The Commissioner Vs Baljeet Singh — Karnataka HC (2025) — LawSathi Research

The Commissioner Vs Baljeet Singh — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Writ appeal disposed of on agreed terms, without going into merits: petitioner to pay 7.5% p.a. interest on the refunded 95% of sale consideration (on Rs.1,08,50,160/- from 19.11.2010 and on Rs.28,93,392/- from 21.04.2011, each up to 13.01.2021) within a maximum of 3 months; on such deposit, BDA to execute the sale deed in favour of the petitioner within 2 weeks thereafter; petitioner not liable for any taxes prior to execution of the sale deed.

Issue for consideration

Rate of interest payable by the auction purchaser on re-deposit of the 95% of sale consideration refunded by the BDA - BDA had demanded 18% p.a. (later reduced to the SBI rate by resolution dated 08.07.2022); the learned Single Judge had quashed the interest demand. +1 more

Court's answer

To end the long-drawn litigation and without going into the merits, and on the Court's suggestion the petitioner having agreed, the Division Bench considered it just and proper that the petitioner pay interest at 7.5% p.a. on 95% of the sale consideration, from the date of refund till the date of repayment, and disposed of the writ appeal on that basis.

Ratio / Principle

Operative term: the petitioner shall pay 7.5% interest on the amount of 95% which was refunded to him, from the date of refund till the date of deposit, i.e., on Rs.1,08,50,160/- from 19.11.2010 up to 13.01.2021 and on Rs.28,93,392/- from 21.04.2011 up to 13.01.2021.

Key takeaways

The petitioner was directed to pay the interest @ 7.5% p.a. on the said amounts within a maximum period of 3 months.ratio¶61
On making the deposit of the interest, the BDA shall execute the sale deed in favour of the petitioner within a period of 2 weeks thereafter.ratio¶62
It was made clear that the petitioner shall not be liable to pay any taxes prior to the date of execution of the sale deed on the said parcel of land, to any jurisdictional revenue authority or otherwise.

Detailed headnote1 paragraphs

Writ Appeal No. 1731 of 2024 (BDA) - High Court of Karnataka at Bengaluru, Division Bench of D K Singh and Tara Vitasta Ganju, JJ. (per D K Singh, J.), disposed of on 31.10.2025 on consensual terms, expressly without going into the merits. Facts: the respondent before the Division Bench (petitioner before the learned Single Judge) was the successful bidder at a BDA auction dated 18.06.2010 for Site No.1, J.P. Nagar 2nd Phase, Sarakki, Bengaluru (254.70 sq.m.) for Rs.1,44,66,966/-, which he paid in full; owing to pending litigation, the BDA refunded 95% of the consideration in two instalments (Rs.1,08,50,160/- on 19.11.2010 and Rs.28,93,392/- on 21.04.2011), retaining 5%. After the litigation concluded in the BDA's favour, the BDA demanded re-deposit of the 95% with 18% p.a. interest from the date of refund until re-deposit (later reduced to the State Bank of India rate by resolution dated 08.07.2022). The learned Single Judge (order dated 09.10.2020 in W.P. No.35803/2016, dates corrected in R.P. No.266/2023 by judgment dated 17.01.2024) had quashed the interest demand and directed execution of the sale deed. On the Court's suggestion, the purchaser agreed to pay 7.5% p.a.: the Division Bench held this just and proper and disposed of the appeal directing (i) payment of 7.5% interest on the refunded 95% from the dates of refund till 13.01.2021 (on Rs.1,08,50,160/- and Rs.28,93,392/- respectively) within a maximum of 3 months; (ii) execution of the sale deed by the BDA within 2 weeks of the deposit; and (iii) that the purchaser bears no tax liability prior to execution of the sale deed.