DISTILLERS COMPANY (P) LTD Vs. KARNATAKA INDUSTRIAL AREA

JUDGEMENT

(1.) The petitioner is a company carrying on business in manufacture and sale of potable liquor and alcohol based chemicals. The petitioner was allotted 140 acres of land in plot Nos.1 to 17 at Shivamogga-Bhadravathi Industrial Area, in the year 1982. The petitioner is before this Court calling in question the demand raised by the respondent Karnataka Industrial Area Development Board (for short 'the KIADB') on 14.09.2000 (Annexure-J), calling upon the petitioner to pay Rs. 1,28,23,888/- towards difference in the land cost, lease rent, interest, penal interest and maintenance charges, etc and the Letter of termination dated 03.11.2010 (Annexure-Q).

(2.) The brief facts of the case are as follows:

(3.) Thereafter, the petitioner received a notice form the Karnataka State Pollution Control Board (for short 'KSPCB') directing the petitioner to carryout various directions issued by the KSPCB. Since, the petitioner was unable to comply with the directions issued by the KSPCB, it appears that KSPCB issued directions to the concerned authorities to disconnect electricity, water supply and allotment of molasses to the distillery with immediate effect. When the matter stood thus, KIADB called upon the petitioner to pay arrears of rents of Rs. 10,40,925/- by issuing a letter dated 29/31.05.1997. Thereafter, vide a letter dated 14.09.2000 (Annexure-J), KIADB informed the petitioner that final rate of the land in question was fixed at the rate of Rs. 210/- per square meter which works out to 1,30,80,768/- and after giving deduction of Rs. 19,81,549/- that was paid by the petitioner, it was called upon to pay Rs. 1,28,23,888/-, which includes installments due, interest due, penal interest due and maintenance charges, along with interest. Thereafter, it appears that the petitioner made several representations to the KIADB and to the State Government seeking reconsideration of the demand made by the KIADB. Finally, KIADB terminated the lease by issuing a letter dated 011.2010, at annexure-Q. Being aggrieved the petitioner is before this Court assailing the demand notice and termination of lease made by the KIADB.