IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.M. MANOJ, J.
M.S. Anaz, S/o. Saidu Muhammed – Petitioner
Versus
State Of Kerala, Represented By The Principal Secretary, Industries Department and Ors. – Respondents
WP(C) No. 35160 Of 2014
Decided On : 20-05-2025
(A) Rules for Allotment of Land - Ext.P1 - Allotment of industrial land - The petitioner challenged the allotment of land to the 4th respondent despite holding a higher rank in the priority list - The court found that the allotment violated the established priority rules and lacked justification. (Paras 1-30)
(B) Principles of State Largesse - The court reiterated that the distribution of state resources must be fair, transparent, and non-arbitrary, as established in Akhil Bhartiya Upbhokta Congress v. State of Madhya Pradesh. (Paras 28-29)
Facts of the case:
The petitioner, ranked 3rd, sought a 50-cent plot for a marine products unit, while the 4th respondent, ranked 18th, was favored for a 30-cent plot. The petitioner argued that the allotment violated the priority list and lacked sufficient justification.
Findings of Court:
The court quashed the allotment orders and directed a reconsideration of the claims based on the established rules.
Issues: The main issues were whether the allotment to the 4th respondent violated the priority list and whether the official respondents acted justly in their decision-making process.
Ratio Decidendi: The court ruled that the allotment process must adhere to the established priority rules and that the official respondents failed to provide adequate justification for favoring the 4th respondent.
Result: The impugned orders were quashed and the matter was remitted for reconsideration.
JUDGMENT :
(P.M. MANOJ, J.)
The writ petition is preferred primarily challenging Ext.P5 letter issued by the 2nd respondent. Thereafter by amending the writ petition, further challenges are made to Exts.P6, P18 and P19.
2. The issue involved in this writ petition pertains to allotment of plot in the industrial or developmental area, Aroor which is confined to a plot measuring 30 cents resumed from the possession of M/s. Periyar Engineering. According to the petitioner, as per Ext.P3 priority list of entrepreneurs published in the year 2014, petitioner held rank No.3, while another person, Mr. Salarudeen (who is now deceased), held rank No. 7, and the 4th respondent held rank No. 18.
3. The Rules pertaining to the allotment is Ext.P1. As per Rule 5, the application for land under these Rules shall be disposed of taking into consideration the desirability and suitability of the industry proposed in the area and also the capacity of the applicant to conduct the industry or any other matter the department may consider relevant. Any application can be rejected by the department without assigning reasons therefore.
4. On the basis of aforementioned provision, the applications were considered and the priority list was published as per Ext.P2. The petitioner was in higher position, i.e., rank No.3 and the 4th respondent was on 18th rank. He had not chosen to challenge the position assigned to the petitioner.
5. As stated earlier, the writ petition was filed in the year 2014 challenging the recommendation of the 3rd respondent in favour of the 4th respondent as per Ext.P5. Thereafter, on the knowledge of steps being taken to allot the plot to the 4th respondent, the writ petition was amended. The proceedings of the 3rd respondent and the recommendation of the District Level Project Appraisal Committee, whereby the decisions taken to allot the plot to the 4th respondent in violation of the principles enshrined in Ext.P1, were challenged.
6. Originally while considering the writ petition which challenged Ext.P5 alone, this Court interdicted the allotment by order dated 20.12.2014. Even thereafter, the 3rd respondent, on directions of the 2nd respondent, issued Ext.P6 order dated 22.12.2014. This being in violations of the directions of this Court, a contempt case was preferred. In the light of the contempt case, by order dated 22.12.2014, Ext.P6 order itself was kept in abeyance till the disposal of WP(C) No.35160 of 2014. On recording such submission, the contempt case was closed. Thereafter, the petitioner amended the writ petition challenging Ext.P6 order and its minutes and recommendations of the District Level Project Appraisal Committee as Exts.P18 and P19 respectively.
7. The facts involved in the case is that the petitioner, an entrepreneur, applied for allotment of a plot within the Aroor industrial area, which is under the control of the 3rd respondent for setting up a marine products exporting unit. The allotment was governed by Ext.P1 Rules. By Rule 5 as stated earlier, the application has to be disposed inter alia assessing the suitability and desirability of the proposed industry and capacity of the applicant. On making such assessment a priority list was published as per Ext.P3. The petitioner was the 3rd position whereas the 4th respondent was in the 18th position. The requirement of the petitioner was for 50 cents. While so, a plot having an extent of 69 cents as well as another plot having 30 cents were resumed from the possession of previous allottees namely M/s. Periyar Engineering. The 1st plot having 69 cents was divided and allotted to the first two persons in Ext.P3 rank list. The petitioner was the 3rd one available from Ext.P3 rank list. But the 3rd respondent had taken steps to allot 30 cents resumed from M/s. Periyar Engineering to the 4th respondent, who was in rank No.18. That is evident from Ext.P4. Thereafter, the 3rd respondent further approached the 2nd respondent as per Ext.P5 for overcoming the procedural hurd
The allotment of industrial land must adhere to established priority rules, ensuring fairness and transparency in the distribution of state resources.
Process of applying the pick and choose policy and making allotments at the whims and fancies of the persons in power continued in the State.
The court emphasized the legal principles related to the disposal of public properties, legitimate expectations, and the authority's discretion in allotment decisions.
Petitioners cannot assert rights for land allotments when their claims are contingent on another party's pending applications, especially after such approvals have expired.
Courts have to individualise justice by moulding the relief and for that purpose, they can read down the instruments, under which rights are claimed consistent with the law under which they are issue....
The authority's decision to resume and re-allocate land was upheld, emphasizing adherence to natural justice and proper jurisdiction under the relevant rules.
The court ruled that resumption of industrial land must consider actual utilization for intended purposes, rejecting technical approaches that undermine industrial growth.
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