HIGH COURT OF JUDICATURE AT MADRAS
T. RAJA, D. BHARATHA CHAKRAVARTHY, JJ.
M/s. UltraTech Cement Limited, (Unit : Reddipalayam Cement Works) Rep. by its Unit Finance and Commercial Head,Purna Chandra Samantaray, Ariyalur - Appellant
Versus
The State of Tamil Nadu, Rep. by its Principal Secretary to Government, Chennai & Others - Respondents
W.A. No. 214 of 2023 & C.M.P. Nos. 2132, 2134 & 2139 of 2023
Decided On : 20-03-2023
Writ Appeal - Lease Renewal - Revenue N.M.2(2) Dept. - G.O.No.66 of 2012 - Companies Act, 2013 - Survey Nos.102, 105, 107, 51 - Ramasamy Moopanar Eri, Vari Poramboke, Manakkattu Eri, Kuttai - Doctrine of Legitimate Expectation - Sustainable Development - Tamil Nadu Protection of Tanks and Eviction of Encroachment Act, 2007 - Vellore Citizens' Welfare Forum Vs. Union of India - Intellectual Forum, Tirupathy Vs. Andhra Pradesh and others - K.Balamurugan & 7 others Vs. State of Tamil Nadu - M.C.Mehta Vs. Union of India - T.K.Shanmugam Vs. State of Tamil Nadu
Fact of the Case:
The appellant, a cement manufacturing company, sought renewal of lease for lands adjacent to their factory. The lands were classified as water bodies, and the lease renewal was refused by the authorities citing environmental concerns and the need to maintain water bodies.
Finding of the Court:
The court found that the lands in question were water bodies and reasoned that interfering with them would lead to wastage of natural resources and affect the sustenance of the human race. The court held that the lease renewal cannot be granted based on the authorities' conclusion and dismissed the Writ Petition.
Issues: The main issues were the classification of the lands as water bodies, the refusal of lease renewal based on environmental concerns, and the appellant's claim of legitimate expectation for renewal.
Ratio Decidendi: The court relied on the principles of sustainable development, the Tamil Nadu Protection of Tanks and Eviction of Encroachment Act, 2007, and various judgments emphasizing the public trust doctrine and environmental protection.
Final Decision: The Writ Appeal was dismissed, and the court upheld the authorities' decision not to renew the lease, citing environmental and public trust considerations.
JUDGMENT
(Prayer: Writ Appeal filed under Clause 15 of the Letters Patent, pleased to set aside the order dated 21.12.2022 passed in W.P.No.21720 of 2012 and quash the impugned order dated 24.02.2012 in G.O.No.66 of 2012 passed by the first Respondent herein and consequently direct the Respondents to grant long term lease or assignment of the said lands in favour of the Appellant Company.)
D. Bharatha Chakravarthy, J.
1. This Writ Appeal is directed against the order of the learned Single Judge, dated 21.12.2022, in and by which, the Writ Petition filed by the appellant with the prayer seeking to quash the G.O.No.66 of 2012 (Revenue N.M.2(2) Dept.) passed by the first respondent, thereby, refusing to renew the lease of the lands ad-measuring an extent of 12.42 Hectares.
2. The brief facts leading to the filing of the Writ Appeal is that the petitioner is a Company incorporated under the Companies Act, 2013. It is in the business of manufacturing cement. The predecessor of the petitioner Company namely, M/s.Dharani Cements Limited had established its cement manufacturing facility at Reddipalayam Village, Ariyalur Taluk and District in its own patta lands. While so, to expand the capacity of their factory, they specifically requested for the lands adjacent to their patta lands in Reddipalayam in Survey Nos.102, 105, 107 and 51 totally ad-measuring 12.06.5 hectares, by their application, dated 13.01.1994. In their application itself, they have clearly mentioned that the Survey No.102 is classified as Ramasamy Moopanar Eri, Survey No.105 is classified as Vari Poramboke, Survey No.107 is classified as Manakkattu Eri and Survey No.51 is classified as Kuttai. On the said application, after calling for reports from the authorities concerned, including the reports that on ground, there was no stagnation of water in the lands and that it will not affect the water courses, ultimately, by G.O.(Standing)No.1256, dated 25.11.1996 of the Revenue (D.1) Department, the Government decided to lease out the said lands for a period of three years for a lease rent of 14 % of the market value of the property per year by relaxing the prohibition for handing over/assigning water bodies. Thereafter, the said M/s.Dharani Cements Limited had sold their shares to one M/s.Grasim Industries Limited, who made constructions on the said lands and considering the said aspects, by an order, dated 18.11.1999, the lease rent was fixed at Rs.5,93,409/- per annum and they were directed to deposit the entire lease rent of Rs.17,80,227/-.
3. It is stated by the petitioner that they have duly deposited the said amount, pursuant to which, the lease deed has been entered into on 18.11.1999, in which, even specific permissions were granted to uproot, cut down or destroy trees, plants, groves or bushes to make the land fit for their purposes. The period of lease originally expired on 25.11.1999. Thereafter, the predecessor of the appellant namely M/s. Grasim Industries Limited had paid the lease rent up to the year 2002. Again, by paying the entire lease rent upto 24.11.2012, they prayed that the lease period be renewed. While considering the said request, the order impugned in the Writ Petition was passed on 24.02.2012 refusing to renew the lease in favour of the predecessor of the appellant on the ground that firstly, there has been an objection for leasing out the water bodies in favour of the Company as one R.Sekar had filed the W.P.No.9873 of 2003 and judgment is expected in the said Writ Petition. Secondly, this Court, by an order, dated 27.06.2005, in W.P.No.20186 of 2000, has directed that all encroachments in water bodies have to be removed and water bodies have to be maintained as such.
4. It was also further reasoned that water had to be diverted to another channel on account of the same. The impugned order also states that on account of the rampant mining activity in the area and several bore wells being dug by the industries, water table has gone down to dangerous
M.C.Mehta Vs. Union of India(1997) 3 SCC 715
Vellore Citizens'' Welfare Forum Vs. Union of India and Ors.(1996) 5 SCC 647
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