Case Note & Summary
The Karnataka Industrial Area Development Board (Board) appealed against the order of a learned Single Judge in W.P.Nos.24701-702/2012, which directed the Board to charge development cost instead of allotment rate for 10 acres of land allotted to respondent No.2 company. The respondent No.1, Abdul Rafeekh, was the owner of lands acquired by the Board for formation of EPIP Industrial Area. He filed a writ petition challenging the acquisition, intending to set up a software industry. The Single Judge allowed the writ petition, directing payment of development cost. The Board appealed, arguing that its policy of charging allotment rate was valid and the writ court should not interfere. The Division Bench allowed the appeals, setting aside the Single Judge's order and upholding the Board's policy.
Headnote
A) Land Acquisition - Industrial Area Development - Allotment Rate vs Development Cost - Karnataka Industrial Areas Development Act, 1966 - The issue was whether the Board could charge allotment rate as per its policy or the development cost as directed by the writ court. The court held that the Board's policy of charging allotment rate is valid and the writ court erred in interfering with the policy decision. (Paras 1-10)
Issue of Consideration
Whether the writ court was correct in directing the appellant Board to charge development cost instead of allotment rate for the land allotted to respondent No.2 company.
Final Decision
The writ appeals are allowed. The order dated 11.12.2012 in W.P.Nos.24701-702/2012 is set aside. The Board is directed to charge allotment rate as per its policy.
Law Points
- Land Acquisition
- Industrial Area Development
- Allotment Rate
- Development Cost
- Writ Jurisdiction
- Policy Decision
Case Details
2013 LawText (KAR) (10) 22
Writ Appeal No.2953/2013 (LA-KIADB) and Writ Appeal No.3474/2013
D.H.Waghela, Chief Justice, B.V.Nagarathna, Justice
Sri S.Vijay Shankar, Senior counsel for Sri Basavaraj Sabarad.V., Adv. for appellant; Sri Uday Holla, Senior counsel for M/s. Holla & Holla for respondents
Karnataka Industrial Area Development Board
A. Abdul Rafeekh and Centurion Software Services Limited
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Nature of Litigation
Writ appeals against order of Single Judge directing payment of development cost instead of allotment rate for land allotted to respondent company.
Remedy Sought
Appellant Board sought to set aside the order of Single Judge and uphold its policy of charging allotment rate.
Filing Reason
The Board challenged the Single Judge's order directing payment of development cost instead of allotment rate.
Previous Decisions
Single Judge allowed writ petitions directing payment of development cost.
Issues
Whether the writ court was correct in directing the appellant Board to charge development cost instead of allotment rate for the land allotted to respondent No.2 company.
Submissions/Arguments
Appellant argued that the Board's policy of charging allotment rate is valid and the writ court should not interfere with policy decisions.
Respondents argued that the development cost should be charged as per the Single Judge's order.
Ratio Decidendi
The Board's policy of charging allotment rate for industrial plots is a valid policy decision and the writ court erred in interfering with it by directing payment of development cost.
Judgment Excerpts
The present writ appeals have been filed by Karnataka Industrial Area Development Board to assail the order dated 11.12.2012 of learned Single Judge in W.P.Nos.24701-702/2012, allowing the writ petitions by directing payment of development cost instead of allotment rate in respect of 10 acres land allotted to respondent No.2 Company.
Procedural History
Respondent No.1 filed writ petition No.29271/2001 challenging acquisition. Later, writ petitions were filed seeking direction for allotment. Single Judge allowed writ petitions on 11.12.2012 directing payment of development cost. Board filed present writ appeals under Section 4 of Karnataka High Court Act.
Acts & Sections
- Karnataka High Court Act: Section 4
- Karnataka Industrial Areas Development Act, 1966:
