CWP No.12912 of 2004 & two connected petitions 1 IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH. 1.Civil Writ Petition No.12912 of 2004 M/s Sona Okegawa Precision Forgings Limited ...Petitioner Versus State of Haryana and others ...Respondents 2.Civil Writ Petition No.12933 of 2004 M/s Sona Koyo Steering Systems Limited ...Petitioner Versus State of Haryana and others ...Respondents 3.Civil Writ Petition No.12970 of 2004 M/s Sona Somic Lemforder Components Limited ...Petitioner Versus State of Haryana and others ...Respondents Date of Decision:-18.12.2009 CORAM: HON'BLE MR.JUSTICE SATISH KUMAR MITTAL HON'BLE MR.JUSTICE MEHINDER SINGH SULLAR Present: Mr.M.L.Sarin, Senior Advocate with Mr.Vikas Suri, Advocate for the petitioners. Mr.H.S.Hooda, Advocate General with Mr.R.S.Kundu, Addl. AG and Ms.Palika Monga, DAG Haryana for respondent Nos.1 to 3. Mr.A.K.Pathania, Advocate for respondent No.4. Satish Kumar Mittal, J. (Oral) This order shall dispose of CWP Nos.12912, 12933 and 12970 CWP No.12912 of 2004 & two connected petitions 2 of 2004 filed by the petitioners pertaining to the sisters concerned, i.e. M/s Sona Okegawa Precision Forgings Limited, M/s Sona Koyo Steering Systems Limited and M/s Sona Somic Lemforder Components Limited. 2. The petitioner-Companies have challenged the acquisition of their land vide notification dated 15.11.2002 and notification dated 12.11.2003 issued under sections 4 and 6 of the Land Acquisition Act, 1894 (hereinafter to be referred as “the Act”) respectively for public purpose of setting up as integrated complex for Industrial, Institutional, Commercial and Recreational as well as the order dated 14.8.2004. In the abovesaid acquisition, 3 acres of land of M/s Sona Okegawa Precision Forging Private Limited, 8 kanals of land of M/s Sona Koya Steering System Limited and 7 kanals 1 marla of land of M/s Sona Sonic Lemforder Components Limited were acquired. 3. During the course of hearing of this petition and the other connected writ petitions on 21.11.2008, this Court passed the following order:- “These are a bunch of matters, wherein quashing of the notifications issued under sections 4 and 6 of the Land Acquisition Act, 1894, acquiring land for the development of Industrial Sectors No.34 & 35, Gurgaon, has been sought. Some of the petitioner- industries have averred that they were granted CLU and other statutory permissions for establishment of their industrial units much before the start of the acquisition process. They claim to be 'running industrial' units, yet their lands are sought to be acquired for the 'development of industrial Sectors' i.e., the same purpose for which it is already utilized. The other petitioners have also come up with one or the other plea, which, according to them, fully justify the release of their acquired lands. There are other set of CWP No.12912 of 2004 & two connected petitions 3 petitioners who, it appears, have not obtained the CLU or other statutory permissions, however, may not be averse to apply and obtain the same on payment of the requisite statutory charges. In deference to the order dated November 14, 2008, Shri Rajiv Arora, Managing Director, HSIDC is present. On a query by the Court, he points out that the claims of the running industrial units like the petitioners were earlier considered by a Committee comprising Senior Officers of the State Govt. and headed by the Principal Secretary to Govt. Haryana, Industries Department. In my considered view, having regard to the specific stand taken by the petitioners before this Court, the claim of each of them requires fresh consideration by the said Committee. The Officers Committee can more effectively examine as to whether or not the conditions like obtaining of CLU and/or payment of other statutory charges in respect in respect of those industrial units which have not obtained such permissions so far, should be imposed and their lands released without hampering the development of the Industrial Sectors. Consequently, while adjourning these writ petitions to 23.02.2009, it is directed that;- 1. the Officers’ Committee comprising (i) the Principal Secretary, Industries Department; (ii) the Managing Director, HSIDC; and (iii) the Director, Industries Department, Haryana shall consider afresh the claim of the petitioners for the release of the lands where they have established their industrial units; 2. the petitioners may submit their representations within 15 days from today in the office of the Managing Director, HSIDC before 15th February, 2009, for being put up before the Officers’ Committee who shall consider and dispose of the same individually by passing CWP No.12912 of 2004 & two connected petitions 4 reasoned orders; 3. a consolidated report shall be placed on record by way of an additional affidavit on the adjourned date.” 4. On the basis of the aforesaid direction, the Committee framed the following guidelines/criteria for consideration of individual cases of petitioners for release of their land:- “i) The land parcels situated in the alignment of the circulation roads including the widening of existing roads, services (water supply, sewage lines, drainage system and right of way for the electricity transmission and distribution lines) and the Green Belt abutting the National Highway No. 8 as shown in the layout plan, have to be essentially acquired without any exception; ii) Subject to (i) above, the land under the existing industrial units, established after obtaining the change of land use (CLU), should be released conditional upon fulfillment of the conditions prescribed in the CLU regarding payment of EDC and the IDC; iii) Subject to (i) above, the land parcels in respect of which the petitioners had obtained change of land use for the conforming use prior to the issuance of Section 4 notification and had taken steps in the direction of establishment of their industrial units (e.g. sanction of building plans, construction of boundary walls etc.) should also be released subject to the terms and conditions of the change of land use (in particular those relating to the payment of external development charges (EDC) and internal development charges (IDC); iv) Subject to (i) above, the small land parcels which are lying vacant and are located adjoining the already established industries and which are owned by these units for their expansion needs and ancillary use but for which the change of land use have not been obtained should also be released subject to their obtaining the change of land use and payment of the applicable EDC CWP No.12912 of 2004 & two connected petitions 5 and IDC; v) Subject to (i) above, the land parcels on which the industrial units had been set up by the petitioners without obtaining any CLU as required under the law and were still in operation/ running condition, could either be considered for allotment of said land by the HSIIDC as per its policy [as explained in para 10 above] or released subject to the condition that they would have to obtain the CLU now by compounding, and pay a penalty to be imposed by the Government in addition to the payment of the applicable the EDC and the IDC to the HSIIDC; vi) Again subject to (i) above, such of the land parcels which stand alone and cannot be integrated as a contiguous part of the Sectors could also be considered for release subject to the condition that they would obtain the CLU and pay the applicable EDC and the IDC; vii) Subject to (i) above, the land parcels on which the industrial units had been set up by the petitioners, without obtaining any CLU as required under the law, and had approached the Hon’ble Court after the Award had been announced or after the process of taking over the possession had been completed, but were still in operation/ running condition, could be considered for allotment of the same land by the HSIIDC to them under the latest policy as explained under para 10 above. viii) The land parcels on which industrial structures had been constructed at some point in time but were currently lying in disuse should be acquired; ix) All such vacant pieces of land as were lying unutilized at site, and for which no CLU etc. had been obtained prior to the issue of Section 4 Notification, should be acquired.” Note: All cases wherein the release of land is recommended in accordance with the above criteria, the release of land would be subject to obtaining of the CLU, payment of the applicable EDC and IDC charges CWP No.12912 of 2004 & two connected petitions 6 by the petitioners and also the penalty as proposed under criterion (v) above.” 5. The Committee after examining the individual cases and providing opportunity of hearing to all concerned submitted the consolidated report dated 11.5.2009, which has been filed in Court alongwith affidavit of Sh.Y.S.Malik, Financial Commissioner, Haryana in CM No.6678 of 2009 in CWP No.12912 of 2004. 6. Subsequently, after receipt of the report, this Court passed the following order on 21.7.2009:- “The committee constituted by this Court vide order dated 21.11.2008, has since submitted its report. A copy of the report has been placed on the record of this case. The same is taken on record. Learned counsel for the parties state, that the cases pertaining to such land, as has been recommended for release, be forwarded to the State Government for appropriate orders in accordance with law. We are satisfied that the instant prayer is justified. Learned Additional Advocate General, shall place the aforesaid report before the State Government for its consideration, only qua the land which has been recommended for release. The State Government shall pass an order in accordance with law within two months from today, determining whether or not the recommendations deserve to be accepted leading to the release of the same from acquisition. A copy of this order be furnished to Mr.Ashish Kapoor, Additional Advocate General, Haryana, for onward transmission to the competent authority, and for compliance, under the signatures of Special Secretary attached to this Court. CM stands disposed of accordingly.” CWP No.12912 of 2004 & two connected petitions 7 7. In these three cases, the aforesaid Committee made the following recommendations:- (A) In CWP No.12912 of 2004:- Sr. No. Particulars of the Petitioner CWP No. Location No. marked to the land in layout plan (Annexure A-5). 19 SONA OKEGAWA Precision Forging Pvt. Ltd. 12912 of 2004 27 Khasra Nos. Area 13//12 19 20 Vill.Begumpur khatola Teh&Dist. Gurgaon 1A- 0 1A – 0 1A - 0 ---------- 3 Acre Legal Status 1. Objections filed u/s 5-A of Land Acquisition Act, which were considered and rejected by Land Acquisition Collector, Gurgaon. 2. During the pendency of present writ petition, the objections/representation were filed before High Powered Committee and the committee recommended that the land in question be acquired, as the same was found vacant and required for integrated planning. 3. Award announced by the LAC on 18.11.2005. CWP No.12912 of 2004 & two connected petitions 8 Submissions on behalf of the petitioner According to the petitioner, the land in question, which is adjoining to the existing industrial unit of the petitioner over a piece of land measuring 10,670 Sq. yards, was purchased by the petitioner for expansion of the existing unit. The Unit was set-up after obtaining the CLU and after getting the building plans approved. An investment of Rs.89.00 crores has been made in the existing industrial unit and the annual turnover of existing industrial unit has risen from Rs.39.00 crores in 2004 to Rs.134.00 crores in 2008. Presently, 500 no. of workers are employed in the existing industrial unit. However, for the land in question, the petitioner applied for permission for change of land use on 12.02.2001 i.e. before the issue of Section 4 notification . Factual Position The land in question is part of industrial Sector –35, Gurgaon. The land in question has been purchased for the expansion of existing unit of M/s SONA OKEGAWA Precision Forging Pvt. Ltd. which came into commercial production on 02.11.1998. The petitioner has obtained permission for the change of land use vide DTCP letter No.12697 dated 01.09.97 for an area of 10,468.33 sq. yards i.e about 2.4 acres. The Sona Group of Companies have three industrial Units set-up in this area with foreign collaboration (mainly Japanese). These are located over an area of about 10.6 acres. It is an established group and a large OEM supplier for the automobile industry. They are contributing significantly in the process of industrialization and generation of employment with handsome turn-overs. The other group companies located here are ‘Sona Sonic Lemforder Components Ltd ( CWP No. 12970 of 2004) and ‘Ms Sona Koya Steering Systems Ltd’ (CWP No. 12933 of 2004). CWP No.12912 of 2004 & two connected petitions 9 The petitioner company has constructed sheds over the subject land which are being used as a composite block for the miscellaneous works of the existing industrial unit. The petitioner company applied for permission for change of land use for the subject land on 11.06.2003 i.e. after notification u/s 4 of Land Acquisition Act on 15.11.2002. Part of the petitioner’s land, which is not the subject land, would be required for widening of the existing 6.7 mtrs. wide road to 18 meters, which they are obligation to provide under the terms and conditions of the CLU granted earlier. Photographs of the site taken on 24.1.2009 are given on the following pages. Recommendations After taking into account the standing of the Sona Group Companies, the submissions made on behalf of the petitioner and the factual position as stated above, the Officers’ Committee found that the petitioner is running an industrial unit adjoining to the land in question and also has erected sheds on the subject land. The industrial unit already set up by the petitioner fater obtaining all statutory approvals is in production and manufacturing auto components and its turnover has risen from Rs.39.00 crores in 2004 to Rs.134.00 crores in 2008. The subject land is being used for the associated purposes of the petitioner company. The Committee took notice that keeping in view the level of production in the existing unit, the plea of the petitioner regarding requirement of land in question for expansion of running unit is justified. This case is covered under the criteria set out in sub-paras (iv) and (v) under para 11 of the report. As such, the Committee recommends that the subject land could be considered for release conditional upon the petitioner company obtaining the CLU for the subject land and paying the penalty imposed by the Government in addition to the payment of applicable EDC and IDC to the HSIIDC. CWP No.12912 of 2004 & two connected petitions 10 The recommendation is also subject to the condition that in case the HSIIDC needs any part of the land for widening of the circulation roads, the petitioner company would make the same available. B. In CWP No.12933 of 2004:- Sr. No. Particulars of the Petitioner CWP No. Location No. marked to the land in layout plan (Annexure A-5). 21 M/s. Sona Koya Steering System L td. 12933 of 2004 47 Khasra Nos. Area 14//15/1, 15/2 VILL.Begumpur khtola Teh.&Dist. GURGAON 8K = One Acre Legal Status 1. Objections filed u/s 5-A of the Land Acquisition Act which were considered and rejected by Land Acquisition Collector, Gurgaon. 2. During the pendency of present writ petition, the objections/representation were filed before High Powered Committee and the committee recommended that the land in question be acquired, as the same was found vacant without any existing industrial unit. 3. Award announced by the LAC on 18.11.2005. CWP No.12912 of 2004 & two connected petitions 11 Submissions on behalf of the petitioner According to the petitioner, the land in question was purchased by the petitioner in Dec. 1994 for expansion of the existing auto components manufacturing unit. The land in question is adjoining to the existing industrial unit of the petitioner. An investment of Rs. 462.00 crore has been made on the existing industrial unit and the turnover of the unit during 2007-08 was Rs.683.00 crore. Presently, 250 no. workers are employed in the existing industrial unit. Existing unit has been erected after obtaining permission for change of land use from DTCP, Haryana vide letter no.16797 dated 12.11.86. Factual Position The land in question is part of industrial Sector-35, Gurgaon. The site is adjoining the main industrial unit which is the oldest among the Sona Group Companies established at this site over an area of about 2 acres. The subject land is lying completely vacant with a boundary wall. The petitioner has not applied for change of land use permission for the subject land. The land in question has been purchased for the expansion of existing unit, which came into commercial production on 14.06.1984. On site inspection, it was observed that the existing unit of M/s. Sona Koya Steering System Ltd. is running in khasra no. 14//5, 6, which is adjoining to the land in question, but there is no permission for change of land use regarding the land in question. Photographs of the site taken on 24.1.2009 are given on the following page. Other facts about the Sona Group Companies have been mentioned under Sr. No. 19. CWP No.12912 of 2004 & two connected petitions 12 Recommendations The Officers Committee, after considering the submissions made on behalf of the petitioner and taking into account the facts as stated above as well as the site visit, found that although the land in question is lying vacant, but apparently M/s. Sona Koya Steering System Ltd., who have established an industrial unit way back in 1984 with such a huge investment and with present annual turnover of about Rs. 683.00 crore, requires the land in question for its expansion purpose. This case is covered under the criterion set out in sub-para (iv) of para 11 of the report. Accordingly, the Committee recommends that:  The subject land could be considered for release conditional upon the petitioner company obtaining the CLU for the land in question and paying the applicable EDC and IDC to the HSIIDC.  The recommendation is also subject to the condition that in case the HSIIDC needs any part of the land for widening of the circulation roads, the petitioner company would make the same available. (C) In CWP No.12970 of 2004 :- Sr. No. Particulars of the Petitioner CWP No. Location No. marked to the land in layout plan (Annexure A-5). 20 SONA SONIC Lemforder Components Ltd. 12970 of 2004 4 Khasra Nos. Area CWP No.12912 of 2004 & two connected petitions 13 13//11/1 11/2 Village Begumpur Khatola Tehsil & Distt. Gurgaon. 1K-14M 5K-7M ---------- 7K-1M = 4265.25 Sq. Yards Legal Status 1. Objections filed u/s-5A of Land Acquisition Act, which were considered and rejected by Land Acquisition Collector, Gurgaon. 2. During the pendency of present writ petition, the objections/representation were filed before High Powered Committee and the committee recommended that the land in question be acquired, as the same was found vacant and without any industrial unit. 3. Award announced by the LAC on 18.11.2005. Submissions on behalf of the petitioner CWP No.12912 of 2004 & two connected petitions 14 According to the petitioner, the subject land in question was purchased by the petitioner in 1994 for expansion of auto components manufacturing unit already set up by the petitioner over a piece of land measuring 9982 Sq. yards. The subject land is adjoining to the existing unit of petitioner. The building of existing unit has been erected after obtaining permission for change of land use from DTCP, Haryana vide letter no.3690 dated 29.03.95, in which petitioner has invested approximately Rs.81.00 crores and the company has employed about 400 workers. The turnover of existing industrial unit has risen from Rs.36.89 crores in 2004 to Rs.113.34 crores in 2008 and the expansion programme of project worth Rs.10.00 Crores is on hold for want of land. The petitioner company has also obtained the CLU for Khasra No. 13/11/1 measuring 1 K- 14 Marla, which was obtained at the time of original CLU for the land on which the main unit is set-up and running. Factual Position The land in question is part of industrial Sector-35, Gurgaon. The site is pre- dominantly vacant with parking sheds. Out of the total land in question, the petitioner has obtained the permission for change of land use for the land falling under khasra no.13//11/1 vide DTCP, Haryana letter No.3690 dated 29.03.95. The petitioner has not applied for permission for change of land use for the remaining land falling under khasra no.13//11/2. The land in question has been purchased for the expansion of existing unit, which came into commercial production on 15.12.1995. Photographs of the site taken on 24.1.2009 is shown on the following page. Other details in respect of the Sona Group of Companies have been given under Sr. No. 19 i.e. Sona Okegawa Precision Forging Pvt. Ltd. CWP No.12912 of 2004 & two connected petitions 15 Recommendations The Officers Committee, after considering the submissions made on behalf of the petitioner and the factual position, found that the petitioner is running an industrial unit adjoining to the land in question and is using the subject land for parking purposes. The main unit has been set up over an area of about 2.25 acres. The industrial unit already set up by the petitioner is in production and manufacturing auto components and its turnover has risen from Rs.36.89.00 crores in 2003-04 to Rs.113.34 crores in 2007-08. The Committee took notice that keeping in view the level of production in the existing unit, the plea of the petitioner regarding requirement of land in question for expansion of running unit is justified. The case is covered under the criteria set out in sub-para (iv) of para 11 of the report. As such, the Committee recommends that: ·the subject land could be considered for release conditional upon the petitioner company obtaining the CLU for the land in question and paying the applicable EDC and IDC to the HSIIDC. The recommendation is also subject to the condition that in case the HSIIDC needs any part of the land for widening of the circulation roads, the petitioner company would make the same available. 8. Learned Advocate General, Haryana while referring to the affidavit of Y.S.Malik dated 23.10.2009 states that the Government accepted the report of the Committee with regard to the release of the land of the petitioners mentioned in the report subject to the conditions imposed. 9. Learned counsel for the petitioners accepts that the aforesaid release of the land shall be subject to the conditions imposed by the CWP No.12912 of 2004 & two connected petitions 16 Committee. 10. In view of the aforesaid stand taken by the respondents on the basis of the report submitted by the Committee and accepted by the counsel for the petitioners, we dispose of these three writ petitions with a direction to the respondent-State to issue the necessary release order, as per the recommendation made by the Committee, which has been accepted by the Government for releasing the land as mentioned in it subject to getting CLU renewed and on payment of EDC and IDC by the petitioners, within a reasonable time. (Satish Kumar Mittal) Judge (Mehinder Singh Sullar) Judge 18.12.2009 AS