JUDGMENT :

Harsh Bunger, J. -

Petitioner (M/s Piccadily Sugar and Allied Industries Ltd.) has filed the instant civil writ petition under Articles 226/227 of Constitution of India, inter alia, seeking a writ in the nature of certiorari for setting aside the order dated 10.02.2023 (Annexure P-21), whereby recovery certificate was issued to recover the alleged dues from the petitioner as arrears of land revenue and all consequential proceedings arising therefrom. A further prayer has been made for quashing the auction notice dated 07.06.2024 (Annexure P-33), issued by the Assistant Collector 2nd Grade, Patran, Patiala.

2. Briefly, Punjab State Federation of Cooperative Sugar Mills Limited (in short 'Sugarfed') received a letter of intent dated 13.03.1991 from Government of India for establishment of a new unit for the manufacturing of white crystal sugar at Patran, District Patiala (Punjab). It appears that a cooperative society, namely, 'The Patran Cooperative Sugar Mills Limited' was formed for setting up the aforesaid project. For the purposes of construction of the cooperative sugar Mill at Patran, land measuring 991 kanals-6 marlas was acquired, vide award dated 06.06.1991, passed by the Land Acquisition Collector, wherein compensation of Rs. 50,000 per acre was awarded for chahi land alongwith all statutory benefits.

2.1 It transpires that the State of Punjab/State Government decided that the aforesaid letter of intent be implemented through the Punjab State Industrial Development Corporation Limited (in short 'PSIDC') and further that the project be set up in the assisted sector.

2.2 It further transpires that PSIDC and M/s Piccadily Holiday Resorts Limited entered into a collaboration agreement dated 05.03.1993 (Annexure P-1) with one another for the profitable implementation and operation of the aforesaid project through a company to be jointly promoted by them.

2.3 Subsequently, a tripartite agreement dated 03.06.1993 (Annexure P-2) was executed between the Patran Cooperative Sugar Mills Limited, PSIDC and Sugarfed; wherein it was inter alia decided to transfer the aforesaid letter of intent to set up sugar mills in the joint/assisted sector in favour of PSIDC on the terms and conditions as stated therein.

2.4 Thereafter, on the same day, another agreement dated 03.06.1993 (Anneuxre P-3) was executed between PSIDC and M/s Piccadily Sugar and Allied Industries Ltd. (in short 'the petitioner-Company'), whereby PSIDC agreed to get the aforesaid letter of intent transferred in favour of the petitioner-Company alongwith assets and liabilities of the sugar mills, inter alia, on the following conditions :-

"2. That the company undertake to pay the State of Punjab directly on behalf of PSIDC a sum of Rs. 11,49,10,150.80 (Rs. Eleven Crore Forty Nine Lacs Ten Thousand One Hundred Fifty and Paisa Eighty Only) i.e. the amount spent by the Sugar Mills towards payment of acquisition of land, payment made to the machinery suppliers, amount spent towards constructions work and under administrative heads etc., the details whereof is attached as Annexure 'A' to this Agreement and forming part thereof, under intimation to PSIDC. This will discharge the PSIDC of its liability towards the amount to the State Government.

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9. That the company in pursuance to transfer of letter of intent and takeover of all assets and liabilities in terms of this agreement and specially on account of transfer of land in favour of the Company, shall be liable to provide employment to one adult member of each family whose land has been acquired in terms of the decision of State Level Acquisition Board.

10. That the Company shall be responsible for all the liabilities in connection with the implementation of the Project and would also meet any undermined liability like encashment of compensation towards acquisition of land and the PSIDC shall be indemnified and kept indemnified by the Company.

11. That the company shall be entitled to deal with all