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2026 Supreme(J&K) 17
HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU
RAHUL BHARTI, J.
M/s Sports Goods Industry – Petitioner
Versus
State of J&K and others – Respondents
OWP No. 113 of 2005
Decided On : 18-04-2026
Important Points
Subject
Administrative Law - Industrial Allotment
Headnote
Facts of the case:
Small scale industrial unit holding allotted shed, proprietor migrated with community due to unrest for life safety, unit gutted by fire, shed re-allotted to another entrepreneur, prior writ petition allowed directing similar shed allotment or cancellation of re-allotment and return of original within six months, compliance attempted via two alternate sheds with demands for premium and enhanced rent, repeated modifications waiving premium but insisting advance rent, allotment cancelled during pending contempt proceedings for non-compliance with formalities.
Findings of Court:
Official respondents to proceed with allotment of two sheds at alternate industrial estate if available and vacant, or new ones, without premium, without arrears, at prevalent rent prospectively from date of entry into possession and occupation.
Issues: Whether cancellation of alternate allotment valid amid pending contempt; entitlement to original shed possession or equivalent on original terms; breach of duty to safeguard migrant property.
Ratio Decidendi: State and instrumentalities acted as predator not protector of migrant-held leasehold industrial property during absence forced by insecurity; rules of natural justice disregarded; injustice calls for equitable restoration adjusting changed circumstances, without penalizing for inability to operate unit in unsafe conditions.
Result: Writ petition disposed of with directions.
For the Petitioner:Mr. P. N. Goja, Sr. Advocate with Mr. Abhinav Jamwal, Advocate
For the Respondent: Mr. Ravinder Gupta, AAG
| Table of Content |
|---|
| 1. prior writs, allotments, contempts, cancellation order. (Para 10 , 11 , 12) |
| 2. quash cancellation, restore original shed possession. (Para 13) |
| 3. respondents' compliance via alternate sheds, re-allotment. (Para 14 , 15 , 17 , 18 , 19 , 20) |
| 4. state exploited migrant; violated natural justice. (Para 16 , 21 , 22 , 23) |
| 5. allot sheds without premium or arrears prospectively. (Para 24 , 25 , 26) |
JUDGMENT :
RAHUL BHARTI, J.
01. The institution of this writ petition came to take place on 04.03.2005
02. Sh. K. L. Ambardar is the sole proprietor of the petitioner concern M/s Sports Goods Industry which was a registered small scale industrial unit engaged in manufacture of wooden and joinery items, carpet looms and sports goods etc., bearing registration No.07/09/00550/PMT/SSI dated 11.09.1978 situated at Bagh-i-Ali Mardan Khan Industrial Area, Srinagar wherein the petitioner is said to have been allotted an industrial shed No. 5 with a land underneath for enabling establishment of the industrial unit for manufacturing of the goods.
03. The petitioner is said to have commissioned the installation of machinery and starting of the manufacturing activity by the end of year 1989 but immediately followed by historic mass migration of Kashmiri Pandits from Kashmir region for sake of safety of lives and limbs in which the proprietor of the petitioner along with his family also migrated to Jammu registered as migrant vide D. Form No. 009980 under R/C No. 532/D
04. The migration of the proprietor of the petitioner obviously meant that the industrial and business activity related to the petitioner meant to be carried out and conducted at the site of allotted and held Shed No. 5 Bagh-i- Ali Mardan Khan Industrial Area, Srinagar also suffered abandonment with stock in trade as well.
05. Later on 31.03.1991, a fire is said to have broken out in the Bagh-i-Ali Mardan Khan Industrial Area, Srinagar in which the factory unit of the petitioner is also said to have suffered extensive damage including the shed and stock in trade of the petitioner.
06. The pain point of the petitioner came up when the very said industrial unit site allotted to and held by the petitioner in the form of Shed No. 5 came to be allotted to the respondent No. 6 – Mr. Rafiq Qadiri, the Proprietor of Qadiri Chemicals Industries, Ganderbal Estate, Kashmir which constrained the petitioner to file a writ petition bearing OWP No. 488/1996 before this Court which came to be allowed in terms of a judgment dated 31.01.2000 with a direction to allot similar shed to the petitioner within stipulated period and if not then to cancel the purported allotment of Shed No. 5 made to the respondent No. 6 and possession of the same very Shed No. 5 to be delivered to the petitioner. Timeline given for doing needful as directed in terms of judgment dated 31.01.2000 was six months.
07. Vide an Order No. IDC/CS/2000/7 dated 22.06.2000 the petitioner was apprized about the allotment of two sheds to it bearing Nos. DS/NB 7 & 8 on the terms and conditions set by the Industrial Development Corporation Ltd. at the site from the original industrial estate of Bagh-i-Ali Mardan Khan Industrial Area, Srinagar.
08. The petitioner was called upon to bear the rate of rent for the allotment not on original rate of rent on which the petitioner was allotted shed No. 5 but even premium payment of Rs. 15,000/- was demanded and rate of rent at Rs. 2,625/- per shed monthly was meant to be levied.
09. Thus, the alleged compliance of the writ court judgment was meant to be serving a mirage which led the petitioner to file a contempt petition No. 39/2001 during the pendency of which an order No. IDC/CS/2000/7/265-71 dated 11.10.2001 came to be passed by the respondent No. 4 – General Manager, District Industries Centre, Exhibition Ground, Srinagar modifying the order No. IDC/CS/2000/7 dated 22.06.2000 related to the purported allotment of two sheds to the petitioner situated at Rangret.
10. The contempt petition so pre
