- 1 - HC-KAR NC: 2025:KHC:25983 WP No. 5480 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JULY, 2025 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 5480 OF 2025 (APMC) BETWEEN: 1. JANATHA TRADERS NO. 1937/A1, GUNIGUNGEPALYA, MULABAGILU, KOLAR-563 131, REPRESENTED BY ITS PROPRIETOR, SRI.R.MALLESHAIAH, S/O RANGADHAMAIAH, AGED ABOUT 48 YEARS. 2. JANANI TRADERS, NO.1937/A2, GUNIGUNGEPALYA, MULABAGILU, KOLAR-563 131, REPRESENTED BY ITS PROPRIETRIX, SMT.K.GOMATHI, W/O KODISHWARAN, AGED ABOUT 35 YEARS. 3. GAGAN TRADERS, NO.1937/A1, GUNIGUNGEPALYA, MULABAGILU, KOLAR-563 131, REPRESENTED BY ITS PROPRIETOR, SRI.J.GAGAN, S/O LATE H.JAYARAM, AGED ABOUT 30 YEARS. (ALL ARE UNREGISTERED FIRMS PROPRIETORSHIP CONCERNED). …PETITIONERS (BY SMT. SHILPA RANI., ADVOCATE) Digitally signed by PREMCHANDRA M R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:25983 WP No. 5480 of 2025 AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS PRL. SECRETARY, DEPARTMENT OF CO-OPERATION, M.S.BUILDING, BENGALURU-560 001. 2. THE DIRECTOR OF AGRICULTURAL MARKETING, NO.16, 2ND RAJABHAVANA ROAD, BENGALURU-560 001. 3. THE AGRICULTURAL PRODUCE MARKET COMMITTEE, M.N.HALLI ROAD, MULABAGILU-563 131, KOLAR DISTRICT. REPRESENTED BY ITS SECRETARY. …RESPONDENTS (BY SMT. RANSA VASANTHI., HCGP FOR R1 & 2; SRI. JOSEPH ANILKUMAR.A., ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRIT PETITION IS LISTED FOR ORDERS, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Smt.Shilpa Rani., counsel for the petitioners, Smt.Ransa Vasanthi.D.L., HCGP for respondents 1 and 2 and Sri.Joseph Anil Kumar A., counsel for respondent No.3 have appeared in person. 2. Though the matter is listed today for orders, with the consent of counsel for the respective parties, it is heard. - 3 - HC-KAR NC: 2025:KHC:25983 WP No. 5480 of 2025 3. The short facts are these: The petitioners are the traders in the APMC, having been duly issued with Trading License as early as in 2022, it being renewed later, and the licenses are valid as on date. The petitioners responded to the offer made by respondent No.3 - APMC to allot sites on lease-cum-sale basis and submitted their applications along with an initial deposit of Rs.1,50,000/- each. Thereupon, the petitioners were issued with allotment order and they were called upon to pay the balance amount of Rs.4,50,000/- each within 90 days from the date of the allotment. A further period of 60 days was granted to make the balance payment with interest @ 12% p.a. The allotment order was made on 19.11.2022. It is said that the petitioners could not pay the balance amount within 90 days and also within the further period of 60 days with interest. However, the petitioners made a representations on 11.09.2023 to the third respondent and paid the balance amount of Rs.4,50,000/- each and requested the APMC to register the sites allotted in their favor. However, the third respondent, without considering the representations of the - 4 - HC-KAR NC: 2025:KHC:25983 WP No. 5480 of 2025 petitioners, issued a letter of cancellation of allotment of sites on 03.10.2024. Under these circumstances, the petitioners have filed the Writ Petition under Article 226 of Constitution of India on several grounds as set-out in the Memorandum of Writ Petition. 4. Counsel for the respective parties urged several contentions. Counsel Smt.Shilpa Rani., in presenting her arguments strenuously urged that due to financial crisis, the petitioners could not pay the balance amount in time. By way of reply to this contention, counsel Sri.Joseph Anil Kumar A., submits that the petitioners did not remit the amount well in time. However, they paid the balance amount on 31.08.2023. Hence, the respondents are justified in canceling the allotment of sites. Heard the arguments and perused the Writ papers with care. 5. Suffice it to note that the petitioners were required to pay the amount on or before 05.06.2023, due to financial - 5 - HC-KAR NC: 2025:KHC:25983 WP No. 5480 of 2025 crisis, the petitioners paid the amount belatedly on 31.08.2023. Therefore, the APMC canceled the allotment order. Taking note of the fact that the petitioners have already paid the entire amount, this Court deems it proper to direct the petitioners to pay the interest @ 12% p.a., on the amount of Rs.4,50,000/- each, for the delayed period of 87 days i.e., from 05.06.2023 to 31.08.2023. Calculation of the interest on the belated payment of Rs.4,50,000/- at 12% p.a. is as under: Rs.4,50,000/- X 12% p.a. / 100 = Rs.54,000/- p.a. For 87 days = 54,000/- X 87 / 365 = Rs.12,871/- TOTAL Rs.12,871/- 6. The Writ of Certiorari is ordered. The orders dated:03.10.2024 passed by the APMC, Mulabagilu - the third respondent vide Annexures-F, F1 and F2 are quashed. The petitioners are directed to pay the interest of Rs.12,871/- each within ten days from the receipt of certified copy of this order. - 6 - HC-KAR NC: 2025:KHC:25983 WP No. 5480 of 2025 Upon receipt of the amount, the authority concerned should do the needful in the matter, in accordance with the law. 7. Resultantly, the Writ Petition is allowed. Because of disposal of the appeal, interim order granted if any stands discharged and pending interlocutory applications if any are disposed of. Sd/- (JYOTI MULIMANI) JUDGE MRP List No.: 1 Sl No.: 9