Full Judgment
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 25TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE N S SANJAY GOWDA WRIT PETITION NO. 5371 OF 2025 (LB-RES) BETWEEN:
1. SRI THANEMAN
BIN ZAHEEER AHAMED AGED ABOUT 43 YEARS, R/A SRI, SHAILA NAILAYA NEAR GENERAL HOSTEL DR. B.R. AMBEDKAR CIRCLE, BELUR HASSAN DISTRICT - 573115. …PETITIONER (BY SRI. SATHISHA D J., ADVOCATE) AND:
1. STATE OF KARNATAKA REP BY ASSISTANT SECRETARY TO THE GOVERNMENT MUNICIPAL ADMINISTRATION DEPARTMENT OF URBAN DEVELOPMENT
Digitally signed by 4TH FLOOR, VIKAS SOUDHA, AMBEDKAR VEEDHI, KIRAN BANGALORE - 560 001 KUMAR R Location: HIGH COURT OF 2. TOWN MUNICIPAL COUNCIL KARNATAKA BELUR TOWN, HASSAN HASSAN DISTRICT - 573115 REP BY ITS CHIEF OFFICER …RESPONDENTS (BY SRI. RAHUL CARIAPPA., AGA FOR R-1; SRI. A.NAGARAJAPPA., ADVOCATE FOR R-2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT TO THE R-2 TOWN MUNICIPAL COUNCIL BELUR TO CONSIDER THE REPRESENTATION BY THE PETITIONER DATED. 21.12.2024 -2- (ANNEXURE-D) AND ANOTHER REPRESENTATION DATED. 12.02.2025 (ANNEXURE-F), ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE N S SANJAY GOWDA
ORAL ORDER
1. The petitioner is seeking a direction to the 2nd
respondent to consider his representation dated 21.12.2024 by which he had exercised his right of first refusal and also the representation dated 12.02.2025, copies of which are produced at Annexures-D and F respectively.
2. It is not in dispute that the petitioner was the
existing lessee in respect of shop No.8 and this shop was sought to be auctioned for a period of 12 years and as required under the Circular dated 19.07.2019, the petitioner was afforded a right of first refusal. The clause which relates to award of right of first refusal is in the following terms: “13, ಸಂದರ್ಭ-03ರನ್ವಯ ಸಾರ್ವಜನಿಕ ಬಹಿರಂಗ ಹರಾಜು ಮೂಲಕ ಅಂಗಡಿ ಮಳಿಗೆಗಳನ್ನು ವಿಲೇವಾರಿ ಮಾಡುವಾಗ ಹಾಲಿ ಇರುವ ವಾಣಿಜ್ಯ ಸಂಕೀರ್ಣದ ಬಾಡಿಗೆದಾರರು ಮೊದಲು ಸಾಮಾನ್ಯ ಬಹಿರ೦ಗ ಹರಾಜು ಪ್ರಕ್ರಿಯೆಯಲ್ಲಿ ಭಾಗವಹಿಸುವ ಅಥವಾ Right of First Refusal ನು 7 ಆಯ್ಕೆ ಮಾಡಿಕೊಳ್ಳುವ
ಸಂಬಂಧ ಯಾವುದಾದರು ಒಂದನ್ನು ಆಯ್ಕೆ ಮಾಡಿಕೊಂಡು ಈ ಬಗ್ಗೆ ಲಿಖಿತವಾಗಿ ನಗರ ಸ್ಥಳೀಯ ಸಂಸ್ಥೆಗೆ ಹರಾಜು ದಿನಾಂಕಕ್ಕೆ ಒಂದು ವಾರ ಮುಂಚಿತವಾಗಿ ತಿಳಿಯಪಡಿಸತಕ್ಕದ್ದು. ನಿಗಧಿತ ದಿನಾಂಕದೊಳಗೆ ಲಿಖಿತವಾಗಿ ತಿಳಿಸದಿದ್ದಲ್ಲಿ ಅಂತಹ ಬಾಡಿಗೆದಾರರು Right of First Refusal ನ್ನು ಆಯ್ಕೆ ಮಾಡಿಕೊಳ್ಳಲು ಅವಕಾಶವಿರುವುದಿಲ್ಲ ಹಾಗೂ ಅ೦ತಹ ಬಾಡಿಗೆದಾರರು ಸಾಮಾನ್ಯ ಬಹಿರ೦ಗ ಹರಾಜು ಪಕ್ರಿಯೆಯಲ್ಲಿ ಭಾಗವಹಿಸುತ್ತಾರೆಂದು ಪರಿಗಣಿಸಲಾಗುವುದು. ಒಂದು ವೇಳೆ ಹಾಲಿ ಇರುವ ವಾಣಿಜ್ಯ ಸಂಕೀರ್ಣದ ಬಾಡಿಗೆದಾರರು Right of First Refusal ನ್ನು ಆಯ್ಕೆ ಮಾಡಿಕೊಂಡಲ್ಲಿ ಸಂದರ್ಭ-03ರನ್ವಯ ಸಾರ್ವಜನಿಕ ಬಹಿರಂಗ ಹರಾಜು ಮೂಲಕ ವಿಲೇವಾರಿ ಮಾಡುವಾಗ ಅಂತಹ ಬಾಡಿಗೆದಾರರಿಗೆ ಸಾಮಾನ್ಯ ಹರಾಜು ಪ್ರಕ್ರಿಯೆಯಲ್ಲಿ ಅಂತಿಮ ಬಿಡ್‌ ಮೊತ್ತಕ್ಕೆ Right of First Refusal COS ಶೇ.5 ರಷ್ಟು ಹೆಚ್ಚಿಗೆ ನಿಗಧಿಪಡಿಸಿ ಮಳಿಗೆ ಬಾಡಿಗೆಗೆ ಪಡೆಯಲು ಅವಕಾಶ ಕಲ್ಪಿಸಿಕೊಡುವುದು. ಸದರಿ ಬಿಡ್‌ ಮೊತ್ತಕ್ಕೆ ಶೇ.5 ರಷ್ಟು ಹೆಚ್ಚಿಗೆ ನಿಗಧಿಪಡಿಸಿದ ಬಿಡ್‌ ಮೊತವನು ಪಾವತಿಸಿ ಅ೦ಗಡಿ ಬಾಡಿಗೆ ಪಡೆಯಲು ಹಾಲಿ ಇರುವ ವಾಣಿಜ್ಯ ಸಂಕೀರ್ಣದ ಬಾಡಿಗೆದಾರರು ಒಪ್ಪದಿದ್ದಲ್ಲಿ ಸಾಮಾನ್ಯ ಹರಾಜು ಪ್ರಕ್ರಿಯೆಯಲ್ಲಿ ಭಾಗವಹಿಸಿ
ಯಶಸ್ವಿಯಾದ ಅಂತಿಮ ಬಿಡ್ಬಾರರಿಗೆ ಮಳಿಗೆಯನ್ನು ಬಾಡಿಗೆಗೆ ನೀಡುವುದು
3. The petitioner exercised his option of right of first
refusal and submitted the representation to the Municipal Council on 21.12.2024 vide Annexure-D. In this representation, he categorically stated that he was exercising his right of first refusal in respect of shop No.8 and was intending to participate in the -4- auction. This representation was also acknowledged by the Municipal Council, Belur, on the said day. The auction was thereafter conducted on 02.01.2025.
4. The Municipal Council contends that it had issued a
notice 03.02.2025 to the petitioner calling upon him to deposit six months’ rent along with GST within 3 days, failing which the bid would be allotted to the highest bidder.
5. It is the case of the petitioner that although he has
given a representation on 21.12.2024 exercising his option of right of first refusal, the moment he received the notice dated 03.02.2025 on 11.02.2025, he once again reiterated his request to permit him to continue to run his business in shop No.8, by submitting another representation dated 12.02.2025 vide Annexure-F, but the Municipal Council did not accede to the same and continued to consider the bid of the highest bidder. -5-
6. As already noticed above, Clause 13 of the Circular
dated 19.07.2019 relates to right of first refusal. This clause does not indicate any time frame within which the existing lessee will have to exercise his option and deposit the sum after the auction. In this case, the Municipal Council issued a notice dated 03.02.2025 granting the petitioner only three days time.
7. It is, however, the case of the petitioner that the
notice dated 03.02.2025 was received by him only on 11.02.2025 and the petitioner responded to it immediately on 12.02.2025 as per Annexure-F. In my view, since the petitioner was not granted adequate time and given the fact that the petitioner received the notice dated 03.02.2025 only on 11.02.2025, it would be appropriate to direct the Municipal Council to accept the right of first refusal exercised by the petitioner vide Annexure-D and also receive the sums due from the petitioner in order to -6- grant him the benefit of right of first refusal within a period of two weeks from the date of receipt of a copy of this order.
8. On the petitioner depositing the sums as required under the Circular pursuant to exercising the option of right of first refusal, the Municipal Council shall extend the lease in favour of the petitioner.
9. The writ petition is accordingly disposed of. Sd/- (N S SANJAY GOWDA) JUDGE PKS List No.: 1 Sl No.: 12