- 1 - HC-KAR NC: 2025:KHC:46535 WP No. 25296 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.25296 OF 2022 (BDA) BETWEEN: KALAVATHY W/O LATE S. SURESH, AGED ABOUT 48 YEARS, R/AT 122, 2ND MAIN, SMV LAYOUT, 9TH BLOCK, FURTHER EXTENSION, MALATHALLI LAKE ROAD, BANGALORE-560056. …PETITIONER (BY SRI SUNEEL 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 ROAD, KUMARA PARK WEST, BANGALORE-20. …RESPONDENTS (BY SRI SACHIN B.S., ADVOCATE FOR R-1 & R-2) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE QUASH/SET ASIDE THE ORDER VIDE NO.BDA/E-AUC/FESMV-8/2022-23/701 DATED 24.11.2022 “CANCELLATION ORDER” AT ANNEXURE-G PASSED BY THE R2 IN CANCELLING THE E-AUCTION SITE NO.701 ALLOTTED TO THE PETITIONER HEREIN AND ETC., Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:46535 WP No. 25296 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.701 in Sir M Visveswaraiah, 8thblock layout, has been cancelled and further seeking a direction to allot the said site No.701 in her favour as per the E- auction advice letter dated 12.08.2020. 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 Sir M Visveswaraiah, 8thblock layout. The petitioner participated and was declared the successful bidder for site No.701 for total consideration of `62,91,000/-. An E-auction advice - 3 - HC-KAR NC: 2025:KHC:46535 WP No. 25296 of 2022 letter dated 12.08.2020 and an allotment confirmation letter were issued on 04.09.2020 in her favour. The petitioner deposited 25% of the total value i.e., `15,72,750/- within the prescribed time. 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 up to 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 (25% of the total cost of the site) and resell the site at the risk and cost of the auction purchaser.” - 4 - HC-KAR NC: 2025:KHC:46535 WP No. 25296 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 submits that though the petitioner was declared the successful bidder and had promptly remitted the initial 25% of the bid amount, she could not arrange the remaining balance within the stipulated period on account of severe financial constraints arising during COVID-19 pandemic and the nationwide lockdowns. It is submitted that the petitioner nevertheless had continued to make payment towards the balance amount on 22.10.2020, 25.01.2021, 17.03.2021 and 01.06.2021, and that the delay was neither deliberate nor intentional, but occasioned by circumstances beyond her control. It is contended that having accepted the - 5 - HC-KAR NC: 2025:KHC:46535 WP No. 25296 of 2022 delayed payments, the respondents ought not to have cancelled the allotment letter after lapse of considerable time. 7. Per contra, learned counsel for the respondents submits that under Rule 6 (4) of the Rules, 1984, the petitioner was required to remit the balance of 75% within 45 days from the date of confirmation i.e. on or before 19.10.2020, without interest, and thereafter with interest at the rate of 18% for the next 90 days and at 21% for further 120 days, subject to the maximum outer limit of 210 days from the date of confirmation. It is submitted that the period of 210 days from 04.09.2020 expired on 04.04.2021 whereas the petitioner made remittance even thereafter including on 01.06.2021 and hence the cancellation order dated 24.11.2022 is in consonance with Rule 6 sub clause 4. - 6 - HC-KAR NC: 2025:KHC:46535 WP No. 25296 of 2022 8. This Court has carefully considered the submissions of the learned counsel for the parties and perused the material on record. 9. It is not in dispute that the petitioner was a successful bidder, the confirmation letter was issued on 04.09.2020, and the petitioner remitted the initial 25% within time. The obligation to remit the balance 75% arose immediately thereafter. Rule 6 sub-clause 4 stipulates the maximum period within which the balance amount can be received with interest cannot exceed 210 days from the date of confirmation which period expired on 04.04.2021. 10. The record discloses that the petitioner made part payments towards the balance 75% on 22.10.2020, 25.01.2021 and 17.03.2021, all within 210 window leaving only a small portion unpaid as on 04.04.2021. The final installment of ````81,061/- was paid on 01.06.2021 i.e. beyond the statutory 210 days limit. Strictly applied, Rule 6 sub-clause 4 would entitle the authority to forfeit the - 7 - HC-KAR NC: 2025:KHC:46535 WP No. 25296 of 2022 initial deposit and cancel the allotment. However in the peculiar facts obtaining during the pandemic years 2020- 2021, when economic activity was severely disrupted, the short delay beyond 04.04.2021 warrants a liberal approach, provided the petitioner compensate the authority by payment of interest at the rate of 21% per annum on the portion remaining unpaid beyond statutory period. Imposition of 21% per annum compensatory interest on the unpaid portion of the 75% balance from 05.04.2021 till 01.06.2021 would sufficiently safeguard the financial interest of the respondent-BDA while simultaneously ensuring that the petitioner is not penalised proportionately. Accordingly, the cancellation order dated 24.11.2022 is liable to be set aside subject to the petitioner discharging the said interest liability. Accordingly, this Court pass the following : ORDER (i) The Writ Petition is allowed. - 8 - HC-KAR NC: 2025:KHC:46535 WP No. 25296 of 2022 (ii) The cancellation order dated 24.11.2022 is hereby set aside. (iii) The respondent BDA shall restore and re-allot site No. 701 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 - 9 - HC-KAR NC: 2025:KHC:46535 WP No. 25296 of 2022 deed in favour of the petitioner within a period of further two weeks from thereon. (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 CKL List No.: 1 Sl No.: 34