High CourtsSINGLE BENCH(2017) 12 KAR CK 0015

SMT.RUKMINI W/O SRI CHANNEGOWDA Vs STATE OF KARNATAKA URBAN DEVELOPMENT DEPARTMENT

Karnataka High Court · Decided on 6 December 2017

HON’BLE JUDGES
Dr.Vineet Kothari
RESULT
Dismissed
CASE NUMBER
18343-18357 of 2017 (LB-RES)

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Judgment

46 paragraphs · 530 words
1.

The petitioner No.1, Mrs.Rukmini and 14 others

have filed these Writ Petitions in this Court challenging

the auction for lease rentals of Municipal Shops at

Belur Town Municipality, Hassan District.

2.

The earlier Writ Petitions filed by these

petitioners, namely, W.P.Nos.49283-49293/2016

(LB-RES) came to be disposed of by this Court on

8.7.2016. Paragraph Nos. 10 and 11 of the said order

are quoted below for ready reference:-

"10. It is true that the petitioners being erstwhile lessees are also equally entitled to participate in the auction process as envisaged in the said Circular dated 14.08.2015, but their lease period cannot be extended just like that in the teeth of the said Circular dated 14.08.2015. Admittedly, since the lease period of the present persons for the shops in question has come to an end, the respondent-Municipal Council is bound to proceed further for putting-up the same to be leased out again on auction basis to be given on lease to the bidders who give highest bid for the rentals of the shops in question. The respondent-Municipal Council therefore cannot be mandated to extend the lease period of the petitioners at the same old rate of rents paid by them.

11.

On the basis of the aforesaid, this Court does not find any good ground to interfere with the process of the respondent-Municipal

Council in terms of the aforesaid Government Circular dated 14.08.2015 and there is no merit in the present writ petitions and they are liable to be dismissed.

Accordingly, the writ petitions are dismissed. No costs."

3.

By an interim order in the present case

passed on 1.9.2017, this Court permitted the

respondent No.2 - Belur Town Municipality to open the

Bids in such Auction held on 27.4.2017 and produce

the result of the same before this Court.

4.

Accordingly Mr.A.Nagarajappa, the learned

counsel for the Caveator-respondent Nos.2 and 3 -

Belur Town Municipality has filed a Memo in this Court

on 10.10.2017 and produced the Auction Sheet of 22

Shops in question and has submitted before the Court

that the lease rentals of the said Shops in question

given by the bidders is seven more than times of the

earlier lease rentals being paid by the present

petitioners and therefore, the respondent-Belur Town

Municipality should be permitted to evict the present

petitioners-lessees and give possession of the said

Shops in question to the highest Bidders in the said

open Auction held on 27.4.2017.

5.

Having heard the learned counsels, this

Court is satisfied that the petitioners cannot be said to

have any vested right in continuing the said Municipal

Shops after their lease period was over and to maintain

the transparency and to yield more public revenue by

way of rentals, the open Bid process permitted in law

was rightly taken by the respondent-Belur Town

Municipality, which prima facie, indicates a quantum

jump in the lease rentals by the highest Bidders in the

said Public Auction and accordingly, this Court does not

find any merit in the present Writ Petitions and the

Shops in question deserve to be allotted to the highest

Bidders in accordance with law.

These Writ Petitions are accordingly dismissed. No

order as to costs.