The court held that administrative authorities must act within legal bounds, and their inaction in issuing NOC and executing Sale Deed was arbitrary, necessitating compliance with conditions for relief.

ORDER :

K. MANMADHA RAO, J.

This writ petition is filed under Article 226 of the Constitution of India for the following relief:

“……to issue a Writ Order or Direction more particularly one in the nature of Writ of Mandamus declaring the inaction of Respondents 24 in issuing NOC/executing Sale Deed to the Petitioner for Plot Nos 67, 69, 70, 71, 72 and 73 at Industrial Park, Gajulamandyam in Renigunta Revenue Mandal, Chittor District, A.P., notwithstanding compliance of proceedings No 20559/DW/D10/IP/GMD/07 dated 17.05.2016, as arbitrary illegal, misuse of powers vested with office violation of Article 14 and 19 of Constitution of India and consequently direct the Respondents 2 to 4 to issue NOC/execute Sale Deed without imposing penal conditions for execution of sale deed in favor of the Petitioner for Plot Nos 67, 69, 70, 71, 72 and 73 at Industrial Park Gajulamandyam in Renigunta Revenue Mandal, Chitoor District, A.P. in compliance with proceedings No 20559/DW/D10/IP/GMD/07 dated 17.05.2016 and accord reasonable time for completion of the project from the date of issuance of NOC / Execution of sale deed and pass……”

Brief facts of the case are that the Petitioner made an application to the 2^nd respondent seeking allotment of land for setting up "Ferro Alloys Industry" ('Project'). The application was forwarded to the 4^thRespondent for necessary action. The final allotment order was issued by the 4^thRespondent confirming the allotment of Plot No's. 67 and 69 to 73 at Industrial Park, Gajulamandyam in favor of the petitioner for Rs.1,53,52,800/-. An Agreement of Sale was also entered into and Pursuant to the Agreement, possession certificate was issued. Petitioner without wasting any time, with great diligence started development work on the subject land but it took more than two and half years to get the statutory approvals. Pursuant to obtaining approval almost 70% of the building works on the subject land was completed. It is stated that the APSPDCL issued a revised estimate to the petitioner for supplying electricity to the subject land. The petitioner applied for credit facilities from financial institutions and with great difficulty convinced ICICI Bank to advance credit facilities of Rs.14.00 Crore. Amount was sanctioned subject to issuance of NOC from 4^thRespondent. Pursuant thereto, the petitioner requesting the 4th Respondent for grant of No objection Certificate (NOC) under clause 4 (a) of Agreement. The 4th Respondent neither granted the NOC nor replied to the communications issued by the Petitioner on numerous occasions. Accordingly, the petitioner sought for extension of time as commercial production could not be commenced within two years. The 4th Respondent extended the time till 30-11-2014 but penalty of Rs.19,34,453/ was levied. Petitioner requested the for waiver of the penalty and further requested for issuance of NOC to ICICI Bank. It is further stated that Multiple Letters were sent as NOC was not granted even after lapse of a year. Finally the 4th Respondent waived penalty and granted NOC to ICICI Bank after fourteen months. Owing to the delay, bank withdrew its decision to sanction loan and the NOC was returned. In view of the same, the petitioner suffered loss of Rs. 24,50,000/- paid as processing fee to bank. Due to delay caused in issuance of NOC, further extension of time for 15 months was sought. But surprisingly show cause notice was issued seeking reason for not cancelling the allotment. Thereafter, the petitioner issued reply explaining the reasons for delay. An additional reply with supporting documents was also issued. The Petitioner requested for issuance of NOC to Canara Bank for loan. But the Respondents did not respond and the Petitioner’s request for grant of NOC was rejected as project not implemented within stipulated time. Thereafter, detailed Representations were sent by petitioner explaining the cause of delay and the investments made and sought for final extension of one year with NOC. Ev