ORDER : M. Nagaprasanna, J. The petitioner is before this Court calling in question an order dated 12-08-2022 passed by the 3 rd respondent, a notice dated 15-11-2023 issued under Section 34B of the Karnataka Industrial Areas Development Board Act , 1966 (hereinafter referred to as ‘the Act’ for short) by the 5 th respondent and the allotment made in favour of the 6 th respondent in terms of the order dated 12-06-2024. As a consequence thereof, the petitioner seeks restoration of possession of the land in its favour and the lease deed executed thereon. 2. Heard Sri Raghavendra B. Hanjer, learned counsel appearing for the petitioner, Sri Mohammed Jaffar Shah, learned Additional Government Advocate appearing for respondents 1 and 2, Sri B.B. Patil, learned counsel appearing for respondents 3 to 6 and Sri Shivaprasad Shantanagoudar, learned counsel appearing for respondents 7 and 8. 3. Facts, in brief, germane are as follows: - The petitioner is said to be a Company registered under the Companies Act, 1956 and is in the business of providing information technology services to several customers enumerated in the petition like Oracle, Microsoft etc. The petitioner desirous of setting up of a Software Development and IT Enabled Services in the IT park area of Hi-tech Defence and Aerospace Park, Devanahalli Taluk which comes under the precincts of the Karnataka Industrial Areas Development Board (‘the Board’ for short) submits an application to the State Level Single Window Clearance Committee (hereinafter referred to as ‘the Committee’ for short) of the 1 st respondent. The Committee is said to have approved the request of the petitioner for allotment of 5 acres of land for the establishment as afore-noted in its 99 th meeting and the same is said to have been communicated to the petitioner on 21-04-2017. 4. In terms of the aforesaid clearance by the Committee, the Board issues an allotment letter on 20-05-2017 allotting 5 acres of land on lease basis to the petitioner for a period of 99 years, subject to several conditions in the letter of allotment. The petitioner is said to have paid the entire premium amount on two dates i.e., on 17-05-2017 and 22-08-2017 towards the land cost. The formal communication also emerges from the Board on 29-08-2017 informing that the petitioner can take possession of the land after clearances in terms of the letter of allotment. The petitioner is said to have paid the entire premium amount on two dates i.e., on 17-05-2017 and 22-08-2017 towards the land cost. The formal communication also emerges from the Board on 29-08-2017 informing that the petitioner can take possession of the land after clearances in terms of the letter of allotment. A possession certificate is also issued on 29-11-2017 in favour of the petitioner. As required under the letter of allotment a lease deed comes to be executed on 18-12-2017 in favour of the petitioner allotting 20235 sq. mts. of land. 5. Two years pass by. A notice comes to be issued on 4-09-2019 calling upon the petitioner to remedy the alleged breaches of the letter of allotment within 90 days of the receipt of the said notice. The petitioner submits its reply and a building plan for approval at the hands of the 4 th respondent and is also said to have requested the complete process to start the project as early as possible. Building plan approval is said to have been kept pending for a long time and after its approval the petitioner in terms of its letter dated 21-06-2022 requests time of 6 to 8 months to execute the work, as there was no construction in the property as was required in the allotment letter. In reply to the request of the petitioner, the Board is said to have directed the petitioner in terms of its communication dated 12-08-2022 to execute the project within nine months, on obtaining approval of the layout plan within three months subject to payment of 2% fine amount which would be Rs.25/- lakhs within 30 days from the date of receipt of the communication, failing which, it was indicated that the Board would take steps for resumption of the land. 6. The petitioner again on 01-12-2022 seeks extension of time limit for the purpose of construction. This is not acceded to and the 5 th respondent issues a notice invoking Section 34B(2) of the Act seeking resumption of the land allotted to the petitioner. The petitioner then replies to those communications on 13-12-2023 and 19-04-2024 again requesting time to complete the construction. This is not acceded to and the 5 th respondent issues a notice invoking Section 34B(2) of the Act seeking resumption of the land allotted to the petitioner. The petitioner then replies to those communications on 13-12-2023 and 19-04-2024 again requesting time to complete the construction. The request is not acceded to and on 12-06-2024 an order is passed cancelling the allotment and directing handing over possession of the land to the 6 th respondent, failing which, the 6 th respondent was also directed to take possession of the land. It is challenging these actions, the petitioner is before this Court in the subject petition presenting the same on 02-07-2024. A coordinate Bench of this Court on 05-07-2024 grants an interim order of stay which reads as follows: “ ORDER Learned AGA is directed to take notice for respondent Nos. 1 and 2. Sri H.L.Pradeep Kumar, learned counsel is directed to take notice for respondent Nos. 3 to 6. Re-list on 02-08-2024. Meanwhile, there shall be a stay, as prayed for, till the next date of hearing. Liberty is reserved in favour of respondents to seek for vacation or modification of this order. Hand delivery of this order is permitted.” This is continued on 02-08-2024. Another coordinate Bench passed an order on 16-12-2024. The order reads as follows: “ORAL ORDER The respondent - KIADB passed an order dated 12.8.2022 calling upon the petitioner to pay a sum of Rs.25 lakhs towards penalty for not implementing the project within the time prescribed, and thereafter, the petitioner's application for sanctioning of the building plan will be considered. However, the petitioner failed to deposit a sum of Rs.25 lakhs towards penalty prompting the respondent - KIADB to issue a notice under Section 34B(5) of the KIADB Act, 1996 to take possession of the industrial plot. The learned counsel for the respondent - KIADB submitted that after taking possession, the subject land has been allotted in favour of the third party. For the reasons stated above, the interim order granted is not extended. List on 19.12.2024.” (Emphasis supplied) The Court by an order refused to extend the interim order that was granted on the ground that the petitioner has failed to deposit a sum of Rs.25/- lakhs towards penalty which led to issuance of a notice under Section 34B(5) of the Act. List on 19.12.2024.” (Emphasis supplied) The Court by an order refused to extend the interim order that was granted on the ground that the petitioner has failed to deposit a sum of Rs.25/- lakhs towards penalty which led to issuance of a notice under Section 34B(5) of the Act. It was also recorded that the Board after taking possession has allotted the land in favour of a third party. It is on and from 16-12-2024, the interim order is not extended. On 11-03-2025 this Court passed the following order: “The learned counsel Sri. Shivaprasad Shantanagoudar has filed an impleading application seeking to implead the applicant as a party respondent to these proceedings. The reason for preferring the impleading application is that, he has now been allotted the place, which the petitioner is fighting for, in the teeth of the vacation of the interim order. Therefore, he becomes a necessary party, as rights are created in his favour today. In that light, the impleading application is allowed. The impleding applicant is permitted to come on record as party respondent No.3 to these proceedings. Petitioner to file an amended cause title, forthwith. List this matter on 19.03.2025, in the fresh matters list.” The impleading application filed by the allottee during the pendency of the petition, in the teeth of the interim order not getting extended in favour of the petitioner, was allowed and he was permitted to come on record. The matter is heard at that stage with consent of parties. 7. The learned counsel appearing for the petitioner would vehemently contend that the request of the petitioner for extension of time for the purpose of putting up construction has been deliberately ignored or not favoured, only to allot the land in favour of the 7 th and 8 th respondents. He would submit that the act of the Board suffers from want of bona fides. The Board ignored the request of the petitioner on two counts – approval of the building plan and putting up the construction in the property. The learned counsel would submit that basic construction like boundary wall, small office and security rooms were also in place. There was no electricity connection or water supply and the people around the construction area have continuously caused obstruction to any construction work. All these factors are ignored by the Board. The learned counsel would submit that basic construction like boundary wall, small office and security rooms were also in place. There was no electricity connection or water supply and the people around the construction area have continuously caused obstruction to any construction work. All these factors are ignored by the Board. He would contend that if opportunity is granted, now the petitioner would complete construction and set up its business in the place for the purpose for which the allotment was made. 8. Per contra, the learned counsel appearing for the Board Sri B.B.Patil would vehemently refute the submissions contending that the Board has given sufficient time to put up construction not months, but close to 6 years. During all these 6 years, the construction was never put up by the petitioner on one pretext or the other, but was holding the land which could be put to use by any other person for his business. Therefore, the proceedings under Section 34B of the Act was initiated and the petitioner was also asked to appear in person for personal hearing in the matter. All the conditions under Section 34B are completely followed in the case at hand. Intimation letters were issued throughout the 6 years not once but 10 times. To none of these communications there has been any reply or improvement in the land allotted to the petitioner. It is even today, as it is allotted. Therefore, no fault can be found with the act of the Board in the resumption of land in its favour and allotment of it in favour of the 7 th and 8 th respondents. 9. The learned counsel appearing for respondents 7 and 8 Sri Shivaprasad Shantanagoudar who sought to implead into these proceedings takes the Court through the application seeking impleadment and the allotment made in their favour and the entire money towards allotment being fulfilled and construction is also taking place in the said property. In that light, the learned counsel for the respondents would in unison seek dismissal of the petition. 10. I have given my anxious consideration to the submissions made by the respective learned counsel and have perused the material on record. 11. The afore-narrated dates and link in the chain of event are all a matter of record. In that light, the learned counsel for the respondents would in unison seek dismissal of the petition. 10. I have given my anxious consideration to the submissions made by the respective learned counsel and have perused the material on record. 11. The afore-narrated dates and link in the chain of event are all a matter of record. The petitioner/Company wanting to set up a software development project in the land belonging to the Board submits an application before the Board/Committee and the Committee recommends allotment of land of 5 acres. The order of allotment reads as follows: “Date: 28.01.2020 To The Secretary-1 KIADB Kanija Bhavan, Race Course Road Bengaluru 560001 Dear Sir/Madam, Sub: Lease-cum- sale agreement date: 18.12.2017 in respect of 20235.00 sq. mts of land in Plot no: 34 of Hitech Defence and Aero Space Park (IT Sector) Bengaluru Rural District. (Shiksha Infotech Private Limited) Ref: 1. Allotment Letter No: KIADB/HO/Allot/Secy- 1/21534/2462/17-18, Dated: 20.05.2017 2. Lease-cum-sale agreement dated: 18.12.2017 With reference to the above-mentioned subject, we have submitted 4 copies of G-2 Floor Building Plan for phase-1 development, on 25 th September-2019, acknowledgement copy enclosed for your reference. We are waiting for replay from KIADB with respect to the building plan approval to start further process. Thanking You, Yours faithfully, For Shiksha Infotech Pvt Ltd. For Shiksha Infotech Pvt. Ltd. Sd/- Authorized Signatory. …. …. …. Promoter Name: Networth of the Promoter: Category : Mr.Mahendra Pratap Choudhary Rs. 4.28 Crores General Recommendations / observations of 38 th Land Audit Committee held on 11.4.2017: The promoter of the company appeared before the committee and highlighted the project proposal and requested for allotment of 6 acres 20 guntas of land at Plot No.32P, 33P & 33 of (IT Park) Hi-tech, Defence and Aerospace Park, Devanahalli Industrial Area, Bangalore Rural District. CEO & EM, KIADB informed that the Plot requested is not available and the land requested is on the higher side considering the activity proposed and the extent of construction possible as per FAR guidelines. CEO & EM, KIADB informed that the Plot requested is not available and the land requested is on the higher side considering the activity proposed and the extent of construction possible as per FAR guidelines. The Committee noted the request of the company and opinion of CEO & EM, KIADB and after detailed discussions, resolved to recommend to SLSWCC for approval of the project of M/s Shiksha Infotech Pvt. Ltd. to set up "Software Development and IT Enabled Services" and KIADB to allot 2 acres 20 guntas of land in the plots available in IT Park area of Hi-tech, Defence and Aerospace Park, Devanahalli Industrial Area, Bangalore Rural District. Decision of the 99 th SLSWCC meeting: The committee after discussing the project details and keeping in view the land utilisation details and also the recommendations made by the Land Audit Committee, resolved to approve the project proposal as under. Sl. No. Item Decision of the committee 1. Project Approval To establish a unit for "Software Development and IT Enabled Services" with an investment of Rs. 40.77 Crores” This is communicated to the petitioner by the 1 st respondent. The communication reads as follows: “Dear Mr.Mahendra Pratap Choudhary Greetings from Government of Karnataka. It gives me immense pleasure to acknowledge the interest shown by your company for the proposed investment in the State of Karnataka and accordingly your project has been approved in the 99 th meeting of SLSWCC held on 13.4.2017. Copy of the Govt. Order / Office Order is enclosed for your reference. My department is keen to extend all necessary support for obtaining approvals /clearances from various departments for implementation of your project in the State at the earliest possible time. In this regard, you are requested to contact Managing Director, Karnataka Udyog Mitra (md@kumbangalore.com; 080-22282392) for any clarification and for facilitation in grounding the project. With warm regards, Yours sincerely Sd/- (R.V.Deshpande)” (Emphasis supplied) Pursuant to the aforesaid orders, the Board issues an allotment letter in favour of the petitioner. The allotment was subject to certain conditions. The letter of allotment reads as follows: “No KIADB/HO/Allot/Secy-1/21534/2462/2017-18 Date: 20.05.2017 M/s Shiksha Infotech Pvt Ltd, No:90, Manjunath Kannika (Manka), 2nd Main, 1 Phase, Electronic City, Hosur Road, Bengaluru 560 100 Sir/Madam/Sirs, ALLOTMENT LETTER Sub: Allotment of 5.00 acres of land out of Plot No.34 at Hitech Defence and Aero Space Park (IT Sector) Bengaluru Rural District. Ref: 1. The letter of allotment reads as follows: “No KIADB/HO/Allot/Secy-1/21534/2462/2017-18 Date: 20.05.2017 M/s Shiksha Infotech Pvt Ltd, No:90, Manjunath Kannika (Manka), 2nd Main, 1 Phase, Electronic City, Hosur Road, Bengaluru 560 100 Sir/Madam/Sirs, ALLOTMENT LETTER Sub: Allotment of 5.00 acres of land out of Plot No.34 at Hitech Defence and Aero Space Park (IT Sector) Bengaluru Rural District. Ref: 1. Approval of 99 th SLSWCC meeting held on 13.04.2017. 2. Your application dt: 16.05.2017. -o0o- In pursuance of the approval given by the 99 th State Level Single Window Clearance Committee meeting held on 13.04.2017, you have been allotted 5.00 acres of land in Plot No.34 at Hitech Defence and Aero Space Park (IT Sector) Bengaluru Rural District, for setting up an industry for "Software Development and IT Enabled Services " subject to the terms and conditions indicated in the Annexe-A appended hereto and also the terms and conditions mentioned hereafter. 1. The allotment of land is on lease basis for a period of 99 years . The lease is liable to be cancelled automatically in case the land is not utilized within a period of three years in case of MSME, large projects or five years in cases of mega, ultra mega, super mega projects as defined in the industrial policy or the land is not utilized within a specified period approved by SLSWCC without obtaining valid extensions from the concerned investment approving committees detailed in (c)(iii) of Annexe 'A'. 2. The premium payable for allotment of the said land has been fixed at Rs.2,50,00,000=00 per acre. 3. (a) The premium of the land shall be paid as follows: i) A Sum of Rs.NIL being the balance 30% of the tentative premium of land shall be paid within 30 days from the date of issue of this letter ie on or before NIL. ii) A sum of Rs.8,75,00,000=00 being the balance tentative premium of land shall be paid within 90 days from the date of issue of this letter ie on or before 19.08.2017. ii) A sum of Rs.8,75,00,000=00 being the balance tentative premium of land shall be paid within 90 days from the date of issue of this letter ie on or before 19.08.2017. (b) In the event of your furnishing letter of commitment from KSFC/KSIIDC/Reserve Bank of India approved Financial Institutions/Corporations/Companies agreeing to pay the premium indicated at 3(a)(2) directly to the Board(applicable only to Medium, Small and Micro Enterprises) the allotment will be confirmed and documentation will be permitted subject to payment of interest @10% per annum on amount due from the date of handing over possession of land to the date of payment which should be made within 180 days from the date of execution of lease agreement. (c) You should pay lease rent of Rs. 1000/- per acre/per annum. (d) You should pay maintenance charges as may be fixed by the Board from time to time. (e) Interest at 10% per annum shall be levied in case the lease rents are not paid within one month from the date on which the lease rents fall due every year. 4(a) In case of your failure to pay the amount mentioned at Para 3(a)(2) before the expiry of the time stipulated therein, this offer of allotment stands automatically cancelled and the Earnest Money Deposit and 20% of the amount paid by you towards premium stands automatically forfeited. 4(b) If the balance premium is not paid within 90 days from the date of execution of lease agreement in respect of cases mentioned at Para3(b), the plot would be resumed on expiry of the time stipulated without issuing any fresh notice. 5: Soon after receipt of 100% premium and on your acceptance of all the terms and conditions indicated herein before and also those mentioned hereinafter, the possession of land will be handed over within 30 days from the date of payment. At the time of taking over possession, you should produce the original receipts, issued for the payments made, to the Engineer in charge of the area. 6. On taking possession of land, you shall adhere to the time schedule indicated in the Annexe-A. 7. Your failure to take possession of land within 30 days from the date of payment of the premium shall result in cancellation of allotment and 20% of the amount paid towards premium and E.M.D shall stand forfeited. 8. 6. On taking possession of land, you shall adhere to the time schedule indicated in the Annexe-A. 7. Your failure to take possession of land within 30 days from the date of payment of the premium shall result in cancellation of allotment and 20% of the amount paid towards premium and E.M.D shall stand forfeited. 8. The Board may accept voluntary surrender of plot subject to levy of penalty at 15% of the allotment cost paid by you. 9. All taxes in respect of the lease including service tax shall be payable by you to the Board. 10. Any deposits made by the allottee towards allotment will not carry any interest. 11. It shall be mandatory for you to obtain all statutory clearances from the Karnataka State Pollution Control Board and other statutory competent authorities before commencement of the approved project. 12. Only courts situated in the city of Bangalore/ Gulbarga/ Dharwad shall have jurisdiction. 13. You are required to inform any change in address of the Registered Office or Administrative Office, to the Board immediately. 14. This allotment is subject to other terms and conditions of the lease deed. This letter is issued with the approval of CEO & EM. Yours faithfully, Sd/-20.05.2017 AUTHORISED SIGNATORY” (Emphasis added) Pursuant to the letter of allotment, a confirmatory letter was also issued on 29-08-2017. It reads as follows: “M/s Shiksha Infotech Pvt Ltd, 90, Manjunath Kannika (Manka). 2 nd Main, 1 st Phase Electronic City, Hosur Road, Bengaluru - 560 100 Sirs. CONFIRMATORY LETTER OF ALLOTMENT Sub: Allotment of 5.00 acres of land in Plot No 34 of Hitech Defence and Aero Space Park (IT Sector) Bengaluru Rural District. Ref:1. This office allotment letter No. KIADB / HO / Allot / Secy-1/ 21534/2462/2017-18 dt: 20.05.2017 2. Your letter dt: 22.08.2017 -o0o- In view of your payment of Rs. 12,50,00,000=00 vide Rt. No.38735 dt 17.05.2017 and Rt. No.39197 dt: 22.08.2017 towards 100% land cost, the allotment of 5.00 acres of land in Plot No.34 of Hitech Defence and Aero Space Park (IT Sector) Bengaluru Rural District, made in your favour is hereby confirmed. Please adhere to the time schedule prescribed in the standard conditions attached to Allotment Letter cited under reference above and also contact Sri. No.39197 dt: 22.08.2017 towards 100% land cost, the allotment of 5.00 acres of land in Plot No.34 of Hitech Defence and Aero Space Park (IT Sector) Bengaluru Rural District, made in your favour is hereby confirmed. Please adhere to the time schedule prescribed in the standard conditions attached to Allotment Letter cited under reference above and also contact Sri. M. Rama Development Officer & Executive Engineer, KIADB Zonal Office, Aravinda Bhavan, Nrupathunga Road, Bengaluru – 560 001 Mobile No: 9845029319, and take over the possession of land within one month from the date of receipt of this letter. Yours faithfully Sd/- 29.08.2017 Secretary-1” (Emphasis added) A possession certificate was also issued on 29-11-2017 and a lease deed comes to be executed in favour of the petitioner. Certain conditions of the lease are germane to be noticed. Clauses (6) and (7) thereof read as follows: “…. …. …. 6. TIME LIMIT FOR COMMENCEMENT AND COMPLETION OF CONSTRUCTION WORK. i) The Lessee shall commence civil construction works within nine months from the date of lease cum sale agreement for MSME & Large Enterprises and 15 months for Mega, Ultra Mega & Super Mega Enterprises and complete the project by commencing production a) Within a period of three years from the date of lease cum sale agreement, in case of MSME, Large and, b) Five Years for Mega, Ultra Mega, Super Mega Projects. c) Promoters to obtain extensions of time if there are valid reasons. After obtaining licence from the Chief Inspector of Factories and Boilers in Karnataka and/or from any other Authority as required under law. ii) After construction of buildings, the Lessee shall not make any major modifications/alterations/additions to the existing buildings/structures except with the prior approval of the Lessor in writing. iii) The Lessee shall maintain the Schedule Property and the buildings erected thereon in good repairs and conditions to the satisfaction of the Lessor. iv) The Lessee, in respect of the Schedule Property, shall observe and conform to all rules, regulations and byelaws of the local Authority concerned or any other statutory regulations in force relating to public health and sanitation. 7. EXTENSION OF TIME i) The Lessee shall seek extension of time in writing by giving valid reasons to the concerned investment approving committees viz. 7. EXTENSION OF TIME i) The Lessee shall seek extension of time in writing by giving valid reasons to the concerned investment approving committees viz. DLSWCC/SLSWCC/SHLCC through Lessor and the investment approval committees may at its discretion extend the time for completion of civil construction works, erection of machineries and commencement of production for a further period of: a) One year subject to the Lessee paying penalty of 2% of allotment cost. b) Subsequent extension of another one year subject to the Lessee paying penalty of 5% of allotment cost. ii) No further extension beyond two years will be allowed.” (Emphasis added) Clause (6) afore-quoted fixes time limit for commencement and completion of construction work. The commencement and completion should get over in case of MSME within 3 years from the date of lease deed, 5 years in Mega project. Extension of time is dealt with under clause (7). The extension can be only one-year subject to penalty of 2% of the allotment cost. The petitioner fails to begin construction. The lease deed is entered into on 18-12-2017. Two years pass by, no construction takes place. Alleging violation, a notice is issued on 04-09-2019. The notice reads as follows: “No: KIADB/HO/Allot/21534/Secy-1/8314/19-20 M/s. Shiksha Infotech Pvt. Ltd., 90, Manjunath Kannika (Manka) 2 nd main, 1 st phase, Electronic City, Hosur Road, Bengaluru 560 100. Sir, Notice Under Section Clause-14 of the Lease-cum- sale agreement (Section 34-B of the KIADB Act, 1996) Sub: Violation of Terms and Conditions of lease-cum-sale agreement date: 18.12.2017 in respect of 20235.00 sq.mts of land in Plot no: 34 of Hitech Defence and Aero Space Park (IT Sector) Bengaluru Rural District. Ref:1. Allotment Letter No: KIADB/HO/Allot/Secy- 1/21534/2462/17-18, dated: 20.05.2017 2. Lease-cum-sale agreement dated: 18.12.2017 ***** With respect to above subject, you were allotted an extent of 20235.00 sq.mirs of land in Plot no.34 of Hitech Defence and Aero Space Park (IT sector) Bengaluru Rural District to establish unit of " Software Development and IT Enabled Services ". As per the terms and conditions of the lease-cum-sale agreement, you are supposed to take building approval within six months from the date of Lease-cum-sale agreement dated: 18.12.2017 and commence civil construction work within 9 months from the date of Lease-cum-sale agreement. As per the terms and conditions of the lease-cum-sale agreement, you are supposed to take building approval within six months from the date of Lease-cum-sale agreement dated: 18.12.2017 and commence civil construction work within 9 months from the date of Lease-cum-sale agreement. In spite of the time frame prescribed in the lease- cum-sale agreement, you have failed to take necessary steps to implement the project and utilize the land for the purpose for which it is leased even after lapses of more than 1½ years for the date of execute of lease-cum-sale agreement. As per the Development Officer & Executive Engineer-3, KIADB, report dated: 15.06.2019, the allottee has not taken any effective steps to implement the project and not submitted the building plan for approval and thereby committed the breaches of the conditions of the lease-cum-sale agreement. Your failure to utilize the land and establish the proposed industry is contrary to the objective of allotment as well as the objective of the KIAD Act-1966, namely systematic and Rapid Industrial Growth this act on your part has also resulted in deprivation of opportunity to other entrepreneurs seeking allotment of land for establishing Industry. You have failed to utilize the land for the purposed for which it is leased. Even after the lapse of more than 1½ years from the date of execution of the lease-cum- sale agreement, i.e., 18.12.2017, section 34-B of KIAD Act, read with clause-14 of the lease-cum-sale agreement stipulates that the KIADB shall be entitled to determine the lease and resume the possession of whole of the land or any part thereof for violate on terms and conditions prescribed in the lease-cum-sale agreement executed with the Board. In view of the above, you are called upon to remedy the specific breaches noted here within a period of 90 days from the date of issue of this notice failing which further steps will be taken to terminate the lease and resume the possession of land by the Board for violation of terms and conditions of agreement. Please note that if no reply is received within 30 days from the date of this notice, it will be presumed that you have no genuine reason to show cause and further action in terms of the lease-cum-sale agreement will be taken. Yours faithfully, Sd/- Secretary-1” (Emphasis added) The petitioner then wakes up and seeks electricity connection and also replies to the Board. Yours faithfully, Sd/- Secretary-1” (Emphasis added) The petitioner then wakes up and seeks electricity connection and also replies to the Board. The reply reads as follows: “To The Chief Executive Officer & Executive Member KIADB, #49, 4 th Floor, East Wing, Khanija Bhavana Race Course Road Bangalore -560001 Subject: - Notice under section 34-B of KIADB Act 1966, violation of terms and conditions of lease deed dated: 18-12-2017 in respect of 20235.00 Sq. meters of land in Plot No.34 of Hi-tech, Defense & Aerospace Park (IT Sector), Bengaluru. Ref: Lease Deed dated: 18-12-2017 Notice No: - KIADB/HO/Allot/21534/8596/2022-23 Dated: 17/08/2022 Dear Sir, This is to bring to your kind attention that, we Shiksha Infotech Pvt Ltd have receipt of a notice/order Ref No:- KIADB/HO/Allot/21534/8596/2022-23 Dated:- 12.08.2022, as per the notice you are ordered to pay penalty of Rs. 25,00,000/- within 30 days, but we are requested many times to KIADB to allow us some time to implement the project at allotted land at plot no 34, we already suffered a lot from COVID-19 and other financial crunch since past 3 years, even though we are trying to sustain in industry hence, We are requesting you to waive off the penalty proceeds against us, and we would request your goodself with respect to extension of time limit for commencement and completion of construction work Also we would like to inform you that we have started basic necessary steps like building a boundary wall, small office, security rooms etc,, while doing these tasks we are facing some difficulties at allotted land and major difficulties are mentioned bellow for your guidance 1. We already submitted 4 copies of building plan to KIADB on 25 th September 2019 and still we haven't got any approval / reply from concerned department to proceed further, acknowledgement copies are attached with this letter for your reference 2. We already submitted 4 copies of building plan to KIADB on 25 th September 2019 and still we haven't got any approval / reply from concerned department to proceed further, acknowledgement copies are attached with this letter for your reference 2. There is no electricity connection at KIADB Electricity Pole which is installed at plot no 34, as we enquired with concerned BESCOM officer, they said there is no connection here, you have to make temporary arrangements from another locations its distance from our Plot, it is around 800 to 900 Meters, so our constructions workers has to stay over there to finish construction works, but due to electricity connection issue we are unable to finish the work on time, still we haven't got electricity connections at our land and we have submitted request letter to concerned BESCOM offices, acknowledgement copies are attached for your reference. 3. There are no water connections / sources in allotted plot, hence we would request you to provide your permission for Borewell for construction purpose. Or guide us the way forward. 4. Nearby Villagers come at site and disturb the work, saying we will not let it happen until, you are giving work to us. 5. There are no proper transport facilities, hotels for food arrangements for employees/visitors, & basic infrastructure has not been developed around allotted land to shift our office to KIADB plot, and software industries are still having hybrid work environment, so need of office premises are drastically down. Most of the workforce is not willing to move to the new location because of harsh conditions around, so we would request your good self in respect to extension of time limit as stipulated in agreement with respect to commencement and completion of construction work. 6. Again, apologies for the delay in reply, our MD lost his father few months back and there were few other covid related hard ships to most of the team members. So we did not have staff to complete basic necessary tasks in our office.” Even then no construction takes place. The plea put forth in the reply was that the building plan was not approved. 12. The Board has placed communications before this Court. On 17-03-2020 the Board has requested the petitioner to furnish the building plan. So we did not have staff to complete basic necessary tasks in our office.” Even then no construction takes place. The plea put forth in the reply was that the building plan was not approved. 12. The Board has placed communications before this Court. On 17-03-2020 the Board has requested the petitioner to furnish the building plan. It reads as follows: “M/s. Shiksha Infotech Pvt. Ltd., Manjunath Kannika (MANKA), Ground Floor, No.90, 2 nd Main, Electronic City- Phase 1, Bengaluru - 560 100. Sirs, Sub: Lease Deed dtd. 18.12.2017 in respect of Plot No.34 measuring an extent of 5.00 acres of land in Hitech, Defence & Aerospace Park (IT Sector) regarding building plan approval. Ref: Your letter dtd. 28.02.2020. -o0o- With reference to the above, you are hereby informed to submit the building plans in respect of Plot No.34 measuring an extent of 5.00 acres of land in Hitech, Defence & Aerospace Park (IT Sector), allotted in your favour, to the Development Office-3 & Executive Engineer, Aravind Bhavan, Nrupatunga Road, Bengaluru-560 001, for necessary action.” On 25-10-2021 the Executive Engineer was directed to inspect the property and furnish implementation report of the project. The communication reads as follows: “NOTE Sub: Implementation report in respect of Plot No.34 of Hi-tech, Defence & Aerospace Park (IT Sector). Ref: Lease Deed dated: 15-06-2016. **** An extent of 5.00 acres of land in Plot No.34 at Hi- tech Defence & Aerospace Park (IT Sector), Bengaluru has been allotted in favour of M/s. Shiksha Infotech Pvt. Ltd., Possession Certificate was issued on 29-11-2017 and lease deed has been executed on dtd:18-12-2017. They were expected to implement the project on or before 17-12-2020. Therefore, in this regard you are requested to inspect the above plot and furnish the detailed implementation report along with the sketch and photographs within 7 days from the date of this letter for taking necessary further action in the matter. Sd/- 25/10/2021 Joint Director Executive Engineer-3, KIADB Zonal Office, 1 st Floor, Aravinda Bhavan, N.T.Road, Bengaluru – 560 001.” (Emphasis added) The communication is clear that lease deed was executed on 18-12-2017 and the project was to be implemented on or before 17-12-2020. In the light of breach of the conditions of lease, the aforesaid communication emerges. Proceedings are taken up under Section 34B of the Act and an order is passed on 12-08-2022. In the light of breach of the conditions of lease, the aforesaid communication emerges. Proceedings are taken up under Section 34B of the Act and an order is passed on 12-08-2022. The order reads as follows: To the notice afore-quoted, the petitioner submits its reply on 13-12-2023 and 19-04-2024. The reply dated 19-04-2024 is as follows: “Subject: - Notice under section 34-B (3) of KIADB Act 1966, violation of terms and conditions of lease deed dated: 18-12- 2017 in respect of 20235.00 Sq. meters of land in Plot No.34 of Hi-tech, Defense & Aerospace Park (IT Sector), Bengaluru District. Ref: Lease Deed dated: 18-12-2017 Notice No: KIADB/HO/Allot/21534/913/2024-25 Dated:06/04/2024 Dear Sir, This is to bring to your kind attention that, we Shiksha Infotech Pvt Ltd have receipt of a notice/order Ref No:- KIADB/HO/Allot/21534/913/2024-25 Dated:- 06.14.2024, as per the notice, you were called for personal hearing on 19 th April 2024 at 11 AM and the authorized person is not available to attend the hearing on the above-said date due to the person is out of the station and we would request your good self- concerning an extension of the hearing date for future dates. "We are requesting you to provide clearance of the building plan, electricity, and water as assured in single window clearance and we would request your good self- concerning an extension of the time limit for the commencement and completion of construction work once all the ground facilities/approvals from the government side are provided". - Also, we would like to inform you that we have already constructed the basic requirements on the allotted land, like a boundary wall, small office, security rooms, etc, as per the 1 st stage of our construction contract and to start 2 nd stage of constructions work, we have already signed a deal with a contractor to construct a Wherehouse & we are facing a lot of difficulties at the allotted land, and major difficulties are mentioned below for your guidance. 1. After the notice we built up a boundary wall and developed three rooms, which were vandalized by someone at night and again found it difficult to work fast in terms of basic facilities and approvals. 2. 1. After the notice we built up a boundary wall and developed three rooms, which were vandalized by someone at night and again found it difficult to work fast in terms of basic facilities and approvals. 2. There is No Electricity connection at the KIADB Electricity Pole which is installed at plot no 34, we have applied to fix the electricity issues and followed up more than 10 times and the issue still not sorted yet and without electricity and water no work will be taken up by the contractors and this is the major drawback at our land and even after taking multiple follow-ups with the respective department, we haven't received any positive response from authority and the acknowledgment copies are attached for your reference, 3. Since it was a single window clearance and we are not getting building plan approval from KIADB, we cannot start the development. An immediate approval should be given and after that four-year extension to develop the building is required. Preferably we should be compensated for the delay 4. We already submitted 4 copies of the building plan to KIADB on 25 th September 2019 and still we haven't received any positive response /approval from the approving authority to proceed further, and acknowledgment copies are attached with this letter for your reference. 5. There are no water connections/sources in the allotted plot, hence we would request you to provide your permission for Borewell for construction purposes. OR guide us on the way forward. 6. Local Vendors / Contractors come to the site and disturb the work every day, saying that, we will not let it happen until you are giving work to us. They destroyed our temporary sheds which we had constructed on our land and some of them theft our valuables like:- Temporary Electrical Meter, Water Motor, Water Pump, Pipes and cables, Solar panels, and Laborers' belongings, our laborers faced many threats from the local vendors/contractors, so because of these threatens every day, our labors have left the working place as it is the condition, they feel they are not safe in that place. Due to this reason, we are unable to start our project at the stipulated time. 7. Due to this reason, we are unable to start our project at the stipulated time. 7. For the above reasons we are not able to implement the project and we have not received any positive response from BESCOM & KIADB regarding building plan approval & for Water / Borewell and safety measurement at the allotted land. Without electricity & water its very difficult to start our project hence we would like to request your assistance this serious matter. 8. There are no proper transport facilities, hotels for food arrangements for employees/visitors, & and basic infrastructure has not been developed around allotted land to shift our office to the KIADB plot, and software industries still have a hybrid work environment, so need of office premises are drastically down. Most of the workforce is not willing to move to the new location because of harsh conditions, so we would request your good self in respect to the extension of the time limit as stipulated in the agreement concerning the commencement and completion of construction work.” (sic) (Emphasis added) This has resulted in an order dated 12-06-2024 directing resumption of land. It reads as follows: The communication to the petitioner on 20-06-2024 reads as follows: The petitioner rushes to this Court and this Court protects the interest of the petitioner initially by the afore-quoted orders. The interim order is, by a reasoned order not extended. The non- extension of the interim order has become final. The land that was resumed by the Board to itself is now allotted to the 7 th and 8 th respondents. The 7 th and 8 th respondents have placed on record the clearance by the Committee on 23-07-2024 of all the 5 acres in two separate proceedings and making entire payment of Rs.1,68,00,000/- and Rs.50,00,000/- respectively, as demanded and they being handed over possession of the property. 13. The issue now would be, “ whether the Board has acted in consonance with the statute in resuming the land?” 14. The allotment letter is quoted hereinabove. The Board initiates proceedings under Section 34B of the Act. 13. The issue now would be, “ whether the Board has acted in consonance with the statute in resuming the land?” 14. The allotment letter is quoted hereinabove. The Board initiates proceedings under Section 34B of the Act. Section 34B of the Act reads as follows: “34-B. Resumption of the possession of premises including the residential tenements on breach of terms and conditions of lease or holding without authority .- (1) Where the Board is of the opinion that an allottee of any premises or part thereof or residential tenement in an industrial area or industrial estate has violated any of the terms or conditions of allotment or holds it without any authority it may, without prejudice to section 25 give notice to such allottee and Banks or Financial Institutions, in whose favour the Board has permitted the mortgage or leasehold rights of the premises, or residential tenement specifying the breaches of the terms and 15 conditions of the allotment calling upon the allottee to remedy such breaches within a time stipulated in the notice. (2) If the allottee fails to remedy the breaches within the time so stipulated, the Board shall serve a notice upon the allottee under intimation to such Bank or Financial Institutions to show cause within thirty days from the date of service of notice, why the possession of the premises or part thereof or residential tenement should not be resumed. (3) After considering the cause, if any, shown by the allottee and after giving him an opportunity of being heard, the Board may pass such orders, as it deems fit. (4) Where the Board passes an order under sub-section (3), for resuming possession of the premises or part thereof or residential tenement in the industrial area it may, by notice in writing, order any allottee to surrender and deliver possession thereof to the Board or any person duly authorised in this behalf within the date specified in the notice. (5) If any allottee refuses to surrender or deliver the possession of the premises or part thereof or residential tenement within the time specified in the notice, the Board or any officer authorised by it in this behalf may resume the possession of the premises or part thereof or residential tenement free from all encumbrances and for that purpose may use force as may be necessary".” Section 34B has 5 clauses. Clause 34B(1) mandates a notice to be issued to the allottee in default. Section 34B(2) requires the allottee to submit reply to the said notice. Section 34B(3) and onwards resumption of land by the Board on account of breach of the terms of lease. The lease between the parties is quoted hereinabove. The learned counsel for the Board has produced photographs taken of the property. It is admittedly vacant. It is not the case of the petitioner that he has put up any construction in the property in furtherance of conditions of lease. 15. In terms of conditions of lease which was entered into on 18-12-2017 the construction had to commence and finish within 17-12-2020. Even today there is no construction. Therefore, the petitioner has committed gross breach of the conditions of lese. In terms of clause 7 of the lease deed, a communication was made by the Board directing the petitioner to make payment of Rs.25,00,000/- as penalty for extension of time at 2% of the cost of allotment. Even that is not complied by the petitioner. Therefore, there has been breach after breach and the breach of the petitioner has led to the Board initiating steps and resuming the land in its favour. Today there are other entities which have been validly allotted the land and the said allottees have fulfilled the conditions of allotment. 16. The order dated 16-12-2024 of the coordinate Bench which refused to continue the interim order captures breach of the petitioner in not making the payment of Rs.25,00,000/- for extension of time. It is now too late in the day for the petitioner to retrace its steps and seek indulgence at the hands of this Court. The petitioner alone is responsible for the situation that has emerged on account of its continuous breach. 17. Finding no merit in the petition, the petition stands rejected.