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Karnataka High Court

Ideal Fine Art Trust Society vs Kalaburagi Urban Development ... on 21 February, 2026

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                                                           NC: 2026:KHC-K:1745
                                                       WP No. 200840 of 2021


                      HC-KAR




                                 IN THE HIGH COURT OF KARNATAKA

                                        KALABURAGI BENCH

                             DATED THIS THE 21ST DAY OF FEBRUARY, 2026

                                              BEFORE
                                THE HON'BLE MR. JUSTICE R.NATARAJ
                          WRIT PETITION NO. 200840 OF 2021 (GM-RES)
                      BETWEEN:

                         IDEAL FINE ART TRUST SOCIETY
                         MAHANAGAR PALIKE GARDEN,
                         TANKBUND ROAD, KALABURAGI
                         REPRESENTED BY ITS SECRETARY
                         V.G ADANI, AGED ABOUT 74 YEARS,
                         R/O: N.V.LAYOUT, SHARANNAGAR,
                         KALABURAGI.
                                                                 ...PETITIONER
                      (BY SRI SANJEEVKUMAR C.PATIL, ADVOCATE)

                      AND:

                         KALABURAGI URBAN DEVELOPMENT AUTHORITY,
                         KALABURAGI - 585 101.
Digitally signed by      REPRESENTED BY ITS COMMISSIONER.
SACHIN
Location: HIGH                                             ...RESPONDENT
COURT OF
KARNATAKA
                      (BY SRI SHIVAKUMAR R.TENGLI, ADVOCATE)
                           THIS WRIT PETITION IS FILED UNDER ARTICLES 226 OF
                      THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT,
                      DIRECTION OR ORDER IN THE NATURE OF CERTIORARI, BY
                      QUASHING ANNEXURE-E, ORDER DATED 13/22.11.2019
                      BEARING NO. KANAPRA / C.A. / KOTNOOR-D / 20/ 2017-18 /
                      1204   DATED    ISSUED   BY    THE  RESPONDENT    AND
                      CONSEQUENTLY DIRECT THE RESPONDENT TO ISSUE NO
                      OBJECTION CERTIFICATE OR COMMENCEMENT CERTIFICATE
                      FOR THE PURPOSE OF CONSTRUCTION OF THE BUILDING AND
                      ETC.
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                                         NC: 2026:KHC-K:1745
                                      WP No. 200840 of 2021


HC-KAR




      THIS PETITION, COMING ON FOR PRELIMINARY HEARING
IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:

CORAM: HON'BLE MR. JUSTICE R.NATARAJ


                       ORAL ORDER

The petitioner has challenged an order bearing

No.PÀ£¥ À Áæ/¹.J./PÉÆÃl£ÀÆgÀ-r/20/2017-18/1204 dated 13.11.2019/

22.11.2019 passed by the respondent cancelling the

allotment of a civic amenity site.

2. The petitioner claiming to be a trust involved in

promoting folk art and other cultural activities applied for

grant of a civic amenity site. The respondent considered

the request of the petitioner and allotted civic amenity site

bearing No.1 in Sy.No.18/2, 19-P and 32/2 of Kotnoor (D)

measuring 23500 (22018 sq.feet) for a period of 30 years.

As per the conditions of the allotment, petitioner deposited

the entire lease amount. Following this, the respondent

executed a lease agreement on 13.03.2008. The petitioner

claims that it applied for sanction of a plan to construct a

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building and accordingly, the Kalaburagi Municipal

Corporation had granted permission in the year 2014. It

contends that due to financial difficulties, it could not

complete the construction within time and therefore

submitted an application for extension of time to complete

the construction. The petitioner then again submitted

another application on 25.11.2019 for permission to

construct a building. However, the respondent before

considering the request of the petitioner passed an order

cancelling the allotment of the site on 22.11.2019. The

petitioner being aggrieved by the aforesaid has

approached this Court.

3. The learned counsel for the petitioner contends

that under Rule 10(7) of the Karnataka Urban

Development Authorities (Allotment of Civil Amenity Sites)

Rules, 1991, the respondent has the authority to extend

the time for construction of a building. He submits that in

similar circumstances, a Co-ordinate Bench of this Court

has granted permission to construct a building. He

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therefore prays that the petitioner may also be granted

similar benefit.

4. The writ petition is opposed by the respondent

who has filed a detailed statement of objection inter alia

contending that the claim of the petitioner that it had

complied with the conditions of the allotment of site is

false. It is contended that the petitioner did not pay the

lease amount within the period as prescribed under the

Rules, 1991. It admitted that the lease agreement was

executed on 13.03.2018, as per which, the petitioner was

bound to construct a building within a period of two years

from the date of registration of the lease agreement or

such extended period provided the total period did not

exceed 10 years. It is contended that if the building is not

constructed within the said period, the allotment is liable

to be cancelled after giving reasonable notice. Accordingly,

the civic amenity site allotted to petitioner was cancelled

for non-compliance of the terms and conditions of the

lease. It is contended that the lease agreement is for 30

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years and even after nearly 15 years, the petitioner has

not constructed the building as required under the lease

agreement. Therefore, it is contended that the impugned

order of cancellation is just and proper and does not

warrant any interference.

5. I have considered the submission made by the

learned counsel for the petitioner and the learned counsel

for the respondent.

6. The petitioner claims that due to certain

difficulties, it could not complete the construction within

time. Therefore, it submitted an application with the

respondent requesting for extension of time to put-up the

construction. This representation was filed on 27.09.2018.

The respondent is bound in law to consider the case of the

petitioner for extension of time as provided in Rule 10 of

the Rules, 1991. For the sake of easy reference, Rule 10 of

the Karnataka Urban Development Authorities (Allotment

of Civil Amenity Sites) Rules, 1991 is extracted below :

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Rule - 10. Conditions of allotment of Civic Amenity Sites.

(1) Allotment of Civic Amenity sites under these rules shall be on a lease basis for a period not exceeding thirty years.

(2) The institutions to which the civic amenity sites are allotted shall within a period of ninety days from the date of receipt of notice of allotment pay to the authority either the balance lease amount after deducting the initial deposit in one lump-sum or pay the first annual installment of the lease amount in which case initial deposit paid along with the application shall be adjusted only towards last installment.

(3) If the lease amount or the annual installment is not paid within the period of ninety days, further extension of time not exceeding sixty days may be given and the institution shall pay in addition, interest at the rate of 12 per cent on the said amount for the extended period. If the lease amount or the installment is not paid within such extended period also, then registration fee and the initial deposit shall be liable to forfeiture and the allotment cancelled without any prior intimation.

(4) After payment under sub-rule (2) or, as the case may be, under sub-rule (3) is made, the authority shall call upon the institution to execute a lease agreement in Form III and after the execution of such agreement by it and the authority, the same shall be resisted by the institution. If the agreement is not executed within forty five days after the authority has called upon the institution, to execute such agreement the registration fee and allotment of the site cancelled. The amount paid by the institution towards the

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lease amount shall be refunded to the institution after deducting such expenditure as might have been incurred by the authority.

(5) As soon as may be possible but not later than ninety days after the registered agreement is submitted to the Authority, the possession of the site shall be handed over to the lessee.

The lease period commences from the date of registration of the lease agreement.

(6) The annual installment shall be paid by the lessee in terms of the lease agreement executed under sub-rule (4).

(7) The lessee shall complete the construction of the building within a period of three years from the date of registration of the lease agreement or such extended period provided the total period does not exceed 10 years, as the Authority may in any specified case by written order permit. If the building is not constructed within the said period, the allotment may, after giving reasonable notice to the institutions, be cancelled, the agreement revoked and the lessee evicted from the site by the authority and after forfeiting twelfth and half per cent (12½) of the lease amount paid by the institution the authority shall refund the balance to the institution.

(8) With effect from the date of taking possession of the site, the lessee shall be liable to pay taxes, fees and cesses payable in respect of the civic amenity site and any building erected thereon.

(9) The lessee shall not become the owner, of, or derive any title to, the site allotted during the period of lease.

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(10) The lessee shall not sub-divide or sub-lease or, alienate, or create any charge on, the civic amenity site.

(11) The lessee shall exclusively use the site for providing the civic amenity for purpose which it is allotted.

(12) If the lease is not renewed, or has been determined or terminated before the expiry of lease the site allotted along with the buildings thereon shall after the expiry of the lease or as the case may be after the termination or determination of the lease vest in the authority free of cost and free from any encumbrance and the authority shall have right to enter premises and take possession thereon.

(13) The lessee shall comply with the conditions of the agreement executed and other rules, bye- laws of the authority of the Corporation or the Municipality as the case may be, for the time being in force.

7. It also appears from the impugned order that

the respondent had cancelled the allotment of the site

without even issuing a notice to the petitioner. Therefore,

the impugned order passed by the respondent deserves to

be set aside on this short ground alone.

8. In that view of the matter, this writ petition is

allowed and impugned order dated 13/22/11.2019

passed by the respondent is quashed.

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9. In view of the fact that the petitioner was

allotted the civic amenity site for the purpose of promoting