- 1 - HC-KAR NC: 2025:KHC:47050 WP No. 25309 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.25309 OF 2022 (BDA) BETWEEN: SUMA .G D/O GANGADHAR, AGED ABOUT 38 YEARS, R/AT NO.3/4, 3RD CROSS, KSRTC LAYOUT, MAHADESHWARNAGAR 2ND STAGE, HEROHALLI, BANGALORE-560 091. …PETITIONER (BY SRI SUNIL S. NARAYAN, ADVOCATE) AND: 1. THE COMMISSIONER BANGALORE DEVELOPMENT AUTHORITY (BDA), T. CHOWDAIAH ROAD, KUMARA PARK WEST, BANGALORE-20. 2. FINANCE MEMBER OFFICE OF FINANCE MEMBER BANGALORE DEVELOPMENT AUTHORITY (BDA), T. CHOWDAIAH RAOD, KUMARA PARK WEST, BANGALORE-20. …RESPONDENTS (BY SRI B.S. SACHIN, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH / SET ASIDE THE ORDER VIDE NO.BDA/E-AUC/BSK-6/2022-23/1008, DATED 24.11.2022 “CANCELLATION ORDER” AT ANNEXURE-H PASSED BY THE RESPONDENT NO.2 IN CANCELLING THE E-AUCTION SITE NO.1008 ALLOTTED TO THE PETITIONER HEREIN. Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:47050 WP No. 25309 of 2022 THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE K.S. HEMALEKHA ORAL ORDER The petitioner has approached this Court challenging the order dated 24.11.2022, whereby the E-auction allotment of site No.1008 in Banshankari, 6th stage, 4th block layout, has been cancelled and further seeking a direction to restore the said allotment in his favour as per the E-auction advice letter dated 07.08.2020. 2. Heard learned counsel for the petitioner and learned counsel for the respondents. Brief facts: 3. The respondents issued a public notification inviting bids through E-auction for sale of corner sites, commercial sites and residential corner sites in Banshankari, 6th stage, 4th block layout. The petitioner participated and was declared the successful bidder for - 3 - HC-KAR NC: 2025:KHC:47050 WP No. 25309 of 2022 site No.1008 for total consideration of `44,25,525/-. An E- auction advice letter dated 07.08.2020 and an allotment confirmation letter were issued on 04.09.2020 in his favour. The petitioner deposited 25% of the total value i.e., `11,06,381/- on 07.08.2020. 4. Rule 6(4) of Bangalore Development Authority (Disposal of Corner Sites, Intermediate Sites and Commercial Sites) Rules 1984 (‘Rules, 1984’ for short) is extracted below for ready reference: “(4) The Commissioner may grant extension of time not exceeding two hundred and ten days for depositing the balance of the bid amount, subject to condition that during such extended period, the auction purchaser shall also pay the balance of the bid amount with an interest thereon at eighteen percent per annum upto ninety days and at twenty-one percent per annum thereafter up to two hundred and ten days with a penalty of rupees one hundred in each case. Failing such payment, the authority shall be entitled to forfeit the deposit made by the auction purchaser and resell the site at the risk and cost of the auction purchaser.” - 4 - HC-KAR NC: 2025:KHC:47050 WP No. 25309 of 2022 5. As per the terms of allotment and Rule 6(4) of the Rules, 1984, the balance 75% amount was to be paid within 45 days from the date of confirmation without interest, and thereafter with interest at 18% per annum for 90 days and at 21% per annum for the next 120 days, not exceeding a total of 210 days. 6. Learned counsel for the petitioner contends that the petitioner due to COVID-19 pandemic and the consequent nationwide lockdowns during 2020 and the second wave in 2021, he was unable to arrange funds in time. He ultimately deposited `12,19,144/- on 10.06.2021 and the balance `20,99,500 on 14.06.2021. However, respondent No.2 issued a cancellation order on 24.11.2022, citing failure to deposit the balance within permissible 210 days period. 7. Per contra, the learned counsel for the respondents in support of his statement of objections submits that under Rule 6(4) of the Rules, 1984, the - 5 - HC-KAR NC: 2025:KHC:47050 WP No. 25309 of 2022 petitioner was required to remit the balance 75% on or before 24.10.2020 (within 45 days), and thereafter with interest at 18% upto 22.01.2021 and at 21% upto 22.05.2021. The petitioner's remittance on 10.06.2021 and 14.06.2021 were beyond the statutory limit. It is further submitted that his representation seeking extension was made only on 21.05.2021, long after the expiry of the permissible period, and the Government on examination, rejected the proposal and directed cancellation. 8. This Court has carefully considered the rival submissions urged by the learned counsel for the parties and perused the material on record. 9. The material on record clearly establishes that the petitioner was a successful bidder and had deposited the initial 25% promptly. The Rules mandate payment of balance within 45 days, within an outer limit of 210 days (including extensions with interest). The petitioner - 6 - HC-KAR NC: 2025:KHC:47050 WP No. 25309 of 2022 admittedly deposited the remaining amount after expiry of 210 days, on 10.06.2021 and 14.06.2021, delayed by about 23 days. 10. Rule 6 (4) of the Rules, 1984 confers discretion on the Commissioner to extend time upto 210 days but not beyond. However, this Court cannot be unmindful to the exceptional circumstances prevailing during the pandemic period. The auction and the confirmation occurred in 2020, which severely disputed economic and financial activities. In the peculiar facts of this case, the delay of 23 days deserves to be condoned by imposing compensatory rate of interest. Accordingly, this Court pass the following: ORDER (i) The Writ Petition is allowed. (ii) The cancellation order dated 24.11.2022 is hereby set aside. - 7 - HC-KAR NC: 2025:KHC:47050 WP No. 25309 of 2022 (iii) The respondent-BDA shall restore and re-allot site No.1008 to the petitioner as per the original allotment and the amended Rule 6 sub- clause 4 of the Rules, 1984 and calculate the interest payable by the petitioner as per Rule 6 sub-clause 4 and further subject to the petitioner paying interest at the rate of 21% per annum on the balance amount remaining unpaid beyond the statutory period of 210 days, which amount shall be computed by the BDA within a period of two weeks from the date of receipt of the certified copy of this order and the same shall be intimated by a written communication to the petitioner. (iv) The petitioner shall pay the interest amount within two weeks thereafter and the respondents shall execute the absolute sale deed in favour of the petitioner within a period of further two weeks from thereon. - 8 - HC-KAR NC: 2025:KHC:47050 WP No. 25309 of 2022 (v) In the event of failure to remit the interest amount within the time stipulated above, the cancellation order dated 24.11.2022 shall stand revived. Sd/- _____________________ JUSTICE K.S. HEMALEKHA AT List No.: 1 Sl No.: 33