BASE CORPORATION LIMITED Vs. KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD

JUDGEMENT

(1.) In this writ petition, the Petitioner has sought the following reliefs:

(2.) The Petitioner is a public limited company based in the State of Karnataka incorporated under the provisions of the Indian Companies Act, 1956. The Petitioner is said to be engaged in the business of manufacturing and trading in batteries of all kinds used in various applications and such other electronic and electro-mechanical items. In order to expand its business operations, it appears the Petitioner has entered into a joint venture agreement with M/s. Matsushita Panasonic, Japan which was keen to set up an industry, to assemble power back-up banks in Bangalore. Power backup banks are said to be essential equipment for all commercial and industrial units. The power back-up banks is said to consist of sealed, maintenance-free batteries which are totally sealed and do not cause any sort of pollution. These batteries are assembled in an. MS Rack (steel rack) and connected with UPS systems which are usually used in the computer room. It appears that the Petitioner-company was keen on establishing a unit in the IT corridor area in Bangalore for the purpose of servicing the IT industry efficiently. That it had entered into various agreements with the owners of land bearing Sy. No. 29/2 measuring 1 acre 17 guntas on Kariammana Agrahara, Varthur Hobli. Bangalore South Taluk. However, since the said owners had failed to perform their obligations under the agreement, the Petitioner has filed a suit for specific performance which is pending consideration before the 28th Addl. City Civil Judge, Mayo hall, Bangalore. According to the Petitioner, it had also entered into oral agreement of sale of 4 acres of land in Sy. Nos. 28/1 and 28/2 of the same village.

(3.) When the matter stood thus, the State Government intended to form an industrial area in various survey numbers including the aforementioned survey number and accordingly, issued preliminary notification dated 10.12.2001 under Section 3(1) of the Karnataka Industrial Development Act, 1966 (hereinafter referred to as the 'Act'). Simultaneously, notification was also issued under Section 28(1) of the said Act, a copy of which is produced as Annexure-A to the writ petition. It appears that there was a challenge made to the acquisition proceedings and public interest litigation was filed before this Court. In the meanwhile, the Karnataka Industrial Areas Development Board (hereinafter referred to as the 'KIADB') had examined the request of the Petitioner for acquisition of land at its 245th meeting and had resolved that the land to an extent of about 5 acres be acquired in favour of the Petitioner as a single unit acquisition and a resolution dated 31.7.2002 to that effect was passed which is produced as Annexure-Subsequently, the KIADB addressed a letter dated 19.8.2002 to the Petitioner asking the Petitioner to secure the consent of M/s. Royal Fragrances Ltd., so that the Petitioner could have a composite extent of land for the purpose of industrial unit. Accordingly, the Petitioner obtained consent letter from M/s. Royal Fragrances Ltd., on 2.8.2002. Whereupon, the KIADB issued a letter dated 5.9.2002 to the Petitioner asking it to remit 40% of the amount totaling to Rs. 22,50,000/- to the KIADB and accordingly, the Petitioner has deposited the said amount on 13.9.2002. Thereafter, the Petitioner addressed a letter on 17.9.2003 to the KIADB requesting for speeding up of the acquisition proceedings.