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2015 Supreme(Raj) 1947

RAJASTHAN HIGH COURT AT JAIPUR BENCH
Kanwaljit Singh Ahluwalia, J.
M/s. Medical Designs (India) Pvt. Ltd. - Appellant
Versus
Rajasthan State Industrial Development & Investment Corporation Ltd. & others - Respondent
S.B. Civil Writ Petition No.1909 of 2015.
Decided On : 18-11-2015

Advocates:
For the Petitioner:Mr. Sudesh Bansal, Advocate.
For the Respondent:Mr. Vyankatesh Garg, Advocate.

A defaulter cannot invoke equality under Article 14 of the Constitution of India to claim that he may be treated in the same manner as another defaulter has been treated.

Headnote:

{'KEYWORD': 'RIICO Disposal of Land Rules, 1979 - Rule 24(3) - Restoration of allotment of cancelled plot - Conditions - Possession of cancelled plot - Commencement of production - Equality under Article 14 of the Constitution of India.', 'SUBJECT': 'Restoration of Allotment of Cancelled Plot - Conditions - Possession of Cancelled Plot - Commencement of Production - Equality under Article 14 of the Constitution of India.', 'ACT SECTION LIST': ['RIICO Disposal of Land Rules, 1979 - Rule 24(3)']}

Fact of the Case:

Petitioner was allotted a plot in 1987 to set up an industrial unit. However, the petitioner failed to commence construction within the stipulated time and the allotment was cancelled in 1995. The cancellation was later withdrawn on the petitioner's assurance that construction would commence. However, even after the execution of the lease deed in 1996, the petitioner failed to commence construction and the allotment was again cancelled in 2006. The petitioner challenged the cancellation order before the Appellate Authority, which dismissed the appeal. The petitioner then filed a writ petition in the High Court.

Finding of the Court:

The High Court held that the petitioner was not entitled to restoration of the allotment under Rule 24(3) of the RIICO Disposal of Land Rules, 1979, as the petitioner had not commenced production on the plot. The Court also held that the petitioner could not invoke equality under Article 14 of the Constitution of India to claim that it should be treated in the same manner as other allottees who had been granted the benefit of Rule 24(3), as the petitioner's case was on a different footing.

Issues: 1. Whether the petitioner was entitled to restoration of the allotment under Rule 24(3) of the RIICO Disposal of Land Rules, 1979? 2. Whether the petitioner could invoke equality under Article 14 of the Constitution of India to claim that it should be treated in the same manner as other allottees who had been granted the benefit of Rule 24(3)?

Ratio Decidendi: 1. Rule 24(3) of the RIICO Disposal of Land Rules, 1979, provides that restoration of allotment of a cancelled plot can be considered by the Corporation depending upon the merit of each case, subject to fulfilment of certain conditions, including possession of the cancelled plot and commencement of production. 2. In the present case, the petitioner had not commenced production on the plot, and therefore, was not entitled to restoration of the allotment under Rule 24(3). 3. Equality under Article 14 of the Constitution of India cannot be invoked by a defaulter to claim that he may be treated in the same manner as another defaulter has been treated.

Final Decision: The High Court dismissed the writ petition.

JUDGMENT

1. - Present writ petition has been filed under Article 226 of the Constitution of India praying that the order dated 10.3.2006 (Annx.1A) whereby lease deed in favour of petitioner was terminated and allotment of Plot No.F-28(N), Malviya Industrial Area, Jaipur was cancelled, be set aside along with the order dated 26.12.2014 (Annx.5) passed by the Appellate Authority whereby appeal of the petitioner was dismissed.

2. Petitioner on 16.9.1987 was allotted Plot No.F-28(N) measuring area 1752.88 sq. mtr. in Malviya industrial Area, Jaipur. Petitioner company had given a proposal for setting up universal legs bracing system and modular bracing system and orthopaedic surgical equipments for fracture and limb injuries including aids for disabled injuries. As per Clause-8 of the allotment letter, petitioner had to commence construction on the allotted plot within six months of allotment. It was obligatory on the part of the petitioner to complete the construction work within a period of two years. It is not denied that possession of the allotted land was given to the petitioner on 3.8.1989, but no construction was started. A show cause notice was issued to the petitioner on 6.4.1990 to explain as to why construction work had not commenced. A site plan report was obtained by the respondents on 24.2.1995 and since the petitioner company had only constructed boundary wall and guard room, allotment in favour of petitioner was cancelled on 5.12.1995 by the respondent No.2 and refund of the deposited amount was ordered. It is stated that on the assurance given by the petitioner that the construction activity will commence, cancellation of the allotment was withdrawn on 31.1.1996 and a lease deed was executed between the petitioner company and the respondents on 16.7.1996. Clause 2(n) of the lease require that the lessee shall construct and complete the building within a period of three years from the date of agreement or from the date of possession of the said land. It is not denied that even after execution of the sale deed on 16.7.1996, petitioner company had not constructed the building and hence, again allotment was cancelled on 10.3.2006.

3. I have heard learned counsel for the parties.The plots in the heart of the city irrespective of the prevailing market price are allotted at sub-sidized rate to the industrialist to give impetuous to industrial growth so that employment is generated and the State is able to garner revenue from sale and purchase made by the industry. In the present case, the objective for which allotment was made was not fulfilled by the allottee. State cannot give plot as largess to anyone. The plots at sub-sidize rate are only allotted to achieve the industrial growth in the State. Record of the petitioner reveal that allotment was made in 1987, but for good period of twenty nine (29) years the petitioner had taken no active steps to raise the construction.

4. The star argument raised by Shri Sudesh Bansal learned counsel for the petitioner is that during pendency of the appeal, amended Rule 24(3) was inserted by the Rajasthan State Industrial Development & Investment Corporation Ltd. (for short, RIICO) in the RIICO Disposal of Land Rules, 1979. Amended Rule 24(3) reads as under:-

“Rule 24(3)- Policy of Restoration of allotment of cancelled plot.

1. Restoration of allotment of cancelled plot can be considered by the Corporation depending upon the merit of each case, subject to fulfilment of the following criteria/conditions:-

i. Possession of the cancelled plot is lying with the party (applicant), and/or;

ii. Possession of the cancelled plot is with the Corporation, and refundable amount consequent upon cancellation of allotment of plot is not paid, and/or;

iii. Possession of the cancelled plot is with the Corporation and cheque of refundable amount sent to the party but not en-cashed by the lessee/purchaser, and/or;

iv. Possession of the cancelled plot is with the Corporation and no amount is payable to the lesse




























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