IN THE HIGH COURT OF PUNJAB & HARYANA AT

CHANDIGARH

Civil Writ Petition No.2999 of 2011

Date of Decision : February 17, 2011.

Punjab Leather Federation

.....Petitioner

versus

State of Punjab and another

.....Respondents

CORAM : HON'BLE MR.JUSTICE SURYA KANT.

Present : Mr.Samarth Sagar, Advocate, for the petitioner.

1. Whether Reporters of Local papers may be allowed to see the judgment?

2. To be referred to the Reporters or not?

3. Whether the judgment should be reported in the Digest?

Surya Kant, J. (Oral)

The petitioner-Punjab Leather Federation is an Association of

Leather Industries and is aggrieved by the order dated 3^rd December, 2010

(Annexure P-20) passed by respondent No.2-Punjab Small Industries and

Export Corporation (for short 'the PSIEC') whereby the members of the

petitioner-Federation to whom the industrial plots have been allotted on

leasehold basis, have been directed to pay Rs.5/- per square yard as

'conversion fee' for converting their industrial plots from 'leasehold' to

'freehold basis'.

2]

Suffice it to mention here that the industrial plots at Focal

Point including Leather Complex, Jalandhar, measuring 5000 square

yards/meters were allotted to various industries in the year 1993-1994 on

leasehold basis on the following terms and conditions (relevant only):-

“....(i) The tentative price of the plot has been calculated at

the rate of Rs.250 per square yard/meter which works out

C.W.P.No

.2999 of 2011

2

to Rs.12,50,000/-. A sum of Rs.40,000/- has already been

paid by you as 10% earnest money alongwith application.

Apart from this, you are now required to make payment of

Rs.4,00,000/- being 30% of the above tentative cost of the

plot (in foreign currency for NRI) in the form of a Bank

draft in favour of “The Punjab Small Industries and Export

Corporation, payable in any scheduled bank at Chandigarh

within 30 days from the date of issue of this letter.

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(iii)

The plot has been allotted on lease-hold basis for 99

years in the first instance, as such you shall also pay

annual lease rent Re.1/- per 1000 sq.yd. in advance for 99

years at the time of execution of lease deed agreement.

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(xii)

Ordinarily you shall not be allowed to transfer your

rights in the plot for a period of 10 years from the date of

allotment. Transfer may, however, be permitted in

exceptional circumstances on payment of transfer fee as

prescribed by the Corporation under its transfer policy,

from time to time.

(xiii) You shall not carry on without the written consent

of the Corporation or permit to be carried on in the plot or

use the same or permit the same to be used for any purpose

other than for which it has been allotted to you. You shall

also not do or allow to be done therein anything

whatsoever which in the opinion of the Corporation may

be nuisance, annoyance or disturbance to the neighbours.

(xiv) As the land is to be given on lease hold basis, the

ownership will vest in the Punjab Small Industries &

Export Corporation Limited.

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(emphasis applied

C.W.P.No

.2999 of 2011

3

3]

The members of the petitioner-Federation accepted the terms

and conditions of allotment and most of them have paid the allotment price

and are running their industrial units. It appears that the members of the

petitioner-Federation wanted that the plots allotted to them on leasehold

should be converted into freehold plots vesting absolute title with the

allottees. Since no decision was taken on the demand put-forth in this

regard, the petitioner-Federation approached this Court in Civil Writ

Petition No. 12181 of 2010 which was disposed of on 14.7.2010 with a

direction to the respondents to take an appropriate decision and if so

required, by way of a policy decision. Pursuant to these directions, that the

Managing Director of respondent No.2-Corporation has passed the

impugned order dated 3