- 1 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.18771 OF 2023 (APMC) BETWEEN: 1. M/S. N.M.P. THARAKARI MANDI, FRUITS & VEGETABLE MERCHANTS AND COMMISSION AGENTS, SHOP NO.4, AGRICULTURAL PRODUCE MARKETING COMMITTEE, MARKET YARD, DAVANAGERE-577002 DULY REP. BY ITS PROPRIETOR SRI N. PARAMESHI S/O L. NINGAPPA, AGED ABOUT 35 YEARS. 2. M/S. MALATHESHWARA TRADERS, FRUITS & VEGETABLE MERCHANTS AND COMMISSION AGENTS, SHOP NO.1, AGRICULTURAL PRODUCE MARKETING COMMITTEE, MARKET YARD, DAVANAGERE-577002 DULY REP. BY ITS PROPRIETOR AMBAREESH S/O GUNDAPPA, AGED ABOUT 38 YEARS. 3. M/S. NEELAKANTESHWARA TRADERS, FRUITS & VEGETABLE MERCHANTS AND COMMISSION AGENTS, SHOP NO.10, Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 AGRICULTURAL PRODUCE MARKETING COMMITTEE, MARKET YARD, DAVANAGERE-577002 DULY REP. BY ITS PROPRIETOR SMT. E.T. SHAKUNTHALA W/O A.S. THIMMESH, AGED ABOUT 30 YEARS. 4. M/S. KRUTHIKA TRADERS, FRUITS & VEGETABLE MERCHANTS & COMMISSION AGENTS, SHOP NO.8, AGRICULTURAL PRODUCE MARKETING COMMITTEE, MARKET YARD, DAVANAGERE-577002 DULY REP. BY ITS PROPRIETOR SMT. C.M. MAMATHA W/O S.M. CHANDRASHEKAR AGED ABOUT 29 YEARS. 5. M/S. KRUSHIKA TRADERS, FRUITS & VEGETABLE MERCHANTS & COMMISSION AGENTS, SHOP NO.7, AGRICULTURAL PRODUCE MARKETING COMMITTEE, MARKET YARD, DAVANAGERE-577002 DULY REP. BY ITS PROPRIETOR SMT. JAYAMMA W/O LATE SHAMBULINGAPPA, AGED ABOUT 53 YEARS. 6. M/S. SREE NELLAKANTESHWARA ENTERPRISES FRUITS & VEGETABLE MERCHANTS & COMMISSION AGENTS, SHOP NO.9, AGRICULTURAL PRODUCE MARKETING COMMITTEE, MARKET YARD, DAVANAGERE-577002 DULY REP. BY ITS PROPRIETOR SMT. SHANTHA D/O NINGAPPA, AGED ABOUT 38 YEARS. - 3 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 7. SREE SIRSINGI KALAMMA DEVI TRADERS, FRUITS & VEGETABLE MERCHANTS & COMMISSION AGENTS, SHOP NO.6, AGRICULTURAL PRODUCE MARKETING COMMITTEE, MARKET YARD, DAVANAGERE-577002 DULY REP. BY ITS PROPRIETOR SRI KARIBASAVACHAR S/O RATHNACHAR, AGED ABOUT 49 YEARS. 8. M/S. SRI MALATHESH TRADERS FRUITS & VEGETABLE MERCHANTS & COMMISSION AGENTS, SHOP NO.5, AGRICULTURAL PRODUCE MARKETING COMMITTEE, MARKET YARD, DAVANAGERE-577002 DULY REP. BY ITS PROPRIETOR SMT. SHANTHAMMA S/O LATE BASAPPA, AGED ABOUT 62 YEARS. …PETITIONERS (BY SRI CHANDAN B.K., ADVOCATE FOR SRI B. SIDDESWARA, ADVOCATE FOR P-1 TO P-8) AND: 1. THE CHIEF SECRETARY STATE OF KARNATAKA, DEPT. OF COOPERATIVE SOCIETIES, VIDHANA SOUDHA, BENGALURU-560001. 2. THE DIRECTOR OF AGRICULTURAL MARKETING O/O DIRECTOR OF AGRICULTURAL MARKETING NO.16, 2, RAJ BHAVAN ROAD, BENGALURU-560001. - 4 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 3. THE ASST. DIRECTOR, OFFICE OF THE DIRECTOR OF AGRICULTURAL MARKETING, A.P.M.C. YARD, DAVANAGERE-577003. 4. THE ADMINISTRATOR AND THE DISTRICT COMMISSIONER, OFFICE OF THE DISTRICT COMMISSIONER, DAVANAGERE-577002. 5. THE SECRETARY, AGRICULTURE PRODUCE MARKETING COMMITTEE, RMC YARD, DAVANAGERE TALUK & DISTRICT-577003. …RESPONDENTS (BY SMT. RASHMI M. RAO, HCGP FOR R-1 & R-2; SRI A.C. BALARAJ, ADVOCATE FOR R-3 & R-4; SRI NANDA KISHORE, ADVOCATE FOR R-5) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER PASSED BY THE 2ND RESPONDENT - THE DIRECTOR AGRICULTURAL MARKETING, BANGALORE, VIDE ORDER DATED 28.07.2023 VIDE ITS NO.KRU.MAA.EE/AA.Bi.Vi/L- CUM-S/360/2022, ANNEXURE-K, BEING ISSUED BY THE 2ND RESPONDENT IN RESPECT OF THE ALLOTMENT OF PREMISES, BEING ALLOTTED AT DAVANAGERE AS PER THE CAUSE TITLE ADDRESS OF THEIR RESPECTIVE SHOPS ON ITS ENTIRETY AND QUASHING THE SAME PERMANENTLY AND ETC., THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 5 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 CORAM: HON'BLE MRS. JUSTICE K.S. HEMALEKHA ORAL ORDER The petitioners have approached this Court in this Writ Petition seeking to quash the order passed by the second respondent dated 28.07.2023 at Annexure-K and further seeking to quash Annexures-L1 to L8, the notices issued by respondent No.5 dated 03.08.2023 and other consequential reliefs. 2. Heard the learned counsel for the petitioners, learned HCGP for respondents 1 and 2, learned counsel for respondent Nos. 3 and 4 as well as learned counsel for respondent No.5. BRIEF FACTS 3. Respondent No.5 invited applications for allotment of premises situated at Davanagere APMC. By an order of allotment dated 28.10.2022, respondent No.2 allotted 10 premises at Davanagere APMC in favour of different allottees/purchasers including the petitioners. - 6 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 The petitioners, who are traders dealing exclusively in fruits and vegetables at Davanagere APMC Yard, were issued trading licenses by respondent Nos.3 to 5, and have been carrying on business at their respective shops. Pursuant to the allotment dated 28.10.2022, sale agreement were executed in favour of the petitioners on 08.11.2022, and since then, the petitioners have been in peaceful possession and enjoyment of the premises and the licenses of the petitioners have been renewed. 4. While the matter stood thus, respondent No.2 issued an order dated 28.07.2023 directing respondent No.5 to withdraw the entire process of allotment on the ground that enquiry was initiated regarding the said allotment process conducted by respondent Nos.4 and 5. Based on this direction, respondent No.5 issued notices dated 03.08.2023 informing the petitioners that the allotment process has been withheld pursuant to the direction issued by respondent No.2. - 7 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 5. It is the contention of the petitioners that the impugned order of respondent No.2 is arbitrary and unsustainable. It is further submitted that respondent No.2-Director himself, by an earlier order dated 18.01.2023, after considering a complaint of the very complainant-Karnataka Rajya Raitha Haagu Hasiru Sene Sangha, had clearly recorded that there were no irregularities in the allotment process and that the same was in accordance with law. The subsequent direction dated 28.07.2023, based on the very same complainant, to withdraw the allotment process is arbitrary, contrary to the earlier finding and liable to be set aside. 6. Per contra, learned counsel for respondent No.5 submits that respondent No.5 merely acted in compliance with the direction issued by respondent No.2. 7. The learned AGA, referring to the statement of objections, contends that several complaints were received alleging irregularities in the allotment and that respondent - 8 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 No.2 being the competent authority under Section 9(2) of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 and Rule 23 of the Karnataka Agricultural Marketing (Regulation of Allotment of Property in Market Yard) Rules, 2004 is empowered to initiate an enquiry and slate further proceedings pending enquiry. It is contended that the impugned direction was passed only to facilitate enquiry and not to conceal any allotment, and that the petitioners’ possession has not been disturbed. 8. This Court has carefully considered the rival contentions and perused the records. 9. It is undisputed that respondent No.2 on 18.01.2023, had already conducted an enquiry on the very same complaint by the Karnataka Rajya Raitha Haagu Hasiru Sene Sangha and categorically recorded that no irregularities were found in the allotment process. The relevant portion reads as under: - 9 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 “ªÉÄîÌAqÀ zÀÆgÀÄ CfðAiÀÄ°è£À DgÉÆÃ¥ÀUÀ½UÉ AiÀiÁªÀÅzÉà DzsÁgÀUÀ¼ÀÄ PÀAqÀÄ §gÀĪÀÅ¢®è. gÉÊvÀ ¨sÀªÀ£ÀzÀ ¥ÀPÀÌzÀ°è SÁ° EzÀÝ ¸ÀܼÀªÀ£ÀÄß 2016 jAzÀ ¤ªÉñÀ£À ºÀAaPÉ ¥ÀæQæAiÉÄAiÀÄÄ 2022 gÀ°è ¥ÀÆtðªÁVzÀÄÝ ¤AiÀĪÀiÁ£ÀĸÁgÀ ºÀAaPÉAiÀiÁVgÀĪÀÅzÀÄ PÀAqÀÄ §A¢zÀÄÝ. ºÁUÁV ¯ÉʸÀ£ïì ºÉÆA¢zÀ vÀgÀPÁj ªÁå¥ÁgÀ¸ÀÜjUÉ ºÀAaPÉAiÀiÁzÀ ¤ªÉñÀ£ÀUÀ¼À£ÀÄß gÀzÀÄÝ ¥Àr¸ÀĪÀ PÁgÀt PÀAqÀÄ §gÀĪÀÅ¢®è. E£ÀÄß ªÀÄÄAzÀĪÀgÉzÀÄ F »AzÉ vÀgÀPÁj ªÀiÁgÀÄPÀmÉÖ «¸ÀÛgÀuÉ §UÉÎ ªÁå¥ÁgÀ¸ÀÜgÀ ¸ÀAWÀªÀÅ dAnAiÀiÁV AiÀÉÆÃUÀå ¸ÀܼÀzÀ §UÉÎ dAn ¸ÀܼÀ ¥Àj«ÃPÀëuÉ ªÀiÁrzÀÝ F §UÉÎ ªÁå¥ÁgÀ¸ÀÜgÀÄ vÀªÀÄä C©ü¥ÁæAiÀĪÀ£ÀÄß w½¹zÀgÉ ¸À«Äw¬ÄAzÀ CUÀvÀå ªÀiÁ®¨sÀÆvÀ ¸Ë®¨sÀåªÀ£ÀÄß MzÀV¸À®Ä CªÀPÁ±À«gÀÄvÀÛzÉ JA§ ªÀiÁ»w ¸À«ÄwAiÀÄ PÀbÉÃj¬ÄAzÀ w½zÀħA¢gÀÄvÀÛzÉ.” (emphasis supplied) 10. Notwithstanding the said finding, respondent No.2, by the impugned order dated 28.07.2023 at Annexure-K, directed a re-enquiry and instructed respondent No.5 to withdraw the allotment process. Such an act on the part of respondent No.2 is arbitrary and contrary to his earlier order dated 18.01.2023. Therefore, the impugned order passed by respondent No.2 cannot be sustained and consequently, the subsequent notices issued by respondent No.5 pursuant thereto are also liable to be quashed. Accordingly, this Court pass the following: - 10 - HC-KAR NC: 2025:KHC:40950 WP No. 18771 of 2023 ORDER i. The writ petition is allowed. ii. The impugned order dated 28.07.2023 (Annexure-K) passed by respondent No.2 is hereby quashed. Consequently, the notices dated 03.08.2023 issued by respondent No.5 at Annexures-L1 to L8 are also quashed. Sd/- ____________________ JUSTICE K.S. HEMALEKHA MBM List No.: 1 Sl No.: 53