DURGA FABRICATION WORKS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Aggrieved by the order dated 17.07.2019 in No.KIADB/HO/ ALLOT/Comp.No.14378/5409/2019-20 (Annexure-'P') issued by the Chief Executive Officer-cum-Executive Member, Karnataka Industrial Area Development Board, Bengaluru and the communication dated 19.07.2019 bearing No.KIADB/HO/Allot/C.No.14378/5534/2019-20 (Annexure-'P1'), petitioner has preferred this petition under Articles 226 and 227 of the Constitution of India.

(2.) The outline facts leading to the issuance of Annexure-'P' and 'P1' are that an industrial shed was allotted in favour of Sri.Prakash Ramu Rathod, Proprietor of M/s.Durga Fabricators, Belagavi, as per the allotment letter dated 20.05.2016 in an area of 1.00 acre, in Plot No.10-D of Non-IT- SEZ Industrial Area (Annexure-'A') for establishing an unit for "Fabrication works". The lease-cum-sale Agreement was executed for a period of 10 years vide Annexure-'C'. The possession of the said shed was handed over to the petitioner on 01.06.2017. That being the case, petitioner - M/s Durga Fabrication Works vide letter dated 16.03.2018 addressed to the Development Officer, KIADB, Mangaluru sought for change of activity from "Fabrication Works" to "Lodging and Boarding" in the name of M/s.Hotel Madhav Residency (Annexure-'D'). The said proposal was sent to Karnataka Industrial Areas Development Board Head Office, Bengaluru seeking appropriate orders. After examining the request in detail, as per the directions of the C & I Department, Government of Karnataka vide letter No.CI.81.IAP.2014(P) dated 21.04.2017, the request of M/s.Durga Fabrication Works was not considered (Annexure- 'G'). Accordingly, the Assistant Secretary, KIADB Zonal Office, Mangaluru vide letter dt.13.12.2018 (Annexure-'L') informed M/s.Durga Fabricators that their request for change of activity from "Fabrication Works" to "Lodging & Boarding" activity was rejected.

(3.) The petitioner filed Writ Petition No.58180/2018 (GM-KIADB) before this Court seeking quashing of the communication dated 13.12.2018. This Court by its order dated 11.06.2019 quashed the communication dated 13.12.2018 for the reason that the allotment of land to the petitioner M/s.Durga Fabrication Works was made on 20.05.2016, prior to issuance of the order dated 21.04.2017 by the Department of Commerce and Industries, Government of Karnataka. Further, this Court directed the competent authority to decide the application submitted by the petitioner for change of user of the plot in question afresh by a speaking order within a period of one month from the date of receipt of the order, without being influenced by the order dated 21.04.2017. However, the representation of the petitioner came to be rejected by order dated 17.07.2019 (Annexure-'P') which is impugned herein. The Chief Executive Officer-cum-Executive Member has rejected the request of the petitioner for change of activity for the reason that granting permission for change in activity from Industrial to Non-Industrial activities for an already allotted land for a specific industrial purpose leads to conversion of industrial land to non- industrial purpose; sets precedent for other allottees in the industrial areas to follow the same, thereby defeating the very purpose of Karnataka Industrial Areas Development Act, 1966 (hereinafter referred to as "KIAD Act") to promote establishment and orderly development of industries.