Usha Devi VS. Rijwan Ahamd & Ors.

Extract

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Usha Devi VS. Rijwan Ahamd & Ors.

The Judgement Information System IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 1089 OF 2008

[Arising out of SLP (Civil) No. 14074 of 2006]

M.D., H.S.I.D.C. and Ors.

Versus M/s. Hari Om Enterprises and Anr.

WITH

CIVIL APPEAL NOs. 4090,4130,4091,4092,4093,4094,4095,4097,4098

OF 2008

[Arising out of SLP (Civil) Nos. 16541, 16708, 16711, 19833, 19916, 19949, 20235, 17426, 18011 OF 2006]

CIVIL APPEAL NOs. 4099,4101,4100,4102 OF 2008

[Arising out of SLP (Civil) Nos. 2331, 2343, 2702 and 2891 OF 2007]

JUDGMENT

S.B. SINHA, J : Leave granted.

Validity of orders of recession of allotment of industrial plots and resumption thereof by the appellants herein is in question in this batch of appeals.

2 With a view to appreciate the questions involved herein, the factual matrix of the matter, however, would be noticed from Civil Appeal arising out of SLP (C) No. 14074 of 2006.

Appellant - Corporation is a public sector undertaking. Its principal function is allotment of industrial plots belonging to the State of Haryana. It was set up as a catalyst for promoting economic growth and accelerating the pace of industrialization. It not only provides financial assistance to the industrial concerns by way of term loans; it also develops infrastructure for setting up of industrial units. The Corporation also invests money in developing the industrial estates at strategic locations. In exercise of its functions, it also allots industrial plots to entrepreneurs for setting up their industries on "no profit no loss"

basis. The entrepreneurs, according to the Corporation, must be the deserving ones. For the said purpose, it keeps in mind the principle that allotment of land should not be made to speculators who invest in property for getting high returns on escalation of price.

Respondent No. 1 is a partnership firm. It was previously known as M/s. Dysa International (Firm). It applied for allotment of 1000 sq. m. size plot in IMT, Manesar. The Allotment Committee of the Corporation

3 having found the respondent to be eligible for allotment, allotted plot No.

177 in Sector 6, IMT, Manesar measuring 1012.50 sq. m. wherefor a letter of allotment was issued on 10.01.2001.

We may notice the relevant clauses thereof.

Note appended to Clause 3 of the said letter of allotment states that in the event of failure to comply with the terms and conditions by the Regular Letter of Appointment (RLA) holder, the allotment of an Industrial plot/ shed, within the stipulated period, the RLA shall automatically lapse and 10% application money deposited towards the cost of the plot/shed shall be refunded without any interest. However, if the allottee makes a request for the surrender of the plot/shed after complying with the terms and conditions, then the Principal amount will be refunded without any interest after making a deduction of 10% of the cost of the plot/shed.

Clause 4 provides for other Terms and Conditions governing schedule of payment of the balance 75% of the price of plot/shed.

4 Clause 6 provides for the consequences of non-payment of the balance amount or non-fulfillment of the terms and conditions of the Letter of Allotment/Agreement. In such an event, the RLA shall stand withdrawn with the resumption of the plot/shed and refund of the deposit without any interest with 10% deduction.

Clause 8 provides for the Schedule of Construction and "Going into Production". It mandates the allottee to commence construction of building as per the approved building plans within a period of one ...

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