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2022 Supreme(Mad) 3825

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.D. AUDIKESAVALU, J.
M/s. Sattva Vaid Nature's Global Pvt. Ltd. – Petitioner
Versus
State Industries Promotion Corporation of Tamil Nadu Limited – Respondent
W.P. Nos. 14582, 21448 of 2022, W.M.P. Nos. 13781, 20446 of 2022
Decided On : 18-10-2022

Advocates:
Advocate Appeared:
For the Petitioners: A.R.L. Sundaresan, A.L. Ganthimathi, B. Sanjay Balachandar.
For the Respondents: Ramesh Venkatachalapathy.

Headnote:

Constitution of India, 1950 - Article 226 - demand of 10% differential plot cost - executed a lease deed - public auction - First Respondent had allotted Plot acres in the SIPCOT Industrial Complex, Cuddalore to one M/s. JK Pharma Chem Limited and had executed a lease deed dated for period years - First Respondent by a modified lease deed - Held, Settled position that there cannot be equality in illegality and merely because an erroneous order has been passed in respect of other persons, it would not mean that Petitioners would also be bound by the same - In that view of the matter, the impugned Order First Respondent, insofar as it levies 10% of differential plot cost for the Petitioners for transfer of leasehold right in their favour, is alone set aside - Writ Petitions are ordered on - Ordered Accordingly

ORDER :

Prayer in W.P. No. 14582 of 2022: Writ Petition filed under Article 226 of the Constitution of India, 1950, praying to issue a Writ of Certiorarified Mandamus, directing the First Respondent to call for the entire records in connection with the impugned proceedings in P-III/SIP-Cud/Sattvavaid/89-21 dated 29.04.2022 of the First Respondent proceedings and quash the said impugned proceedings dated 29.04.2022 relating to the demand of 10% differential plot cost as it violates the fundamental rights of the Petitioner.

Prayer in W.P. No. 21448 of 2022:- Writ Petition filed under Article 226 of the Constitution of India, 1950, praying to issue a Writ of Certiorarified Mandamus, directing the First Respondent to call for the entire records in connection with the impugned proceedings in P-III/SIP-Cud/Kawman/89-21 dated 27.10.2021 of the First Respondent proceedings and quash the said impugned proceedings dated 27.10.2021 relating to the demand of 10% differential plot cost as it violates the fundamental rights of the Petitioner.

1. Heard Mr. AR.L.Sundaresan, Learned Senior Counsel appearing for the Petitioner in W.P. No. 14582 of 2022, Mr. B.Sanjay Balachandar, Learned Counsel for the Petitioner in W.P. No. 21448 of 2022 and Mr. Ramesh Venkatachalapathy, Learned Counsel for the First and Second Respondents and perused the materials placed on record, apart from the pleadings of the parties.

2. In view of the order proposed to be passed, which would not cause any prejudice to the Third Respondent, notice to it is dispensed with.

3. The First Respondent had allotted Plot Nos. A-7, A-10, A-11, A-12 and A-15 for a total extent of 55.15 acres in the SIPCOT Industrial Complex, Cuddalore to one M/s. JK Pharma Chem Limited and had executed a lease deed dated 01.06.1990 for the period of 99 years. Thereafter, the First Respondent by a modified lease deed dated 22.04.2013 had accorded approval for transferring the remaining period of lease hold rights of the said JK Pharma Chem Limited to M/s.Vardhman Life Sciences Private Limited (hereinafter referred to as 'M/s.Vardhman' for short) subject to the conditions stipulated in Letter No. DIL/Cud/VLSPL/2013 dated 30.03.2013. M/s.Vardhman had obtained Certificate of No Objection by proceedings in Ref. No. D-II/SICC/ Vardhman/2013 dated 08.05.2013 from the First Respondent for creating mortgage of the said property in favour of State Bank of India, Exim Bank, State Bank of Hyderabad and State Bank of Patiala. As there was default in the borrowing made from State Bank of India, it had assigned the debt by agreement dated 04.03.2015 in favour of the Third Respondent, viz., M/s.Edelweiss Asset Reconstruction Company Limited, who had brought the property for sale in public auction in which the Petitioners, viz., M/s. Sattva Vaid Nature's Global Private Limited (Petitioner in W.P. No. 14582 of 2022) and M/s. Kawman Ex-Act Ingredients Private Limited (Petitioner in W.P. No. 21448 of 2022), were the successful bidders in respect of Plot No. A-15 in two parts, and the other plots belonging to M/s. Vardhman were purchased by M/s. Sri Vari Dyeings Process and M/s. Avanthiya Pharma LLP.

4. When a request was made by the Petitioners for execution of modified lease deed for transferring the remaining period of lease hold rights of the property in their favour, they were called upon by the First Respondent by Order in P-III/SIP-Cud/Sattvavaid/89-21 dated 29.04.2022 and Order in PIII/ CUD/75/89-21 dated 27.10.2021 respectively to pay 10% of the differential plot cost by stating that they were auction purchasers of the Bank where NOC was not specifically obtained from SIPCOT. The said condition imposed on the Petitioners to pay 10% of the differential plot cost is challenged in these Writ Petitions by contending that it is contrary to the Office Order No. 19/2019 dated 31.08.2019 and Office Order No. 39/2021 dat

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