IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.DHANDAPANI
Precision Tech Enterprises – Appellant
Versus
Managing Director, State Industries Promotion Corporation of Tamil Nadu Limited – Respondent
| Table of Content |
|---|
| 1. overview of the petitioner and plot allotment. (Para 1 , 2 , 3 , 4 , 5) |
| 2. petitioner's claimed challenges due to covid-19. (Para 7 , 8 , 9) |
| 3. arguments from the respondents on non-compliance. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18) |
| 4. court's analysis of compliance and cancellation of allotment. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32) |
| 5. writ petition dismissed with no order as to costs. (Para 33) |
ORDER :
1. Challenging the impugned communication dated 24.06.2024 in and by which the respondents had cancelled the allotment and directed the petitioner to surrender the plot allotted to them, the present petition has been filed before this Court.
2. It is the case of the petitioner that it is engaged in the manufacture of automotive products and is having a manufacturing unit at Plot No.RNS-24 at SIPCOT Industrial Growth Centre, RNS Park, Oragadam to an extent of 1.50 acres.
3. It is the further case of the petitioner that with a view to expand its manufacturing activities, the petitioner submitted application to the 1st respondent seeking allotment of industrial plot at SIPCOT Industrial Growth Centre, Oragadam and by proceedings da

A contracting party is bound to fulfill the conditions set forth in a lease agreement; failure to do so legitimizes cancellation of the contract by authorities, despite claims of external difficultie....
The court emphasized that passing of an order of cancellation of allotment was not mandatory on violation of the conditions of allotment letters, and that the petitioner's substantial compliance with....
Violation of terms of allotment and intended change of purpose without obtaining prior approval led to the court's decision to affirm the cancellation of the allotment and dismissal of the writ petit....
Failure to commence production within stipulated time or seek extension justifies plot allotment cancellation after prolonged delay.
When an allotment condition requires construction to commence within a specified period from the date of allotment, but the grantor delays handing over possession, the limitation period for performan....
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....
Point of Law : In case of failure to handover the possession in time, the plot shall be deemed to have been taken into possession by the Corporation and amount shall be refunded as per rules of the c....
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