DURGA FABRICATION WORKS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The submissions were heard on the earlier date.

(2.) On 20th May 2016, the Karnataka Industrial Area Development Board (for short 'the said Board') issued a letter of allotment to the appellant by which the allotment of 1 acre of land in plot No.10D of Non-IT SEZ industrial area at Pajeeru Village, Bantwal Taluk, Dakshina Kannada District was made to the appellant on the terms and conditions stated in the said letter. The letter records that the allotment was made for manufacture of fabrication works subject to the terms and conditions set out in Annexure-A. Annexure-A specifically records that the construction should be commenced by the appellant within 9 months from the date of taking over the possession and the production should be commenced within the time specified therein. Clause 2 of the conditions of allotment appended to Annexure-A records that on being satisfied that the land is not being used for the purpose for which it was allotted, the said Board is free to enter upon and take possession. The possession of the allotted land was handed over to the appellant under the possession certificate dated 1st June 2017. A lease-cum-sale agreement dated 1st December 2017 was executed by and between the Board and the appellant. In the recitals, it is specifically mentioned that the appellant had applied to the lessor (the said Board) for allotment of the land for setting up an industrial project.

(3.) It appears that the appellant made an application to the said Board (the Development Officer of the said Board) for grant of permission for the product activity change for using the said plot for lodging and boarding. By the order dated 17th July 2019, the Chief Executive Officer of the said Board rejected the said application. In the said order it was mentioned that as per the notification dated 13th March 1991 of the Commerce and Industries Department of the Government of Karnataka, the activity of hotel falls under the category of amenity for the industrial areas developed by the said Board. It is further observed that the Investment Approval Committee has approved the project proposal of the appellant for establishing a unit for fabrication work after taking into consideration the project report submitted. It is further observed in the said order that granting permission for change of activity from industrial to non-industrial activities for an already allotted land for a specific industrial purpose leads to conversion of land from industrial land to non-industrial land and it sets a precedent for other allottees thereby defeating the very object of setting up of the said Board for promotion, establishment and orderly development of the industries. The said office order was communicated by the letter dated 19th July 2019 to the appellant. A writ petition was filed by the appellant for challenging the said order dated 17th July 2019 and for issuing a writ in the nature of mandamus directing conversion of the user of the said plot for establishing a lodging and boarding.