High Court of Karnataka Quashes Cancellation of Auction Allotment by Urban Development Authority for Violation of Natural Justice. Petitioner's Auction Allotment of Corner Site Cancelled Without Notice, Court Restores Allotment and Directs Execution of Sale Deed.

High Court: Karnataka High Court Bench: KALABURAGI In Favour of Accused
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Case Note & Summary

The petitioner, Smt. Meenakshi W/o Aravind Guttedar, filed a writ petition under Article 226 of the Constitution of India before the High Court of Karnataka, Kalaburagi Bench, challenging an order dated 17.02.2021 issued by the Kalaburagi Urban Development Authority (respondent No.2). The petitioner had participated in an auction conducted by the respondent authority for a corner site bearing No.328/1 measuring 2580 sq.ft. situated at Badepur, Kalaburagi. The petitioner was the highest bidder and the auction was confirmed in her favour. However, the respondent authority subsequently cancelled the allotment by the impugned order, without issuing any show cause notice or providing an opportunity of hearing to the petitioner. The petitioner sought a writ of certiorari to quash the cancellation order and a writ of mandamus directing the respondent to execute the sale deed in her favour. The Court observed that the cancellation was made without any notice to the petitioner, which is a clear violation of the principles of natural justice. The Court held that the impugned order cannot be sustained and accordingly quashed it. The Court further directed the respondent authority to execute the sale deed in respect of the site in favour of the petitioner, in the interest of justice and equity. The petition was allowed with no order as to costs.

Headnote

A) Administrative Law - Natural Justice - Audi Alteram Partem - Cancellation of Allotment - The Kalaburagi Urban Development Authority cancelled the auction allotment of a corner site to the petitioner without issuing any show cause notice or providing an opportunity of hearing. The Court held that such cancellation without affording an opportunity of hearing is violative of principles of natural justice and cannot be sustained. (Paras 1-4)

B) Property Law - Auction Allotment - Corner Site - The petitioner was the highest bidder in an auction conducted by the respondent authority for a corner site. The authority later cancelled the allotment on the ground that corner sites cannot be auctioned. The Court found that the cancellation was arbitrary and without any notice to the petitioner. (Paras 2-4)

C) Constitutional Law - Writ Jurisdiction - Certiorari and Mandamus - The Court quashed the cancellation order dated 17.02.2021 and directed the respondent authority to execute the sale deed in favour of the petitioner in respect of the site, in the interest of justice and equity. (Paras 1, 4)

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Issue of Consideration

Whether the cancellation of the auction allotment of a corner site by the Urban Development Authority without providing an opportunity of hearing to the petitioner is valid in law.

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Final Decision

The writ petition is allowed. The impugned order dated 17.02.2021 (Annexure-M) is quashed. The respondent No.2 is directed to execute the sale deed in respect of site No.328/1 measuring 2580 sq.ft. in Stage-I Block of Badepur, Kalaburagi in favour of the petitioner, in the interest of justice and equity.

Law Points

  • Natural Justice
  • Audi Alteram Partem
  • Cancellation of Allotment Without Notice
  • Writ of Certiorari
  • Writ of Mandamus
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Case Details

NC: 2024:KHC-K:7360

WP No. 200945 of 2021 (GM-RES)

2024-09-19

Suraj Govindaraj

NC: 2024:KHC-K:7360

Sri. Ratna N. Shivayogimath (for petitioner), Smt. Maya T.R. (HCGP for R1), Sri. Ananth S. Jahagirdar (for R2)

Smt. Meenakshi W/o Aravind Guttedar

The State of Karnataka, The Commissioner, Urban Development Authority, Kalaburagi

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging cancellation of auction allotment of a corner site by the Urban Development Authority.

Remedy Sought

Quashing of cancellation order dated 17.02.2021 and direction to execute sale deed in respect of site No.328/1 measuring 2580 sq.ft.

Filing Reason

The respondent authority cancelled the auction allotment of a corner site to the petitioner without any show cause notice or opportunity of hearing.

Issues

Whether the cancellation of auction allotment without providing an opportunity of hearing is violative of principles of natural justice.

Submissions/Arguments

Petitioner argued that the cancellation order was passed without any notice or opportunity of hearing, violating natural justice. Respondent authority contended that corner sites cannot be auctioned, but the Court noted no notice was given to the petitioner before cancellation.

Ratio Decidendi

Cancellation of an auction allotment without affording an opportunity of hearing to the allottee is a violation of the principles of natural justice and cannot be sustained. The authority must follow the principle of audi alteram partem before taking any adverse action.

Judgment Excerpts

The respondent No.2 conducted an auction of a corner site bearing No.328/1 measuring 2580 sq.ft., situated at Badepur, Kalaburagi. The impugned order has been passed without any show cause notice or opportunity of hearing to the petitioner. The impugned order cannot be sustained and is liable to be quashed. The respondent No.2 is directed to execute the sale deed in respect of the site in favour of the petitioner.

Procedural History

The petitioner filed a writ petition under Article 226 of the Constitution of India before the High Court of Karnataka, Kalaburagi Bench, challenging the cancellation order dated 17.02.2021 issued by the Kalaburagi Urban Development Authority. The petition was heard on 19.09.2024 and allowed.

Acts & Sections

  • Constitution of India: Article 226
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High Court High Court of Karnataka Quashes Cancellation of Auction Allotment by Urban Development Authority for Violation of Natural Justice. Petitioner's Auction Allotment of Corner Site Cancelled Without Notice, Court Restores Allotment and Directs Execution ...
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