Karnataka High Court
Sri Syed Hussain vs Karnataka State Small Industries on 3 November, 2025
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NC: 2025:KHC:44062-DB
WA No. 1047 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 3RD DAY OF NOVEMBER, 2025
PRESENT
THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
AND
THE HON'BLE MR. JUSTICE C.M. POONACHA
WRIT APPEAL NO. 1047 OF 2025 (GM-KSSIDC)
BETWEEN:
1. SRI SYED HUSSAIN
S/O LATE SYED AKBAR
AGED 70 YEARS
PROPRIETOR OF
M/S. ASH RECYCLERS
SHED NO.B-3
KSSIDC INDUSTRIAL ESTATE
PILLAGUMPA, HOSKOTE
BENGALURU NORTH DISTRICT
BENGALURU - 562 114
Digitally ...APPELLANT
signed by (BY SRI YASHWANTH NETHAJI N.T., ADVOCATE FOR
AMBIKA H B SRI K.V. NARASIMHAN, ADVOCATE)
Location:
High Court of AND:
Karnataka
1. KARNATAKA STATE SMALL INDUSTRIES
DEVELOMENT CORPORATION LIMITED
A GOVERNMENT OF KARNATAKA UNDERTAKING
INDUSTRIAL ESTATE
RAJAJINAGAR
BENGALURU - 560 010
REPRESENTED BY ITS MANAGING DIRECTOR
2. THE ASSISTANT GENERAL MANAGER
KARNATAKA STATE SMALL INDUSTRIES
DEVELOPMENT CORPORATION LIMITED
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WA No. 1047 of 2025
HC-KAR
BENGALURU DIVISION
BENGALURU - 560 010
...RESPONDENTS
THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE
KARNATAKA HIGH COURT ACT PRAYING TO ALLOW THIS APPEAL
AND SET ASIDE THE ORDER OF THE LEARNED SINGLE JUDGE
PASSED IN WRIT PETITION NO.9383/2020 (GM-KSSIDC) DATED
06/02/2025 AND ETC.
THIS APPEAL, COMING ON FOR PRELIMINARY HEARING,
THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
and
HON'BLE MR. JUSTICE C.M. POONACHA
ORAL JUDGMENT
(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)
1. For the reasons stated in the application ‒ I.A No.1/2025, the
same is allowed and the delay in filing the appeal is condoned.
2. The appellant has filed the present appeal impugning an
order dated 06.02.2025 passed by the learned Single Judge of this
Court in Writ petition No.9383/2020 (GM-KSSIDC). The appellant
had filed the writ petition impugning an order dated 21.12.2019
passed by respondent No.2 [KSSIDC] cancelling the allotment of
shed No.B-3 in Industrial Estate, Hosakote. The said premises
was allotted to the appellant on 17.08.2013 and he took possession
of the same on 30.09.2013. Allegedly, the appellant failed to pay
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the installments due to KSSIDC and also failed in establishing the
industrial unit.
3. On 07.09.2019, a show cause notice was issued to the
appellant calling upon him to explain why the allotment not be
cancelled. It was alleged that the appellant had not complied with
the following conditions of the allotment:
(i) had not insured the shed/renewed the insurance policy;
(ii) was in arrears of service charge to the extent of Rs.29,203/-
(including GST);
(iii) was in arrears in payment of installments to the extent of
Rs.57,92,665.39 towards shed; and
(iv) the industry is not functioning.
There is nothing on record to indicate that the appellant responded
to the said show cause notice.
4. Thereafter, KSSIDC issued a final show cause notice dated
05.11.2019. The appellant has filed a copy of the said show cause
notice, which reflects that the same was issued on an alternate
date of 06.11.2019. The appellant responded to the said show
cause notice stating that he has insured the shed with Shriram
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General Insurance and had paid the service charges and arrears of
installments. The appellant also called upon KSSIDC to furnish a
calculation of the alleged dues, which he claimed would enable him
to pay the arrears, if so found due.
5. Thereafter, the KSSIDC issued a cancellation order dated
21.12.2019, which was impugned by the appellant by filing a writ
petition. It is alleged that the appellant had failed to pay
installments of Rs.65,80,629/- by 31.12.2019.
6. KSSIDC filed statement of objections, inter alia, stating that
the appellant had purchased the insurance policy after the
issuance of the show cause notice. Further, the outstanding dues
including interest as on 31.07.2024 was Rs.82,68,384/-.
7. It is contented by the learned counsel for the appellant that
the appellant was ready to pay the arrears. However, could not do
so as he was not aware of the calculation. On a pointed query as
to on what basis the appellant had calculated the payments made,
the learned counsel for the appellant could not explain the same.
Whilst the appellant has disputed the arrears demanded by the
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KSSIDC, he has failed to set out the schedule of installments or
what would be the amount payable according to him.
8. The learned Single Judge had noted that the appellant had
furnished an undertaking as on 07.03.2020 that he would pay the
amount of Rs.66,40,000/- within a period of six months. However,
he failed to pay the said amount.
9. The said undertaking is reproduced below.
"To,
The Assistant General Manager (ID)
K.S.S.I.D.D.L
Rajajinagar, Bengaluru.
Sir,
Shed number B-3 in Hosakote Industrial
Estate was allotted by KASIDC during 2013. Due to
some reasons, the shop instalments could not be
paid. Therefore, a shop cancellation order was
issued by your office on 24.12.2019. In the inquiry
letter dated 14.02.2020, it was informed to attend
the inquiry on 29.02.2020. Accordingly, with your
permission, instead of 29.02.2020, I am present for
the inquiry today, i.e., 07.03.2020.
Today, Rs.1,00,000/- has been paid through
D.D. No.123178 dated 06.03.2020 drawn at Bank of
Baroda towards the outstanding shop installment
amount, and I hereby request that the remaining
outstanding amount of Rs.66,40,000/- be allowed to
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be paid within the next six months, thereby
encouraging small entrepreneurs.
Yours faithfully,
Sd/- xxx
(M/s ASH Recyclers)
Shop No.B-3
Hosakote"
10. In view of the above, we are unable to find any fault in the
impugned order in rejecting the appellant's challenge to the
cancellation order. The learned Single Judge held that the
appellant had failed to pay the arrears of installment, therefore, the
KSSIDC was well within its right to cancel the allotment.
11. The appeal is unmerited and, accordingly, dismissed.
12. The pending interlocutory application also stands disposed
of.
Sd/-
(VIBHU BAKHRU)
CHIEF JUSTICE
Sd/-
(C.M. POONACHA)
JUDGE
