Dismissed¶65

Sri Syed Hussain v. Karnataka State Small Industries

Karnataka HC3 Nov 2025WA/1047/2025

Case brief

AI extract

What is this about?

Keywords: KSSIDC; Karnataka State Small Industries Development Corporation; cancellation of industrial shed allotment; shed No.B-3 Hosakote Industrial Estate; Pillagumpa; non-payment of installments; service charge arrears including GST; show cause notice dated 07.09.2019; final show cause notice 05.11.2019; cancellation order 21.12.2019; undertaking dated 07.03.2020; demand draft Bank of Baroda; Shriram General Insurance; writ appeal dismissed; Section 4 Karnataka High Court Act; GM-KSSIDC; Syed Hussain; M/s Ash Recyclers; Vibhu Bakhru Chief Justice; C.M. Poonacha.

What did the court decide?

Delay in filing the appeal condoned (I.A. No.1/2025 allowed) and pending interlocutory application disposed of; no substantive relief as the appeal was dismissed. ¶65

Sri Syed Hussain Vs Karnataka State Small Industries — Karnataka HC (2025) — LawSathi Research

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NC: 2025:KHC:44062-DB WA No. 1047 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3^RD DAY OF NOVEMBER, 2025 PRESENT

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THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE

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AND

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THE HON'BLE MR. JUSTICE C.M. POONACHA

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WRIT APPEAL NO. 1047 OF 2025 (GM-KSSIDC)

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BETWEEN:

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Digitally signed by AMBIKA H B Location: High Court of Karnataka

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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

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…APPELLANT

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(BY SRI YASHWANTH NETHAJI N.T., ADVOCATE FOR SRI K.V. NARASIMHAN, ADVOCATE)

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AND:

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KARNATAKA STATE SMALL INDUSTRIES DEVELOMENT CORPORATION LIMITED A GOVERNMENT OF KARNATAKA UNDERTAKING INDUSTRIAL ESTATE RAJAJINAGAR BENGALURU - 560 010 REPRESENTED BY ITS MANAGING DIRECTOR

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THE ASSISTANT GENERAL MANAGER KARNATAKA STATE SMALL INDUSTRIES DEVELOPMENT CORPORATION LIMITED

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HC-KAR

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BENGALURU DIVISION BENGALURU - 560 010

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…RESPONDENTS

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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.

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THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA

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ORAL JUDGMENT

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(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

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For the reasons stated in the application ‒ I.A No.1/2025, the

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same is allowed and the delay in filing the appeal is condoned.

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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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NC: 2025:KHC:44062-DB WA No. 1047 of 2025

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HC-KAR

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the installments due to KSSIDC and also failed in establishing the industrial unit.

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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:

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(i) had not insured the shed/renewed the insurance policy;

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(ii) was in arrears of service charge to the extent of Rs.29,203/(including GST);

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(iii) was in arrears in payment of installments to the extent of Rs.57,92,665.39 towards shed; and

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(iv) the industry is not functioning.

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There is nothing on record to indicate that the appellant responded to the said show cause notice.

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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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HC-KAR

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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.

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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.

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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/-.

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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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HC-KAR

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KSSIDC, he has failed to set out the schedule of installments or

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what would be the amount payable according to him.

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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,

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he failed to pay the said amount.

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The said undertaking is reproduced below.

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"To,

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The Assistant General Manager (ID) K.S.S.I.D.D.L Rajajinagar, Bengaluru.

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Sir,

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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.

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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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NC: 2025:KHC:44062-DB WA No. 1047 of 2025

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HC-KAR

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be paid within the next six months, thereby encouraging small entrepreneurs.

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Yours faithfully, Sd/- xxx (M/s ASH Recyclers) Shop No.B-3 Hosakote"

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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

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KSSIDC was well within its right to cancel the allotment.

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