Disposed

M/S M K Agrotech Private Limited v. State of Karnataka

Karnataka HC24 Jun 2024WP/3199/2023

Case brief

AI extract

What is this about?

Court disposed of a writ petition challenging an NHAI notification after finding that a Memorandum of Understanding was executed between the parties to amicably resolve the dispute regarding service road construction and access.

What did the court decide?

Petition disposed of in terms of the Memorandum of Understanding executed between the petitioner and the respondents.

M/S M K Agrotech Private Limited Vs State of Karnataka — Landlord and Tenant | Karnataka HC (2024)

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NC: 2024:KHC:23404 WP No. 3199 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24^TH DAY OF JUNE, 2024

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BEFORE

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THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.3199 OF 2023 (GM-RES)

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BETWEEN:

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M/S M K AGROTECH PRIVATE LIMITED HAVING ITS REGISTERED OFFICE AT NO.389, KAVERI LAYOUT, MYSORE BENGALURU ROAD OPP. RANGANATHA PETROL BUNK SRIRANGAPATNA MANDYA DISTRICT – 571 438 REP. BY ITS GENERAL MANAGER MR. BABU M S/O MOHAMMED LAL AGED ABOUT 35 YEARS. REG. UNDER THE COMPANIES ACT, 1956

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…PETITIONER

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(BY SRI. PRAVEEN M .T., ADVOCATE)

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AND:

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Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA

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STATE OF KARNATAKA REP. BY ITS PRINCIPAL SECRETARY DEPARTMENT OF PUBLIC WORKS ROOM NO.335, 3^RD FLOOR VIKASA SOUDHA, BENGALURU – 560 001.

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NATIONAL HIGHWAYS AUTHORITY OF INDIA REP. BY ITS CHAIRMAN G5 AND 6, SECTOR -10 DWARAKA, NEW DELHI 110075

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HARISH BABU

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NO.555, AXIS PADEGAL 4^TH FLOOR, J P NAGAR 3^RD PHASE, 9^TH CROSS

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BENGALURU – 560 078.

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…RESPONDENTS

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(BY SRI. S.H. RAGHAVENDRA, AGA FOR R-1; SMT. SHILPA SHAH, ADVOCATE FOR R-2 & SRI. B.S. JEEVAN KUMAR, ADV. FOR R3)

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NC: 2024:KHC:23404 WP No. 3199 of 2023

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THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTIFICATION DATED 31.05.2022, ISSUED BY THE R2 , COPY OF WHICH IS HEREIN PRODUCED AS ANNEXURE-F BEARING NO.NHAI/WSA/NORTH/SOUTH/4/2022 AS ILLEGAL AND VOID.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP , THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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This petition is directed against the impugned notification dated 31.05.2022 issued by respondent No.2 at Annexure – F.

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Petitioner and respondent have filed Memorandum of Understanding dated 29.02.2024. The said Memorandum of Understanding reads as under:

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“WHEREAS the stretch of land, which comes within Right of Way of Bangalore-Mangalore Section of National Highway No-75, in the State of Karnataka vests with the Central Government. The First Party is entrusted with the said section of National Highway for development and maintenance. National Highway Logistics Management Limited (NHLML), a company incorporated under the Companies, Act, 1956 is a 100% owned SPV of National Highway Authority of India ("NHAI"). Section 15 & 16 of the National Highway Authority of India Act, 1988 provides to grant the stretch of National highways entrusted to NHAI on lease for the purpose stated therein. A portion of the aforementioned National Highway comprises of Survey No.19/1 at Kilometer 41+15 in Koramangala village, District Ramanagara in the state of Karnataka on RHS towards

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NC: 2024:KHC:23404 WP No. 3199 of 2023

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Bangalore city measuring 1.26 Hectares ((more fully described in the Schedule hereunder and hereinafter referred to as Schedule Property) was proposed to be developed by NHLML by providing wayside amenities with development of mandatory and suggested fuel and non-fuel facilities. In view thereof, bids were invited and the second party herein being the Highest bidder, Letter of Award dated 31^st May 2022 ("LoA") was issued to the second party herein conveying acceptance of its bid by the competent authority for developing, operating and maintaining of Wayside Amenities in the Schedule property on lease basis. Upon receipt of acceptance of the said LoA by the Second party, NHLML entered into Lease Agreement dated 07^th December 2023 with the second party herein and granted the Schedule Property to the Second Party on lease for a term of 30 years, for developing, operating and maintaining of Wayside Amenities.

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WHEREAS The Third Party (M.K Agrotech Private Limited) has set up its Industrial unit in Sy No. 18/1, 18/2, 18/3, 18/4 & 18/5 situated in Koramangala village, Sokur Hobli, Magadi Taluk District Ramanagara in the state of Karnataka and said unit is situated on RHS boundary of NH75 (Bangalore- Mangalore section) at Km. 41.90-41.590. In view of LoA granted in favour of the Second Party, access to the facility of the Third Party through National highway was not possible unless specific service road is constructed. The Third Party therefore filed a Writ Petition No.3199/2023 before High court of Karnataka at Bangalore against the First and Second Party seeking quashing of the LOA dated

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NC: 2024:KHC:23404 WP No. 3199 of 2023

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31/05/2022. The Hon'ble High Court of Karnataka vide order dated 10/02/2023 has passed interim order staying the operation of the said LoA dated 31/05/2022 and directed the Second Party not to proceed further on the basis of the LoA dated 31/05/2023.

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WHEREAS The Second and Third Party to amicably resolve the issue filed a joint memo dated 01/08/2023 along with Memorandum of Understanding, before the Hon'ble High Court of Karnataka.

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WHEREAS The Hon'ble High Court of Karnataka the Court vide order dated 20/09/2023 modified the interim order dated 10/02/2023 of status quo and passed the order as follow 'Although a joint memo of settlement has been filed by the petitioner and respondent No.3 along with memorandum of understanding, this Court is of the considered opinion that the second respondent-National Highways Authority of India also should have been a party to the joint memo. Learned Counsels however submit that since there is an urgency, the interim order may be modified permitting the third respondent to go ahead with the works.

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Subsequently, a fresh joint memo will be filed which would also include the second respondent-National Highways Authority of India. Recording the submissions of the learned Counsels, the interim order dated 10.02.2023 stands modified permitting the third respondent to go ahead with the works in terms of the joint memo'.

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AND WHEREAS The Second Party with an intent to permanently resolve the Issue, desires to construct a service

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NC: 2024:KHC:23404 WP No. 3199 of 2023

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road adjacent to the National Highway at specified location as shown in Annexure-A, and the First Party is willing to permit the Second Party to undertake this construction of service road at their own cost.

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TERMS AND CONDITIONS:

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1. Project Scope:

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* The Second Party is granted permission to construct a service road of 10 meters wide and around 600 meters length along the National Highway at the specified location as shown in Annexure-A at their own cost.

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* The construction of the service road, including dimensions, design, and construction specifications, has been approved by the First Party.

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2. Financial Responsibilities:

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* The Second Party has agreed to bear all costs associated with the construction of the said service road, including materials, labour, equipment, and any other related expenses.

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* The Third Party hereby agrees and undertakes to pay Rs.25,00,000/- (Rupees Twenty-Five Lakhs) to the Second Party on completion of construction of the said service road.

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NC: 2024:KHC:23404 WP No. 3199 of 2023

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3. Compliance with Regulations:

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(a) The Second Party agrees to comply with all applicable laws, regulations, and NHAI guidelines during the construction process.

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(b) The First Party reserves the right to inspect the construction site to ensure compliance with approved plans and specifications as well as NHAI guidelines and IRS standards.

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(c) The Third Party agrees to submit Application for permission as per the MoRTH guidelines for access from the proposed service road to its Industry located at Sy No.18/1, 18/2, 18/3, 18/4 & 18/5 in Koramangala village, Hobli, Magadi Taluk District Ramanagara and use the same access only after obtaining such permission. The Third Party shall also construct and maintain the said access from Service road at its own cost and comply with all the regulations and MoRTH guidelines with that respect.

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4. TIMELINE:

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The Second Party shall decide a project timeline for the construction of the service road in consultation with the First Party, and the Second Party shall make reasonable efforts to adhere to the agreed-upon schedule.

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5. OWNERSHIP AND MAINTENANCE:

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Upon completion, ownership of the said Service Road shall vest with the First Party forever and maintenance responsibilities for the constructed service road shall lie with

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NC: 2024:KHC:23404 WP No. 3199 of 2023

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the Second Party and same shall be carried out by the Second party as per NHAI (First Party) policies and guidelines.

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6. TERM AND TERMINATION:

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This MOU shall commence on the date first above written and shall remain in effect until the completion of the construction of service road or until terminated Sonner by mutual agreement in writing, except the clause 5 hereinabove, as agreement arrived with regard to responsibility of maintenance shall co-exist with the Lease Agreement and remain valid and in effect until expiry of the term of the said agreement..

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7. AMENDMENTS:

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Any amendments or modifications to this MOU must be made in writing and signed by all the Parties.

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SCHEDULE PROPERTY

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The said premises are situated on Right Side boundary on NH-75 (Bangalore-Mangalore section) from KM 41.290 to KM 41.590 in NH abutting survey Nos.19/1, 84/1 to 84/5 of Koramangala Village, Solur Hobli, Magadi Taluk, Ramanagara District, Karnataka.

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East by : Land bearing Sy.No.18/6

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West by : Boundary of Beeravara

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North by: Boundary of Hosalayya and Kannasandra

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South by : National Highway N.H-48 (New NH-75)

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NC: 2024:KHC:23404 WP No. 3199 of 2023

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IN WITNESS WHEREOF, the Parties hereto have executed this Memorandum of Understanding as of the date first above written.”

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The said Memorandum of Understanding has been

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duly signed by the petitioner and respondent Nos.2 and 3.

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Being satisfied with the terms and conditions contained in the Memorandum of Understanding, the petition stands disposed of in terms of the aforesaid Memorandum of Understanding entered into between the parties.

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Ordered accordingly.

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Sd/JUDGE

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SV List No.: 1 Sl No.: 69

M/S M K Agrotech Private Limited v. State of Karnataka

Case brief

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M/S M K Agrotech Private Limited v. State of Karnataka

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