Sri C M Suresh Babu vs. The State Of Karnataka
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The petitioner, Sri C M Suresh Babu, filed a writ petition challenging various provisions of the Karnataka Town and Country Planning Act, 1961, as amended, and related notifications and circulars issued by the State of Karnataka and the Bruhat Bangalore Mahanagara Palike (BBMP). The petitioner sought to quash Section 18-A(i) and (iv) of the Karnataka Act No.23 of 2004, Rule 37-A and 37-C inserted by a notification dated 25/02/2020, circulars dated 04/09/2015 and 14/08/2020 issued by BBMP, a government order dated 18/01/2007 and its corrigendum dated 28/02/2007 regarding labour welfare cess, and a demand notice dated 13/01/2021 issued by the Assistant Director, Town Planning (East), BBMP, for various charges including ground rent, GST on ground rent, betterment charges, license fees, scrutiny fees, and various cesses and surcharges. The petitioner also sought a mandamus directing BBMP to issue a sanction plan without insisting on these charges.
Held
The Court held that the issues raised in the present writ petition are squarely covered by previous binding decisions of the High Court in W.P.No.23086/2022 (M/s Sapthagiri Shelters) and W.P.No.36017/2018 (Sunderam Shetty) and connected matters. In Sunderam Shetty, a Co-ordinate Bench had declared levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under relevant bye-laws as ultra vires the Act and quashed related government circulars. In M/s Sapthagiri Shelters, a Co-ordinate Bench had struck down Karnataka Act No.01 of 2022 and Karnataka Act No.37 of 2024, holding the linking of fees under Rule 37-A of the Karnataka Planning Authority Rules, 1965 to market/guidance value under Section 45-B of the Karnataka Stamp Act, 1957 as illegal, and had also quashed related circulars and declared Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, as invalid. Consequently, the present petition did not warrant separate adjudication and was liable to be allowed in terms of the operative directions issued in the aforesaid writ petitions. The impugned demand notice dated 13.01.2021 was set aside. BBMP was directed to issue a fresh/modified plan and process the petitioner's application for a building license and sanction of the building plan strictly in accordance with law. The issuance of the license and plan approval was not to be withheld pending any appeal by BBMP, but would be subject to the outcome of any such appeal.
Key Issues
1. Whether Section 18-A(i) and (iv) of the Karnataka Town & Country Planning Act, 1961, as amended by Karnataka Act No.23 of 2004, are ultra vires the Act? 2. Whether Rule 37-A and 37-C inserted by the notification dated 25/02/2020 are illegal and liable to be quashed? 3. Whether the circulars dated 04/09/2015 and 14/08/2020 issued by BBMP are arbitrary and without jurisdiction? 4. Whether the government order dated 18/01/2007 and its corrigendum dated 28/02/2007 mandating upfront collection of labour welfare cess are illegal? 5. Whether the demand notice dated 13/01/2021 issued by BBMP for various charges including ground rent, GST on ground rent, betterment charges, license fees, scrutiny fees, and cesses/surcharges is illegal, without jurisdiction, and arbitrary? Petitioner's arguments: The petitioner contended that the impugned provisions, notifications, circulars, and demand notice were illegal, without jurisdiction, and arbitrary, and sought their quashing. The petitioner relied on previous judgments of the High Court that had adjudicated similar issues. Revenue/State's arguments: The judgment does not record specific arguments made by the respondents. However, it notes that the issues raised are squarely covered by previous binding decisions.
Sections Cited
Section 18-A, Rule 37-A, Rule 37-C, Section 45-B
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Cause title — parties, addresses and appearances
ORAL ORDER
Caption petition is filed seeking the following reliefs :- "i) grant an order, direction or writ in the nature of Certiorari quashing Section 18-A of the Karnataka Town & Country Planning Act, 1961 brought into effect by the Karnataka Act No.23 of 2004 (Karnataka Town & Country Planning (Amendment) Act, 1998 as contained in Annexure-G1 insofar as Section 18-A(i) and (iv) of the Karnataka Act No.23 of 2004 is concerned; ii) Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No. UDD 3 TTP 2015 dated: 25/02/2020 as contained in Annexure-G insofar as the inserted Rule 37-A and 37-C is concerned; iii) issue a writ or order by way of Certiorari quashing the Circular dated 04/09/2015, bearing No.Heninayo/JD(N)/DM3/PR/320/2015-16 issued by the Respondent No.4 (Annexure-E) insofar the petitioner is concerned. iv) issue a writ or order by way of certiorari quashing the circular dated 14/08/2020 bearing No. He.Ni.Ka.Pa.Ko/P.R/320/2020-21 issued by the Respondent No.4 (Annexure-H) insofar the Petitioners are concerned. HC-KAR NC: 2025:KHC:24135 v) issue a writ or order by way of certiorari quashing the Government order bearing No.LD/300/LET/2006 dated 18/01/2007 and the corrigendum order bearing No.LD/300/LET/2006, dated 28/02/2007 issued by the Respondent No.2 mandating upfront collection of labour welfare cess (Annexure-F) in so far the Petitioner is concerned. .vi) issue a writ or order by way of certiorari quashing the demand notice dated 13/01/2021 bearing No.BBMP/Ad.Com/EST/1109/20-21, issued by the Respondent No.5 (Annexure-D) for demanding in so far it is concerned to Ground rent, GST on Ground rent, Betterment charges for building, Betterment charges for site, excess security deposit, revised License fee, revised scrutiny fee, Cess for water supply scheme, Surcharge for formation outer ring road, Cess for improvement of slum, Surcharge for Mass Rapid Transport System, Labour cess and etc, as illegal, without juri iction and arbitrary. vii) issue a writ or order or direction by way of mandamus directing the Respondent No.4 and 5 BBMP to issue the sanction plan with respect to the Schedule Property without insisting the Ground rent, GST on Ground rent, Betterment charges for building, Betterment charges for site, revised License fee, revised scrutiny fee, Cess for water supply scheme, Surcharge for formation outer ring road, Cess for improvement of slum, Surcharge for HC-KAR NC: 2025:KHC:24135 Mass Rapid Transport System, Labour cess and etc., as illegal, without juri iction and arbitrary. viii) pass any such other order(s) as this Hon'ble Court deems fit in the facts and circumstances of the case in the interest of justice and equity."
The Co-ordinate Benches of this Court, in W.P.No.23086/2022 and connected matters(herein referred to as “M/s Sapthagiri Shelters”) as well as W.P.No.36017/2018 and connected matters(herein referred to as “Sunderam Shetty”), have comprehensively adjudicated the issue involved and settled the controversy. In Sunderam Shetty and connected cases, the Co- ordinate Bench declared the levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under the relevant bye-laws as ultra vires the Act and quashed the Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017. Similarly, in M/s Sapthagiri Shelters and connected matters, the Co-ordinate Bench struck down the Karnataka Act No.01 of 2022 and Karnataka Act No.37 of 2024, holding that linking fees under Rule 37-A of the HC-KAR NC: 2025:KHC:24135 Karnataka Planning Authority Rules, 1965 to market/guidance value under Section 45-B of the Karnataka Stamp Act, 1957 is illegal. It further quashed all related Circulars and declared Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, as invalid.
The issues raised in the present writ petition are squarely covered by the above binding decisions, wherein the relevant bye-laws and government circulars have been set aside.
In light of the authoritative pronouncements, the present petition does not warrant separate adjudication and is liable to be allowed in terms of the operative directions issued in the aforesaid writ petitions.
Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. HC-KAR NC: 2025:KHC:24135 (ii) The impugned demand notice dated 13.01.2021 issued by respondent No.5 as per Annexure-D is hereby set-aside. (iii) Respondent - BBMP is hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent - BBMP is directed to forthwith process the petitioner’s application seeking building license and sanction of the building plan, strictly in accordance with law. (v) It is made clear that the issuance of the building license and approval of the plan shall not be withheld merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment. (vi) If the building license and sanction plan are issued, the same shall be subject to the outcome of any appeal that may be filed by the BBMP against the said judgment. HC-KAR NC: 2025:KHC:24135
Pending applications, if any, are also disposed off. (SACHIN SHANKAR MAGADUM) JUDGE
NG List No.: 2 Sl No.: 40
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.