- 1 - NC: 2025:KHC:4339 WP No. 24578 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE N S SANJAY GOWDA WRIT PETITION NO. 24578 OF 2024 (LB-RES) BETWEEN: 1. SRI. MOHAMMED SAIT S/O LATE ABDUL AZEEZ SAIT AGED ABOUT 50 YEARS NO 42, SOBHA GARDEN, OLD MYSURU-BENGALURU ROAD, SUBHASNAGAR, MYSURU 570007 …PETITIONER (BY SRI. K R LINGARAJU., ADVOCATE) AND: 1. THE COMMISSIONER MYSORE URBAN DEVELOPMENT AUTHORITY, J.L.B. ROAD, MYSURU 570005 …RESPONDENT (BY SRI. H.C.SHIVARAMU., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA., PRAYING TO QUASH THE CANCELATION ORDER BEARING NO. MY NA PRA/HA.SHA/656/2022-23 NO. PUTA.379 PUSTHAKA.09 DATED: 23.01.2023 PASSED BY THE RESPONDENT ONLY IN RESPECT OF FORFEITURE OF THE 25 PERCENT OF THE BID AMOUNT OF RS. 9,53,500/- IN RESPECT OF SITE BEARING NO. 839 SITUATED IN THE LAYOUT KNOWN AS DEVANURU 2ND STAGE (RAJIVNAGAR) MYSURU VIDE ANNEXURE-A, ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE N S SANJAY GOWDA Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:4339 WP No. 24578 of 2024 ORAL ORDER 1. The petitioner is challenging the auction Notification that was issued by the Mysuru Urban Development Authority (MUDA) inviting the general public to participate in the e-auction to purchase different types of sites in various localities in Mysuru. 2. Item No.210 therein was in relation to site No.839 which was situated in Devanuru II Stage (Rajivnagar) Mysuru and the Notification indicated that the property was measuring 5 x 17 i.e., a total extent of 85 sq. mtrs. 3. The petitioner participated in the auction which was held in the month of August 2020 and the last date for bidding was 19.08.2020. The petitioner was also successful bidder in respect of the aforesaid site and he paid 25% of the bid amount, namely, Rs.9,60,786/- and consequently a Certificate was issued saying that he was the successful bidder on 02.09.2020. - 3 - NC: 2025:KHC:4339 WP No. 24578 of 2024 4. However, thereafter, the petitioner came to know that the site that was notified for auction in which he was a successful bidder was, in fact, of a lesser dimension than the one notified in the auction notice. Consequently, he made an application requesting the Authority to cancel the auction as he was not willing to buy a site at a lesser dimension and he requested for refund. 5. This request was reiterated by issuance of several representations and also a legal notice. Ultimately the respondent – MUDA, by the impugned Annexure, stated that the petitioner had failed to deposit the balance consideration of Rs.38,14,000/- within the prescribed period, and therefore, it was forfeiting the 25% of the amount that was deposited by the petitioner. The petitioner is, therefore, before this Court contending that the petitioner cannot be forced to buy a property which was lesser than the one notified. - 4 - NC: 2025:KHC:4339 WP No. 24578 of 2024 6. It is contended that once there is a fundamental error in the auction Notification and it related to the very extent of the property, the Authority cannot insist that the petitioner purchase a lesser extent. 7. Learned counsel for the MUDA has filed an affidavit of the Commissioner in which the Commissioner has admitted that, on measurement, it has been found that the site which was notified and the site which is available on the spot are different, inasmuch as the site in existence on the ground is much lesser than the site which was notified. 8. In my view, since it is admitted that the extent of the site notified was not the actual extent of site available at the spot, the prayer of the petitioner for refunding the 25% amount is justified and the order of MUDA in forfeiting the 25% of the petitioner’s amount on the ground that he did not deposit 75% cannot be sustained. Accordingly, Annexure-A is quashed and the MUDA is directed to refund the 25% - 5 - NC: 2025:KHC:4339 WP No. 24578 of 2024 of the amount deposited by the petitioner with interest at the rate of 6% per annum from 23.01.2023 till the date of payment. 9. In view of the disposal of the petition, all pending interlocutory applications, if any, stand disposed of. Sd/- (N S SANJAY GOWDA) JUDGE HNM List No.: 1 Sl No.: 32