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2026 DAILYLAW 50338 (KAR)

KARNATAKA STATE INDUSTRIAL AREA DEVELOPMENT BOARD v. M/S KANAKASHREE HIGH TEK ECOWOOD

WP/28258/2024 · 2026-02-02

D K Singh, Tara Vitasta Ganju

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Judgment text

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- 1 - HC-KAR NC: 2026:KHC:5749-DB WP No. 28258 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF FEBRUARY, 2026 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MS. JUSTICE TARA VITASTA GANJU WRIT PETITION NO. 28258 OF 2024 (GM-CON) BETWEEN: KARNATAKA STATE INDUSTRIAL AREA DEVELOPMENT BOARD, NO.14/3, II FLOOR, RASHTRATHANA PARISHATH BUILDING, NRUPATHUNGA ROAD, BENGALURU-560 001. REP. BY ITS ASSISTANT SECRETARY. …PETITIONER (BY SRI. MONESH KUMAR.K.B., ADVOCATE) AND: 1. M/S. KARNASHREE HIGH TEK ECOWOOD NO.110, 11TH MAIN III PHASE, GIRINAGAR, BENGALURU-560 085. REP.BY ITS DIRECTOR, HVLK MURTHY. 2. EXECUTIVE ENGINEER (ELEC), RAMANAGARA DIVISION, BESCOM. …RESPONDENTS (BY SRI. DEVARAJ.G., ADVOCATE FOR R1; R2-SERVED) - 2 - HC-KAR NC: 2026:KHC:5749-DB WP No. 28258 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT, ORDER OR DIRECTION IN THE NATURE OF CERTIORARI TO QUASH THE ORDER PASSED BY THE KARNATAKA STATE CONSUMER REDRESSAL STATE COMMISSION IN COMPLAINT No.03/2012 BY ORDER DATED 22.09.2017, PRODUCED AS ANNEXURE-C AND CONSEQUENTLY BE PLEASED TO ISSUE A WRIT ORDER OR DIRECTION IN THE NATURE OF CERTIORARI TO QUASH THE ORDER DATED 26.04.2024 IN FIRST APPEAL No.264/2018 PASSED BY THE NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI PRODUCED AS ANNEXURE-E AND BE FURTHER PLEASED TO DISMISS THE COMPLAINT PREFERRED BY THE RESPONDENT IN COMPLAINT No.3/2012 FILED BY THE RESPONDENT DATED 05.01.2012 PRODUCED AS ANNEXURE-A, ETC. THIS WRIT PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH & HON'BLE MS. JUSTICE TARA VITASTA GANJU ORAL ORDER (PER: HON'BLE MR. JUSTICE D K SINGH) 1. The present writ petition has been filed under Articles 226 and 227 of the Constitution of India, impugning the order dated 26.04.2024 passed by the National Consumer Disputes Redressal Commission, New Delhi, [hereinafter - 3 - HC-KAR NC: 2026:KHC:5749-DB WP No. 28258 of 2024 referred to as the “National Commission], in First Appeal No.264/2018 filed by the petitioner as well as the First Appeal No.1915/2018 filed by the first respondent against the order dated 22.09.2017 of the State Consumer Disputes Redressal Commission, Karnataka, Bangalore, [hereinafter referred to as the “State Commission”]. 2. The first respondent who was allotted 01 acre of land by the petitioner herein under the “Single window Clearance Committee” (SWCC) system of the State Government of Karnataka, viz., Karnataka Udyog Mitra, on 12.10.2009, Plot No.165 in Harohalli Industrial Area, 2nd Phase, for a sum of Rs.60.00 lakhs, filed a complaint alleging the deficiency in service as promised by the petitioner to provide amenities like approach road, electricity connectivity, etc. to the complainant’s Industrial Unit and claimed compensation of Rs.90.00 lakhs for the loss caused to the complainant for delay and not providing the basic amenities as promised. - 4 - HC-KAR NC: 2026:KHC:5749-DB WP No. 28258 of 2024 3. The complainant/first respondent had paid Rs.60.00 lakhs by 27.04.2010 and after that, a registered agreement was executed between the parties on 11.05.2010 and possession was handed over on 09.07.2010 by the petitioner to the complainant/ first respondent. The complainant had taken a loan of Rs.5.00 Crores for setting up of an Industrial Unit and working capital. He had constructed a Shed on 05.01.2012, the respondent approached the State Commission through a Complaint, contending that, till date, the basic amenities such as road and electricity connectivity had not been provided to the Industrial Unit of the complainant. 4. The complainant/first respondent had developed a technology of “Manufacturing Artificial Wood from Bio- mass Polymer Compounds and Road Waste”. The first respondent was issued a licence for setting up of an Industrial Unit on 12.05.2010, from the Directorate of Industries and Commerce which categorized his Enterprise as “Small/Manufacture”. He had obtained a term loan from - 5 - HC-KAR NC: 2026:KHC:5749-DB WP No. 28258 of 2024 the Canara Bank for Rs.4.50 Crores and credit facility of Rs.50.00 lakhs and purchased a Machinery from China, worth Rs.3.00 Crores. An expenditure of Rs.1,19,54,000/- was incurred on bore well, generator, shed, toilet, etc, apart from executing a Lease-cum-Sale Agreement for Rs.52,78,155/- with the petitioner. The complainant/first respondent alleged that because of not providing the basic amenities and facilities, he was incurring loss of Rs.12.00 lakhs per month till the date of filing of the complaint and to the extent of Rs.90.00 lakhs thereafter due to the deficiency in service. 5. There was no dispute that the petitioner was a Public Authority and was obliged to provide services such as approach road, water supply and electricity, for which the first respondent had paid the price fixed within the time and Lease-cum-Sale Deed was executed with the first respondent. When the petitioner did not dispute the fact that it could not provide the facilities as promised and held out to the said respondent, the State Commission had - 6 - HC-KAR NC: 2026:KHC:5749-DB WP No. 28258 of 2024 allowed the complaint, awarding the compensation of Rs.20.00 lakhs to the complainant/first respondent. The National Commission has considered all aspects and facts and has affirmed the order passed by the State Commission. 6. Though the claim was for Rs.90,00,000/-, the State Commission has awarded Rs.20,00,000/- only, which had been affirmed by the National Commission. We do not find any ground to interfere with the reasoned order passed by the two fact finding forums. We don’t find any scope to interfere with the impugned orders and therefore, the writ petition is dismissed. All pending applications stand closed. (D K SINGH) JUDGE (TARA VITASTA GANJU) JUDGE BMV* List No.: 2 Sl No.: 13 Digitally signed by DINESH KUMAR SINGH Location: HIGH COURT OF KARNTAKA Digitally signed by TARA VITASTA GANJU Location: HIGH COURT OF KARNTAKA