HEMAVATHI SAHAKARI SAKKARE KARKHANE NIYAMITHA v. THE STATE OF KARNATAKA
WP/19467/2025 · 2025-10-28
Suraj Govindaraj
body2025
DailyLaw.ai
[ 2025 DAILYLAW 39757 (KAR) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 39757 (KAR) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
- 1 -
HC-KAR NC: 2025:KHC:42987 WP No. 19467 of 2025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 19467 OF 2025 (GM-RES) BETWEEN:
1.
HEMAVATHI SAHAKARI SAKKARE KARKHANE NIYAMITHA HAVING REGISTERED OFFICE AT SRINIVASAPURA, CHANNARAYAPATNA TALUK - 573 116.
HASSAN DISTRICT.
REPRESENTED BY ITS MANAGING DIRECTOR, SRI. R.J. KANTHARAJU, S/O. JAYARAMAIAH, AGED ABOUT 52 YEARS, RESIDING AT CHNNARAYAPATNA TALUK, HASSAN DISTRICT - 573 116.
REGISTERED UNDER THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, …PETITIONER (BY SRI. THILAKRAJ S.V., ADVOCATE) AND:
1.
THE STATE OF KARNATAKA BY ITS SECRETARY, DEPARTMENT OF COMMERCE AND INDUSTRIES, VIKASA SOUDHA, BENGALURU - 560 001
2.
THE COMMISSIONER FOR CANE DEVELOPMENT AND DIRECTORATE OF SUGAR,
Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA
- 2 -
HC-KAR NC: 2025:KHC:42987 WP No. 19467 of 2025
5TH FLOOR, F BLOCK, EBAB COMPLEX, KHB BUILDING, CAUVERY BHAVAN, KEMPEGOWDA ROAD, BENGALURU - 560 009
3.
CHAMUNDESHWARI SUGARS LIMITED, A PUBLIC COMPANY, BY ITS MANAGING DIRECTOR, NO.76, ULSOOR ROAD, BENGALURU - 560 042 REGISTERED UNDER INDIAN COMPANIES ACT …RESPONDENTS (BY SMT. B. RAVINDRANATH, AGA FOR R1 AND R2 SRI. H.S. SUHAS, ADVOCATE FOR R3)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE THIRD RESPONDENT COMPANY TO PAY THE ARREARS OF RENT AS DEMANDED BY THE PETITIONER SOCIETY, FURTHER COVERED UNDER THE SHOW CAUSE NOTICE AS PER ANNEXURE-J ISSUED BY THE SECOND RESPONDENT IN NO.DSK/COF/8/2015-16, 144(n), DATED 30.05.2020, AS WELL AS THE RENT ACCUMULATED SUBSEQUENT TO 2020 AND ETC.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
ORAL ORDER
1. The petitioner is before this Court seeking for the following reliefs:
" a) Issue in the nature of mandamus directing the third Respondent company to pay the arrears
- 3 -
HC-KAR NC: 2025:KHC:42987 WP No. 19467 of 2025
of rent as demanded by the Petitioner society, further covered under the show cause notice as per second Respondent Annexure-J issued by the in No.DSK/COF/8/2015-16, 144(n), dated 30.05.2020, as well as the rent accumulated subsequent to 2020;
b) Issue in the nature of mandamus directing the second Respondent to initiate necessary proceedings in terms of the registered lease deed dated 28.02.2011 as per Annexure-A to resolve the dispute in respect of arrears of rent accumulated against the third Respondent;
c) Pass any appropriate writ, order or direction as this Hon'ble Court deem fit and proper, in the
facts and circumstances of the case and allow this writ petition, in the ends of justice and equity."
2. A memo dated 23.10.2025 has been filed, singed by the counsel for the petitioner, which reads as under:
"1. It is submitted that the petitioner is a co- operative sugar factory, which is currently under the control of the 3rd respondent, who is a lessee by virtue of a registered lease deed dated
28.02.2011. On passage of time, a dispute arose between the petitioner and the 3rd respondent. The petitioner sugar factory demanded arrears of rent in terms of the aforementioned lease deed. In addition, the petitioner addressed a grievance to the 2nd respondent, however, except for issuing a show-cause notice, no further steps were taken by the 2nd respondent.
2. It is submitted that consequently, the petitioner filed a writ petition before this Hon'ble Court in W.P. No. 11249/2020, By order dated
- 4 -
HC-KAR NC: 2025:KHC:42987 WP No. 19467 of 2025
02.02.2022, this Hon'ble Court directed the 2nd respondent to decide the issue concerning the arrears. Despite the lapse of three years, the
order of this Hon'ble Court was not acted upon, and the grievances raised by the petitioner factory remained unaddressed by the respondents.
3. As a result, the managing committee resolved once again to approach the 2nd respondent to conciliate the pending grievances regarding arrears of rent including interest. Although a joint meeting was held, no decision was reached Therefore, the 2nd respondent was advised to initiate proceedings under criminal law against the 3rd respondent-lessee
4. Furthermore, the petitioner sought independent legal advice and, based on the same, filed the present writ petition seeking appropriate directions against the 3rd respondent-lessee and requesting the 2nd respondent-Cane Commissioner to initiate necessary proceedings.
5. In light of these facts and circumstances, the matter was ultimately referred to the 2nd respondent (who also acts as the conciliator) under Clause 54 of the registered lease deed. During the process of conciliation, both the petitioner and the 3rd respondent arrived at a mutual understanding, based on which Proceedings was issued by the 2nd Respondent- Cane Commissioner. A copy of the mutual agreed settlement (outcome of conciliation) dated 30.06.2025 is enclosed with this memo.
6. It is submitted that the said mutual agreed settlement (outcome of conciliation) was also placed before the General Body of the petitioner sugar factory and, by a majority decision in the
- 5 -
HC-KAR NC: 2025:KHC:42987 WP No. 19467 of 2025
meeting held on 24.09.2025 (Subject No. 12), the same was resolved to be accepted. A copy of the said General Body resolution is annexed to this memo. Additionally, the Managing Committee adopted the General Body's resolution in its meeting dated 24.09.2025, and further endorsed it in the Board meeting held on 03.10.2025 under Subject No. 2.
These proceedings are also annexed to this memo for the kind perusal of this Hon'ble Court
7. In view of the foregoing
facts and circumstances, since the matter has been settled in terms of the mutual agreed settlement issued by the conciliator, le the 2nd Respondent-Cane Commissioner dated 30.06.2025, pursuant to the reference and conciliation under Clause 54 of the registered lease deed, the present writ petition may kindly be disposed of as withdrawn, as the matter stands settled in accordance with the settlement reached via the conciliation proceedings in the interest of justice and equity.
Following documents are annexed along with this Memo are as follows:
1. Seal and signed of Award copy
2. Certified copy of the general body resolution
3. Certified copy of the resolution of the board"
3. Accepting the said memo, the petition is dismissed as withdrawn.
Sd/- (SURAJ GOVINDARAJ) JUDGE YKL List No.: 1 Sl No.: 99