M/S VIJAYASHREE SUGARS AND POWER LTD v. THE UNION OF INDIA
WP/17120/2023 · 2026-06-01
M G S Kamal
body2026
DailyLaw.ai
[ 2026 DAILYLAW 18621 (KAR) · dailylaw.ai ]
DailyLaw.ai
[ 2026 DAILYLAW 18621 (KAR) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
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HC-KAR NC: 2026:KHC:25504 WP No. 17120 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO. 17120 OF 2023 (GM-RES) BETWEEN:
M/S VIJAYASHREE SUGARS AND POWER LTD HAVING ITS REGISTERED OFFICE AT SY NO. 166, KULALI CROSS, JAMAKHANDI ROAD, MUDHOL, KARNATAKA- 587 313 REPRESENTED BY ITS AUTHORISED SIGNATORY, MR. PRASANNA S HULAGERI MANAGER ADMINISTRATION REGISTAR UNDER COMPANIES ACT 1956. …PETITIONER (BY SRI. NEERAJ SASTRY.,ADVOCATE)
AND:
1. THE UNION OF INDIA DEPT OF FOOD AND PUBLIC DISTRIBUTION, MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION, GOVERNMENT OF INDIA, KRISHI BHAVAN, NEW DELHI - 110 001 REPRESENTED BY THE CHIEF DIRECTOR (SUGAR) DIRECTORATE OF SUGAR. 2. THE SECRETARIAT PUBLIC RELATION AND COMPLAINTS SECTION, DEPT. OF INDUSTRIAL POLICY AND PROMOTION, MINISTRY OF COMMERCE AND
Digitally signed by SUMA B N Location:
HIGH COURT OF KARNATAKA
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INDUSTRIES, UDYOG BHAVAN, NEW DELHI - 110 001. REPRESENTED BY ITS JOINT COMMISSIONER (IEM SECTION). 3. THE STATE OF KARNATAKA DEPT OF COMMERCE AND INDUSTRIES, VIKASA SOUDHA, BENGALURU - 56 0 001 REPRESENTED BY ITS ADDITIONAL CHIEF SECRETARY. 4. STATE OF KARNATAKA DEPARTMENT OF MINES AND GEOLOGY, NO.49, KHANIJA BHAVAN, RACE COURSE ROAD, BANGALORE-560 001, REPRESENTED BY ITS SECRETARY. 5. THE STATE HIGH LEVEL CLEARANCE COMMITTEE SINGLE WINDOW CLEARANCE AGENCY OF THE KARNATAKA UDYOG MITRA, BENGALURU - 560 001 REPRESENTED BY ITS CHAIRPERSON. 6. KARNATAKA UDYOG MITRA A GOVERNMENT OF KARNATAKA ORGANISATION 3RD FLOOR, KHANIJA BHAVAN (SOUGH WING), NO.498, RACE COURSE ROAD, BENGLAURU - 560 001 REPRESENTED BY ITS MANAGING DIRECTOR. 7. THE COMMISSIONER FOR CANE DEVELOPMENT AND DIRECTOR FOR SUGAR FOR KARNATAKA GOVERNMENT OF KARNATAKA, 5TH FLOOR, CBAB COMPLEX, CAUVERY BHAVAN, KEMPEGOWDA ROAD,
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BENGALURU - 560 009. 8. THE DIRECTOR KARNATAKA GEO SPATIAL CENTRE, SURVEY OF INDIA, SARJAPUR ROAD, KORAMANGALA, 2ND BLOCK, BENGALURU - 560 034. 9. THE DEPUTY COMMISSIONER GOPALAPURA GALLI, VIJAYAPURA - 586 101. 10. M/S MRN SUGARS AND POWER PVT. LTD. A COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT SRI. ST. PATIL SRI KRISHNA FARM HOUSE, ST. NO. 136, NEAR SORAGOAN, MUDHOL TALUK, BIJAPURA - 587 313 REPRESENTED BY ITS MANAGING DIRECTOR. 11.
INDIAN CANE POWER LTD., A COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO. 627, SREE KALLESSHWARA RICE MILL COMPOUND, R.M.C. ROAD, ANEKONDA, DAVANAGERE - 577 001 REPRESENTED BY ITS MANAGING DIRECTOR SR. ARETHOL SANGAPPA NIRANJAN …RESPONDENTS
(BY SRI. KUSHALAPPA B.M.,ADVOCATE FOR R1, R2 AND R8;
SRI. PRASHANT F. GODAR., ADVOCATE FOR R3, R4, R7 AND R9;
SRI. SUKRUTHA, ADVOCATE FOR R5 & R6;
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R10 SERVED AND UNREPRESENTED)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE LETTER/COMMUNICATION DATED 12.7.2023, BEARING NO.DSK/MK/44/2019/20/440, ISSUED BY THE R-7 (ANNXA); QUASH THE LETTER / COMMUNICATION DTD 28.7.2023, BEARING NO.DSK/MK/44/2019/20/505, ISSUED BY THE R-7 (ANNX-B) AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM:
HON'BLE MR. JUSTICE M.G.S. KAMAL
ORAL ORDER
Petitioner before this Court is seeking following reliefs; i. Issue a Writ of Certiorari to quash the letter/communication dated 12.07.2023, bearing No. DKS/MK/44/2019, issued by the Respondent No. 7 (ANNEXURE A)
ii. Issue a Writ of Certiorari to quash the letter/communication dated 28.07.2023, bearing No. No. DSK/MK/44/2019, issued by the Respondent No.
7 (ANNEXURE B)
iii. Direct, by a Writ of Mandamus, Respondent Nos. 1 to 7 to permit the Petitioner to implement the project approved as per the Government order 10.02.2010 (Annexure E) and 01.03.2011 (Annexure L) and grant all necessary permissions and clearances expeditiously.
iv. Declare, by a Writ of Mandamus, that the Respondent No. 11 has no right to implement the project of establishing a Sugar Factory.
V. To grant such other order/s, relief/s as this Hon'ble Court deems fit to grant in the
facts and circumstances of the case, in the interest of justice and equity.
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vi. Issue a Writ of Certiorari to quash the IEM dated 02.08.2023 bearing No. 688/N/SIA/IMO/2023 (produced as ANNEXURE AG), issued by the Respondent No.1 and Respondent No.3 in favour of Respondent No.11."
2. The facts of the case are that originally one M/s. MRN Sugars and Power Ltd., Shegunasi village, Vijapur Taluk and District had made an application dated 01.01.2010 expressing its intention to establish a sugar factory on the land bearing Sy.No.126 of Halagani Village, Vijayapura Taluk. That the State High Level Clearance Committee by its meeting held on 05.01.2010 had passed resolution granting permission to said M/s MRN Sugars and Power Ltd., to establish a sugar plant with certain conditions attached thereto. A Government order dated 10.02.2010 came to be issued in this regard. Thereafter, in another meeting dated 24.01.2011, the State High Level Clearance Committee had purportedly allowed transfer of aforesaid permission by the said M/s. MRN Sugars and Power Ltd. in favour of M/s. Vijayashree Sugars and Power Ltd., the petitioner before this Court.
3.
Learned counsel for the petitioner submits that the present petitioner was pursuing the matter with regard to
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issuance of certificate as contemplated under Sections 6A and 6B of Sugarcane (Control) Amendment Order, 2006. However, at the instance of private respondent No.11, the application filed for issuance of certificates has not been considered, constraining the petitioner to approach this Court on earlier occasion by filing a writ petition in WP Nos.27600-601/2019. The said writ petition came to be disposed of on 19.08.2019 directing the Commissioner for Cane Development and Director of Sugar for Karnataka, Government of Karnataka- the respondent No.6 therein to consider the application of the petitioner herein which was annexed as Annexure-M to the said writ petition. Despite the said order no action was taken at the hands of respondent No.6/Commissioner therein. 4. That in the meanwhile impugned communication at Annexures-A and B to the present petition came to be passed by the respondent-authorities on a completely new premise of earlier permission having stood expired by afflux of time. That respondent-authority without even discharging the statutory obligation of granting or refusing to grant the distance certificate could not have opted the means to decline the
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entitlement of the petitioner by issuing impugned communications which have no relevance to the facts and circumstances of the case. That despite persistent follow-up by the petitioner, respondent-authorities have not taken any action causing prejudice to the petitioner. Hence seeks for allowing of the petition. 5. Sri. Prashanth F.Godar, learned counsel along with Sri. Goutham S. Bharadwaj, learned counsel for the respondent No.11 at the outset raised the issue with regard to the very maintainability of the writ petition. In this regard they have also filed an application in IA No.1/2026. (a) It is their contention that from the information obtained by them from the company master data, the present petitioner company is shown as inactive. That as of 04.08.2023 a non-existent Board of Director has given authorization to a person who is shown in the cause title to be representing the petitioner company. Thus, it is urged that the present petition is filed by a non-existing entity by an unauthorised director.
(b) It is their further contention that even from the records furnished by the petitioner, originally the application
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was purportedly filed by one M/s. MRN Sugars and Power Ltd. and the present petition is being pursued by a completely different entity namely M/s. Vijayashree Sugars and Power Ltd. That even as on the date when the purported application was filed by M/s MRN Sugars and Power Ltd., the present company was not in existence. (c) It is also contented that the purported permission accorded by the State High Level Clearance Committee on 24.01.2011 also does not meet the requirement of law inasmuch as, the present petitioner company M/s Vijayashree Sugars and Power Ltd. was not in existence even on the said date. (d) Drawing attention of this Court to the earlier order dated 19.08.2019 passed by Co-ordinate Bench of this Court in W.P.Nos.27600-601/2019 it is submitted that the application which was pending consideration at the time of disposal of the said writ petition was dated 22.03.2019 produced in the said writ petition at Annexure- M which is produced as Annexure-Q in the present writ petition. - 9 -
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(e) Juxtaposing the said order and the application at Annexure-Q, it is vehemently submitted that what was directed to be considered by the order of this Court was the application dated 22.03.2019 in which the petitioner herein had merely sought for extension of time for implementation of project. It is vehemently contented that the application seeking issuance of distance certificate was never made by the present petitioner.
No such application seemed to have been made even by the earlier company namely, M/s MRN Sugars and Power Ltd.
(f) Drawing attention of this Court to paragraphs 25 and 26 of the statement of objection and contend that no response to the said application has been filed by the petitioner refuting the averments made therein. (g) It is further submitted that respondent No.11 made an application seeking permission to establish a sugar factory on 23.02.2018 on which date neither any application was pending on behalf of the petitioner nor on behalf of the earlier entity namely, M/s MRN Sugars and Power Ltd., through and under whom the petitioner is claiming. - 10 -
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(h) It is submitted the application filed by respondent No.11 has been considered in the manner known to law. Respondent No.11 has been accorded permission and has invested several hundred crores of rupees in the project. The factory is ready to produce the sugar in the scheduled time. That if the plea of the petitioner is accepted as sought for, that would adversely affect the vested rights of the respondent No.11. Hence, seeks for dismissal of the petition. 6. Sri. Manjunath Rayappa, learned AGA for respondent Nos.3, 4, 7 and 9 drawing attention of this Court to contents of Annexure-B submitted that the prayer of the petitioner is essentially for consideration of its purported application, earlier filed in the name of M/s MRN Sugars and Power Ltd., for issuance of distance certificate. He submits the competent authority to consider said application is Secretary to the Government, Commerce and Industries Department (MSME and Mines) and not the Commissioner for Cane Development and Director of Sugar for Karnataka.
He submits if granted some time with a necessary direction, the Secretary to Government, Commerce and Industries Department would
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consider the grievance of the petitioner and pass appropriate orders in accordance with law. 7. In response, counsel for the petitioner submits that the original application seeking issuance of distance certificate as required under the provisions of Sugarcane (Control) Order, 1966 was made by M/s MRN Sugars and Power Ltd., on
01.01.2010. He furnishes soft copy of the said application also shown to the respondents. He further submits since the State High Level Clearance Committee has already accorded permission to transfer the permission in favour of petitioner herein, if at all the respondent No.11 is aggrieved by the said
order, it is open for them to challenge the same in the manner provided under law. 8. He also submits though this Court had directed the respondent No.6/Commissioner to consider the application, vide order dated 19.08.2019 in WP Nos.27600-601/2019 even before considering the said application, the respondent No.11 has managed to obtain the required permissions in a manner rendering the efforts of the petitioner infructuous. - 12 -
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12. He also brings to the notice of this Court the Order dated 10.12.2019 passed in WP No.51675/2019 filed by the respondent No.11 herein wherein this Court had directed Commissioner for Cane Development to proceed with the hearing of the matter and not to pass final order without obtaining the permission of this Court. He submitted even before giving effect to the said order, the respondent No.11 had withdrew the writ petition by filing a memo dated 19.07.2023. As such, the contentions which were required to be considered by the respondent No.6/Commissioner therein have not been considered. 13. Heard. Perused the records. 14. From the facts narrated above and submissions made by learned counsel for the petitioner, counsel for the respondent No.11 and learned AGA, what emanates is that an entity known and called as M/s. MRN Sugars and Power Ltd. had originally sought permission for establishment of a sugar factory, making an application on 01.01.2010. It appears the State High Level Clearance Committee in its meeting held on 05.01.2010, had indeed accorded permission which culminated
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in an order passed by the Government dated 10.02.2010 subject to compliance with the requirement of law in the nature of obtaining necessary certificates as required thereunder. It also appears that the permission so granted in favour of said M/s. MRN Sugars and Power Ltd., was permitted to be transferred to M/s Vijayshree Sugars and Power Ltd. the petitioner herein. 15. The petitioner herein has made an application on 22.03.2019 as per Annexure-Q. Perusal of the said application indicate that though efforts were made by the petitioner to establish the sugar factory pursuant to the order/resolution of the State High Level Clearance Committee's meeting dated 24.01.2011, it had not implemented the same.
The said application also indicate that certain M/s Someshwar Sugars Ltd. had in the meanwhile raised certain objections and that due to these intervening circumstances the project could not be implemented and the time so granted had lapsed. The order dated 19.08.2019 passed by this Court in W.P.Nos.27600- 601/2019, refers to the said pendency of the application which is annexed as Annexure-Q in the present writ petition. - 14 -
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16. As rightly pointed out by the learned counsel for the respondents even if the said application is to be considered is only for the purpose of extension of time for implementation of project. 17. By the impugned order at Annexure-A, respondent No.7 has held that the permission accorded in the 20th SHLCC meeting held on 10.02.2010 has expired on 09.02.2012, so also the permission granted to transfer the rights by M/s MRN Sugars and Power Limited in favour of the petitioner company herein. Consequently it is held the Government order dated 10.02.2010 is longer valid. 18. The essential grievance of the petitioner as vehemently submitted by learned counsel for the petitioner is for non-issuance of distance certificate for the implementation of the project which was sought for by M/s. MRN Sugars and Power Ltd., by filing the application on 01.01.2010. Admittedly, no
order has been passed by the respondent No.7/Commissioner on the said application till date. As such, this Court is of the considered view that respondent
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No.7/Commissioner without passing any order on the said application could not have issued Annexure-A.
19. Though, the petitioner herein had filed an application dated 22.03.2019 as per Annexure-Q seeking extension of time, as pointed out by the counsel for the petitioner despite there being an order dated 19.08.2019 passed in W.P.No.27600-601/2019, no orders have been passed even on the said application.
20. However, the respondent-State seem to have obtained legal opinion as per Annexure-AT from the Law department who had raised certain questions with regard to the very entitlement being claimed by the petitioner on the premise of there being no incorporation of petitioner company as on the date when the application was made as well as there being no merger or acquisition of the said two entities in the manner known to law.
21. Thus, the respondent-authorities more particularly respondent No.3 is required to look into the aforesaid aspect of the matter including as to whether the present petitioner can seek to derive any benefit, inasmuch as the application dated
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01.01.2010 was filed by earlier entity M/s. MRN Sugars and Power Ltd., and not by the present petitioner.
22. Since the order at Annexure- B indicate that the competent authority to consider the application for issuance of distance certificate is the Secretary to the Government, Commerce and Industries Department (MSME & Mines) and not the Commissioner for Cane Development and Director of Sugar for Karnataka and in the light of submission made by learned AGA that the applications of the petitioner including its claim to derive benefits, if any, through and under the earlier entity namely, M/s MRN Sugars and Power limited will also be considered in the manner known to law, placing the said
submissions on record, petition is disposed of with the following directions; (i) Impugned letter/communication dated 12.07.2023 passed by the respondent No.7/Commissioner as per Annexure-A is quashed. (ii) The respondent No.3 after adverting opportunity to the contesting parties, pass appropriate orders on the application dated
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01.01.2010 filed by M/s MRN Sugars and Power Ltd., as well as the application dated 22.03.2019 filed by petitioner herein and communicate the said order in writing within an outer limit of 3 months from the date of receipt of certified copy of this order. (iii) The respondent No.3 while passing the order as directed above shall also consider whether the petitioner herein is entitled for issuance of distance certificate upon the application dated 01.01.2010 made by M/s. MRN Sugars and Power Limited in the light of the queries raised by the Law Department as per Annexure-AT dated
25.11.2019. (iv) It is made clear that this Court has neither passed any order nor expressed any opinion with regard to rights or otherwise of the contesting parties.
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(v) All questions are kept open to be raised and adjudicated before the respondent No.3, in the manner known to law. (vi) Petitioner as well as the respondent No.11 are also at liberty to avail such remedy as may be available under law on any question involved in this matter.
In the light of the above order pending IAs are disposed of.
Sd/- (M.G.S. KAMAL) JUDGE
RU, List No.: 1 Sl No.: 10