HIGH COURT OF JAMMU & KASHMIR AND LADAKH

AT JAMMU

Reserved on : 19.09.2022

Pronounced on : 14.10.2022

WP(C) No. 606/2021 (O&M)

J&K Integrated Textile Park Limited

…..Appellant(s)/Petitioner(s)

Through: Mr. Pranav Kohli, Sr. Advocate with

Mr. Arun Dev Singh, Advocate

Vs

Union of India and ors.

.…. Respondent(s)

Through: Mr. Vishal Sharma, DSGI

Mr. Parveen Kapahi, Advocate

Ms. Monika Koihli, Advocate

Coram: HON’BLE MR. JUSTICE RAJNESH OSWAL, JUDGE

HOB’BLE MR. JUSTICE RAJESH SEKHRI, JUDGE

JUDGMENT

Per Oswal-J

1.

In the present writ petition, the petitioner has sought for the following

reliefs:

i.) Certiorari seeking quashment of the e-auction Notice dated 13.02.2021

and 06^th March, 2021, by virtue of which e-auction is scheduled on 25^th and

30^th March, 2021 to the extent of factory and buildings owned by the

petitioner SPV.

ii) Prohibition restraining the respondent No. 3-Bank from proceeding

further with the impugned e-auction notices dated 13.02.2021 and

06.03.2021, by virtue of which e-auction is scheduled on 25^th and 30^th

March, 2021 in any manner.

2 WP(C) No. 606/2021

iii) Mandamus commanding upon the respondents to delete and exclude the

factory and buildings owned by the petitioner SPV from the e-auction

notices dated 13.02.2021 and 06.03.2021.

iv) Mandamus commanding upon the respondent No. 3-Bank to de-seal the

factory and consequently release the actual physical possession of the

factory and buildings of the petitioner SPV.

2.

The case projected by the petitioner in this writ petition is that petitioner-

J&K integrated Textile Park Limited, is a Company incorporated under the

Companies Act on 15^th March 2009 and the main object of the petitioner-

company is to act as a Special Purpose Vehicle for implementing different

schemes of the Central/State Governments. The petitioner pursuant to the

Scheme for Integrated Textile Park (SITP) floated by the respondent No. 1,

made a proposal for establishment of Textile Park Project and that was

approved by the respondent No. 1, initially with project cost Rs. 47.11 crores.

Subsequently, the project cost was changed to Rs. 44.11 crores. The

Government of India grant for project was changed from Rs. 40.00 to Rs.

39.70 crores. As per Clause 2.4 of the Scheme (supra), the total project cost

for the purpose of the scheme includes cost on account of ITP components as

listed under Groups B, C & D provided the ownership of the factory and

buildings vests with the Special Purpose Vehicle. The land, that formed

component A of Scheme, was not included in the total project cost.

3.

The petitioner was allotted 200 kanals of land at Industrial Estate Govindsar,

Kathua. The lease deed dated 22.03.2012 came to be executed between the

respondent No. 2 and the petitioner for a period of 90 years. Thereafter,

Memorandum of Agreement dated 29^th May, 2013 also came to be executed

between the petitioner and respondent No. 1.

3 WP(C) No. 606/2021

4.

The petitioner in turn claims to have executed Lease Agreement with the nine

units holders, namely, J and K Textorium Pvt. Ltd, Green Textorium Pvt.

Ltd., J and K Synthetic Pvt. Ltd., Silklon Synthetic Pvt. Ltd., Toplon

Industries Pvt. Ltd, Natural Industries, Orbit Spinning Pvt. Ltd., Jyotsna

Industries Pvt. Ltd. and Silklon Processors Pvt. Ltd. The petitioner has placed

on record Lease Agreement dated 28^th December, 2013 executed between the

petitioner and Toplon Industries Pvt. Ltd. i.e. respondent No. 8. It needs to be

noted that the lease agreements executed with other unit holders have not

been placed on record. As per the lease agreement dated 28^th December 2013,

the lessee units cannot claim any ownership on the demis