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2025 DAILYLAW 49385 (KAR)

M/S SURYA HEIGHTS v. STATE OF KARNATAKA

WP/10446/2020 · 2025-07-01

Sachin Shankar Magadum

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Judgment text

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- 1 - HC-KAR NC: 2025:KHC:26099 WP No. 10446 of 2020 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 10446 OF 2020 (LB-BMP) BETWEEN: M/S. SURYA HEIGHTS A REGISTERED PARTNERSHIP FIRM, HAVING ITS OFFICE AT NO.684, SECOND FLOOR, C.R.C SQUARE, H.I.G ‘A’ SECTOR, OPP: SESHADRIPURAM COLLEGE, YELAHANKA NEW TOWN, BENGALURU-560 064, REPRESENTED BY ITS PARTNER SRI. H.M. VISHWANATH, S/O LATE H.M. SHADAKSHARAIAH, AGED ABOUT 40 YEARS, R/AT VILLA NO.58, PRESTIGE OASIS, RAJANAKUNTE, BENGALURU NORTH, BENGALURU-561 203. …PETITIONER (BY SRI. RAJU S., ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, URBAN DEVELOPMENT DEPARTMENT, 4TH FLOOR, VIKAS SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU-560 001. 2. STATE OF KARNATAKA DEPARTMENT OF LABOUR, Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:26099 WP No. 10446 of 2020 VIKASA SOUDHA, BENGALURU-560 001, REPRESENTED BY ITS SECRETARY. 3. THE BRUHAT BENGALURU MAHANAGARA PALIKE N.R. SQUARE, BENGALURU-560 002, REPRESENTED BY ITS COMMISSIONER. 4. THE JOINT DIRECTOR (BUILDING LICENSE DIRECTORY-NORTH), BRUHAT BANGALORE MAHANAGARA PALIKE, N.R.SQUARE, BENGALURU-560 002. …RESPONDENTS (BY SMT. SPOORTHY V., HCGP FOR R1 & R2; SRI. K.N. PUTTEGOWDA, ADVOCATE FOR R3 & R4) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO (A) QUASH THE DEMAND NOTICE NO.BBMP/Addl.Com/YLK/0791/2019-20 DATED 07.09.2020 VIDE ANNEXURE-C ISSUED BY RESPONDENT NO.4 IN SO FAR AS THE DEMAND OF RS.32,46,812/- TOWARDS GROUND RENT, RS.5,84,426/- TOWARDS GST OF 18% ON GROUND RENT, RS.8,10,892/- TOWARDS SECURITY DEPOSIT, RS.41,32,306/- TOWARDS LICENSE FEE, RS.4,19,076/- TOWARDS SCRUTINY FEE, RS.11,80,371/- TOWARDS WATER SUPPLY, RS.11,80,371/- TOWARDS RING ROAD, RS.5,90,186/- TOWARDS SLUM DEVELOPMENT, RS.29,50,928/- TOWARDS TRANSPORTATION CHARGES (MSRD) AND RS.13,62.000/- TOWARDS KARNATAKA STATE BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE BOARD IS CONCERNED AND ETC. QUASH THE GOVERNMENT ORDER ISSUED BY THE R-2 DTD.18.1.2007 AND THE CORRIGENDUM DTD.28.2.2007 DIRECTING UPFRONT COLLECTION OF LABOUR WELFARE CESS AS CONTAINED IN ANNEXURE-DDIRECT DECLARE THAT BYE- LAW 3.9 IN THE BENGALURU MAHANAGARA PALIKE BUILDING - 3 - HC-KAR NC: 2025:KHC:26099 WP No. 10446 of 2020 BYE-LAWS 2003 FRAMED UNDER THE KARNATAKA MUNICIPAL CORPORATION ACT AS UNCONSTITUTIONAL ARBITRARY ILLEGAL AND ULTRA VIRESDIRECT THE R-3 AND 4 TO ISSUE BUILDING REVISED PLAN AND LICENSE PURSUANT TO THEIR COMMUNICATION ISSUED BY THE R-4 WITHOUT INSISTING FOR PAYMENT OF AMOUNT MENTIONED ABOVEGRANT AN INTERIM ORDER TO STAY THE DEMAND OF RS.32,46,812/- TOWARDS GROUND RENT RS.5,84,426/- TOWARDS GST OF 18 PERCENT ON GROUND RENT, RS.8,10,892/- TOWARDS SECURITY DEPOSIT RS.41,32,306 TOWARDS LICENSE FEE RS.4,19,076/- TOWARDS SCRUTINY FEE RS,11,80,371/- TOWARDS WATER SUPPLY RS.11,80,371/- TOWARDS RING RS, RS.5,90,186/- TOWARDS SLUM DEVELOPMENT RS.29,50,928/- TOWARDS TRANSPORTATION CHARGES (MSRD) AND RS.13,62.000/- TOWARDS KARNATAKA STATE BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE BOARD IS CONCERNED DEMANDED THROUGH NOTICE DTD.7.9.2020 AT ANNEXURE-C ISSUED BY THE R-4 AND DIRECT THE R-3 AND 4 TO ISSUE BUILDING REVISED PLAN AND LICENSE PURSUANT TO THEIR COMMUNICATION ISSUED BY THE R-4C.P. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B-GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER This petition is filed seeking the following reliefs:- “(a) issue a writ of certiorari or similar writ or order or direction to quash the demand notice No.BBMP/Addl.Com/YLK/0791/2019-20 dated 07.09.2020 vide Annexure-C issued by respondent No.4 in so far as the demand of Rs.32,46,812/- towards Ground Rent, Rs.5,84,426/- towards GST of 18% on Ground - 4 - HC-KAR NC: 2025:KHC:26099 WP No. 10446 of 2020 Rent, Rs.8,10,892/- towards security deposit, Rs.41,32,306/- towards License Fee, Rs.4,19,076/- towards Scrutiny Fee, Rs.11,80,371/- towards Water Supply, Rs.11,80,371/- towards Ring Road, Rs.5,90,186/- towards Slum Development, Rs.29,50,928/- towards Transportation charges (MSRD) and Rs.13,62.000/- towards Karnataka State Building and other Construction Workers Welfare Board is concerned. (b) Issue Writ of Certiorari quashing the Government Order issued by the 2nd Respondent bearing G.O.No.LD 300 LET 2006 dated 18/01/2007 and the Corrigendum bearing No. LD 300 LET 2006 dated 28/02/2007 directing upfront collection of labour welfare cess, as contained in ANNEXURE-D. (c) Issue a writ of Mandamus or any other appropriate writ or order or direction declaring that Bye-law No.3.9 in the Bengaluru Mahanagara Palike Building Bye-laws, 2003 framed under the Karnataka Municipal Corporations Act as unconstitutional, arbitrary, illegal and ultra vires; - 5 - HC-KAR NC: 2025:KHC:26099 WP No. 10446 of 2020 (d) issue writ of mandamus or similar writ or order or direction directing the respondent Nos.3 and 4 to issue building revised plan and license pursuant to their communication issued by the respondent No.4 without insisting for payment of amount mentioned above. (e) issue any other appropriate writ or order or direction deemed fit in the circumstances of the case, in the interest of justice and equity.” 2. The Co-ordinate Benches of this Court, in W.P.No.23086/2022 and connected matters(herein referred to as “M/s Sapthagiri Shelters”) as well as W.P.No.36017/2018 and connected matters(herein referred to as “Sunderam Shetty”), have comprehensively adjudicated the issue involved and settled the controversy. 3. In Sunderam Shetty and connected cases, the Co-ordinate Bench declared the levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under the relevant bye-laws as ultra vires the Act and - 6 - HC-KAR NC: 2025:KHC:26099 WP No. 10446 of 2020 quashed the Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017. and similarly, in M/s Sapthagiri Shelters and connected matters, the Co- ordinate Bench struck down the Karnataka Act No.01 of 2022 and Karnataka Act No.37 of 2024, holding that linking fees under Rule 37-A of the Karnataka Planning Authority Rules, 1965 to market/guidance value under Section 45-B of the Karnataka Stamp Act, 1957 is illegal. It further quashed all related Circulars and declared Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, as invalid. 4. The issues raised in the present writ petition are squarely covered by the above binding decisions, wherein the relevant bye-laws and government circulars have been set aside. 5. In light of the authoritative pronouncements, the present petition does not warrant separate adjudication and is liable to be allowed in terms of the - 7 - HC-KAR NC: 2025:KHC:26099 WP No. 10446 of 2020 operative directions issued in the aforesaid writ petitions. 6. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 07.09.2020 issued by respondent No.4 as per Annexure-C is hereby set-aside. (iii) Respondent Nos.3 and 4 - BBMP are hereby directed to issue building revised plan and license. (iv) Respondent Nos.3 and 4 - BBMP are directed to forthwith process the petitioner’s application seeking building revised plan and license, strictly in accordance with law. (v) It is made clear that the issuance of the building revised plan and license shall not be withheld merely on the ground - 8 - HC-KAR NC: 2025:KHC:26099 WP No. 10446 of 2020 that the BBMP is contemplating to file an appeal against the reported judgment. (vi) If the building revised plan and license are issued, the same shall be subject to the outcome of any appeal that may be filed by the BBMP against the said judgment. Pending applications, if any, are also disposed off. SD/- (SACHIN SHANKAR MAGADUM) JUDGE NBM List No.: 2 Sl No.: 1