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2025 DAILYLAW 51119 (KAR)

M/S. JOHN DEVELOPERS (P) LIMITED v. THE COMMISSIONER

WP/15475/2025 · 2025-06-24

Sachin Shankar Magadum

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

- 1 - HC-KAR NC: 2025:KHC:23016 WP No. 15475 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.15475 OF 2025 (LB-BMP) BETWEEN: M/S. JOHN DEVELOPERS (P) LIMITED, REPRESENTED BY ITS CHAIRMAN MR. BIJU P JOHN, S/O T. JOHN, AGED ABOUT 54 YEARS, NO.872, 80 FEET ROAD, INDIRANAGAR, BENGALURU NORTH, BENGALURU 3 560 038. &PETITIONER (BY SRI. MOHAN KUMAR M., ADVOCATE) AND: 1. THE COMMISSIONER, BRUHAT BENGALURU MAHANAGARA PALIKE, JDPT-NORTH, BENGALURU 3 560 062. 2. THE ASSISTANT DIRECTOR, TOWN PLANING - (EAST), UTILITY BUILDING, MAYOHALL, 22ND FLOOR, M G ROAD, BENGALURU 3 560 025. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:23016 WP No. 15475 of 2025 3. STATE OF KARNATAKA, REPRESENTED BY ITS PRINCIPAL SECRETARY, URBAN DEVELOPMENT, AMBEDKAR VEEDHI, BENGALURU 3 560 001. &RESPONDENTS (BY SRI. H.K.KENCHEGOWDA, AGA FOR R3; SRI.PAWAN KUMAR, ADVOCATE FOR R1 AND R2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OR ORDER OR DIRECTION IN THE NATURE CERTIORARI QUASHING THE IMPUGNED DEMAND NOTICE DATED 22.04.2025 IN LP NO.BBMP/AD.COM/EST/1075/24-25 VIDE ANNEXURE A ISSUED BY RESPONDENT NO.2 AND DIRECTING TO ISSUE THE PLAN SANCTION BY ALLOWING THE PRESENT WRIT PETITION AND ETC. 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 - 3 - HC-KAR NC: 2025:KHC:23016 WP No. 15475 of 2025 ORAL ORDER Petitioner, in the captioned petition has sought for following reliefs : (a) Issue writ or order or direction in the nature Certiorari quashing the impugned DEMAND NOTICE DATED 22.04.2025 in LP No.BBMP/Ad.Com/EST/1075/24-25 vide Annexure - A issued by Respondent No.2 and directing to issue the plan sanction by allowing the present Writ Petition. (b) To pass such other order or to issue such directions as deemed fit in the peculiar facts and circumstances of the case. (c) To award exemplary costs against the Respondents in the interest of justice and equity. 2. It is brought to the notice of this Court that across the Bar, the issue is dealt by the Co-ordinate Bench in the reported judgment in W.P.No.23086/2022 and connected matters. The Co-ordinate Bench, while deciding the issue, has set-aside the Karnataka Municipal - 4 - HC-KAR NC: 2025:KHC:23016 WP No. 15475 of 2025 Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No.01 of 2022) and the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2023, (Karnataka Act No.37 of 2024). Therefore, this Court deems it fit to cull out the operative portion of the order, which reads as under; "ORDER (i) The writ petitions are partly allowed. (ii) The Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No.01 of 2022), is hereby quashed and set aside. (iii) The Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2023, (Karnataka Act No.37 of 2024), is hereby quashed and set aside. (iv) It is hereby declared that the provisions contained in Section 18-A of the Karnataka Town and Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are applicable only in respect of 8Development Plan9 containing the proposal for construction on plots measuring more than 20,000 square meters in extent and not in respect of plots measuring less than 20,000 square meters. - 5 - HC-KAR NC: 2025:KHC:23016 WP No. 15475 of 2025 (v) It is hereby declared that if fee has been earlier collected for change of land use or while approving a layout plan, fee shall not be collected for subsequent 8Development Plan9 in terms of the 8Note9 found below TABLE I of Rule 37-A of the Karnataka Planning Authority Rules, 1965. (vi) It is hereby declared that the linking of the fee leviable under Rule 37-A of the Karnataka Planning Authority Rules, 1965, to the 8market value9 or 8guidance value9 as determined under Section 45-B of the Karnataka Stamp Act, 1957, is illegal. However, liberty is reserved to the respondent-State Government and the BBMP to re-fix a standard after collecting empherical data. (vii) Consequently, all the impugned Circulars which seek to give effect to the Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are hereby quashed and set aside. (viii) It is hereby declared that Clause 3.8 of the Bengaluru Mahanagara Palike Building Bye- laws, 2003, providing for 8Ground Rent9, is illegal and are accordingly quashed and set aside. (ix) Consequently, all the impugned Demand Notices raised by the respondent-BBMP, in respect of the writ petitioners herein are also quashed and set aside. It would be advisable that the BBMP may come out with a scheme for 8One Time Settlement9 and settle the levy and collect the fee generally acceptable to the - 6 - HC-KAR NC: 2025:KHC:23016 WP No. 15475 of 2025 citizens of Bengaluru. This would also augment the present situation." 3. In the present writ petition, the core issue raised stands substantially covered and decided by the authoritative pronouncement of the coordinate bench, wherein the writ petitions were partly allowed and several consequential reliefs were granted. The Hon9ble Court, in unequivocal terms, quashed and set aside the Karnataka Municipal Corporations and Certain Other Law (Amendment) Acts of 2021 and 2023 (Karnataka Act Nos.01 of 2022 and 37 of 2024 respectively). 4. The Court further declared that the provisions under Section 18-A of the Karnataka Town and Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are applicable only to development proposals concerning plots exceeding 20,000 square meters, and not to smaller plots. Importantly, it was also held that if a fee has been previously collected for change of land use or approval of - 7 - HC-KAR NC: 2025:KHC:23016 WP No. 15475 of 2025 layout plan, no further fee shall be levied for subsequent development plans, in view of the explanatory 'Note' to Table I of Rule 37-A. 5. The Court declared illegal the linkage of such levies to market or guidance value under Section 45-B of the Karnataka Stamp Act, and consequently, quashed all Circulars and demand notices issued to give effect to such unlawful interpretations. Clause 3.8 of the BBMP Building Bye-laws, 2003, imposing 'Ground Rent', was also struck down. 6. In view of these comprehensive declarations and findings, it is submitted that the controversy raised in the present writ petition no longer survives for adjudication independently, as it is squarely covered by the binding judgment of the coordinate bench. In the light of the law laid down in the reported judgment substantially covering the issue, which is raised in the captioned writ - 8 - HC-KAR NC: 2025:KHC:23016 WP No. 15475 of 2025 petition, the writ petition is liable to be allowed strictly aligning to the operative portion of the said writ petition. 7. In view of the above, this Court proceeds to pass the following; ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 22.04.2025 issued by respondent No.2 as per Annexure-A is hereby set-aside. (iii) Respondent- BBMP hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent- BBMP is hereby directed to forthwith process the petitioner's application seeking building license and sanction of the building plan, strictly in accordance with law. (v) It is made clear that the issuance of the building license and approval plan shall not be withheld merely on the ground that the - 9 - HC-KAR NC: 2025:KHC:23016 WP No. 15475 of 2025 BBMP is contemplating to file an appeal against the reported judgment. (vi) If the building license and sanction plan are issued, the same shall be subjected to the outcome of any appeal that may be filed by the BBMP against the judgment. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE SMJ List No.: 2 Sl No.: 22