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High Court Of Rajasthan
Judgename : Arun Madan
National Engineering Industries Ltd. - Appellant
Versus
State of Rajasthan - Respondent
Civil Writ Petition No. 1013 of 1994
Decided On : 05/02/1998
LAND ACQUISITION - RAJASTHAN LAND REVENUE ACT, 1956 - SECTIONS 88, 102 - PROMISSORY ESTOPPEL - SECTION 115 OF THE INDIAN EVIDENCE ACT, 1872 - ALLOTMENT OF LAND FOR INDUSTRIAL PURPOSES - ENCROACHMENT - ARBITRARY AND UNWARRANTED NOTICE - PRINCIPLE OF PROMISSORY ESTOPPEL - APPLICABILITY.
Fact of the Case:
The Petitioner, National Engineering Industries (NEI), challenged the Order dated 19-2-1994, issued by Respondent No. 4, Sub-Divisional Officer, Jaipur, directing NEI to remove its purported encroachment over Khasra Nos. 138/279 and 139/279 in Bassi Sitararnpura by 25-2-1994, failing which coercive action for removal of the aforesaid encroachment was directed to be initiated at the instance of Respondent No. 4 against the Petitioner-Company vide impugned Notice, dated 9-4-1994. NEI contended that the land in question was allotted to it for industrial expansion and that the principle of promissory estoppel was attracted as the Respondents had accepted the consideration for the allotment and had promised to allot the land, but later changed their decision.
Finding of the Court:
The Court found that the Petitioner had been induced to make part payment of the agreed consideration towards sale price to the respondent-U.I.T. as on 31-12-1962 and further payments on subsequent dates as agreed upon between the parties and the receipt of the same was duly acknowledged from time to time by the officers and functionaries of the U.I.T. The Court also found that the Respondents had raised a dispute on the basis of some motivated interest with a view to overcome the difficulty which was created as a result of some political vested interest so as to deprive the petitioner of the benefits of the agreement which was duly agreed and acted upon between the parties regarding the allotment of the land in question for industrial expansion of the petitioner-company.
Issues: 1. Whether the principle of promissory estoppel was attracted in the present case? 2. Whether the Respondents were estopped from denying the allotment of the land to the Petitioner?
Ratio Decidendi: The Court held that the principle of promissory estoppel was attracted in the present case as the Respondents had made a clear and unequivocal promise to allot the land to the Petitioner, which was intended to create legal relations and was acted upon by the Petitioner. The Court also held that the Respondents were estopped from denying the allotment of the land to the Petitioner as they had accepted the consideration for the allotment and had promised to allot the land, but later changed their decision.
Final Decision: The Court allowed the Writ Petition and quashed the impugned Order and Notice. The Court directed the Respondents to allot the land in question to the Petitioner in accordance with the agreement between the parties.
Arun Madan, J.-The Petitioner, National Engineering Industries (for short “the Company”) by way of this Writ Petition filed under Article 226 of the Constitution of India, has challenged the Order, dated 19-2-1994, issued by Respondent No. 4 viz. Sub-Divisional Officer, Jaipur directing the Petitioner-Company to remove its purported encroachment over Khasra Nos. 138/279 and 139/279 in Bassi Sitararnpura by 25-2-1994 failing which coercive action for removal of the aforesaid encroachment was directed to be initiated at the instance of Respondent No. 4 against the Petitioner-Company vide impugned Notice. dated 9-4-1994. It is the said Notice which has been challenged by the Petitioner-Company on the ground of having been issued by Respondent No. 4 as being wholly arbitrary, unwarranted, without jurisdiction and on extraneous considerations and is also barred on the principle of promissory estoppel. Prior to initiation of land acquisition proceedings in pursuance of the expansion programme of the industrial unit of the Petitioner-Company, an application was moved by the Petitioner-Company (for short “NEI”). Department of Industries, Government of Rajasthan as on 19-4-1958 for allotment of 35 bighas 1.7 biswas of land lying between NEI’s factory and Man Industrial Corporation. Thereafter land acquisition proceedings were initiated by the respondents for the purpose of acquisition of the aforesaid land falling under village Bassi Sitararnpura, Chak Hasanpura and Sahjahpura were initiated by way of Notification, dated 20-3-1959. under the Rajasthan Land Acquisition Act. This Notification was gazetted on 30-4-1959.
2. Subsequently it transpired that out of the aforesaid land, 17 bighas 19 biswas of land was sawai chak, not within the purview of acquisition being a private land which intact, had already been acquired by Urban Improvement Trust, Jaipur (for short “UIT”). This fact is also fortified from the letter, dated 10-11-1960 addressed by the Land Acquisition Officer to the Assistant Secretary, Department of Industries, Government of Rajasthan, Jaipur and which fact is borne out from the perusal of Annexure-2 on the record.
3. It has further been averred by the Petitioner-Company that as a result of present needs of the said Company for expansion of its factory at Jaipur, the Secretary, Industries vide his communication, dated 6-12-1962 had informed the Collector, Jaipur that it had been decided to allot 35 bighas 17 biswas of land in question falling in villages Bassi Sitarampura, Chak Hasanpura and Sahjahpura to NEI Ltd. and a direction was issued in this regard by the Secretary, Industries, Govt. of Rajasthan to the effect that aforesaid khasra numbers as specified be declared as industrial urea and handed over to the company. It was further stated that as regards the residue of the remaining land measuring 17 bighas 19 biswas it had been decided to compensate the UIT with the cost of acquisition of the land and a sum of Rs. 20,000/-had already been deposited by the NEI with the Industries Department for remittance to the UIT, Jaipur. This fact is borne out from the correspondence dated 6-12-1962 wherein it is categorically stated that the necessary lease deeds would be signed with NEI as soon as the land was declared as industrial area vide Annexure-3 on the record.
.4. Before dealing with the merits of the case I deem it appropriate to refer to the relevant provisions of Rajasthan Land Revenue Act, 1956 particularly Section 88 as well as Section 102 of the said Act. Section 88 of the Act reads as under:-
.“All roads etc. and all lands which are not the property of others belong to the State--(1) All public roads, lanes, paths, bridges and ditches, all fences on or beside the same, all rivers, streams, nallas, lakes and tanks, all canals and watercourses, all standing and flowing water, and all lands wherever situated which are not the property of individuals or of bodies of persons legally capable of holding properly
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