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2025 DAILYLAW 54189 (KAR)

M/S SWAN SILK PVT LTD v. STATE OF KARNATAKA

WP/33666/2024 · 2025-06-26

Sachin Shankar Magadum

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Judgment text

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- 1 - HC-KAR NC: 2025:KHC:22871 WP No. 33666 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.33666 OF 2024 (LB-BMP) BETWEEN: M/S. SWAN SILK PVT. LTD. A PRIVATE LIMITED COMPANY OFFICE AT: NO.34/2 HARIRAM COMPLEX K.G. ROAD BENGALURU. REPRESENTED BY ITS DIRECTOR SRI KABADI SUNDARSA VITTAL. …PETITIONER (BY SRI RAJU S., ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY URBAN DEVELOPMENT DEPARTMENT 4TH FLOOR, VIKASA SOUDHA DR. AMBEDKAR VEEDHI BENGALURU-560 001. 2. STATE OF KARNATAKA DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION 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. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:22871 WP No. 33666 of 2024 4. THE ASSISTANT DIRECTOR TOWN PLANNING (YELAHANKA) NO.2, AMRUTHAHALLI MAIN ROAD BYATARAYANAPURA BENGALURU- 560 092. …RESPONDENTS (BY SRI BOPANNA B., AGA FOR R-1 AND R-2; SRI K.B. MONESH KUMAR, ADVOCATE FOR R-3 AND R-4) * * * THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DECLARE THAT THE ENTIRE KARNATAKA MUNICIPAL CORPORATIONS AND CERTAIN OTHER LAW (AMENDMENT) ACT, 2021 (KARNATAKA ACT NO.01 OF 2022) NO.DPAL.50SHASANA 2021 NOTIFIED ON 13-1-2022 (ANNEXURE-Q) AS BEING ULTRA VIRES THE CONSTITUTION IN SO FAR THE PETITIONER IS CONCERNED. THIS WRIT 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 The captioned petition is filed seeking the following reliefs: WHEREFORE, it is respectfully prayed that this Hon'ble Court may be pleased to: i) Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022) NO. DPAL.50SHASANA 2021 notified on 13.01.2022 (ANNEXURE-Q) as being ultra vires the constitution in so - 3 - HC-KAR NC: 2025:KHC:22871 WP No. 33666 of 2024 far the petitioner is concerned in so far the petitioner is concerned. ii) To declare that Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022) NO. DPAL.50SHASANA 2021 notified on 13.01.2022 (ANNEXURE-Q) as the impugned act is an in verbatim reproduction of the ordinance dated 16.11.2021 is concerned. iii) Grant an order, direction or writ in the nature of certiorari quashing the Office Order No. HaNiNaYo/PR/461/2021-22 dated 09.12.2021 issued by Respondent No-3 as contained in (Annexure-P) in so far the petitioner is concerned. iv) Grant an order, direction or writ in the nature of certiorari quashing section 18-A of the Karnataka Town and Country Planning Act, 1961 brought into effect by Karnataka Act No. 23 of 2004 dated 03.06.2004 (Karnataka Town and Country Planning (Amendment) Act) as contained in (Annexure-J) insofar as section 18- A(i) and (iv) of the Karnataka Act No. 23 of 2004 is concerned. v) Grant an order, direction or writ in the nature of certiorari quashing the notification issued by the 1st Respondent bearing no. UDD 3 TTP 2015 dated 25.02.2020 as contained in (Annexure-H) insofar as the inserted rule 37-A and 37-C is concerned. vi) issue a writ or order by way of certiorari quashing the circular dated 14.08.2020, bearing no. He.Ni.Ka.Pa.Ko/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-K) in so far the Petitioner is concerned. vii) Grant an order, direction or writ in the nature of certiorari quash the notification issued by the 1st Respondent bearing no. UDD 23 TTP 2020(E) dated 21.06.2021 as contained in (ANNEXURE-L) insofar as the inserted rule 37-A and 37-C is concerned. viii) issue a writ or order by way of certiorari quashing the circular dated 24.06.2021, bearing No. - 4 - HC-KAR NC: 2025:KHC:22871 WP No. 33666 of 2024 He.Ni.Na.Yo/P.R/320/2021-22 issued by the Respondent No.3 (Annexure-M) in so far the Petitioner is concerned. ix) issue a writ or order by way of certiorari quashing the demand notice dated nil bearing LP.No. BBMP/Ad.Com/YLK/0649/24-25, PRJ/8426/24-25 issued by the Respondent No.3 and 4 (Annexure-D) for demanding in so far it is concerned to Ground rent, GST on Ground rent, License fee, Scrutiny fee, Security deposit, Labour cess and etc. as illegal, without jurisdiction and arbitrary. x) issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP for issue of New (Fresh Plan Sanction) sanction building in the Schedule Property without insisting the Ground rent(including GST), License fee, Scrutiny fee, Security deposit, Lake Rejuvenation fee, Compound Wall fee, Water Supply Scheme (BWSSB), Ring Road (BDA), improving of Slum (KSCB), MRTS (BDA), 5 % levy service charges etc; xi) pass any such other order(s) as this Hon'ble Court deems fit in the facts and circumstances of the case in the interest of justice and equity. 2. 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 - 5 - HC-KAR NC: 2025:KHC:22871 WP No. 33666 of 2024 Fee, Building License Fee, and Scrutiny Fee under the relevant bye-laws as ultra vires the Act and quashed the Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017. 4. 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. 5. 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. - 6 - HC-KAR NC: 2025:KHC:22871 WP No. 33666 of 2024 6. In light of the authoritative pronouncements, the present petition does not warrant separate adjudication and is liable to be allowed in terms of the operative directions issued in the aforesaid writ petitions. 7. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The impugned demand notice issued by respondents No.3 and 4 as per Annexure-D is hereby set-aside. (iii) Respondent - BBMP is hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent - BBMP is 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 of the plan shall - 7 - HC-KAR NC: 2025:KHC:22871 WP No. 33666 of 2024 not be withheld merely on the ground that the 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 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 HDK List No.: 2 Sl No.: 26