IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Sunil B. Shukre, Anil Laxman Pansare, JJ.
Patel And Company – Appellant
Versus
State of Maharashtra – Respondent
Writ Petition No. 1494 of 2022
Decided On : 25-01-2023
Oxygen Manufacturing Plant - Allotment Dispute - Maharashtra Industrial Development Corporation Regulations of 1975 - Regulation 6, 10 - The petitioner sought the allotment of a specific plot for installation of an oxygen manufacturing plant under the 'Mission Oxygen Swawlamban' scheme. The MIDC had its own regulations for allotment of plots, and while the petitioner was justified in making an application for a specific plot, the decision to allot a plot depended on the Land Committee. The court found that the MIDC had disregarded its own regulations and orders of the court in allotting the plot to another party, and directed the MIDC to review its decision and decide the issue afresh in accordance with the law.
Fact of the Case:
The petitioner sought the allotment of a specific plot for installation of an oxygen manufacturing plant under the 'Mission Oxygen Swawlamban' scheme. The MIDC had its own regulations for allotment of plots, and while the petitioner was justified in making an application for a specific plot, the decision to allot a plot depended on the Land Committee.
Finding of the Court:
The court found that the MIDC had disregarded its own regulations and orders of the court in allotting the plot to another party, and directed the MIDC to review its decision and decide the issue afresh in accordance with the law.
Issues: Disregard of regulations and court orders by the MIDC in the allotment of a specific plot for installation of an oxygen manufacturing plant.
Ratio Decidendi: The decision to allot a plot for installation of an oxygen manufacturing plant depended on the Land Committee as per the MIDC regulations. The MIDC's disregard of its own regulations and court orders in the allotment process was found to be improper.
Final Decision: The court directed the MIDC to review its decision to allot the plot to another party and decide the issue afresh in accordance with the law.
JUDGMENT
ANIL L.PANSARE,J. - Heard. Rule. Rule made returnable forthwith. Heard finally by consent.
2. The petitioner is seeking a direction to the Respondent No. 2- Maharashtra Industrial Development Corporation (in short, 'MIDC') to allot Plot No.G-13/2 situated at Hingna MIDC Area, Nagpur (in short 'the plot') for installation of oxygen manufacturing plant under the Scheme "Mission Oxygen Swawlamban" in terms of the Government Resolution (in short 'GR') dtd. 21/5/2021 and Circular dtd. 23/6/2021.
3. Mr. F.T. Mirza, learned Counsel for the Petitioner has taken us throughthepleadings. He submits thatthe petitioner-firm is running an oxygen manufacturing plant at Hingna, MIDC Industrial area, Nagpur in a tenanted premises bearingNo.E-4/1whichis inproximityoftheplot and was lying vacant forlast about 40 years.ThePetitioner claims tohave supplied oxygen during the periodof globalpandemic ofnovel corono virus (COVID 19). He submits that on 21/5/2021, the Government of Maharashtra by Resolution under the Mission OxygenSwawlamban,has floateda scheme for encouraging installation of new project of 'Liquid Medical Oxygen Manufacturing along with storage and cylinder filling' (LMO). It has been specifically mentioned in the GR that the land/plot for the installation of the oxygen manufacturing plant shall be provided by MIDC on priority basis with concessional rates and all the permissions for installation of the said Unit shall be given expeditiously. According to Mr. Mirza, pursuant to the GR, the Petitioner on 26/5/2021 made an application to the District Collector, Nagpur and requested allocation of the plot admeasuring 8525 sq.mt. situated at Hingna MIDC Industrial area. The District Collector, looking to the exigency, took a prompt action and directed the Resident Deputy Collector to prepare a proposal to that effect and send it to the MIDC. On 4/6/2021 the District Collector, Nagpur made a recommendation to the MIDC for allotment of the plot in Hingna, MIDC area. The third wave of COVID-19 was then anticipated. On 7/6/2021, the MIDC issued a Circular for implementation of the GR dtd. 21/5/2021 for allotment of land by giving priority to the project of medical oxygen manufacturing plant. The said Circular was then superseded by another circular dtd. 23/6/2021. The scheme was to encourage oxygen manufacturing.
4. Mr. Mirza, submits that on 28/6/2021, the Petitioner submitted an application for installation of medical oxygen plant on the plot. The MIDC has taken cognizance of the application but could not process immediately for the reason that the plot was allotted to a company named Stretchlon Private Limited. The MIDC was first required to reprocess the said plot by cancelling the allotment. Accordingly, the MIDC has taken necessary steps for resumption of plot. According to the Petitioner, after resumption of the said plot, the MIDC ought to have taken decision as per the prevailing policy for allotment of plot, but did not.
5. The Petitioner has learnt from the Office of the MIDC that approval for resumption of the plot was given by the Chief Executive Officer of the MIDC. The Land Allotment Committee ('LAC' in short) constituted under the Chairmanship of Joint Chief Executive Officer MIDC has, in a meeting dtd. 7/1/2022, taken a decision to allot land at Hingna MIDC to six persons and has given offer letter dtd. 21/1/2022. However, the Petitioner was neither invited to the meeting nor his application was considered. This, according to Mr.Mirza, is contrary to the aims and objects of Mission Oxygen Swawlamban Scheme.
6. Mr. Mirza submits that for getting the benefits under the said Scheme the interested party has to make an application to Development Commissioner (Industries) MIDC before 30/6/2021. The Petitioner had submitted such a proposal on 28/6/2021 along with requisite amount. The LAC, however, did not consider the request in accordance with the Scheme. An attempt was allegedly made by LAC to allot the plot in issue to their
The decision to allot a specific plot for installation of an oxygen manufacturing plant depended on the Land Committee as per the MIDC regulations, and the MIDC's disregard of its own regulations and....
The government must act in a fair and just manner in the distribution of wealth, and any arbitrary distribution would violate the law of the land.
The central legal point established in the judgment is that the allotment of property must comply with the terms and conditions laid down in the relevant circular, and lack of transparency and fairne....
The court affirmed that statutory bodies must fulfill their obligations and that government directions must be lawful and reasonable, subject to judicial review.
The court affirmed the constitutional validity of the MIDC's priority allotment policy, emphasizing that online applications and fair process must apply uniformly, without arbitrary distinctions amon....
Writ petitions can be maintained against administrative actions affecting contracts, especially when principles of natural justice and public policy are at stake.
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