SUPREME COURT OF INDIA
V. Gopala Gowda, Arun Mishra, JJ.
Estate Officer UT Chandigarh & Ors. – Appellants
Versus
M/s. Esys Information Technologies Pvt. Ltd. – Respondent
Civil Appeal No. 3765 of 2016
Decided On : 11-05-2016
AIR 1969 SC 932; (2006) 7 SCC 756; AIR 1988 SC 1737; AIR 1986 SC 1370 – Relied upon
(b) Allotment of Small Campus Site in Chandigarh Information Services Park, Rules, 2002 – Rule 9 and Clause 15 of the allotment letter – M/s. Esys Singapore entering into fraudulent transaction with Dubai company – It further created right in favour of Teledata with which it had pending cases – Violation of Rule 9 and clause 15 established. (Para 15)
AIR 1969 SC 932; (2006) 7 SCC 756; AIR 1988 SC 1737; AIR 1986 SC 1370 – Relied upon
(c) Administration of justice – Supreme Court directing respondent to file affidavit giving all facts – Respondent suppressing facts with respect to Teledata – Respondent guilty of suppressio veri and suggestio falsi. (Para 15)
Facts of the case:
Rule 9 of the Allotment of Small Campus Site in Chandigarh Information Services Park, Rules, 2002 provided that transfer of the campus site by the allottee shall not be allowed for a period of 10 years from the date of allotment or till all dues are fully paid up whichever is later. Similar condition was incorporated in the allotment letter dated 1.6.2006 by which 6 acres of land was allotted to the respondents. It was necessary to make the construction within 3 years from the date of allotment.
On 2.1.2008 it came to the notice of the Director, Information Technology that the respondent company namely M/s. Esys Information Technologies Pvt. Ltd., Singapore had transferred a major portion of shares to other company namely, M/s. Esys Global Holdings, Dubai, without informing the appellant or seeking necessary permission as provided in Rule 9 and clause 15 of the allotment letter.
The Estate Officer by order dated 24.9.2008 cancelled the allotment and ordered resumption of the site and ordered to forfeit 10% of the total premium, interest earned and other dues payable in respect of the site.
The respondent preferred an appeal which was dismissed. The respondent preferred a revision which was also dismissed.
The High Court by the impugned judgment and order has allowed the writ petition filed by the respondent.
Finding of the Court:
High Court order cannot be sustained.
Result:
Appeal allowed.
JUDGMENT :
Arun Mishra, J.
1. The appeal has been preferred by the Estate Officer, Union Territory of Chandigarh, aggrieved by the judgment and order passed by the High Court of Punjab & Haryana at Chandigarh thereby setting aside the orders passed by the Estate Officer, appellate and revisional authorities on 24.9.2008, 14.2.2011 and 14.12.2012 respectively, thereby resuming the plot which was allotted to the respondent. Facts in short indicate that in the year 2002, Chandigarh Administration notified the rules called Allotment of Small Campus Site in Chandigarh Information Services Park, Rules, 2002 (hereinafter referred to as ‘the Rules’). Rule 9 of the Rules provided that transfer of the campus site by the allottee shall not be allowed for a period of 10 years from the date of allotment or till all dues are fully paid up whichever is later. Similar condition was incorporated in the allotment letter dated 1.6.2006 by which 6 acres of land was allotted to the respondents. It was necessary to make the construction within 3 years from the date of allotment.
2. On 2.1.2008 it came to the notice of the Director, Information Technology that the respondent company namely M/s. Esys Information Technologies Pvt. Ltd., Singapore had transferred a major portion of shares to other company namely, M/s. Esys Global Holdings, Dubai, without informing the appellant or seeking necessary permission as provided in Rule 9 and clause 15 of the allotment letter. Consequently, Director, IT, sought following clarifications from the respondent on 2.1.2008: (i) what is the business plan of the company for its activities; (ii) what are the business activities of M/s. Esys Information Technologies Ltd. from the campus site; (iii) what was the holding structure of the shareholding of the company at the time of making request for allotment; (iv) what was the holding structure of the company at the time of allotment; and (v) what is the shareholding structure of the company at present. Reply by the respondent was not satisfactory, as such show cause notice was issued on 18.1.2008 by the Estate Officer as to why due to violation of Rule 9 of the Rules and clause 15 of the allotment letter, action be not taken and allotment be cancelled and further why whole or part of the premium, EDC calculated till date of cancellation be not forfeited. The Estate Officer by order dated 24.9.2008 cancelled the allotment and ordered resumption of the site and ordered to forfeit 10% of the total premium, interest earned and other dues payable in respect of the site. Aggrieved by the same, the respondent preferred an appeal under section 10(1) of the Capital of Punjab (Development and Regulation) Act, 1952. The appeal was dismissed vide order dated 14.2.2011 passed by the Chief Administrative Officer, UT Chandigarh. The respondent preferred a revision before the Advisor to Administrator, UT Chandigarh. Same had been dismissed vide order dated 24.9.2008. It is pertinent to mention that the affidavit filed by Mr. Vikas Goel in the High Court of Singapore was placed on record and was referred to in the order passed by the revisional authority. Before the appellate authority, it was argued that the allottee company had transferred a major portion of shareholding changing its control to another company i.e. Esys Global Holdings, Dubai which in turn sold its stake to Teledata Informatics Ltd., a Chennai based company.
3. The High Court by the impugned judgment and order has allowed the writ petition. This Court while entertaining the special leave petition had passed an order on 16.7.2015 directing the respondent to file a counter affidavit containing certain information specified in the order. Following order was passed by this Court on 16.7.2015 :
“Heard.
Issue notice.
The respondent has appeared on caveat. The respondent-company shall file a counter affidavit within six weeks from today. Rajoinder affidavit, if any, be filed by the petitioner within two weeks thereafter. Counter aff
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