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Rajasthan High Court - Jodhpur
Hindustan Zinc Limited vs Union Of India (2025:Rj-Jd:52401) on 4 December, 2025
Author: Nupur Bhati
Bench: Nupur Bhati
[2025:RJ-JD:52401]
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT
JODHPUR
S.B. Civil Writ Petition No. 19984/2025
Hindustan Zinc Limited, Having Its Registered Office At Yashad
Bhawan, Swaroop Sagar, Udaipur, Through Its Power Of Attorney
Holder Ms. Shilpa Nair D/o Shri Surendrakumar Nair, Aged About
29 Years Presently Working As Deputy Head (Legal), Hindustan
Zinc Limited, Udaipur.
----Petitioner
Versus
1. Union Of India, Ministry Of Finance, Department Of
Revenue, Central Goods And Service Tax
Commissionerate, Chandigarh, Punjab Through Its Chief
Commissioner.
2. Assistant Commissioner, Goods And Services Tax Division,
Plot No. 168-172, Sector-4, Gandhi Nagar, Chittorgarh
(Raj.)
3. M/s. Industrial Gases Ltd, Having Its Registered Office At
15 Ganesh Avenue, Kolkata 700013 Through Its Director/
authorized Signatory.
----Respondents
For Petitioner(s) : Mr. Punit Singhvi
For Respondent(s) : Mr. Rajvendra Saraswat with
Mr. Jitesh Kumar Suthar.
HON'BLE DR. JUSTICE NUPUR BHATI
Order
04/12/2025
1. The present writ petition has been filed by the petitioner
claiming following relief(s):-
"xxxxxx
(i) By an appropriate writ, order or direction, the inaction of
respondents in not removing the oxygen plant (declared
unsafe) from the premises of the petitioner company may
kindly be declared as arbitrary, unconstitutional and illegal.
(ii) By an appropriate writ of mandamus, the respondents be
directed to remove the oxygen plant (declared unsafe) from the
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premises of the petitioner company with immediate effect in
terms of the latest report of the expert agencies.
xxxxxxx"
2. Brief facts of the case are that the petitioner entered into a
contract with respondent No.3-M/s Industrial Gases Limited in
1990 for installation and supply of oxygen gas at its Chanderiya
Lead Zinc Smelter. Due to power unavailability, the respondent
No.3 supplied liquid oxygen via tankers and later installed a
temporary oxygen plant within the petitioner's premises.
Subsequent disputes led to arbitration between the petitioner and
respondent, resulting in an award dated 21.07.2022. The excise
department seized the respondent's plant and machinery in 2001
over outstanding excise dues. Despite interim protection granted
to the respondent subject to pre-deposit, the respondent failed to
comply or contest diligently. The petitioner had the plant inspected
for structural stability in 2019, revealing it posed serious
environmental and safety risks. An application under Section 17 of
the Arbitration and Conciliation Act was filed but dismissed since
the plant was seized by a non-party department. The petitioner
challenged the arbitral award before the Commercial Court, which
delivered judgment on 18.07.2025; the petitioner's appeal against
this judgment is pending. Due to inaction by the excise
department and worsening plant condition, the petitioner
requested removal of the seized plant through representations in
2019 and 2025. While the excise department initiated valuation
and auction proceedings, no effective steps have been taken to
remove the plant, which remains on the petitioner's premises in a
non-functional and unsafe condition. A recent expert report dated
06.09.2025 confirmed the plant is unsafe under applicable factory
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safety laws, posing imminent danger to life and environment and
being aggrieved of the above, petitioner has approached this
Court.
3. Counsel for the petitioner submits that the respondent
department, vide order dated 03.01.2001, seized the plant and
machinery installed by M/s Industrial Gases Limited on the
petitioner's land. It is further submitted that despite the seizure,
the respondents have not proceeded with the auction of the said
plant till date; thereby, causing significant prejudice to the
petitioner and endangering the safety of the workers operating on
the petitioner's premises.
4. Conversely, learned counsel for the respondents contends
that the respondents have specifically stated in the reply that they
have initiated concrete and specific steps towards fixing the
reserve price for revaluation of the plant/machinery, as well as for
conducting the auction proceedings thereof.
5. In view of the submissions made hereinabove, this Court
considers it just and proper to direct the respondents to complete
the revaluation of the seized machinery within a period of one
month from the date of this order. Thereafter, the respondents
shall commence and complete the auction proceedings within six
months from the date of revaluation. In the event of non-
compliance with these timelines, the petitioner shall be entitled to
remove the plant and machinery installed by respondent No.3-M/s
Industrial Gases Limited, from its premises. Any proceeds realized
from the disposal of the said plant and machinery shall be duly
handed over to respondents Nos.1 and 2.
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6. With the aforesaid observation and direction, the instant writ
petition stands disposed of. Stay application as well as all other
pending applications, if any, also stand disposed of.
(DR.NUPUR BHATI),J
55-/Devesh/-
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