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2024 Supreme(Cal) 221

IN THE HIGH COURT AT CALCUTTA
SABYASACHI BHATTACHARYYA, J.
Continental Chemical Corporation and Others – Petitioners
Versus
West Bengal Small Industries Development Corporation Ltd. and Others – Respondents
WPO No. 183 of 2024
Decided On : 10-04-2024

Advocates:
Advocate Appeared:
For the Petitioner: Ashok Pincha.
For the Respondents: Debabrata Banerjee, Mahendra Prasad Gupta, S. Singh.

IMPORTANT POINT
The main legal point established in the judgment is that the discrimination against the petitioners, despite being situated on similar premise as others, was found to be palpable and violative of Article 14 of the Constitution of India.

Headnote:

Discrimination - Small Industries Development - [Scheme of 2020, 2021, 2022] - The court discussed the interpretation of the Schemes-in-question with reference to whether a prior lease deed was necessary or a mere allottee would be entitled to the benefit of the Schemes. The court found that the petitioners were discriminated against, despite being situated on similar premise as others, including M/s Gravo Print, who were given the benefits of the Scheme despite being defaulters, although the Scheme applies to all allottees, irrespective of having any prior lease. The discrimination meted out to the petitioners was found to be palpable and violative of Article 14 of the Constitution of India.

Fact of the Case:

The petitioners, a partnership firm engaged in small industry, challenged the refusal of the benefit under the Special Scheme by the respondent no. 1. The dispute arose due to a sudden increase in monthly rent for the plots, leading to several writ petitions being filed by the petitioners. The court found that the petitioners were discriminated against and allowed the writ petition, setting aside the impugned order.

Finding of the Court:

The court found that the petitioners were discriminated against and allowed the writ petition, setting aside the impugned order. The court held that the petitioners were entitled to the benefit of the Scheme and directed the respondent no. 1 to calculate the outstanding dues of the petitioner from August 2014 till date and communicate the modified bills of outstanding dues to the petitioners. The petitioners were directed to pay the outstanding dues within 8 weeks, following which the respondent no. 3 would issue an offer-letter to the petitioners and enter into a lease deed with the petitioner as per the Scheme dated February 18, 2021 as extended by the Circular dated August 25, 2022.

Issues: The issues revolved around the interpretation of the Schemes-in-question with reference to whether a prior lease deed was necessary or a mere allottee would be entitled to the benefit of the Schemes. The court also considered the discrimination between the petitioners and similarly placed others, and the justification for non-payment of occupation charges.

Ratio Decidendi: The court found that the petitioners were discriminated against, despite being situated on similar premise as others, including M/s Gravo Print, who were given the benefits of the Scheme despite being defaulters, although the Scheme applies to all allottees, irrespective of having any prior lease. The discrimination meted out to the petitioners was found to be palpable and violative of Article 14 of the Constitution of India.

Final Decision: The court allowed the writ petition, setting aside the impugned order and directed the respondent no. 1 to calculate the outstanding dues of the petitioner from August 2014 till date and communicate the modified bills of outstanding dues to the petitioners. The petitioners were directed to pay the outstanding dues within 8 weeks, following which the respondent no. 3 would issue an offer-letter to the petitioners and enter into a lease deed with the petitioner as per the Scheme dated February 18, 2021 as extended by the Circular dated August 25, 2022. The court also restrained the respondents from taking coercive steps against the petitioners until the process is complete.

JUDGMENT :

SABYASACHI BHATTACHARYYA, J.

1. The respondent no. 1, West Bengal Small Industries Development Corporation Limited, as the name suggests, is a Government of West Bengal undertaking which is engaged in the development of small industries in West Bengal and giving a fillip to small business.

2. The petitioner no. 1, on the other hand, is a partnership firm which has been reconstituted several times, old partners yielding place to the new, the petitioner nos. 2 and 3 being its current partners. The petitioner no. 1 carries on a manufacturing unit of Sodium Sulfite which engages several employees and qualifies as a small industry. The petitioner no. 1 was initially a proprietorship and was allotted Shed No. 6/1 on July 6, 1984 to set up the business. On November 17, 1986, the proprietorship changed into a partnership firm. On December 16, 1986, another plot numbered as 1/1 was allotted to the petitioner no. 1. Subsequently, Plot Nos. 1/2 and 1/4A were also allotted to the firm. Due to the petitioner no. 1 not being granted consent to operate by the West Bengal Pollution Control Board, its allotments regarding Plot Nos. 1/2 and 1/4A were cancelled, upon which the petitioners moved WPA No. 426 of 1997 wherein they obtained an order directing the parties to maintain status quo. A direction was given on the Pollution Control Board to inspect the premises and grant No Objection Certificate on fulfillment of requisites. The same having been done, the petitioners were given a hearing and the respondent no. 1 agreed to regularize the allotment of Plot Nos. 1/2 and 1/4A.

3. The petitioners argue that up to July 2014, their allotments continued and draft lease-deeds were prepared, which were also approved by the respondents. All on a sudden on August 1, 2014, the monthly rent for the plots were increased manifold as reflected from the bill raised at that juncture. The dispute as to enhancement of occupation charges persisted for a long time, leading to several writ petitions being filed by the petitioners at different points of time. Ultimately, the matter came up to this Court in WPO No. 2021 of 2022. A Co-ordinate Bench of this Court, vide order dated June 23, 2023, observed, inter-alia, that the petitioners have continued to default with regard to payment of occupational charges and the allegations of violation of Article 14 of the Constitution of India was vague and without particulars.

4. It was also observed that the petitioners were given several opportunities to rectify the gaps in their dealings by way of execution of lease-deeds and in the payment of arrear rent but the petitioners stood resolute in their stand and failed to comply with their directions. Accordingly, WPO No. 2021 of 2022 was, thus, dismissed.

5. The said order was challenged in appeal. The Division Bench taking up the appeal bearing APO No. 96 of 2023 by its order dated January 15, 2024 recorded that the appellants had brought to the notice of the court that in case of M/s. Gravo Prints, another plot in the same industrial estate, that is, the Behala Industrial Estate was given the benefit of a similar Scheme although they were defaulters in payment of occupational charges as well. In the light of such observations, the Division Bench disposed of the appeal by directing the appellant to submit a representation to the Managing Director of the respondent no. 1, enclosing copies of the documents by which the benefit of the Special Scheme was granted to M/s. Gravo Prints. On receipt of the representation, the Managing Director of the respondent no. 1 was directed to give an opportunity of personal hearing to the partners of the petitioner no. 1-firm and to pass a reasoned order.

6. Pursuant to the Division Bench order, by the impugned order dated February 8, 2024, the Managing Director of the respondent no. 1 considered and rejected the prayer of the petitioners, thereby refusing the petitioners the benefit under the Special Scheme. Being thus aggrieved, the petit

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