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2013 Supreme(SC) 147

SUPREME COURT OF INDIA
B.S. CHAUHAN & V. GOPALA GOWDA, JJ.
The Rajasthan State Industrial Development and Investment Corporation & Another – Appellants
Versus
Diamond and Gem Development Corporation Ltd Another – Respondents
Civil Appeal Nos. 7252-7253 of 2003 With Civil Appeal Nos. 8222-8223 of 2003
Decided on : 12-02-2013

Headnote:Rajasthan Land Acquisition Act, 1953-Section 4(1)-Rajasthan Land Revenbue (Industrial area Allotment) Rules, 1959-Rule 11-A-Rajasthan State Industrial & Investment Corporation Limited (Disposal of Land) Rules, 1979-Cancellation of allotment of land-Terms incorporated in lease deed itself provide for timely completion of construction and also for commencement of production within a stipulated period-Only 10% of total construction work stood completed by respondent-company-No proper application was ever filed for seeking extension of time by respondent-company, as per Rules-Allotment was made on "as-in-where-is" basis-Same was accepted by respondent-company without any protest-Lease deed further enabled appellant to collect charges, in case it decided to provide approach road-As respondent-company was responsible for creation of its own infrastructure, it has no legal right to maintain writ petition, and courts cannot grant relief on the basis of an implied obligation-State exercised its power in transferring land to RHCO under Rules 1959-Judgment and order impugned set aside and order of cancellation of allotment in favour of respondent-company by appellant restored-Appeals allowed. (Paras 22 to 32)

       Indian Evidence Act, 1872-Section 115-Estoppel-Doctrine of Election-Doctrine of election is based on rule of estoppel-principle that one cannot approbate and reprobate is inhyerent in it-Doctrine of estoppel by election is one among species of estoppels in pais (or equitable estoppel), which is a rule of equity-By this law, a person may be precluded, by way of his actions, or conduct, or silence when it is his duty to speak, from asserting a right which he would have otherwise had. (Para 10)

       AIR 1956 SC 593; AIR 1965 SC 1216; AIR 2009 SC 713; AIR 2011 SC 1869; (2011)10 SCC 420; JT 2012 (9) SC 260); AIR 1983 SC 394; (2004)4 SCC 113; AIR 1998 SC 1334; AIR 2000 DC 1771; AIR 1989 SC 1076; AIR 1996 SC 3515); AIR 2000 SC 2573; AIR 2004 SC 4794; AIR 2005 SC 286); AIR 2011 SC 1463; (2012)8 SCC 197; (2009)4 SCC 660; AIR 1940 PC 167; AIR 1959 SC 352; AIR 1966 SC 644; AIR 1984 SC 200; AIR 2000 SC 937; AIR 2007 SC 168; (2008)2 SCC 202); 1952 AC 109; AIR 1980 SC 1858-Relied.

       

Judgement Key Points

JUDGMENT :-

Dr. B.S. Chauhan, J.

1. These appeals have been preferred against the impugned judgment and order dated 30.7.2002 passed by the High Court of Rajasthan (Jaipur Bench) in Civil Writ Petition Nos. 5481/1994 and 105/1997, by which the High Court has allowed the writ petitions filed by the respondent-Diamond and Gem Development Corporation Ltd. (hereinafter referred to as the ‘Company’), for quashing the order of cancellation of allotment of land and directing the appellants for providing the approach/access road.

2. As these appeals have been preferred against the common impugned judgment, for the sake of convenience, Civil Appeal Nos. 7252-53/2003 are to be taken to be the leading case. The facts and circumstances giving rise to these appeals are :

A. That a huge area of land admeasuring 607 Bighas and 5 Biswas situate in the revenue estate of villages Durgapura, Jhalan Chod, Sanganer and Dhol-ka-Bad in District Jaipur, stood notified under Section 4(1) of the Rajasthan Land Acquisition Act, 1953 (hereinafter referred to as the `Act’) on 18.7.1979, for a public purpose i.e. industrial development, to be executed by the appellant Rajasthan State Industrial Development and Investment Corporation (in short ‘RIICO’).

B. Declaration under Section 6 of the Act was made on 22.6.1982 for the land admeasuring 591 Bighas and 17 Biswas. After meeting all requisite statutory requirements contained in the Act, possession of the land, was taken over by the Government and was subsequently handed over to appellant-RIICO, on 18.10.1982 and 17.11.1983. The Land Acquisition Collector assessed the market value of the land and made an award on 14.5.1984. RIICO made allotment of land admeasuring 105 acres vide allotment letter dated 10.3.1988 to the respondent no.1 company, to facilitate the establishment of a Gem Industrial Estate for the manufacturing of Gem stones.

C. In pursuance of the aforesaid allotment letter, a lease deed was executed between the appellant and respondent-company on 22.5.1989, with a clear stipulation that the land was allotted on an “as is-where- is”, and that the respondent-company must complete the said project within a period of 5 years, and further that, in the event that the terms and conditions of the lease agreement were not complied with, the appellant would be entitled to recover its possession in addition to which, various other conditions were also incorporated therein.

D. After possession was taken by the respondent-company, construction could be carried only on a portion of the land allotted to it. As the development work was being carried out at an extremely slow pace, the appellant issued various notices from time to time, reminding the respondent-company that it was under an obligation to complete the project within a specified period, owing to which, it must accelerate work. Additionally, there also arose some difficulty with respect to the respondent-company’s attempts to sub-lease the said premises, or parts thereof, and in view of this, an amendment dated 4.11.1991 was inserted in Rule 11-A of the Rajasthan Land Revenue (Industrial area Allotment) Rules, 1959 (hereinafter referred to as the ‘Rules 1959’), enabling the company to sub-lease the said land.

E. The appellant vide notice dated 4.7.1992, informed the respondent-company, that as per clause 2(n) of the lease deed, all construction had to be completed within a stipulated time period of 5 years. The respondent-company began asking the appellant to provide it accessibility via road, from the Jaipur Tonk main road and, as the same was not provided, the respondent-company filed Writ Petition No. 5481 of 1994 before the High Court, seeking the issuance of a direction to the appellant to provide to it, the aforesaid road.

F. During the pendency of the aforesaid writ petition, the appellant expressing its dis-satisfaction with regard to the progress of the development of the said land by the respondent-company, filed a reply to the said writ petition b




















































































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