- 1 - NC: 2025:KHC:6291 WP No. 25233 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE N S SANJAY GOWDA WRIT PETITION NO. 25233 OF 2024 (LB-RES) BETWEEN: SMT.K.JALAJA., W/O LATE B.V.MUNIRATHNAM, AGED ABOUT 41 YEARS, R/AT No.8, SWATHANTRA NAGARA, BASAVANAPURA POST, K.R.PURAM HOBLI, BENGALURU EAST TALUK, BENGALURU-560 036. …PETITIONER (BY SRI. G.K.BHAT., SENIOR COUNSEL FOR SMT. SUDHA.D., ADVOCATE) AND: 1. THE PANCHAYATH DEVELOPMENT OFFICER, N.G.HULKUR GRAM PANCHAYATH, KYSAMBALLI KGF TALUK, KOLAR DISTRICT-517247 2. SMT. RATHNAMMA, W/O LATE B.V.MUNIRATHNAM, AGED ABOUT 56 YEARS, R/AT PANTHANAHALLI VILLAGE, KYASMBAHALLI HOBLI, K.G.F TALUK, KOLAR DISTRICT-517247. …RESPONDENTS (BY SRI. B.J.SOMAYAJI., ADVOCATE FOR R-1; SRI. H.R.SANTHOSH., ADVOCATE FOR R-2) Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:6291 WP No. 25233 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE GENERAL LICENSE BEARING No. N G HULKUR MAY 01, 2024 DATED 02.05.2024 AS PER ANNEXURE-C ISSUED BY THE R-1, ETC. THIS PETITION HAVING BEEN HEARD AND RESERVED FOR ORDERS ON 24.01.2025, COMING ON FOR PRONOUNCEMENT THIS DAY, THE COURT MADE THE FOLLOWING: CORAM: THE HON'BLE MR JUSTICE N S SANJAY GOWDA CAV ORDER 1. One B.V. Munirathnam was the holder of a CL-7 licence, who passed away on 06.08.2022 and on his death, a spate of litigation has ensued between his warring spouses. 2. Rathnamma—respondent No.2 herein sought for and secured transfer of the Trade License in her favour on 17.08.2023 and continued the business. However, K.Jalaja—the petitioner herein raised objections to the same and proceedings were initiated before the Deputy Commissioner of Excise in - 3 - NC: 2025:KHC:6291 WP No. 25233 of 2024 this regard. In these proceedings, the Deputy Commissioner ordered closure of the business and sealed the premises on 19.09.2022. 3. Rathnamma thereafter filed Writ Petition No.19840 of 2022 and in this petition, an interim order, permitting her to continue the operations, was passed in the following terms: “ JMJ: 30.09.2022 ORDER Sri.Ravi Shankar., learned Senior counsel on behalf of Sri.Saravana.S., for petitioner has appeared in person. Learned Government Advocate is directed to take notice on behalf of respondents. Learned Senior counsel on instruction submits that petitioner being the widow of Sri.B.V.Munirathnam., has filed an application to transfer CL7 license in her favor. Without considering the application, respondents have closed the - 4 - NC: 2025:KHC:6291 WP No. 25233 of 2024 shop on 20.09.2022. Hence, there is an urgency in seeking interim order to direct the respondents to open the seal effected to business premises and permit the petitioner to run the business. Submission is noted. There shall be an interim direction directing the respondents to open the seal effected to the business premises situated at No.11572, B.V.Munirathnam, Khatha No.112/1 at Pantharahalli Village, N.G.Halkur Panchayath, KGF Taluk, Kolar District and permit the petitioner to run the business of Bar and Restaurant, till the consideration of the application.” 4. The Deputy Commissioner thereafter passed an order on 21.10.2022 directing closure of the business, which was however challenged by Rathnamma by filing an appeal before the Excise Commissioner. 5. The Excise Commissioner, in fact, passed an interim order on 15.12.2022 and permitted Rathnamma to continue the business. This grant of interim order - 5 - NC: 2025:KHC:6291 WP No. 25233 of 2024 was challenged by the children of petitioner in Writ Petition No.25896 of 2022 and this Court by order dated 06.07.2023 directed the Excise Commissioner to dispose of the appeal within a month. 6. The Excise Commissioner thereafter proceeded to allow the appeal in part on 10.08.2023 and directed the parties to establish their right before the Civil Court. The appellate authority also held that by virtue of the interim order granted in writ petition No.19840 of 2022, Rathnamma was entitled to run the business and if an application was filed for transfer, the same shall be considered strictly in accordance with law. 7. The petitioner filed W.P. No.17858 of 2023 challenging the said order. In this petition, a Co- ordinate Bench of this Court granted an interim order on 16.08.20231, whereby it permitted that 1 WP No.17858/2023 (Smt.K.Jalaja vs. The Excise Commissioner in Karnataka) - 6 - NC: 2025:KHC:6291 WP No. 25233 of 2024 Rathnamma to operate the business upon obtaining the renewal of license subject to the outcome of the writ petition. This order was passed by taking into consideration that she had the benefit of interim order in writ petition No.19840 of 2022, in the following terms: “ BMSPJ: 16.08.2023 ORDER Sri. G.K. Bhat and Sri. D.R.Ravishankar, the learned Senior counsels for the contesting parties [the petitioner and the third respondent who is on caveat], are heard on the grant of ad interim order. The learned Senior counsels submit in unison that the question for consideration in this petition is whether the Excise Commissioner concerned could have permitted transfer of CL-7 license in favour of the third respondent over the petitioner when both the petitioner and the third respondent claim under Sri. B.V.Munirathnam, the deceased original license holder. - 7 - NC: 2025:KHC:6291 WP No. 25233 of 2024 As regards the interim order, the learned Senior counsels submit that this Court may have to consider who will have to manage the business during the pendency of the petition and the terms on which the business can be managed if the subject license is renewed. The records are perused. This Court is of the considered view that the third respondent, who has enjoyed certain interim benefit granted by this Court in W.P.No.19840/2022 and which benefit is continued in certain other subsequent proceedings, must be permitted to operate the business upon obtaining renewal of the license subject to the outcome of this writ petition and the third respondent would be put on terms. Hence, the interim order is granted permitting the third respondent to apply for renewal of the license, and if license is renewed by the concerned, to operate the business subject to the following conditions: [a] the third respondent shall ensure that the detailed accounts are filed with the - 8 - NC: 2025:KHC:6291 WP No. 25233 of 2024 Registry every fortnight unless this order is varied or modified, and [b] the third respondent shall not create any charge on the business income or the business assets and if despite this injunction, any charge is created, the person who obtains such charge shall claim no interest. Sri. Bojegouda T. Koller, the learned Additional Government Advocate, is called upon to accept notice for the first and second respondents. Sri. Santhosh H.R., the learned counsel who is on record for the third respondent, submits that he can take notice for the fourth to seventh respondents. The learned counsel is permitted. There shall be emergent notice returnable by 31.08.2023 to the eighth respondent.” 8. Rathnamma was also permitted to apply for renewal of licence and if the license was renewed, she could be permitted to run the business, subject to the conditions that she maintains the detailed accounts of sale are filed with the Registry every fortnight and - 9 - NC: 2025:KHC:6291 WP No. 25233 of 2024 that she should not create any charge on the business income or any of the business assets. 9. On the basis of this interim order, Rathnamma sought for renewal of licence and the Excise Inspector called upon her to produce the general licence from the Panchayat and since the license issued earlier had expired on 17.08.2023, she made a representation to renew the license and accordingly, the license has been renewed in favour of Rathnamma. It is this Trade License which is the subject matter of the instant writ petition. 10. As could be seen from the above narration of facts, it cannot be in dispute that Rathnamma has been permitted to continue the business by virtue of an order passed by this Court in W.P. No.19840 of 2022 which was also taken note of and an order was passed in W.P. No.17858 of 2023 (to which the petitioner—Jalaja herself was a party) and it is therefore clear that Rathnamma has been running the business - 10 - NC: 2025:KHC:6291 WP No. 25233 of 2024 from the date of Munirathnam’s death and her running of the business is protected by the orders passed by this Court. 11. It is also not in dispute that this Court permitted Rathnamma to seek renewal of the license and it is therefore obvious that she would be entitled to a trade license, more so when the Panchayat itself had transferred the license in her favour earlier. It is therefore clear that the issuance of a Trade Licence in favour of Rathnamma cannot be found fault with. The writ petition is therefore liable to be dismissed. 12. Accordingly, the writ petition is dismissed. However, it is made clear that the entitlement of Rathnamma to run the business would be subject to the ultimate result of writ petition No.17858 of 2023. 13. It is also submitted by the learned counsel that there are civil disputes pending regarding the entitlement of the legal heirs to succeeded to the estate of the - 11 - NC: 2025:KHC:6291 WP No. 25233 of 2024 deceased Munitrathnam. If this is a fact and the Civil Court was to adjudicate upon these proceedings and decide upon the entitlement of either the petitioner— Jalaja or respondent No.2—Rathnamma or any other legal heirs regarding CL-7 license, it is needless to state, the same would bind the parties and the authorities will have to act in accordance with the said decision the Civil Court. Sd/- (N S SANJAY GOWDA) JUDGE RK List No.: 2 Sl No.: 5