M/S. Umrah Developers vs The State Of Karnataka on 2 June, 2010

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Karnataka High Court

M/S. Umrah Developers vs The State Of Karnataka on 2 June, 2010

Bench: Huluvadi G.Ramesh

This Writ Petition is filed under Articles 226 and 227 of
the Constitution of India praying to direct the R2, to consider
the representzitions dtd.i9.i0.09, l.l.20i0 and 20.5.10 vide
Annwlii G, H and pay interest at the rate of 24% p.a.___ on the
refunded amount of Rs.3,25,000/-- (rupees three lakhs twenty
five thousand only) being the 25% of the Bil) anionnt"defpos'i.ted
by the petitioner in respect of the schedule land.  i L' 3 "

This Writ Petition coming on for p1*eli_nn:1t1'tfy,,hearing this. b 

day, the Court made the fol.lowing:j  "

.Q....13_.D E  2

Learned Government Ple.ade.r is dii--ree'ted'_=toftalte notice

for respondents.

2. llAeCtii'diii_gA't_tilthe petitioner. he participated in the pjfoeeediiitgs held 'ivn-----au'etio11ing the Government property by the _ *D_e'p1.1ty.,_C»r5i:1_i"nissit)iaer, Bangalore and he was a successful 'bidder has also deposited 25% of the BID amount i.e., AA Rs.3;2.5i,tUOO/-- in respect of the seh_edt1i.ed land. The petitioner on ' -..V"eom:.tng to know about the fact that these lands are sought to be

----ilaectuited for Nada Prabu Kempegowda Layout to be 1"ot7rn_ed by BDA, he submitted his tepreﬁntations seeking for refund of the 'X K»..-

amount depositeci by him, with interest. He has nlso filed W,P.No.i8662./()9 before this Court seeking for El direetion to refund the amount. The said petition was allt)we'tt["wit~l1 a direction to the respondent--nuthorities to --'.:H'C()13St(1'€!i1'" fthe". representations ofthe petitioner and'theGovern.meint'.has' 9 an order for refund and nec:o1fdingly',.__the nmoun_t_ 'd»eposi.ted by the petitioner has been adjusted'«towa1'ds o'the'i*:a.t1nc)t:nts payable by the petitioner in 1-esipeet of' so_n1e..ot.h'e~r.auction tjroeeedings. But in so far as payinetit»_of:_intere'stiis; concerned, despite submitting representatiionss no ttetionitns' been taken. Hence, this p"e,titi'--on.V H_8iiI'di _____ .. e

4.. Iitjisithe £l1'§._I_L1I'n€I1t of the learned Senior Counsel that this C"o_u"rt in single Bench we}! 38 in the Division Bench has i '~_iheE--d that, in such an event, the Government has to pay interest 69"}: on the amount deposited, from the date of deposit till \§§.:/ payinent since the Govmiiment was not in at position to deliver the pessession ofthe land as committed.

5. it is seen that petitioner being the succe.s's:fu.i deposited the tmi<')t,iiit. When Elie---a'1;1<:t--i.t)i1 'i_S'di.€. eotitd not he conctnded, the atmeunt. deposited ti)/__ hint was_-.i'efunde--d;'--~tmizlu although petitioner' d€lT1E1}]d6di"f,():i"'ipﬂyllléfkt ofﬁntexjest on the amount deposited by fiiing i'ejj1'eset:itttt.it"mis, no aetitni has been taken by the respondentftttithoritiefs. 'l'~his'~:C:.>--t1rt, in the similar cii'cui1istztnce:'i_§, iliflriﬁ diie<;isi_(ih of the i'"\:1iI'1'gE.C- bench as welt as in the Dix/iE~}i()il]vifiétitiiiiii}=.hh7!':iéiii'5ti).1608/U9 Ciisposed of on 20.2.09 and in 'thgptiseci of mi l2.I(),()9 respectiveiy, i}£i:Siiii'3é.)1'{i,(31'Cf,_i for i*e£'e.~:-t--d'e)t' :.ni'i0u1it with 6% interest. Hence, in _ 'the'c.z'zse._{ii,i"ht-trad, for the period for which the amount was in de.posi.t..the4f,re.spt)ndents have to necessarily pay the interest at petitioner. Although, the teamed Government igfxdvticate has submitted that the Government has not earned

-"any i1it.e1'est en the said ttl11€)U1]L when the G'()'v'€E'f}l"{}€I}.[ has tziken. steps to L-ALICUOI1 the pmpert}-'. iii} the Z1UC'[i€)l] sake is it"

eoneludecl it could have taken steps to keep the amount in any of the nationali'/,ed banks which would have e211'ne.tl' For the lapse on the part of the Government. petiltithrtetfl"t:arari§'>t V' be blamed. The Government, if neefti be,' 'enulld i-;nE.ti:ate' atit'i'011 as to for whose default the money cottldlnotl-fetclt in-tlerestl;

6. Accordingly. lpet"}--ti01'-i_ is,tl,ilSpos.etl.tt'}f. The respondent.- authorities are A._di1'ected«.. te 'cQ::1sildev_1" A"t:h'el representations subrnittecl bythe5p'et_ltEonet1-anal___teCfpay {ﬁe interest @ 6% from the datet_HQf"ree'elj;:;t__Vt_ill.,__tl'2_el' dateVVVVt)fl payment, without further de--lay.lV._ ' l EEf$;21i'!,Ti€d Cove-1-'~nment Pleadetf is permittecl to file his _ menm lt'3vfap}5eg11':*;.z1ce within four W€€3l(S from today. Sd/-

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Karnataka High Court