IN THE HIGH COURT OF ALLAHABAD
DINESH KUMAR SINGH, J.
M/s Supertech Precast Technologies Pvt. Ltd., Thru. Auth. Officer - Petitioner
Versus
State of U.P., Thru. Prin. Secy. Infra. and Industrial Devpt. and Anr. - Respondents
Writ - C No. 26666 of 2021
Decided On : 19-04-2022
Constitution of India, 1950 - Article 243-Q - Urban Planning Development Act, 1973 - Section 41(3) - U.P. Industrial Area Development Act, 1976 - Section 12, 3, 2(a), 5A, 6 - Quash - Lease deed - Prayer has also been made for quashing of letter issued by GNIDA, directing petitioner to deposit within a period of 15 days and get lease deed executed, otherwise GNIDA would take action for cancellation of allotment of plot in favour of petitioner - Central Government Ground Water Authority in exercise of power under Section 5 of the Environment (Protection) Act, 1986 with a special purpose to regulate and control development and management of ground water resources in the country (Para 23).
Findings of the Court :
Interest is 12% per annum on premium on six monthly basis and in default, penal interest is to be charged @ 14% per annum - Such a high rate of penal interest besides interest @ 12% per annum on premium is surely enough to bleed industry and make it unviable - In Court view, State Government must consider to revise rate of interest to make it compatible with bank interest with 2% more and penal interest should also not exceed more then 6%.
Result : Writ petition allowed.
JUDGMENT :
1. Petitioner, a Company incorporated under the provisions of the Companies Act, 1956 (for short "the Act, 1956"), has filed the present petition, impugning the order dated 25.11.2020 passed by the Additional Chief Secretary, Department of Industrial Development, Government of Uttar Pradesh, Lucknow (Revisional Authority) under Section 41(3) of the Urban Planning Development Act, 1973 (for short "the Act, 1973") read with Section 12 of the U.P. Industrial Area Development Act, 1976 (for short "the Act, 1976").
Further prayer has been made for quashing of Letter of Cancellation dated 06.01.2021 issued by the Greater Noida Industrial Development Authority (for short "GNIDA"), demanding Rs.67,78,23,456/- in respect of Plot No.2, Sector Ecotech-16, GNIDA, ad-measuring 58271 square meters as per the lease dated 22.06.2011 executed by the GNIDA in favour of the petitioner in pursuance of the allotment letter dated 31.03.2011.
A prayer has also been made for quashing of the letter dated 29.09.2021 issued by the GNIDA, directing the petitioner to deposit Rs 67,78,23,456/- within a period of 15 days and get the lease deed executed, otherwise the GNIDA would take action for cancellation of the allotment of plot in favour of the petitioner.
2. The State Legislature had enacted U.P. Industrial Area Development Act, 1976 (for short "the Act, 1976") to provide for constitution of an Authority for the development of certain areas in the State into industrial and urban township and for the matters connected therewith. Under Section 3 of the Act, 1976, the State Government is empowered to constitute Industrial Development Authority for the purposes of the Act, 1976 for any industrial development area. The GNIDA is an Authority constituted under the Act, 1976. Under Article 243-Q of the Constitution of India, such an authority, constituted under the Act, 1976 virtually replaces the municipality in the area so far as the industrial areas are concerned. All the functions of a development authority as well as municipal authority are required to be discharged by the GNIDA in the industrial areas for which it has been constituted.
3. Section 5A of the Act, 1976 provides that the State Government may at any time, by notification, create one or more 'Industrial Development Authorities Centralized Services' for such posts, as the State Government may deem fit, common to all the Industrial Development Authorities, and may prescribe the manner and conditions of recruitment to and the terms and conditions of service of persons appointed to such service. Functions of the Authority are prescribed under Section 6 of the Act, 1976, which provides that the object of the Authority is to secure the planned development of the industrial development areas. The Authority is empowered to acquire land in the industrial development area by agreement or through proceedings under the Land Acquisition Act, prepare a plan for the industrial development area, demarcate and develop sites for industrial, commercial and residential purposes according to the plan, provide infrastructure for industrial, commercial and residential purposes and to provide amenities. The Authority is also empowered to allocate and transfer either by way of sale or lease or otherwise plots of land for industrial, commercial and residential purposes or any other specific and specified purposes in such area.
4. Amenities have been defined under Section 2(a) of the Act, 1976, which includes roads, water supply, street lighting and power supply, sewerage, drainage, collection, treatment and disposal of industrial waste and town refuse and other community facilities services or conveniences as the Government may, by notification, specify to be an amenity for the purposes of the Act, 1976.
5. In the year 2011, GNIDA invited sealed tenders in two-bid systems in the prescribed application form for allotment of lease lands in various sectors in Greater NOIDA for a lease period of ninety years. The petit
Point of Law : Central Government Ground Water Authority in exercise of power under Section 5 of the Environment (Protection) Act, 1986 with a special purpose to regulate and control development and ....
A party cannot be denied benefits due to issues beyond their control; zero period benefits were affirmed due to delays stemming from governmental actions.
Public policy prevails over private interests; interest on delayed payments for additional compensation is lawful as per principles of restitution and upheld by judicial precedents.
Authority must provide preferential land allotment to disabled persons per applicable legislation; arbitrary cancellations and excessive interests are unjust.
Authority must deliver physical possession of land to the allottee; failure to do so grants the right to zero period benefits under lease agreements.
The principle of unjust enrichment and the doctrine of legitimate expectations were central to the court's decision, emphasizing the obligation of the Development Authority to act fairly and reasonab....
Unilateral retrospective enhancement of lease rent by an authority, without executing a supplementary deed, is illegal, and higher authority’s orders must be implemented by lower bodies.
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