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2008 Supreme(J&K) 332

IN THE HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
J.P. Singh, J.
K.P. Paper - Appellant
Versus
State Of J&K & Ors. - Respondent
OWP No. 292/2008, CMP Nos. 574/2008 And 448/2008
Decided On : 10 October, 2008

Advocates Appeared:
Advocate For Appellant: Rohit Kapoor
Advocate For Respondent: A.H. Naik
Advocate For Respondent: A.H. Qazi

Headnote:

Mandamus - Industrial Registration - Transfer of Property Act, 1977 - Sections 5, 105, 139, 140 - The court held that the laws in force in the State of Jammu and Kashmir do not prohibit lease of immovable property in favor of Non-Permanent Residents of the State. The State and its functionaries were found to have erred in refusing Permanent Registration to the petitioner's Unit based on an absurd interpretation of the provisions of the Transfer of Property Act. The court directed the respondents to consider according Permanent Registration to the petitioner's Unit and provide it with all benefits entitled under the Industrial Policy of the State.

Fact of the Case:

The petitioner sought Permanent Registration and benefits available to Industrial Units under the Industrial Policy of the State. The respondents refused Permanent Registration, citing the petitioner's non-permanent resident status and illegal lease of land.

Finding of the Court:

The court found that the laws in the State of Jammu and Kashmir do not prohibit lease of immovable property in favor of Non-Permanent Residents. The State and its functionaries were found to have erred in refusing Permanent Registration to the petitioner's Unit based on an absurd interpretation of the provisions of the Transfer of Property Act.

Issues: The main issue was whether the petitioner, as a non-permanent resident, was entitled to Permanent Registration for its Industrial Unit due to the lease of land obtained from private persons.

Ratio Decidendi: The court held that the laws in force in the State of Jammu and Kashmir do not prohibit lease of immovable property in favor of Non-Permanent Residents. The court also emphasized that the State and its functionaries cannot afford to permit contest of litigation on vexatious and frivolous pleas.

Final Decision: The petition succeeded, and the court directed the respondents to consider according Permanent Registration to the petitioner's Unit and provide it with all benefits entitled under the Industrial Policy of the State. The respondents were also burdened with exemplary costs for refusing registration to the petitioner's Unit and contesting their case on misconceived and vexatious grounds.

1. Petitioner has filed this writ petition seeking issuance of a writ of mandamus against the respondents commanding them to grant it Permanent Registration and all those benefits as may be available to Industrial Units under the Industrial Policy of the State of Jammu and Kashmir.

2. M/s K.P.Paper, initially a sole proprietorship concern, which later came to be constituted as a partnership firm, applied to the respondents seeking permission to set up an Industrial Unit for manufacturing paper as Medium and Large Scale Industry. Its proposal to set up an Industrial Unit was approved by the Apex Project Clearance Committee (APCC for short) constituted in terms of the Industrial Policy of the State, and a Provisional Certificate was issued to it by the Jammu and Kashmir State Industrial Corporation Limited, the Nodal Officer notified as such under the Single Window Clearance System contemplated by the Industrial Policy of the State.

3. The petitioner had initially taken land on lease hold basis in village Barwal of District Kathua. It, however, with the permission of the respondents-authorities and APCC, shifted its project site from Barwal to village Chak Ramchand in District Kathua. Provisional Registration Certificate for setting up a Medium and Large Scale Industry was, accordingly, granted to it for the changed location.

4. Toll tax exemption on import of building material needed for setting up the Unit too was granted to the petitioner by the Deputy Excise Commissioner, Lakhanpur on the recommendations of Director Industries and Commerce, J&K Government, Exhibition Ground Jammu.

5. Petitioner is stated to have invested approximately Thirty One Crores of rupees in setting up the Unit and has been paying an amount of Rupees Twenty Lacs per month as interest thereon.

6. According to the petitioner, the Unit stands registered with the Sales Tax and other authorities and all requisite formalities to set up and commission the Medium and Large Scale Industrial Unit for manufacture of paper thus stands completed. The Jammu and Kashmir State Pollution Control Board too had granted its consent under Sections 25/26 of the Water (Prevention and Control of Pollution) Act, 1974 and Section 21 of the Air (Prevention and Control of Pollution) Act, 1981 to establish the Unit at village Chak Ramchand Tehsil and District Kathua. The respondents, according to the petitioner had, however, refused Permanent Registration to it thereby stalling the whole process of commissioning the Unit.

7. Aggrieved by the refusal of the respondents to grant it Permanent Registration for setting up and commissioning its Medium and Large Scale Industry, petitioner has approached this Court invoking its extra ordinary civil writ jurisdiction to issue a command to the respondents to grant it Permanent Registration and all those benefits which may be available to it under the Industrial Policy of the State.

8. Contesting petitioners case for providing it Permanent Registration and making it available all those benefits which are available to Industrial Unit under the Industrial Policy of the State, the State-respondents have opposed the grant of reliefs to the petitioner on twin grounds, viz.

1) Being a non-permanent resident of the State, the petitioner was required to approach the State Government to seek allotment of land through State Industrial Development Corporation Limited (SIDCO for short), in case it had intended to set up an Industrial Unit in the State. Having opted to get land from private persons on lease, it cannot be allowed Permanent Registration of its Unit, regardless of the grant of provisional registration to it which, according to the respondents, had been obtained by misrepresentation of facts in indicating the proprietor of the petitioner a resident of village Barwal-Kathua; and

2) Land obtained from private persons on lease by the petitioner, who is a Non State Subject, is invalid transfer of immovable property which disentitles the petitioner to se













































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