Karnataka High Court
M/S Dreams Foundation Pvt Ltd vs Chief Commissioner on 20 December, 2023
Author: Suraj Govindaraj
Bench: Suraj Govindaraj
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NC: 2023:KHC:46638
WP No. 17478 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 20TH DAY OF DECEMBER, 2023
BEFORE
THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ
WRIT PETITION NO. 17478 OF 2023 (LB-BMP)
BETWEEN:
M/S DREAMS FOUNDATION PVT LTD.,
FORMERLY KNOWN AS,
M/S CHILUME ENTERPRISES PVT LTD,
COMPANY REGISTERED UNDER THE
PROVISIONS OF COMPANIES ACT 2013
HAVING ITS REGISTERED OFFICE AT,
NO 261/1, 2ND MAIN, 17TH CROSS,
BEHIND SHEKAR NURSING HOME,
MALLESHWARAM,
BENGALURU 560003
REPRESENTED BY ITS DIRECTOR,
SMT SHRUTHI B
...PETITIONER
(BY SRI. V. LAKSHMINARAYANA , SR. COUNSEL FOR
SRI. ANUSHA L.,ADVOCATE)
Digitally signed
by AND:
NARAYANAPPA
LAKSHMAMMA 1. CHIEF COMMISSIONER
Location: HIGH BRUHAT BENGALURU MAHANAGARA PALIKE,
COURT OF N R SQUARE,
KARNATAKA
BENGALURU 560002
[email protected]
2. EXECUTIVE ENGINEER
MAHADEVAPURA ZONE,
OLD MADRAS ROAD,
K R PURAM, BANGALORE 560036
...RESPONDENTS
(BY SRI. BHANUPRAKASH V G.,ADVOCATE FOR R1 & R2)
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NC: 2023:KHC:46638
WP No. 17478 of 2023
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF
CERTIORARI QUASHING THE ENDORSEMENT DTD 15.05.2023
BEARING NO.CA(CHU)/PR/672/2023-24 ANNEXURE-G PASSED BY R1
AND ALSO THE ORDER OF BLACKLISTING DTD 25.05.2023 BEARING
NUMBER KAO/M U/PR/D7/2023-24 ANNEXURE-N PASSED BY R2 SO
FAR AS THE INCLUSION OF THE PETITIONER AS ASSOCIATE
COMPANY AS ARBITRARY, VIOLATIVE OF ARTICLE 14 AND 21 OF THE
CONSTITUTION OF INDIA AND ALSO QUASH SHOW CAUSE NOTICE
ANNEXURE-D DTD 07.12.2022 ORDER BEARING
NO.ELN/CENTRAL/PR/94/2022-23 AND ETC.
THIS WRIT PETITION, COMING ON FOR PRELIMINARY
HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE
FOLLOWING:
ORDER
1. The petitioner is before this Court seeking for the following reliefs:
a. Issue a writ of Certiorari quashing the Endorsement dated 15.05.2023 bearing No. C.A.(CHU)/PR/672/2023-24 (Annexure-G) passed by R1 and also the order of blacklisting dated 25.05.2023 bearing No. KAO/M/U/PR/D7/2023-24 (Annexure-N) passed by R2 so far as the inclusion of the petitioner as associate company as arbitrary, violative of Article 14 and 21 of the Constitution of India and also quash show cause notice (Annexure-
D) dated 07.12.2022 order bearing No. ELN/CENTRAL/PR/94/2022-23' b. Declare that both the impugned orders are void as the petitioner has not been heard and both the orders have been passed in violation of the principles of natural justice i.e., without notice and without hearing the petitioner and deprives that means of livelihood of the Petitioner as violative of Article 14, 16, 19(1) (g) and 21 of the Constitution of India.
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NC: 2023:KHC:46638 WP No. 17478 of 2023 c. Issue a writ of mandamus directing the Respondents to release all the bills which have been withheld because of the impugned order bearing No. C.A.(CHU)PR/672/2023-24 dated 15.05.2023 (Annexure-G) and impugned order bearing number KAO/MU/PR/D7/2023-24 dated 25.05.2023 (Annexure-N).
d. Pass any appropriate order or directions as this Hon'ble Court deems fit grant in facts and circumstances of the case.
2. The contention of the petitioner is that on the basis of blacklisting order made on Chilume Educational Cultural and Rural Development Trust, the petitioner is also be blacklisted without issuance of any notice.
3. Sri.Bhanuprakash.V.G, learned counsel for the respondents No.1 and 2 submits that the order of blacklisting passed by the Chief Commissioner is as regards Chilume Educational Cultural and Rural Development Trust and its Associates, the petitioner was earlier known as Chilume Enterprises Private Limited, petitioner being an Associate of the said Trust is as such covered under the said blacklisting order.
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NC: 2023:KHC:46638 WP No. 17478 of 2023
4. Heard Sri.V.Lakshminarayana, Senior counsel for Smt.Anusha.L, learned counsel for the petitioner and Sri.Bhanuprakash.V.G, learned counsel for respondents No.1 and 2. Perused papers.
5. Having heard both the counsel, I am of the considered opinion that the Trust and the private companies are two distinct entities in the eyes of law and if at all, any blacklisting of petitioner has to be done, a specific notice ought to have been issued to the petitioner, an omnibus order to include the Trust and its Associates could not have been passed. If blacklisting of any Associates is to be made, notices to each and every Associate would have to be issued. Same not being done, the impugned order is not sustainable insofar as the petitioner and all such entities coming within the definition of 'Associates', as it can only apply to Chilume Educational, Cultural and Rural Development Trust.
6. In that view of the matter, I pass the following: -5-
NC: 2023:KHC:46638 WP No. 17478 of 2023 ORDER i. The writ petition is allowed.
ii. It is made clear that the endorsement dated 15.05.2023 bearing No.C.A(CHU)/ PR/672/2023-24 at Annexure-G and order of blacklisting dated 25.05.*2023 bearing No.KAO/MU/PR/07/2023-24 at Annexure-N is only applicable to Chilume Educational, Cultural and Rural Development Trust and not to any other entities.
iii. Liberty is however reserved to the Corporation to issue notices to such entities as they proposes to, provide opportunity to such entities and thereafter pass all necessary orders in accordance with law Sd/-
JUDGE LN, List No.: 1 Sl No.: 121 * Corrected vide Chamber Order dated 06.01.2024