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2019 Supreme(Raj) 138

IN THE HIGH COURT OF RAJASTHAN AT JODHPUR
Sandeep Mehta, J.
Shwet Shilp Industries – Appellants
Vs.
RIICO Ltd. and Ors. – Respondents
S.B. Civil Writ No. 1185 of 2010
Decided On : 25-03-2019

Advocates Appeared:
For the Appellant : Rakesh Arora
For the Respondent: Sanjeet Purohit and C.S. Bareth

The Allotment Committee must consider applications for allotment of industrial plots objectively and in accordance with law, taking into account relevant factors such as the industry's inclusion in survey lists, the submission of relevant documents, and the existence and functioning of the industry prior to a specified date.

Headnote:

INDUSTRIAL PLOT ALLOTMENT - REJECTION OF APPLICATION - SURVEY LIST - CHANGE IN FIRM'S CONSTITUTION - ALLOTMENT COMMITTEE'S DECISION QUASHED - FRESH APPLICATION AND ALLOTMENT DIRECTED - FACTORS FOR CONSIDERATION.

Fact of the Case:

Petitioner's application for allotment of an industrial plot in Punayata Industrial Scheme was rejected by the Allotment Committee on the ground that one plot had already been allotted to the landlord and there had been a change in the constitution of the firm. The petitioner challenged this decision.

Finding of the Court:

The court found that the Allotment Committee's decision was based on erroneous assumptions and that the petitioner's application should have been considered independently. The court also noted that the change in the constitution of the firm was bona fide and occurred prior to the judgment directing the shifting of industries.

Issues: 1. Whether the Allotment Committee's decision to reject the petitioner's application was justified. 2. Whether the change in the constitution of the firm was a valid ground for rejecting the application.

Ratio Decidendi: 1. The court held that the Allotment Committee's decision was not justified as it failed to consider the petitioner's application independently and ignored the fact that the petitioner was running an independent industry on the same plot as the landlord. 2. The court held that the change in the constitution of the firm was not a valid ground for rejecting the application as it occurred prior to the judgment directing the shifting of industries.

Final Decision: The court quashed the Allotment Committee's decision and directed it to reconsider the petitioner's application afresh. The court also directed the Allotment Committee to consider the applications of all petitioners objectively and to take into account certain factors, including whether the industry's name was included in any of the survey lists prepared by the State Authorities, whether the applicant had submitted the relevant documents, and whether the applicant had produced documentary proof showing the existence and functioning of the industry prior to the passing of the judgment in 2004.

JUDGMENT :

Sandeep Mehta, J.

1. The present writ petition was filed challenging the decision taken by the Allotment Committee headed by District Collector, Pali in its meeting dated 29.09.2009 and 05.11.2009 whereby the application submitted by the petitioner for allotment of industrial plot in Industrial Area Punayata, Pali was rejected.

2. The facts relevant and necessary for disposal of the instant writ petition are noted here-in-below for the sake of reference.

3. A large number of textile industries were established within the municipal areas of Pali which were operating in an indiscriminate and haphazard manner which resulted into mass scale pollution to the land as well as water bodies of town and its surrounding areas. A public interest litigation being D.B. Civil Writ Petition (PIL) No. 759/2002 : Mahaveer Nagar Vikas Samiti vs State of Rajasthan & Ors. came to be filed by one Mahaveer Nagar Vikas Samiti raising issues regarding environmental hazards and industrial malactivities being caused by the unauthorized industries many of which were in operation even in the residential areas of Pali.

4. The Hon'ble Division Bench of this Court issued detailed directions thereby mandating the establishment of a new industrial area and for shifting of the existing industries to such an area which would mandatorily be equipped with all necessary measures so as to prevent further damage to the environment. The substratum of directions given by Division Bench of this Court in the said PIL vide order dated 09.03.2004 is reproduced here-in-below for sake of ready reference:-

"I. The Pollution Control Board shall immediately make fresh inspection of the Textile Processing Units at Pali and surrounding areas and in case any of the units are found to be creating pollution and not connected to the CETPs shall be closed.

II. The units which are creating pollution shall adopt measures to eliminate pollution.

III. RIICO shall set up industrial area at a suitable place exclusively for textile processing units. The industrial area must be located at an appropriate distance from residential areas. RIICO shall set up the industrial area within a period of six months and the industry shall be shifted to the industrial area from residential areas immediately thereafter.

IV. The trust shall make modification in the CETP so that the emissions therefrom are compatible with the norms prescribed by the Pollution Control Board.

V. The industrial units which are discharging the industrial pollutant on the land or/and river shall be closed forthwith.

VI. The State shall employee experts to assess the damage caused to the environment and health of the public by the pollution created by the Units. On assessment of the damage, the concerned authority shall file a report in this court within a period of eight weeks, whereupon the question of payment of compensation by the units on the principles of polluter pays shall be determined."

5. Accordingly, a new industrial area was carved out in Village Punayata, District Pali; requisite surveys were conducted and a list was prepared by the District Industrial Centre, Pali for allotment of fresh industrial plots. The industrial area thus created comprised of 333 plots. The process of allotment was initiated in the year 2005. The first survey list dated 11.07.2005 prepared by the DIC included names of as many as 255 incumbents. The second survey list dated 02.09.2008 contained names of 32 industries whereas the third survey list contained names of 61 industries of which 37 were common to the earlier list/s. Applications for allotment were invited from the incumbents whose names were included in these survey lists which were also approved by the Collector. The aspirants were required to submit the title proof viz. (1) allotment letter/patta if the land was within municipal area or the Jamabandi in case if the industry was established on agricultural land; (2) electricity bill; & (3) affidavit to the effect that the existing indu





























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