ACADEMY OF MUSIC Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) academy of music has questioned the order of the government dated 29-11-1984 rescinding an earlier order dated 7-1-1981 under which the state government had converted the loan of Rs.

(2.) 20 lakhs to the petitioner into a grant.2. The facts leading to the impugned order and consequently the writ petition may be stated briefly:- academy of music, which is a body registered under the Provisions of the Karnataka societies Registration Act, 1960, obtained a site on lease from the Bangalore city corporation in 1970. An edifice as a befitting memorial to late Sri Chowdiah, the internationally reputed violinist of Karnataka, was decided to be put up by the petitioner at an estimated cost of Rs. 61 lakhs. The monumental construction is now come to be known as "chowdiah memorial hall" situate in vyalikaval, Bangalore. Funds were collected from various sources from among the members of the public and loans were raised from banks with an initial grant of loan by the state government also. The loan granted by the state government to the extent of Rs. 5 lakhs was on 27-10-1977 and the loan was enhanced to Rs. 5.20 lakhs by another order of the state government dated 7-12-1977. Again on 31-5-1978 a further loan of Rs. 5 lakhs was sanctioned by the government. Lateron on 15-3-1980, the state government sanctioned another loan of Rs. 10 lakhs. Thus a total amount of Rs. 20.20 lakhs was granted by the state government for the construction of chowdiah memorial hall and these loans were to be repaid together with interest stipulated thereon.

(3.) it is stated that the chowdiah memorial hall was inaugurated on 15-11-1980 by the erstwhile chief minister of Karnataka who, in the course of his speech, announced that the loan of Rs. 20.20 lakhs would be converted into a grant and thus the loan advanced would be waived. It is also stated that when the announcement was made by the then chief minister converting the loan into an outright grant, no conditions preceding such a conversion were contemplated.