MAIN POINT
Officers not acting in interest of their employer Corporation would be liable to be proceeded against.

Judgment

V. Gopala Gowda, J.

Leave granted.

2. The appellant-Andhra Pradesh Industrial Corporation Ltd. (for short “the Corporation”) is aggrieved by the judgment and order dated 20.8.2013 of the High Court of Judicature of Andhra Pradesh at Hyderabad passed in Writ Appeal No. 1273 of 2013 whereby the High Court dismissed the writ appeal and affirmed the judgment and order dated 26.4.2013 of the learned single Judge passed in Writ Petition No.11978 of 2012. This appeal is filed by the Corporation seeking for setting aside the impugned judgment and orders passed in the writ appeal and writ petition by allowing this appeal, urging various facts and legal contentions.

3. The brief facts are stated in this judgment for the purpose of appreciating the rival legal contentions urged on behalf of the parties, with a view to find out as to whether the impugned judgments and orders passed by both the Division Bench of the High Court and the learned single Judge are required to be interfered with by this Court.

The Corporation (which is one of the State Undertaking Corporations established to promote the industrial growth and development in the State of Andhra Pradesh) on the application filed by M/s Shivani Engineering Industries-the respondent herein for allotment of industrial plot measuring 10,000 sq. mtrs., allotted plot No.181 of Phase-III, Industrial Park at Pashamylaram to an extent of 12000 sq. mtrs. at a price of Rs.72,00,000/- in its favour and the said amount was to be paid by the respondent within 90 days of the receipt of the provisional allotment and required to implement the project within 2 years from the date of possession of the allotted plot of land, failing which the plot was liable to be cancelled by the Corporation as per terms and conditions enumerated in the provisional allotment letter dated 20.6.2006. The relevant clauses from the provisional allotment order read thus:-

“2. You should pay the cost of land which works out to Rs.72,00,000/- within Ninety days from the date of receipt of the allotment order, EMD already paid.

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7. If payment as stipulated in condition (2) above is not made within 90 days of receipt of this allotment letter, this allotment letter shall stand cancelled and EMD paid shall remain forfeited.

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18. You should implement the project envisaged within two years of taking possession of the plot. If within two years from the date of final allotment and taking possession of the plot the project is not implemented, the allotment will be cancelled.”

4. It is the case of the Corporation that the respondent has committed default in making said payment to it within stipulated time as payment should have been made within 90 days from the date of receipt of the allotment letter which was not done by the respondent, but on the other hand on 18.9.2006, the respondent sought for extension of time for making payment of the allotted industrial plot by 30.11.2006.

5. On 22.9.2006, it was found by the Corporation that the industrial plot allotted in favour of the respondent was more than the area mentioned in the provisional allotment, the area of the industrial land was revised as 14046 sq. mtrs. and the cost payable by the respondent was re-fixed at Rs.84,27,600/-. Despite having extended the time by the Corporation for making payment of land cost with interest @18% p.a. till 30.11.2006, the respondent again did not make the payment for the plot which resulted in cancellation of the provisional allotment of industrial plot made in favour of the respondent by the Corporation vide its letter dated 16.12.2006.

6. Being aggrieved by the said action of the Corporation, the respondent made representation on 3.2.2007 for restoration of the provisional allotment of land in favour of the respondent. The Corporation acceded to its request and it has informed on 21.2.2007 to the respondent stating that the restoration of allotment of plot of land will be done subject to payment of total cost o