Pratheek Ganesh Vs the Commissioner

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH/SET ASIDE THE ORDER VIDE NO.BDA/E-AUC/SMV-6/2022-23/831 DATED 24.11.2022 “CANCELLATION ORDER” VIDE ANNEXURE-J PASSED BY THE RESPONDENT NO.2 IN CANCELLING THE E-AUCTION SITE NO.831 ALLOTTED TO THE PETITIONER HEREIN AND ETC.

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NC: 2025:KHC:45234 WP No. 25320 of 2022

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HC-KAR

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

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CORAM: HON'BLE MRS. JUSTICE K.S. HEMALEKHA

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ORAL ORDER

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The petitioner has approached this Court challenging the order dated 24.11.2022, whereby the E-auction allotment of site No.831 in Sir M Visvesvaraya, 6^th block layout, has been cancelled and further seeking a direction to restore the said allotment in his favour as per the E- auction advice letter dated 10.08.2020.

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Heard learned counsel for the petitioner and

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learned counsel for the respondents.

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Brief facts:

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The respondents issued a public notification

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inviting bids through E-auction for sale of corner sites, commercial sites and residential corner sites in Sir M Visvesvaraya, 6^th block layout. The petitioner participated and was declared the successful bidder for site No.831 for

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HC-KAR

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total consideration of 55,99,800/-. An E-auction advice letter dated 10.08.2020 and an allotment confirmation letter were issued on 04.09.2020 in his favour. The petitioner deposited 25% of the total value i.e., 13,99,950/- on 10.08.2020.

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Rule 6(4) of Bangalore Development Authority (Disposal of Corner Sites, Intermediate Sites and Commercial Sites) Rules 1984 (‘Rules, 1984’ for short) is extracted below for ready reference:

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“ 5. £À®ªÀvÉÛ�ÊzÀÄ (45) ¢ªÀ¸ÀUÀ¼ÉÆ¼ÀUÁV ¨ÁQ ªÀiË®å gÀÆ.41,57,851.00 UÀ¼À£ÀÄß ¥Áæ¢üPÁgÀzÀ SÁvÉUÉ ¥ÁªÀw ªÀiÁr, ZÀ®£ï£ÀÄß ¸À°è¸À¨ÉÃPÁUÀÄvÀÛzÉ.

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In Notification No.UDD/170/MNJ/2007 dt: 2707-2011 Rule 6(4) of the Bangalore Development Authority (Disposal of Corner Sites, Intermediate sites and Commercial Sites) Rules 1984 is amended as follows:-

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“(4) The Commissioner may grant extension of time not exceeding two hundred and ten days for depositing the balance of the bid amount subject to condition that during such extended period, the auction purchaser shall also pay

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NC: 2025:KHC:45234 WP No. 25320 of 2022

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HC-KAR

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the balance of the bid amount with an interest thereon at eighteen percent per annum up to ninety days and at twenty one percent per annum thereafter up to two hundred and ten days with a penalty of rupees one hundred in each case. Failing such payment, the Authority shall be entitled to forfeit the deposit made by the auction purchaser (25% of the total cost of the site) and resell the site at the risk and cost of the auction purchaser.” i.e

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1) Up to 45 days from the date of Confirmation Letter - No Interest.

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2) After interest free 45 days further 90 days

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18% Interest per annum

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3) After interest free 45 days + 90 days 18% Interest further period of 120 days – 21% per annum. ”

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As per the terms of allotment and Rule 6(4) of

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the Rules, 1984, the balance 75% amount was to be paid within 45 days from the date of confirmation without interest, and thereafter with interest at 18% per annum for 90 days and at 21% per annum for the next 120 days, not exceeding a total of 210 days.

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HC-KAR

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Learned counsel for the petitioner contends that

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the petitioner due to COVID-19 pandemic and the consequent nationwide lockdowns during 2020 and the second wave in 2021, he was unable to arrange funds in time. He ultimately deposited 20,00,000/- on 21.05.2021 and the balance 22,99,500 on 01.06.2021. However, respondent No.2 issued a cancellation order on 24.11.2022, citing failure to deposit the balance within permissible 210 days period.

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Per contra , the learned counsel for the respondents in support of his statement of objections submits that under Rule 6(4) of the Rules, 1984, the petitioner was required to remit the balance 75% on or before 19.10.2020 (within 45 days), and thereafter with interest at 18% upto 18.12.2020 and at 21% upto 17.04.2021. The petitioner's remittance on 21.05.2021 and 01.06.2021 were beyond the statutory limit. It is further submitted that his representation seeking extension was made only on 12.05.2021, long after the

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HC-KAR

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expiry of the permissible period, and the Government on examination, rejected the proposal and directed cancellation.

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This Court has carefully considered the rival submissions urged by the learned counsel for the parties and perused the material on record.

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The material on record clearly establishes that the petitioner was a successful bidder and had deposited the initial 25% promptly. The Rules mandate payment of balance within 45 days, within an outer limit of 210 days (including extensions with interest). The petitioner admittedly deposited the remaining amount after expiry of 210 days, on 21.05.2021 and 01.06.2021, delayed by about 14 days.

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Rule 6 (4) of the Rules, 1984 confers discretion on the Commissioner to extend time upto 210 days but not beyond. However, this Court cannot be unmindful to the exceptional circumstances prevailing during the

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HC-KAR

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pandemic period. The auction and the confirmation occurred in 2020, which severely disputed economic and financial activities. In the peculiar facts of this case, the delay of 14 days deserves to be condoned by imposing compensatory rate of interest. Accordingly, this Court pass the following:

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ORDER

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i. The writ petition is allowed .

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ii. The impugned cancellation order dated 24.11.2022 is set aside .

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iii. The respondent-BDA shall allot site No.831 to the petitioner as per the original allotment letter, subject to the petitioner paying interest at the rate of 21% per annum on `42,99,500/within two weeks from the date of receipt of a certified copy of this order.

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