M/S KHUSHI TRADERS vs THE STATE OF KARNATAKA
- Court
- Karnataka High Court
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WP No. 203598 of 2026
CNR: KAHC030091082026
IN THE HIGH COURT OF KARNATAKA
KALABURAGI BENCH
TH
DATED THIS THE 28 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL
WRIT PETITION NO.203598 OF 2026 (APMC)
BETWEEN:
1. M/S KHUSHI TRADERS
REP BY ITS PROPRIETOR
SRI. BABU
S/O YESHAPPA PASWAN
AGED ABOUT 52 YEARS
OCC : BUSINESS
R/O NEAR SAMUDAYA BHAVAN
NAVADGERI, JANAWADA ROAD, BIDAR
DIST: BIDAR 585401.
…PETITIONER
(BY SRI. R.J. BHUSARE, ADV.,)
AND:
1. THE STATE OF KARNATAKA
DEPARTMENT OF CO-OPERATION
M.S. BUILDING, BANGALORE 01
REP. BY ITS SECRETARY.
2. THE DIRECTOR OF AGRICULTURAL
MARKETING
NO.16, 2ND RAJ BHAVAN ROAD
SHIVAJI NAGAR, BANGALORE 560001.
3. AGRICULTURAL PRODUCE
MARKETING COMMITTEE
AURAD 585212, DIST BIDAR
Digitally
signed by
SWETA
KULKARNI
Location:
HIGH COURT
OF
KARNATAKA
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REP. BY ITS SECRETARY.
…RESPONDENTS
(BY SRI. VIRANAGOUDA BIRADAR, AGA FOR R1 & R2
SRI. KRUPA SAGAR PATIL, ADV., FOR R3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO
ALLOW THIS WRIT PETITION AND ISSUE A WRIT OF
CERTIORARI OR ANY OTHER APPROPRIATE WRIT OR ORDER
OR DIRECTION TO; A) QUASH THE ENDORSEMENT ISSUED BY
THE 2ND RESPONDENT DATED 08.06.2026 BEARING
NO. 4:1200:2025 PRODUCED AT ANNEXURE-F & ETC.
PÀæªÀiÁE:D©ü«-
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL
ORAL ORDER
This writ petition is filed challenging the endorsement
dated 08.06.2026 issued by respondent No.2 and seeking
prayer to issue a writ in the nature of mandamus to
respondent No.3 to execute lease-cum-sale agreement in
favour of the petitioner in respect of plot No.46 situated at
APMC Market Yard, Aurad, Bidar District, as per Annexure-
A.
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2. Sri.R.J.Bhusare, learned counsel for the
petitioner submits that petitioner was allotted Plot No.46
in APMC Market Yard, Aurad, Bidar District, on
12.06.2024. Thereafter, the petitioner has paid 25% of the
value of the site. However, due to his ill health, he could
not make the balance payment of 75% and even before
the respondents taking steps to cancel the allotment, the
balance amount of 75% was paid on 31.03.2026. It is
submitted that the petitioner has filed the writ petition in
W.P.No.200622/2026 before this Court seeking prayer to
issue a writ in the nature of mandamus to consider the
petitioner's representation dated 18.03.2025 and execute
the necessary deed. This Court, vide order dated
05.03.2026, allowed the said W.P.No.200622/2026 and
issued direction to respondent No.3 to consider the
petitioner's representation. Pursuant to the said direction,
the impugned endorsement is issued by respondent No.2
rejecting the prayer. In support of his contention, he
placed reliance on the decisions of this Court in the cases
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of Ganesh Singh Hajari v. The State of Karnataka and
1
others and M/s.MD.Zahoor Vegetable Commission
Agent v. The Director, Agricultural Produce
2
Marketing Committee and another and seeks to allow
the petition.
3. Per contra, Sri.Krupa Sagar Patil, learned
counsel appearing for the respondent No.3 and learned
Additional Government Advocate appearing for respondent
Nos.1 and 2 seek to sustain the impugned endorsement
and submit that the regulation clearly stipulates that the
petitioner is required to make the payment of balance
amount of 75% within 90 days and in view of failure to
comply with the same, impugned endorsement has been
issued and any subsequent payment of amount, if any,
has no bearing. Hence, they seek to dismiss the petition.
1
W.P.No.200443/2024 DD: 22.08.2024
2
W.P.No.201567/2022 DD: 19.07.2022
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4. I have heard the arguments of the learned
counsel for the petitioner, learned AGA, learned counsel
for respondent No.3 and meticulously perused the material
available on record.
5. The undisputed facts between the parties are
that the petitioner sought allotment of a plot with the
respondent Nos.2 and 3 which was considered and a
site/plot bearing No.46 measuring 30 x 90 was allotted
vide order dated 12.06.2024 as per Annexure-A and the
sital value is Rs.5,40,000/-. It is also not in dispute that
the petitioner had deposited 25% of the sital value within
the stipulated time and he was required to pay the balance
amount of Rs.4,05,000/-, which he could not deposit
immediately. Hence, the petitioner submitted a
representation dated 18.03.2025 seeking prayer to accept
the balance amount of 75% and to execute the necessary
deed. The said representation was not acted upon. Hence,
the petitioner filed W.P.No.200622/2026. This Court, vide
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order dated 05.03.2026, allowed the said writ petition
directing the respondent No.3 therein to consider the
petitioner’s representation at Annexure-B dated
18.03.2025 and pass appropriate orders in accordance
with law within a period of one (01) month from the date
of receipt of the copy of the said order. Pursuant to the
said direction of this Court, respondent No.2 issued an
endorsement dated 08.06.2026, wherein the petitioner's
request for acceptance of balance amount was rejected on
the ground that there is no provision to accept the same.
The said endorsement is called in question in the present
petition.
6. It is to be noticed that the petitioner, in the writ
petition as well as in the representation, had specifically
stated the reason for non-deposit of the balance of 75% of
the amount due to his ill health. Be that as it may, it is to
be noticed that after submitting the representation and
during the consideration of the representation by
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respondent No.2, the petitioner has deposited
Rs.4,05,000/-, which is the remaining 75% of the amount,
on 31.03.2026.
7. It is also not in dispute that as on this day, the
plot in question which was allotted to the petitioner
pursuant to the allotment order dated 12.06.2024 is not
cancelled and the entire amount has been paid by the
petitioner.
8. It would be useful to refer to Rule 10 of the
Karnataka Agricultural Marketing (Regulation of Allotment
of Property in Market Yards) Rules 2004, which reads as
under:
“ 10 . Conditions of allotment of site, shop, godown or
shop-cum-godown on Lease-cum-Sale:- (1) Allotment
of a site, including a corner site, godown, shop or
shop-cum-godown made by the market committee on
lease-cum-sale shall be subject to the approval of the
Director of Agricultural marketing and shall also be
subject to the following conditions namely:-
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i. The allottee shall pay to the Market Committee
the balance amount of the value of the site, godown,
shop or shop-cum-godown after deducting the amount
already paid under sub-rule (3) of rule 3 within a
period of 90 days from the date of receipt of order of
allotment. If the said value is not paid within a period
of 90 days, further extension of time for a period not
exceeding 60 days may be given by the market
committee and the allottee shall pay, in addition,
interest at the rate of twelve percent per annum on
the said amount for the extended period.
ii. After payment of the value under clause(i) is
made, the Market Committee shall call upon the
allottee in writing to execute an agreement in Form IV
in case of site and in Form V in case of shop or shop-
cum-godown or godown and get it registered. If the
agreement is not executed within 45 days after the
market committee has called upon the allottee to
execute such agreement, the registration fee paid by
the allottee shall be forfeited and the allotment be
cancelled and the amount paid by the allottee under
sub-rule(3) of rule 3, after deducting such expenditure
that might have been incurred by the Market
Committee, be refunded to him.
iii. Until the site, godown, shop or shop-cum-
godown is conveyed to the allottee, the amount paid
by the allottee for such allotment shall be held by the
Market Committee as security deposit (without any
interest thereon) for the due performance of the terms
and conditions of the allotment and the lease-cum-
sale agreement entered into between the Market
Committee and the allottee.
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iv. In case of allotment of site, the allottee shall
construct a godown or shop or shop-cum-godown
within a period of one year or within such extended
period, not exceeding One year as may be granted by
the Market Committee.
v. Every allottee shall not alienate the site, godown
or shop or shop-cum-godown on the site in
accordance with the plans and designs approved by
the Market Committee.
vi. The allottee shall not alienate the site, godown
or shop or shop-cum-godown within a period of ten
years from the date of allotment except by way of
mortgage in favour of Government of India,
Government of Karnataka or its undertakings, Life
Insurance Corporation of India, Corporate bodies or
Banks to secure loan, subject to the prior permission
of and terms and conditions imposed by the Market
Committee.
vii. On the expiry of the period of ten years from the
date of execution of lease-cum-sale agreement and if
the allotment has not been cancelled or the lease is
not determined, the Market Committee shall by notice,
call upon the allottee to get the sale deed executed at
his own cost within the time specified in the said
notice.
viii. With effect from the date of taking possession of
the allotted property, the allottee shall be liable to pay
the taxes, fees and cesses payable in respect of the
property.
ix. Where allotment is made in favour of a
partnership firm, any change in the constitution of the
firm shall be brought to the notice of the Market
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Committee. If the Market Committee, after such
enquiry as it deems fit, decides that the change in the
constitution of the firm results in transfer of shop or
godown or shop-cum- godown or any interest there in
by all or any one of the partners no such transfer shall
take place without complying with rule 12.
Explanation: For the purpose of this clause and sub-
rule (3) of rule 16, there is a change in the
constitution of the firm if, one or more of the partners
cease to be partners or one or more new partners are
admitted, in such circumstances that the persons who
were partners of the firm before the change do not
continue as partner or partners after the change.
9. The aforesaid Rule indicates that the allottee is
required to make the balance payment within 90 days and
the Market Committee has a discretion to extend the time
period for a further period of 60 days subject to the
allottee paying additional interest at the rate of 12% p.a.
10. Applying the said analogy and taking note of
the decisions of the Co-ordinate Benches in the case of
Ganesh Singh Hajari and M/s.MD.Zahoor Vegetable
Commission Agent referred supra, wherein the
Co-ordinate Benches have considered the similarly placed
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allottees cases and have shown indulgence by extending
the time period to pay the balance amount and in one
case, installment has been provided and by considering
the reasonings assigned in the aforesaid decisions and
taking note of the fact that the petitioner has now paid the
entire amount even before filing the present petition, I am
of the considered view that ends of justice would be met if
the petitioner is directed to pay interest at the rate of 12%
p.a. on the balance amount of Rs.4,05,000/- excluding 90
days from 12.06.2024 to 31.03.2026. Hence, I proceed to
pass the following:
ORDER
i. The writ petition is allowed .
ii. The impugned endorsement dated
08.06.2026 issued by the respondent No.2 as
per Annexure-F is quashed.
iii. A writ of mandamus is issued directing the
respondent No.3 to accept the interest at rate
of 12% p.a. on a sum of Rs.4,05,000/- from
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12.06.2024 to 31.03.2026 excluding a period
of 90 days.
iv. The petitioner shall make the said payment
within a period of two (02) months from the
date of receipt of copy of this order. On such
payment, the respondent Nos.2 and 3 shall
take immediate steps to execute lease-cum-
sale agreement in favour of the petitioner in
respect of plot No.46 situated at APMC Market
Yard, Aurad, Bidar District, within a period of
four (04) months from the date of making the
said payment by the petitioner.
No order as to costs.
Sd/-
(VIJAYKUMAR A. PATIL)
JUDGE
BSR
List No.: 1 Sl No.: 11