Jammu & Kashmir High Court

M/S Met Trade India Ltd vs State Of J&K & Ors on 10 September, 2021

      HIGH COURT OF JAMMU & KASHMIR AND LADAKH
                      AT JAMMU

                                                     OWP No. 746/2011
                                                     IA No. 1041/2011

                                              Pronounced on: 10.09.2021

M/s Met Trade India Ltd.                                   .... Petitioner (s)

                                 Through:-    Mr. Rahul Pant, Sr. Advocate
                                              with Mr. Anirudh Sharma,
                                              Advocate

                           V/s
State of J&K & ors.                                       .....Respondent(s)

                                 Through:-    Mr. Ajay Abrol, Advocate

CORAM : HON'BLE MRS. JUSTICE SINDHU SHARMA, JUDGE
                                 JUDGMENT

01. The petitioner in the present petition has assailed Order No.

SIDCO/Proj/IGC/02/157/46-47 dated 20.04.2011 cancelling the allotment of

13 Kanals of additional land situated at SIDCO Industrial Growth Centre,

Samba to the petitioner‟s Unit by the J&K State Industrial Development

Corporation Ltd. Jammu.

02. Briefly stated the facts arising in this petition are that; the

petitioner‟s Unit was allotted additional 13 kanals of land at Industrial

Growth Centre, Samba by respondent No. 3-J&K Industrial Development

Corporation Ltd. Jammu vide order No. SIDCO/ROJ/2010/25 dated 12th

June, 2010; Since the petitioner failed to deposit the premium as well as

advance rent as per the terms and conditions of allotment order, as such, vide

Order No. SIDCO/Proj/IGC/02/157/46-47 dated 20.04.2011, the allotment

order dated 12.06.2010 (supra) was cancelled with immediate effect.

03. The case set up by the petitioner is that he could not deposit the

premium as well as advance rental of the land within 30 days in terms of the

conditions of the allotment order as his finances were blocked by the

respondents. It is submitted that, the petitioner had purchased another sick

Unit of M /s Prabhat Terpentine & Synthetics (P) Ltd. in auction from

respondent No. 3 being the highest bidder. After the bid was accepted, the

entire payment was made but the aforesaid unit could not be made functional

as the respondents failed to grant NOC/Nil liability certificate of different

agencies as per the auction notice, resultantly, the amount deposited by the

petitioner was blocked and could not be utilized. An additional land of 13

Kanals was allotted to the petitioner during this period and for these reasons

the petitioner was not able to deposit the payment as per the allotment order.

04. Though the petitioner subsequently was able to raise requisite

funds and deposited the premium as well as advance rent vide cheque dated

15.04.2011 of Rs. 40,32,600/- alongwith the covering letter regretting the

delay in depositing the same. The respondents, however, cancelled the

allotment order on 20.04.2011 and returned the cheque.

05. The petitioner, thus, is aggrieved of the order of cancellation being

arbitrary, illegal and is in violation of Article-14 of the Constitution of India.

According to the petitioner, the order of cancellation has been passed

without giving him any opportunity of being heard. As the delay in deposit

of the money was not deliberate but in fact the same was attributable to

respondent No. 3, therefore, the respondents should have accepted the

amount. The respondents in a malicious exercise of powers have cancelled

the allotment causing loss to the petitioner, as such, the same is required to

be set aside. It is also submitted that due to blocking of the huge amount due

to action of respondents, the petitioner was unable to deposit the additional

cost of land in time.

06. The respondents in their objections have submitted that vide order

dated 20.04.2011, the allotment of 13 kanals of additional land was

cancelled for non-payment of premium and advance rentals within 30 days

of the issuance of the allotment order. The contention of the respondents is

that this writ petition filed by the petitioner is not maintainable as the land

was allotted to M/s S.S. Extrusion, Industrial Growth Centre, Samba vide

order dated 12.06.2010. Though M/s Met Trade India Limited had filed an

application for change in name and style of the constitution of M/s S. S.

Extrusions (P) Limited but as he failed to complete the requisite

requirements timely, therefore, No objection certificate was not granted and

also no change in the name of the unit was effected, as such, this petition

has not been filed by a competent person, therefore, the same is required to

be dismissed.

07. Be that as it may, the J&K Industrial Development Corporation

Ltd. issued letter of allotment dated 12.06.2010 for allotment of additional

13 (thirteen) Kanals of land in favour of M/s S.S. Extrusion, Industrial

Growth Centre, Samba, in addition to 25 (Twenty Five) Kanals of land at

IGC Samba allotted earlier in favour of Company, thus, making total

allotment of 38 Kanals to meet the requirement of revised project. The

allotment of additional land was to be governed by some terms and

conditions. Relevant terms & conditions are as under:-

(1) the period of lease will be (90) ninety years from the execution of original lease deed. The lessee shall abide by the terms and conditions as laid down in lease deed and allotment order. (2) the allottee will make the payment of premium @ of Rs.3.00 lacs per kanal and advance lease rentals for two years as per prevailing rates to J&K SIDCO.

(3) the allottee shall pay annual lease rent as per prevailing rates in advance to J&K SIDCO for each financial year. The rent shall be charged from the 30th day of issuance of this order or execution of lease deed whichever is earlier. (4) ......................

(5) .....................

(6) the allottee shall enter into an agreement with J&K SIDCO through a lease deed which shall be duly registered in the Court of law within 60 days from the date of issue of allotment order failing which the allotment is subject to cancellation. (7) that the land so allotted is liable for cancellation if not used for bonafide purpose.

(8) .........................

(9) .........................

(10) ........................

(11) ...........................

(12) .............................. (13) that the violation of the above norms/conditions by the allottee can result in the cancellation of the land so allotted.

08. In terms of the above allotment, the allottee had to make the

payment of premium @ of Rs.3.00 lacs per kanal and advance lease rentals

for two years as per prevailing rates within 30 days of issuance of this order.

Thereafter, allottee was required to enter into an agreement with respondents

through a lease deed which was to be duly registered in the Court of law

within 60 days from the date of issue of allotment order failing which the

allotment was subject to cancellation and thereafter, the petitioner had to

deposit the entire premium/rental amount within 30 days i.e., by 12.07.2010.

As the petitioner admittedly has failed to deposit the amount as per the

conditions 2 and 3 of the allotment order, therefore, the respondents have

rightly cancelled the same.

09. The next argument of the petitioner is that he deposited the

amount as per the allotment order as soon as he could arrange the funds.

Accordingly a cheque dated 15.04.2011 for Rs. 40,32,600/- towards

premium/rent of additional land alongwith covering letter was deposited but

the same was not accepted by the respondents. The letter enclosing the

cheque dated 12.06.2010, reads as under:-

"we regret very much for delay in making the payment of subject land allotted to us vide above referred order. Cheque No. 500970 date 15/04/2011 of Rs.40,32,600/- is enclosed here with towards additional land allotted to us.

Pl acknowledge the receipt and advice us date on which we can approach your kind self for registration."

Though the cheque is dated 15.04.2011 but the order of

cancellation dated 20.04.2011 contains the date of approval of the Managing

Director, which reads as under:-

"M/s S.S. Extrusion, Industrials Growth Centre, Samba.

Sub: Non-payment of Premium - Cancellation of land allotment.

Ref: MD/s approval at note para (98) dated: 09.04.2011 on file No: IDC/IGC/02/proj/157 Dear Sir,

Whereas 13 (Thirteen) Kanals of addition land was allotted to you vide order No. SIDCO/ROJ/2010/25 dated 12.06.2010.

Whereas as per terms & conditions of allotment order premium/advance rentals were required to be deposited by you within 30 days from the date of issue of allotment order. Whereas the said requisite payments have not been deposited by you till date, in spite of issuance of notices from time to time.