Sri Santhosha S v Vs the State of Karnataka

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, PRAYING TO SET AISDE THE ORDER OF THE LEARNED SINGLE JUDGE DATED:19.07.2024 IN WP.NO.9541 OF 2017 AND ETC.,

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THIS APPEAL, COMING ON FOR PRELIMINARY HEARING,

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THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE S RACHAIAH

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NC: 2026:KHC:2891-DB WA No. 1501 of 2024

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HC-KAR

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ORAL JUDGMENT

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(PER: HON'BLE MR. JUSTICE D K SINGH)

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The present intra-court appeal has been filed by the appellant / petitioner, aggrieved by the judgment and order dated 19.07.2024, passed by the learned Single Judge in Writ Petition No.9541/2017.

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The petitioner was a successful bidder in auction proceedings conducted by the Mysore Urban Development Authority - respondent No.2, for a site bearing No.967, measuring 53.95 square meters, situated at Chikkahardanhally, I Stage, Mysuru. The total sale consideration agreed, as per the auction, was Rs.14,40,000/-. The petitioner had paid a sum of Rs.3,60,000/- as advance and thereafter, the petitioner had paid the balance amount of Rs.10,80,000/- after obtaining loan from HDFC Bank. It appears that the site which was auctioned was not physically available for taking possession thereof by the petitioner. The petitioner, thereafter, approached the respondent No.2 for handing over him the physical possession of the site which was bought by him in auction proceedings conducted on 16.03.2013. The second respondent had issued endorsement dated 12.02.2018 intimating the petitioner that

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NC: 2026:KHC:2891-DB WA No. 1501 of 2024

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HC-KAR

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the amount paid by the petitioner would be refunded with bank rate of interest, as per the provisions of the Karnataka Urban Development Authority (Disposal of Corner Sites and Commercial Sites) Rules, 1981 (for short ‘Rules of 1981’). These Rules would provide that in case a property which was auctioned in public auction was not available, the amount paid by the auction purchaser would be refunded with interest.

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Considering the said provision, an endorsement

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came to be issued on 12.02.2018, which was impugned in the writ petition.

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Learned Single Judge, vide impugned judgment and order, considering the provisions of the aforesaid Rules of 1981, had directed the respondent No.2 to pay the amount of Rs.20,95,130/- as per the calculations, which is extracted hereunder:

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Sale Consideration	14,40,000
Stamp and Registration	80,640
Additional Registration	14,785
Property Tax	3,885
Mysore Mahanagara Palike	7,300

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HC-KAR

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Fees		838
Loan Interest		5,47,682
	Total	20,95,130

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It has been further observed that out of the total sum of Rs.20,95,130/-, the petitioner had borrowed Rs.10,80,000/- on which the petitioner had paid loan interest of Rs.5,47,682/-. Therefore, the learned Single Judge has directed the respondent No.2 to pay interest at the rate of 9% per annum only on amount of Rs.5,00,000/-.

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The learned counsel for the appellant submits that the payment of interest has been confined only to Rs.5,00,000/-, whereas the petitioner had paid Rs.14,40,000/towards sale consideration, Rs.80,640/- towards Stamp and Registration, Rs.14,785/towards additional charges on Registration, Rs.3,885/- towards Property Tax, Rs.7,300/- and Rs.838/- towards Mysore Mahanagara Palike Fees and the total amount comes to Rs.15,47,448/-, beside the interest to the bank of Rs.5,47,682/-. Therefore, the appellant is entitled to receive the interest on Rs.15,47,448/- and not only on Rs.5,00,000/- as directed by the learned Single Judge.

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NC: 2026:KHC:2891-DB WA No. 1501 of 2024

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HC-KAR

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The appellant has paid the sale consideration of Rs.14,40,000/-. Besides the sale consideration, the petitioner has also paid the stamp duty and registration charges of Rs.80,640/- and additional registration charges Rs.14,785/-, property tax of Rs.3,885/- and Mysore Mahanagar Palike fees of Rs.7,300/- + Rs.838/-, besides the interest to the Bank at Rs.5,47,682/-. Therefore, the petitioner would be entitled for payment of interest at the rate of 9% on the aforesaid amount of Rs.15,47,448/-.

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Thus, we modify the impugned judgment and order passed by the learned Single Judge dated 19.07.2024 in Writ Petition No.9541 of 2017 and direct the respondent No.2 to pay the total amount of Rs.20,95,130/- + 9% interest on the said amount minus Rs.5,47,682/- from the date of payment till date of realization. The second respondent should make the payment of the aforesaid amount, as directed above, within a period of six weeks from today.

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