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IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M.SUBRAMANIAM, C.KUMARAPPAN
Managing Director, State Industries Promotion Corporation of Tamil Nadu Limited – Appellant
Versus
Enco Engineers Combine (Plant-II) Pvt. Ltd. – Respondent
JUDGMENT :
S.M. SUBRAMANIAM, J.
1. Under assail is the Writ order dated 24.09.2021 passed in W.P.No.8771 of 2021.
2. The State Industries Promotion Corporation of Tamil Nadu Ltd. [hereinafter referred to as “SIPCOT”] preferred the present intra-Court appeal mainly on the ground that the terms and conditions stipulated in the contract entered into between SIPCOT and the respondent had been violated and therefore, the relief granted by the writ Court would cause prejudice to the appellants.
3. The facts in brief would show that the respondent was allotted an industrial plot No.A-16 at Pillaipakkam, Sriperumbadur on 30.09.2011. The relevant conditions stipulated in the allotment order are as under:-
| S. No. | Conditions | Time Limit |
| viii | Implementation of the project/ commercial production. | Within 30 months from the date of this order. Failure will entail cancellation of allotment and forfeiture of initial deposit and development charges paid towards the extent allotted. |
6. If, in the opinion of SIPCOT, it is found that the land allotted to the allottee is not put to use for the purpose for which it was allotted or is in excess of the allottee’s actual requirements, SIPCOT shall, at any time, have th
Contractual obligations are binding, and failure to comply with lease conditions justifies the cancellation of allotment, with courts limited to examining the decision-making process for reasonablene....
Failure to utilize allocated industrial land justifies its cancellation under statutory provisions.
Failure to comply with lease conditions justifies cancellation of the lease, emphasizing the necessity for timely establishment of operations by allottees under industrial development regulations.
Resumption of industrial plot for non-fulfilment of terms and conditions of allotment is justified.
Point of Law : Where discretion is required to be exercised by a statutory authority, it must be permitted to do so - It is not for courts to take over discretion available to a statutory authority a....
The court held that administrative authorities must act within legal bounds, and their inaction in issuing NOC and executing Sale Deed was arbitrary, necessitating compliance with conditions for reli....
The court emphasized the importance of considering the circumstances and reasons for project delays, such as force majeure, and directed the respondent to follow due process in considering the show c....
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