- 1 - NC: 2025:KHC-D:3448 WP No. 101279 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 20TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 101279 OF 2025 (LB-RES) BETWEEN: 1. M.H.M. MANJUNATH S/O. SRIKANTAIAH, AGED: 70 YEARS, LESSEE OF STALL NO.10, GOODS AND PESTICIDES SHOP IN FRONT OF NEW BUS STAND, HARAPANAHALLI TOWN, VIJAYANAGAR DISTRICT-583131. 2. A. JAYANNA AGED: 77 YEARS, S/O. CHANNAPPA, LESSEE OF STALL NO.9, READYMADE GARMENT SHOP, INFRONT OF NEW BUS STAND, 10TH WARD, HARAPPANAHALLI TOWN, VIJAYANAGAR DISTRICT-583131. 3. SYED SAB A. AGE: 67 YEARS, LESSEE OF STALL NO.6, STATIONERY SHOP, HARAPPANAHALLI TOWN, VIJAYANAGAR DISTRICT-58131. …PETITIONERS (BY SRI GODE NAGARAJA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY ITS SECRETARY, DEPARTMENT OF MUNICIPAL ADMINISTRATION, M. S. BUILDING, BANGALORE-560001. 2. TOWN MUNICIPALITY, HARAPPANAHALLI, ASHPAK KASHIMSA MALAGALADINNI Digitally signed by ASHPAK KASHIMSA MALAGALADINNI Location: High Court of Karnataka, Dharwad Bench Date: 2025.02.25 15:21:41 +0530 - 2 - NC: 2025:KHC-D:3448 WP No. 101279 of 2025 REPT. BY ITS CHIEF OFFICER, HARAPANAHALLI, VIJAYANAGAR DISTRICT HOSAPETE. 3. DEPUTY COMMISSIONER, (CHAIRMAN IISMT COMMITTEE) VIJAYANAGAR DISTRICT, HOSPETE. …RESPONDENTS (BY SRI M.M.KHANNUR, AGA FOR R1 AND R3; SRI V. SHIVARAJ HIREMATH, ADVOCATE FOR R2) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OR ODER OR DIRECTION, WRIT IN THE NATURE OF CERTIORARI QUASH THE ENDORSEMENT DATED 17.9.2024 IN NO.PU.SA .HARAPANAHALLI.KA.SHA/MALIGE/CR-NIL/2024-25 ISSUED BY THE 2ND RESPONDENT VIDE ANNEXURE-F,G AND H. AND ISSUE A WRIT OR ORDER OR DIRECTION OR WRIT IN THE NATURE OF MANDAMUS, DIRECTING THE RESPONDENTS TO FIX THE REASONABLE RENT TO THE I.D.S.M.T A BLOCK, SHOP NO.10, I.D.S.M.T A BLOCK, SHOP NO.9, I.D.S.M.T B BLOCK, SHOP NO.6 OF HARAPANAHALLI TOWN MUNICIPALITY AND CONTINUE THE LEASE OF THE PETITIONERS IN RESPECT OF THEIR RESPECTIVE SHOPS. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: CORAM: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. Learned AGA accepts notice for respondents No.1 and 3. 2. Learned counsel Sri V. Shivaraj Hiremath accepts notice for respondent No.2. - 3 - NC: 2025:KHC-D:3448 WP No. 101279 of 2025 3. Petitioners are before this Court seeking for the following reliefs: (a) Issue a writ or order or direction, writ in the nature of certiorari quash the endorsement dated 17.09.2024 in No.Pu.Sa.Harapanahalli/KAM/Sha/ Malige/CR-Nil/2024-25 issued by the 2nd respondent vide Annexures-F, G and H. (b) Issue a writ or order or direction or writ in the nature of mandamus, directing the respondents to fix the reasonable rent to the I.D.S.M.T. ‘A’ block, shop No.10, I.D.S.M.T ‘A’ block, shop No.9, I.D.S.M.T. ‘B’ Block, shop no.6 of Harappanahalli Town Municipality and continue the lease of the petitioners in respect of their respective shops. 4. Petitioners claimed that they are lessees of certain shops constructed by the 2nd respondent-Town Municipality, Harappanahalli by utilising the funds available under the scheme IDSMT vide endorsement dated 17.09.2024. It has been indicated by respondent No.2 that an auction would be conducted, in which, the petitioners could participate, if the petitioners wish to continue with the possession of the property under the said lease. - 4 - NC: 2025:KHC-D:3448 WP No. 101279 of 2025 5. The auction being conducted in furtherance of the circular issued by the Government bearing No.NAE/301/GAL/2017, dated 19.07.2019. 6. Learned counsel Sri Gode Nagaraj appearing for petitioners submits that petitioners have been in possession of premises from the year 1996 and as such, are agreeable to increase in the present rent, which is now being paid by 10% and as such above reliefs have been sought for including a direction to the respondents to fix the rent of the premises and permit the petitioners to continue as lessees of the premises. 7. This Court in several matters has considered the applicability of the aforesaid circular and has come to a conclusion that it is for the lessee to act in terms of the said Circular No.NAE/301/GAL/2017, dated 19.07.2019 and if the lessees are interested in continuing with the lease after the period after the expiry when an auction is to be conducted, the - 5 - NC: 2025:KHC-D:3448 WP No. 101279 of 2025 lessees could participate in the auction for the very same premises and if they are successful could continue in possession thereof in terms of the auction and as per the results of the auction. If the lessees were not to participate in the auction, the lessee would not be entitled to exercise right to first refusal and make payment of 10% over and above the auction bid amount made by the successful tenderer and continue with the possession of the premises. 8. In that view of the matter, the interest of the petitioners is protected by the Circular dated 19.07.2019 and the petitioners could exercise those rights as indicated therein. Needless to say until then, the petitioners cannot be dispossessed, as such, I pass the following : ORDER (a) Writ Petition is disposed off. (b) Respondents are directed to permit the petitioners to exercise their rights in terms - 6 - NC: 2025:KHC-D:3448 WP No. 101279 of 2025 of the Government Circular dated 19.07.2019. Needless to state that till the auction proceedings are completed they can not dispossess the petitioners. Sd/- (SURAJ GOVINDARAJ) JUDGE CKK CT:GSM List No.: 1 Sl No.: 13