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2025 DAILYLAW 56594 (KAR)

MANJUNATH INFRA CONS., PVT LTD v. OFFICE OF THE DEVELOPMENT COMMISSIONER

WP/1454/2024 · 2025-08-12

B M Shyam Prasad

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Judgment text

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- 1 - HC-KAR NC: 2025:KHC:31126 WP No. 1454 of 2024 C/W WP No. 16471 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 1454 OF 2024 (GM-RES) C/W WRIT PETITION NO. 16471 OF 2023 (GM-RES) IN WP No. 1454/2024 BETWEEN: MANJUNATH INFRA CONS., PVT LTD (FORMERLY KNOWN AS MANJUNATH INFRATECH PVT LTD) HAVING ITS REGISTERED OFFICE AT NO.25, KIADB B, KATIHALLI INDUSTRIAL AREA, B M ROAD, HASSAN-573201 BY ITS MANAGING DIRECTOR, MR H A KIRAN. …PETITIONER (BY SRI. DEVAIAH I S.,ADVOCATE) AND: 1. OFFICE OF THE DEVELOPMENT COMMISSIONER (MICRO, SMALL AND MEDIUM, ENTERPRISES) MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES, GOVERNMENT OF INDIA, NIRMAN BHAVAN, Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:31126 WP No. 1454 of 2024 C/W WP No. 16471 of 2023 7TH FLOOR, MAULANA AZAD ROAD, NEW DELHI-110108. 2. STATE OF KARNATAKA DEPARTMENT OF INDUSTRIES AND COMMERCE, VIKASA SOUDHA, AMBEDKAR VEEDHI, BENGALURU-560001 REPRESENTED BY ITS PRINCIPAL SECRETARY. 3. MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL HASSAN, MEMBER SECRETARY, MSMED COUNCIL, OFFICE OF THE JOINT DIRECTOR, DISTRICT INDUSTRIES CENTRE, DAIRY CIRCE, HASSAN-573201. 4. THE CHAIRMAN MSEFC AND CHIEF EXECUTIVE OFFICER MICRO AND SMALL ENTERPRISE FACILITATION COUNCIL, ZILLA PANCHAYAT, HASSAN-573201. 5. MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL MYSURU, OFFICE OF THE JOINT DIRECTOR, DISTRICT INDUSTRIES CENTRE, CTI BUILDING, SAYYAJI RAO RAD, MYSURU-570001. 6. SURYA PANEL PVT LTD HAVING ITS REGISTERED OFFICE AT A PRIVATE LIMITED COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956 PLOT NO. 62 K PHASE 2, KIADB, - 3 - HC-KAR NC: 2025:KHC:31126 WP No. 1454 of 2024 C/W WP No. 16471 of 2023 AMBALE INDUSTRIAL AREA, GOWDANAHALLI, CHIKMAGALUR-577101 BY ITS AUTHORIZED REPRESENTATIVE MR H B SUDHARSHAN ALSO AT 2ND FLOOR, RUSHHIL HOUSE, NEAR NEELKANTH OPP SINDHU BHAVAN ROAD, SHILAJ AHMEDABAD, GUJARAT-380058. …RESPONDENTS (BY SRI. B PRAMOD., CGSC FOR R1; SRI. A.S. VISHWAJITH, ADVOCATE FOR C/R6; SRI. SHAMANTH NAIK, HCGP FOR R2 TO R5) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO a) SET ASIDE OR QUASH THE IMPUGNED ORDER DATED 23/08/2023 NO. DIC/HSN/MSEFC/1/2023-24 PASSED BY THE R3 (ANNEXURE-K); b) DIRECTING THE R3 TO RECONSIDER THE PASS ORDERS ON THE APPLICATION IN CASE NO. 252/2022 ANNX-U FILED BY THE PETITIONER BY REFERRING THE MATTER TO ARBITRATION, IN ACCORDANCE WITH LAW AND IN A TIME-BOUND MANNER. - 4 - HC-KAR NC: 2025:KHC:31126 WP No. 1454 of 2024 C/W WP No. 16471 of 2023 IN WP NO. 16471/2023 BETWEEN: MANJUNATH INFRATECH PRIVATE LIMITED A COMPANY REGISTERED UNDER THE COMPANIES ACT, HAVING ITS REGISTERED OFFICE AT PLOT NO.25/B, KIADB INDUSTRIAL AREA, B KATIHALLI, HASSAN - 577 201. BY ITS AUTHORIZED REPRESENTATIVE SHRI H.A. KIRAN. ...PETITIONER (BY SRI. K S GANESHA.,ADVOCATE A/W SRI. I.S. DEVAIAH, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF INDUSTRY AND COMMERCE, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BENGALURU - 560 001. REPRESENTED BY ITS SECRETARY. 2. THE JOINT DIRECTOR DISTRICT INDUSTRIES CENTRE, DAIRY CIRCLE, HASSAN - 573 201. ...RESPONDENTS (BY SRI.SHAMANTH NAIK, HCGP) THIS WP IS FILED UNDER ARTICLES 226 OF PRAYING TO QUASH THE IMPUGNED ENDORSEMENT ANNX-E ISSUED BY THE R-2 BEARING NO. HASSANA/G - 5 - HC-KAR NC: 2025:KHC:31126 WP No. 1454 of 2024 C/W WP No. 16471 of 2023 KAI KE/2023-24 DATED 11.05.2023; DIRECT THE R-2 TO ISSUE A CLARIFICATION TO THE PETITIONER CERTIFYING THAT IT COMES UNDER MICRO SERVICE EM PART-2. THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The parties have filed a Joint Memo reporting settlement and seeking withdrawal of the petition. The Joint Memo reads as under: "1) An agreement Dtd: 10.08.2016 was executed between the parties for constructing a factory building at the premises of company situated at Plot No. 62K, KIADB, Ambale Industrial Area, Gowdanahalli, Chikmagalur, Karnataka-577101 as per the Work Order Dtd:- 09.08.2016. Contractor had carried out partial construction of the factory building at the above referred premises however there were some disputes between the parties which aroused because of billing quantity, rate approval & delay in project and as such contractor had filed recovery application under MSMED Act 2006 for an amount of Rs. 1,20,69,410/-plus interest before Micro & Small Enterprise Facilitation Council Mysuru on Dtd: 10.01.2020, however the said application was - 6 - HC-KAR NC: 2025:KHC:31126 WP No. 1454 of 2024 C/W WP No. 16471 of 2023 returned back on Dtd: - 03.06.2020 by making an endorsement that it cannot be considered under the purview of MSMED Ac 2006. 2) Being aggrieved by the same contractor had filed a Writ Petition No. 16393/2021 before High Court of Bengaluru and simultaneously a new application was filed vide case No. 252/2022 before Micro & Small Enterprise Facilitation Council Hassan, Karnataka. Pursuant to the proceedings being conducted before Micro & Small Facilitation Council Mysuru a Writ Petition No. 16393/2021 before High Court of Bengaluru came to be disposed of on Dtd: 13.12.2022. Manjunath Engineering Construction had also filed an application vide Case No. 253/2022 before Micro & Small Enterprise Facilitation Council Hassan, Karnataka which was also rejected on Dtd: - 23.08.2023." In continuation of this Joint Memo, another memo is filed with the copies of the Memorandum of Understanding dated 11.08.2025 and the Demand Draft dated 29.05.2025 for a sum of Rs.75,00,000/-. The learned counsels reiterate that the joint memo for withdrawal is filed as a consequence of Memorandum of Understating with Sri I.S.Devaiah - 7 - HC-KAR NC: 2025:KHC:31126 WP No. 1454 of 2024 C/W WP No. 16471 of 2023 accepting that the petitioner has received Demand Draft for a sum of Rs.75,00,000/- in full and final settlement. In the light of the afore, the petition stands dismissed as withdrawn. SD/- (B M SHYAM PRASAD) JUDGE SA ct:sr