remedy.

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Final Decision

The writ petition is dismissed as not maintainable. The petitioner is at liberty to avail the alternative remedy of appeal under Section 38 of the Karnataka Industrial Area Development Act, 1966.

Law Points

  • Writ of certiorari
  • Resumption of land
  • Allotment conditions
  • Non-compliance
  • Alternative remedy
  • Industrial area development
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Case Details

2025 LawText (KAR) (04) 41

WP No. 32 of 2017 (GM-KIADB)

2025-04-16

Suraj Govindaraj

H S Dwarakanath (for petitioner), B B Patil (for respondents)

M/s First Face Information Technologies Private Limited

Karnataka Industrial Area Development Board and Another

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution challenging orders of KIADB directing surrender of possession and resumption of allotted land.

Remedy Sought

Petitioner sought quashing of orders dated 02.12.2016 and 19.12.2016 passed by KIADB and a direction to restrain forcible possession.

Filing Reason

Petitioner was allotted land by KIADB but failed to comply with allotment conditions, leading to resumption orders.

Previous Decisions

KIADB passed orders on 02.12.2016 and 19.12.2016 directing surrender of possession and threatening forcible resumption.

Issues

Whether the writ petition is maintainable in view of availability of alternative statutory remedy under Section 38 of the KIAD Act. Whether the KIADB was justified in resuming the land for non-compliance with allotment conditions.

Submissions/Arguments

Petitioner argued that the orders were arbitrary and without jurisdiction. Respondents contended that the petitioner had an alternative remedy of appeal under Section 38 of the KIAD Act and that the petition was not maintainable.

Ratio Decidendi

A writ petition under Articles 226 and 227 is not maintainable when an alternative statutory remedy is available and no exceptional circumstances are shown. The KIADB's resumption of land for non-compliance with allotment conditions is justified.

Judgment Excerpts

The petitioner is before this Court seeking for the following reliefs: To issue a writ of certiorari quashing the Annexure-A, the order passed by the R2 dated 19.12.2016... The petitioner has an alternative remedy of appeal under Section 38 of the Karnataka Industrial Area Development Act, 1966.

Procedural History

The petitioner filed WP No. 32 of 2017 on an unspecified date. The petition came up for preliminary hearing in 'B' group on 16.04.2025 and was dismissed.

Acts & Sections

  • Karnataka Industrial Area Development Act, 1966: 28, 29, 38
  • Constitution of India: 226, 227
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