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2022 Supreme(Ori) 181
IN THE HIGH COURT OF ORISSA AT CUTTACK
S. MURALIDHAR, R.K. PATTANAIK, JJ.
M/s. Garuda Vahana Pvt. Ltd. – Appellant
Versus
Odisha Industrial Infrastructure Development Corporation and
Others – Respondent
W.P.(C) Nos. 6312 and 12116 of 2012
Decided on : 01-08-2022
Advocate Appeared:
For the Appellant :Mr. A.P. Bose, Advocate, Mr. L. Samantaray, Advocate, Mr. P.K. Nayak, Advocate
For the Respondent: Mr. Gautam Mukherji
Unauthorized subletting of an industrial plot without implementing the project for which it was allotted constitutes a breach of the terms and conditions of the allotment, justifying cancellation by the allotting authority.
Headnote:
IDCO - Industrial Allotment - Circular dated 23rd December, 2010 - Summary
Fact of the Case:
The case involved a dispute between Garuda Vahana Pvt. Ltd. (GVPL) and M/s. Ispat Casting and Metal Industries (ICMI) regarding the cancellation of an industrial plot allotment by the Odisha Industrial Infrastructure Development Corporation (IDCO). ICMI had sublet the plot to GVPL without prior approval from IDCO, leading to the cancellation of the allotment.
Finding of the Court:
The Court found that ICMI had breached the terms and conditions of the allotment by subletting the plot to GVPL without implementing any industrial project, justifying the cancellation of the lease by IDCO. The Court dismissed ICMI's petition and vacated the interim order in its favor.
Issues: The main issue was whether ICMI's subletting of the industrial plot to GVPL without prior approval from IDCO justified the cancellation of the allotment.
Ratio Decidendi: The Court held that ICMI's unauthorized subletting of the plot without implementing any industrial project breached the terms and conditions of the allotment, justifying the cancellation of the lease by IDCO.
Final Decision: W.P.(C) No.12116 of 2012 filed by ICMI was dismissed, and the interim order in its favor was vacated. W.P.(C) No.6312 of 2012 filed by GVPL was disposed of with directions for GVPL to make a formal application to IDCO for regular allotment of the plot, which would be considered by IDCO in a time-bound manner.
JUDGMENT :
S. Muralidhar, J.
1. These are two writ petitions arising from a similar set of facts and are accordingly being disposed of by this common judgment.
2. Writ Petition (Civil) No.6312 of 2012 is filed by Garuda Vahana Pvt. Ltd. (GVPL) seeking the quashing of an order dated 8th December, 2011 issued by the Odisha Industrial Infrastructure Development Corporation (IDCO), Opposite Party No.1requiring Opposite Party No.3-M/s. Ispat Casting and Metal Industries (ICMI) to show cause why the Plot No. DL/4 of an area Acre 1.50 decimals in the Industrial Estate, Kalunga should not be cancelled.
3. On 10th July, 2012 while directing notice to issue in the present petition, this Court directed that status quo as on that date shall be maintained.
4. W.P (Civil) No.12116 of 2012 is by ICMI seeking the quashing of a subsequent order dated 7th June, 2012 cancelling the allotment of the aforementioned plot inter alia for the following reasons:
(i) The land was not utilized for the industrial activity for the purpose for which it was allotted viz., manufacturing of CI pipe fittings, special and other sanitary fittings, CI manhole cover and gratings, grinding media, Balls and Cylpebs, Railway Sleeper, Bearing plates, brakes, R & T Socket Pipes and anchor plates and other C.I. Machine Parts;
(ii) Making unauthorized construction/additional construction without prior approval of the competent authority;
(iii) Unauthorized encroachment on an additional land of IDCO of Ac 0.45 decimals and erecting unauthorized constructions thereon.
(iv) Allowing GVPL to run its business of a Tata showroom and Service Station on the land thereby misutilizing the land.
5. W.P (Civil) No.12116 of 2012, while directing notice to issue on 26th July, 2012 this Court directed that no coercive action would be taken against ICMI. The interim order in both the petitions have since continued.
6. In W.P (Civil) No.6312 of 2012 for a period of eight years between 29th August, 2013 and 6th September, 2021 no hearing took place. In the second petition W.P (Civil) No.12116 of 2012 between 26th July 2012 and 6th September, 2021 no hearing took place.
7. This Court has heard the submissions of Mr. P.K. Nayak, learned counsel appearing for the ICMI, Mr. A.P. Bose, learned counsel appearing for the GVPL and Mr. Gautam Mukherji, learned Senior Advocate appearing for IDCO in both the writ petitions.
8. IDCO filed a reply in both the writ petitions pointing out that a lease deed was executed between ICMI and IDCO on 8th October, 2007. However, ICMI had not initiated industrial activity over the property for a considerably long period. Importantly, it was pointed out that ICMI was relying on a circular dated 23rd December, 2010 issued by IDCO regarding grant of permission for subletting of IDCO allotted premises. One of the first conditions to be satisfied for such permission was that the allottee should have utilized the allotted property by implementing the project for which it was allotted. In this case, rather than utilizing the property for itself, ICMI had without consulting the IDCO allowed GVPL to set up a Tata Motor Showroom and Service Station on the premises. Further, the approved building plan of the premises had been altered without the consent of IDCO for accommodating the subletting. Even on the date of filing of the counter affidavit i.e. 10th May, 2017 there was no industrial activity of ICMI in the premises.
9. In the rejoinder affidavit of ICMI, it is submitted that Opposite Party No.2 i.e. the Divisional Head, IDCO, Rourkela Division, had sent a status report to the Chief General Manager IDCO referring to the Tata Showroom which was under implementation since April, 2007. It is pointed out by Mr. Mukherji, learned Senior counsel for IDCO, that admittedly, this Tata Showroom was the one run by GVPL and not ICMI. Therefore, it did not fulfil the terms and conditions of the allotment. While it may be true that pursuant to the letter dated 7th February, 2007, ICMI paid IDCO R
