Government-imposed conditions for mortgaging assigned industrial land are justified under the Kerala Government Land Assignment Act to protect public interests.

JUDGMENT

Dated this the 8th day of July 2021 SHAJI P.CHALY,J This appeal is preferred by the petitioner in W.P.(C) No.10441/2020, challenging judgment of the learned Single Judge dated 25.3.2021, whereby the learned Single Judge dismissed the writ petition by declining the following reliefs sought for by the appellant:

(i). Issue a Writ of Certiorari or any other appropriate Writ calling for the record of the case leading to Exhibit P5 Order of the Govt. and quash the same to the extent of stipulating condition to furnish private property of the petitioner towards collateral security simultaneous to mortgaging the assets in the Industrial Unit of the petitioner including land , structures, plant and machineries etc.

(ii). Issue a Writ of Mandamus or any other appropriate Writ directing the 1st respondent to incorporate correction in Exhibit P5 order to the extent of changing the description of the petitioner from proprietor "Gijas Rubbers to Managing Director “Gijas Rubbers Pvt. Ltd.”.

(iii) Issue a Writ of Mandamus or any other appropriate Writ directing the 1st respondent to issue fresh order permitting mortgaging the assets of the petitioner company including land, building and machineries for availing loan for the expansion of the Petitioner company as well as for availing term loan as in the case of Exhibit P2 order passed earlier, from any financial institution approved by Reserve Bank of India, without insisting to furnish private property of petitioner towards collateral Security to the loan.

(iv) Issue any other appropriate Writ deemed fit and proper in the circumstances of the case (v)Award cost of the petition.

2. In the impugned judgment, learned Single Judge declined the reliefs after holding that the assignment of the property made to the appellant as per the assignment deed is subject to certain riders and conditions thereby enabling the statutory authority to impose required conditions to grant permission to mortgage the property assigned for industrial purposes to secure loan from the financial institutions. It is thus challenging the legality and correctness of the judgment, the appeal is preferred. Basic material facts for the disposal of the writ appeal are as follows;

3. Appellant is a company registered under the Indian Companies Act and established an industry in the land situated in an industrial area, admeasuring 30.50 cents comprised in various survey numbers of Kadungallur Village, Paravur Taluk, Ernakulam District, as per the assignment extended to the appellant vide patta Nos.10477 and 26473 dated 4.7.2005 and 10.11.2009 under the provisions of law constituted for the purpose. According to the appellant, appellant has constructed a building having a plinth area of 7500 Sq.ft for housing the industry and the remaining area is used for parking. Appellant is engaged in the manufacture of reclaimed rubber by converting rubber waste by employing 10 workers.

4. The grievance of the appellant is that when the appellant sought permission to secure a term loan by mortgaging the properties in question, it was granted as per the conditions imposed in Exhibit P5 order dated 11.3.2020 by the Additional Secretary to Government. The condition imposed is that the private property of the owners of the unit is to be furnished as collateral security while mortgaging the patta land granted for the industrial purpose. It is primarily aggrieved by the aforesaid condition imposed, the writ petition was filed.

5. The learned Single Judge after conducting a threadbare analysis of the provisions of the Kerala Government Land Assignment Act, 1960 and the Assignment of Government Land for Industrial Purpose Rules, 1961, had arrived at the categoric finding that even though an assignment is granted by the Government, it is subject to the conditions prescribed in the patta and also guided by the provisions of the Act and Rules specified above. Learned counsel for appellant submitted that the conditions imposed by the Government to pr