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2008 Supreme(Mad) 1542
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE P. JYOTHIMANI
M/s. Southern Industrial Corporation Ltd.,
Versus
The Government of Tamil Nadu, Rep. by its Secretary to Government
W.P.Nos.1964 of 2006 & 5365 of 2007
Decided On : 03-06-2008
For the Petitioner:T.R. Rajagopalan Senior Counsel for Mr. G. Raghavendran., Advocates. For the Respondent:G. Masilamani, Advocate General, Assisted by Mr. D. Srinivasan, AGP.
The main legal point established in the judgment is that the government is obligated to reassign lands based on the market value determined by the arbitrator, as per the earlier court orders and the decree passed in terms of the arbitration award.
Headnote:
Land Assignment - Government Orders - BSO 15, 24 - Arbitration Award - Reassignment of Lands - Market Value - Court's Direction
Fact of the Case:
The case involves a dispute over the reassignment of lands originally assigned to two companies by the government. The government had ordered the resumption of the lands due to violations of assignment conditions, and subsequent legal proceedings led to the appointment of an arbitrator to determine the market value for reassignment.
Finding of the Court:
The court found that the government was obligated to reassign the lands based on the market value determined by the arbitrator, as per the earlier court orders and the decree passed in terms of the arbitration award. The court also criticized the government's inconsistent and unfair stand in the matter.
Issues: The main issue was whether the government was bound to reassign the lands based on the market value determined by the arbitrator, as per the earlier court orders and the decree passed in terms of the arbitration award.
Ratio Decidendi: The court held that the government was obligated to reassign the lands based on the market value determined by the arbitrator, as per the earlier court orders and the decree passed in terms of the arbitration award. The court also emphasized the importance of the government respecting the rule of law and following final and binding court orders.
Final Decision: The writ petitions were allowed, and the government was directed to pass appropriate orders for reassigning the lands within a period of four weeks from the date of receipt of the court's order.
The writ petition in W.P.No.1964 of 2006 is for a direction against the Government to dispose of the representation dated 22.02.2003, filed by Southern Industrial Corporation Ltd., which is now a division of South India Corporation (Agencies) Ltd., represented by its Chief Human Resources Officer.
2. The writ petition in W.P.No.5365 of 2007 is filed by M/s.India Radiators Ltd., for a direction against the respondent Government to issue orders pursuant to the direction of this Court in Contempt Petition No.46 of 2006 in W.P.No.26745 of 2004.
3. The factual matrix relating to these cases is that the Government has assigned a total extent of 37.39 acres of land in S.No.459/2 at Puzhal Village (Redhills) on market value to M/s.Southern Industrial Corporation Ltd., Madras, the petitioner in W.P.No.1964 of 2006 in G.O.Ms.No.2240, Revenue Department, dated 31.05.1957. The said assignment was for expansion of its factory. Out of the said total extent of land, land measuring 7.10 acres was transferred by the M/s.Southern Industrial Corporation Ltd., to M/s.India Radiators Ltd., which is its sister concern, the writ petitioner in W.P.No.5365 of 2007. On the basis that the said transfer is in contravention of the assignment of land, the Government ordered resumption of land in G.O.Ms.No.1786, Revenue Department, dated 07.08.1975. As against the said resumption order, writ petitions were filed by both the writ petitioners. W.P.Nos.5004 & 5192 of 1979 were filed by M/s. Southern Industrial Corporation Ltd., and W.P.Nos.5173 & 5279 of 1979 were filed by M/s. India Radiators Ltd. The said writ petitions were disposed of by an order dated 05.09.1986, by appointing Mr.A.L.Somayaji, Advocate as arbitrator for the purpose of determining the market value of the lands, subject matter in dispute and on said determination, the State shall reassign the lands concerned to the assignee on their paying the market value as per the determination.
4. As against the said order, the State Government has filed Writ Appeal in W.A.Nos.1236 to 1239 of 1986 in which by an order dated 09.08.1989, while dismissing the appeal, it was made clear that arbitrator could continue, directing him to fix the market value of the property as on 210. 1981, the date on which the Government has resolved to reassign the lands to the individual purchasers from the original assignee viz., Southern Industrial Corporation. The Award of the arbitrator dated 18.03.1991, was received by this Court in O.P.No.217 of 1991 and by an order dated 13.08.1991, the market value of the land in question was fixed at the rate of Rs.2,500/- per ground as on 210. 1981. Therefore, according to the petitioners, on passing of the said decree based on the arbitration Award, the entire matter has become final and therefore, the Government should have annulled the earlier order for resumption and reassigned the lands to the extent of 25.18 acres to the petitioner in W.P.No.1964 of 2006 M/s. Southern Industrial Corporation Ltd., and 6.86 acres to the petitioner in W.P.No.5365 of 2007 M/s.India Radiators Ltd., who is the transferee from the original assignee viz. M/s.Southern Industrial Corporation Ltd., who has filed writ petition in W.P.No.26745 of 2004 for a direction against the Government to dispose of the representation made between 25.02.1998 to 28.07.2004 for reassignment of lands. By an order dated 20.09.2004, this Court has disposed of the said writ petition directing the respondent to consider the said representations and pass orders on merit and in accordance with law within a period of eight weeks. Since no order was passed, M/s. India Radiators Ltd, filed contempt petition No.46/2006, which was disposed of by this Court taking into consideration that the Government needed two months time due to the intervening General Elections to the Tamil Nadu Assembly, directed the Government to pass orders immediately after the elections and with that direction, the contempt petition was closed.
