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2019 Supreme(AP) 305

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
T. RAJANI, J.
Automotive Manufacturers Pvt. Ltd. – Appellant
Versus
Andhra Pradesh Industrial Infrastructure Corporation Ltd. and Ors. – Respondent
WP No. 6440 of 2018
Decided On : 15-11-2019

Advocates:
Advocate Appeared:
For the Appellant : Rohit Pogula
For the Respondents: Government Pleader and A. Jayanthi, SC

Headnote:

Transfer of Property Act, 1882 - Sections 31 and 32 - Servicing and stocking of automobile vehicles - Possession certificate - Petitioner company is one of Indias largest automobile dealers - As a part of petitioners company expansion programme, to set up state of art facilities including showrooms and workshops for petitioners customers across State of Andhra Pradesh, representations were made to respondent in for allotment of lands - In same year, several parcels of lands were allotted to petitioner company by respondent across various regions in erstwhile united - In Mangalagiri, Guntur District an undeveloped parcel of land, admeasuring an extent of situated at Industrial Park, Mangalagiri, was allotted to petitioner - A unit for servicing and stocking of automobile vehicles - At time of allotment, plot did not have road activity, no sewerages, no electricity and water connection – Held, Execution of sale deed, almost at end of expiry of two years period specified in sale agreement, would amount to nothing but waiver on part of APIIC as regards time schedule for completion of project - Hence, in view of above, this Court deems it fit to declare impugned cancellation order as well as cancellation cum resumption notice issued by respondent, as arbitrary and illegal - Petitioner would be able to complete project within a period of - Considering said submission, there shall be a direction to respondents to handover original sale deeds to petitioner within a period of from date of receipt of this order - Writ petition is allowed

ORDER :

T. Rajani, J.

1. The petitioner moved this Court by way of this writ petition seeking to declare the cancellation order bearing Lr. No. IP/MNGLR/Automotive/2006/1197, dated 29.8.2016, and the Cancellation-cum-Resumption Notice bearing Lr. No. ZO/GNT/IPMNGLR/Automotive/2006/357, dated 6.2.2018, issued by the 2nd respondent, as illegal and arbitrary.

2. The brief facts, which lead to the filing of this writ petition, are as follows:

The petitioner company is one of India's largest automobile dealers. As a part of the petitioner's company expansion programme, to set up state of the art facilities including showrooms and workshops for the petitioner's customers across the State of Andhra Pradesh, representations were made to the 1st respondent in the year 2006-07 for allotment of lands. In the same year, several parcels of lands were allotted to the petitioner company by the 1st respondent across various regions in the erstwhile united Andhra Pradesh. In Mangalagiri, Guntur District; an undeveloped parcel of land, admeasuring an extent of Acs. 3-00 at Survey No. 39 (part) & 49(part) situated at Industrial Park, Mangalagiri, was allotted to the petitioner. The Provisional allotment was made by the 2nd respondent, dated 6.12.2006, stating that the land should be utilized for the purpose of setting up of a unit for the servicing and stocking of the automobile vehicles. At the time of allotment, the plot did not have road activity, no sewerages, no electricity and water connection. Six months later, an agreement of sale for the said land was executed on 21.5.2007. As a condition precedent to the petitioner being placed in the possession of the land, the petitioner paid Rs. 1,45,69,200/-. It was further stated that the allotted land would be utilized exclusively for setting up of an automobile service centre and that the said project shall be implemented within two years of the petitioner being put in possession of the said plot. A possession certificate dated 21.5.2007 was also issued to the petitioner. The petitioner company was allotted around 11 plots of lands across the erstwhile state of united Andhra Pradesh for the construction of similar such automobile workshops and showrooms. By the year 2009, three of the projects were already implemented and were functional. However, given the global economic meltdown the automobile sector across the globe was hit and there was a slowdown in the sale and purchase of automobiles. Hence, the project was delayed at Mangalagiri. Petitioner approached the office of VC & MD of the 1st respondent by a letter dated 12.2.2009 explaining the reasons for the delay and requesting for rescheduling the uncompleted projects. Regarding the plot at Mangalagiri, an extension of time till 2012 was sought to implement the project. It was also requested that as the petitioner would be raising loans for the execution of the projects, it was pertinent that the sale deeds for the same be executed, in order to gain financial assistance. Vide a reply, dated 16.3.2009, the 1st respondent considered the request of the petitioner and agreed to execute the sale deeds. As such, the sale deed was executed on 26.3.2009 for the plot at Mangalagiri. But for the reasons best known to the 2nd respondent, original sale deed was kept with it. The petitioner initiated preliminary activity on the plot subsequent to the sale deed. In the year 2011, the petitioner approached the Zonal Office of the 1st respondent vide letter, dated 28.10.2011, for their approvals for setting up the automobile service centre. On 20.3.2012, i.e., six months later the petitioner received a reply from the Divisional Zonal Manager, Autonagar, Guntur, stating that with regard to the petitioner's plot of land, the layout boundaries were revised and hence he asked the petitioner to submit revised building plans alongwith a rectification deed for the said plot of land. No copy of the revised plans was provided nor was there any information as to whom th

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