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2014 Supreme(Mad) 4318

High Court of Judicature at Madras
N. PAUL VASANTHAKUMAR & K. RAVICHANDRABAABU, JJ.
M/s. Om Metal Infra Projects Ltd., (formerly M/s. Om Metals Ltd), Represented herein by its Authorised Signatory Venkatesh Boddu & Others
Versus
Union of India, Represented by its Secretary, Ministry of Commerce and Industry & Others
Writ Appeal Nos. 119 to 122 of 2014 & M.P.No.1 of 2014 in each Writ Appeal
Decided on: 03-12-2014

Advocates Appeared:
For the Appellants:R. Muthukumaraswamy, Senior Counsel for R. Venkatavaradan, P.S. Raman, Senior Counsel for R. Venkatavaradan, Advocates.
For the Respondents:R5, G. Rajagopalan, Addl. Solicitor General, assisted by Dr. M. Devendran, SPCCG, R2, T. Murugesan, Government Pleader (Pondicherry), assisted by N. Mala, Addl. G.P., A. Tamilvanan, Govt. Advocate, (Pondicherry) R3, T.P. Manoharan, Advocate, R4, No appearance.

Judgment

K. Ravichandrabaabu, J.

The appellants in all the four Writ Appeals are the Writ Petitioners. The appellant in W.A.Nos.119 and 122 of 2014 is one and the same. Likewise, the appellant in W.A.Nos.120 and 121 of 2014 is one and the same. In effect, totally there are two appellants.

2. The appellants filed W.P.Nos.17059 and 17060 of 2010 praying for issuance of Writs of Mandamus, directing the first respondent-Ministry of Commerce and Industry, SEZ Section, Union of India, New Delhi, to issue the Notification under Section 4(1) of the Special Economic Zones Act, 2005 (for short, 'the SEZ Act') for the establishment of SEZ Project by the fourth respondent-Pondicherry Special Economic Zone Company Limited in Pondicherry.

3. They subsequently filed W.P.Nos.23801 and 23802 of 2013 challenging G.O.Ms.No.3/2013-Ind.A, dated 19.8.2013 issued by the second respondent-Government of Puducherry and consequently to forbear the respondents from in any manner acting contrary to the agreements, namely, Development and State Support Agreement, dated 28.8.2006, Share Subscription and Shareholders' Agreement, dated 28.8.2006 and Lease and Possession Agreement, dated 13.2.2008.

4. The learned single Judge dismissed all the Writ Petitions. Following are the facts and circumstances involved in these matters:

(i) A policy decision was taken by the Government of Pondicherry to establish a Special Economic Zone (for short, 'SEZ') at Pondicherry. For establishment of such project, the said Government invited applications from private promoters by issuing advertisement. The Government of Pondicherry also decided to constitute a Special Purpose Vehicle (for short, 'SPV'). The Pondicherry Industrial Promotion, Development and Investment Corporation Limited (for short, 'PIPDIC') was appointed as Nodal Agency for the Project. In pursuant to the advertisement calling for Expression of Interest in participating for the establishment of the Project, issued during the month of December 2004, the Government of Pondicherry received 20 bids from various Companies, out of which, 11 companies were invited to give Presentation. One of the appellants, namely SPML Infra Limited, was one among them.

(ii) In pursuant to the Presentation made by those 11 Companies on 10.3.2005, the Internal Committee set up by the Government of Pondicherry shortlisted three applications, out of which, the abovesaid appellant, namely SPML Infra Limited was placed at No.1 in the order of preference. Consequently, a Letter of Intent, dated 31.5.2005 was issued to the appellant-SPML Infra Limited by requesting the said Company to submit a Detailed Project Report (for short, 'DPR') within a period of 45 days and the said Company prepared the DPR and submitted the same on 15.7.2005. The Government of Pondicherry approved the DPR without any change. However, in the meantime, the SPML Infra Limited requested the Government of Pondicherry to include the other appellant, namely M/s. Om Metal Infra Projects Limited as a strategic partner. Such a request was readily agreed by the Government. On 19.6.2006, the SPV was incorporated, which is the fourth respondent herein.

(iii) The appellants, the third respondent and their nominees, were the shareholders of the SPV. In pursuant to the request made by the SPV for formal approval of the SEZ Project, the Ministry of Commerce and Industry, Government of India granted its formal approval on 21.8.2006, followed by execution of agreement, namely Development and State Support Agreement between the Government of Pondicherry and the SPV on 28.8.2006. Another agreement, namely Share Subscription and Shareholders Agreement was also executed between the appellants and the third respondent, providing 26% equity to the third respondent and the balance to the developers, including the other appellant, namely Om Metal Infra Projects Limited. Subsequently, the Government of Pondicherry approached the Ministry of Home Affairs of the Government of India for granting ex-pos




















































































































































































































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