SHRI GANESH S/O MANJUNATH HARIKANTH vs STATE OF KARNATAKA
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC-D:17423
WP No. 107538 of 2026
CNR: KAHC020158302026
IN THE HIGH COURT OF KARNATAKA AT DHARWAD
TH
DATED THIS THE 17 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE M.G.S. KAMAL
WRIT PETITION NO. 107538 OF 2026 (GM-RES)
BETWEEN:
SHRI. GANESH S/O MANJUNATH HARIKANTH,
AGE. 43 YEARS, OCC. BUSINESS,
R/O. SUNNAKERI, MAVALLI-1, MURDESHWAR TALUK,
BHATKAL, UTTARA KANNADA DISTRICT-581350.
…PETITIONER
(BY SRI. LAXMAN T. MANTAGANI, ADVOCATE)
AND:
1. STATE OF KARNATAKA,
BY ITS SECRETARY,
DEPARTMENT OF TOURISM,
VIKASA SOUDHA, BENGALURU-560001.
2. THE ASSISTANT COMMISSIONER,
BHATKAL SUB-DIVISION, BHATKAL,
UTTARA KANNADA DISTRICT-581320.
3. THE TAHSILDAR,
BHATKAL TALUK, UTTARA KANNADA DISTRICT-581320.
4. THE POLICE SUB-INSPECTOR,
MURDESHWAR POLICE STATION,
MURDESHWAR TALUK, BHATKAL,
UTTARA KANNADA DISTRICT-581350.
…RESPONDENTS
(BY SRI. PRASHANTH V. MOGALI, HCGP FOR R1 TO R4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF
CERTIORARI QUASHING THE IMPUGNED ENDORSEMENT ISSUED BY
RESPONDENT NO.2 REFUSING TO RENEW THE LICENCE OF NETRANI
RESIDENCY, IN BEARING NO. ENT/VIVA/13/2025-26 E. NO: 119822
DATED. 15.04.2026 VIDE ANNEXURE-E, AS BEING ILLEGAL,
ARBITRARY AND CONTRARY TO LAW AND ETC.
THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
Digitally
signed by
SAROJA
HANGARAKI
Location:
high court of
karnataka,
dharwad
bench
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CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL
ORAL ORDER
1. Petitioner was issued with a licence by the Mavalli Grama
Panchayath for the purpose of running a lodge under the
name and style of "Netrani Residency" under the
provisions of Sections 67, 68, 69, 70 of the Karnataka
(Gram Swaraj and Panchayat Raj) Act, 1993, as per
Annexure-C dated 23.12.2025, which was valid for a
period of 12 months. That since one of the conditions in
the licence requiring petitioner to seek renewal of the
licence before expiry of one year, petitioner had made an
application for renewal. Upon such application being
made, the respondent No.2-Assistant Commissioner,
Bhatkal, Sub-Division, Bhatkal, has issued an impugned
endorsement rejecting the application for renewal on the
premise of pendency of a criminal case against the
petitioner in Crime No.25/2024 for the offences
punishable Sections 376, 376(2)(n) and 506 of IPC which
is now referred to with S.C.No.26/2024 pending on the
file of District and Sessions Judge, Karwar. Citing the said
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reason the application for renewal has been rejected.
Being aggrieved, the petitioner is before this Court.
2. Learned counsel for the petitioner taking this Court
through the records submits that there is no provision
under law providing for rejection of application for
renewal on the ground of pendency of a criminal case. He
further submits that in any event even if such a case is
pending that does not pertain either to the business or to
the business premises in respect of which the licence has
been issued. Therefore, he submits rejection is arbitrary
without provision of law.
3.
Learned HCGP appearing for respondents referring to
condition No.8 of licence produced at Annexure-C submits
that the licence is liable to be cancelled in the event of
any illegal/immoral activities found to be carried on in the
licensed premises. Therefore, he submits the licence has
been cancelled based on the report received from the
local Tahsildar. Hence seeks for rejection of the petition.
4. Heard and perused the records.
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5. Sections 66 to 70 of the Karnataka (Gram Swaraj and
Panchayat Raj) Act, 1993, providing for issuance of
permission/licence read as under:
"66. Permission for the construction of factories and the
installation of machinery .- No person shall, without the
permission of the Grama Panchayat and except in accordance
with the condition specified in such permission,-
(a) construct or establish any factory, workshop or
workplace in which it is proposed to employ steam
power, water power or other mechanical power or
electrical power, or
(b) install in any premises, any machinery or
manufacturing plant driven by any power as aforesaid,
not being machinery or manufacturing plant exempted
by rules made by the Government under this Act.
67. Prohibition of offensive or dangerous trades without
licence.- No place within the jurisdiction of Grama Panchayat
shall be used for the purpose of any trade, business or industry
which the Government may, by notification declare to be
offensive or dangerous, except under a licence granted or
renewed by the Grama Panchayat and subject to such
conditions as may be imposed in the licence.
68. Control of hotels etc.- No place within the jurisdiction of a
Grama Panchayat shall be used as a hotel, restaurant, eating
house, coffee-house, sweetmeat shop, bakery, boarding house
or lodging house (other than a hostel recognised by the
Government), or a dharmashala or for manufacturing ice or
aerated water except under a licence granted or renewed by the
Grama Panchayat and except in accordance with conditions
specified therein.
69 . Licensing of shops.- No place within the jurisdiction of a
Grama Panchayat shall be used as a shop whether permanently
or temporarily, other than a shop referred to in section 68 and
69 except under a licence granted or renewed by the Grama
Panchayat and except in accordance with the conditions
specified therein.
70. Provisions applicable to permissions and licences
under sections 66, 67, 68 and 69.- (1) A permission shall be
granted under section 66 and a licence under sections 67,68
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and 69 shall be granted or renewed, only on payment in
advance of such fee as may be prescribed.
(2) The Grama Panchayat may, for reasons to be recorded in
writing refuse to grant the permission under section 66 or to
grant or renew a licence, or suspend or cancel a licence granted
or renewed , under sections 67, 68, and 69 for default of any of
the conditions subject to which the licence was granted.
(2A) save as otherwise provided in this Act, every
application for a licence or permission under this Act or
rule, bye-law or regulations made thereunder, or for the
renewal thereof, shall be made not less than thirty days
and not more than ninety days before the earliest date
with effect from which, or the commencement of the
period (being a year or such less period as is mentioned
in the application) for which the licence or permission is
required.
(2B) for every licence or permission, fees may be
charged on such units and at such rates not exceeding
the maximum prescribed as may be fixed by the Gram
Panchayat.
Provided that for every licence for hoardings, the fees
may be charged at such rates as specified in schedule IV.
(2C) if orders on an application under sub-section 2A
are not communicated to the applicant within sixty days
the application shall be deemed to have been sanctioned
subject to such conditions ordinarily imposed for the
period, if any, for which it would have been ordinarily
sanctioned.
Provided that in times of election or otherwise the
application cannot be processed the orders on an
application shall be communicated within a period of
ninety days.
(2D) when an order of deemed sanction under sub-
section 2C has been issued and the concerned Adhyaksha
and the panchayat development officer is responsible for
issue of such order, it shall be considered as a misconduct
and the Adhyaksha shall be proceeded under section 48
and the Panchayat Development Officer shall be
proceeded under the relevant service law, applicable to
him.
(2E) the acceptance of the pre-payment of the fee for
any such licence or permission shall not entitle the person
making such prepayment to the licence or permission, but
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only to a refund of the fee in case of refusal of the licence
or permission.
(2F) if an act, for which any such licence or permission
is necessary is done without such licence or permission,
or in a manner inconsistent with the conditions of the
licence or permission obtained, the licensing authority of
the Gram Panchayat may by notice require the person to
alter, remove, or as far as practicable restore to its
original state, the whole or any part of any property,
movable or immovable, public or private affected thereby
within a time specified in the notice.
(3) Any person aggrieved by the refusal to grant permission
under section 66 or to grant or renew licence, or by the
suspension or cancellation of a licence under sub-section (2)
may, within thirty days of the date of the communication of the
order, appeal to the [Executive officer] and his decision on such
appeal shall be final.
(4) Any appeal under sub-section (3) pending before the
General Standing Committee of the Zilla Parishad shall on the
date of commencement of the Karnataka Panchayat Raj Act,
1993 stands transferred to the Assistant Commissioner and
such appeal shall be decided by him as if it had been filed
before him."
6. Perusal of the said provisions do not anywhere indicate
initiation of any criminal case against the licensee to be a
ground for cancellation or refusal to renew the licence.
However, it provides that should there be any violation of
the terms of the licence, the licence is liable to be
cancelled. It is perhaps in this regard learned HCGP has
referred to Condition No.8 of the licence produced at
Annexure-C. The said condition No.8 of the licence reads
as under:
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“8. ¥ÀgÀªÁ£ÀV ¥ÀqÉzÀ ªÀåªÀºÁgÀPÉÌ ºÉÆgÀvÁV, ¨ÉÃgÉ CxÀªÁ AiÀiÁªÀÅzÉÃ
PÁ£ÀÆ£ÀĨÁ»gÀ ZÀlĪÀnPÉUÀ¼À GzÉÝñÀPÉÌ §AiÀĹzÀÝ°è ¯Éʸɣïì gÀzÀÄÝ¥Àr¹
PÁ£ÀÆ£ÀÄ PÀæªÀÄ dgÀÄV¸À¯ÁUÀĪÀÅzÀÄ.”
7. The reason assigned for rejection of request for renewal
is pendency of criminal case in S.C.No.26/2024 on the file
of District and Sessions Judge, Karwar, for the offence
punishable in Section 376, 376(2)(n) and 506 IPC. The
charge sheet which is enclosed with this writ petition at
Annexure-D indicate petitioner having been alleged to
have committed the offence noted above at his residence
and not at the premises to which the licence has been
issued. This is clear from column No.17 of the charge
sheet. Therefore the plea referring to condition No.8 of
the licence is unsustainable. In the absence of any
provision providing refusal of issuance or renewal of
licence merely because a criminal case is pending against
licencee, as sought to be done in this case, order
rejecting request for renewal is arbitrary without being
traceable to any provision of law. Moreover, since there is
no violation of condition No.8 in the light of contents of
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column No.17 of the charge sheet, this Court deems it
appropriate to allow the petition.
Accordingly, following:
ORDER
(i) Petition is allowed .
(ii) Impugned endorsement dated 15.04.2026 at
Annexure-E is quashed.
(iii) Matter is remitted to respondent No.2-Assistant
Commissioner to consider the application for renewal
of licence as sought for.
(iv) Such renewal of licence shall be accorded within a
period of 30 days from the date of receipt of certified
copy of this order subject to petitioner complying
with other requirements provided under the
provisions noted above.
Pending applications stands rejected.
Sd/-
(M.G.S. KAMAL)
JUDGE
SBN/ CT:SD
LIST NO.: 1 SL NO.: 24