M/S.Metal Seam Co.Of India (P)Ltd vs M/S.Avadh Delicacies & Ors

The facts in the present matter are as under:-

3. That Form No.15 and 19 are already submitted in the office.

Hence, the applicant urges that the notice of closure may be admitted and the firm may be permanently closed.”

5. We have considered the submissions and gone through the record. The Appellant is right in its submissions that requisite notices were issued to Respondent No.1 and that it was afforded adequate opportunity. The observations of the High Court in that behalf are not quite correct. The supplementary affidavit filed in January 2000 made the position quite clear. The petition was therefore wrongly allowed on the ground that no opportunity was given to Respondent No.1. We have also seen the record and are satisfied that Respondent No.1 had closed its operation in the year 1997. According to annexure No. R-16 placed along with the rejoinder affidavit, an inspection report was apparently prepared. That report is a solitary piece in support of its submissions of having started manufacturing activity. Nothing has been placed on record, no licence is adverted to nor is it shown how and in what manner Respondent No.1 started its activity of manufacturing PVC pipes. Nothing was filed or placed on record pursuant to notices dated 20.03.1998 and 27.03.1998. We do not find any merit in the submissions that Respondent No.1 has been conducting any activity of manufacturing of PVC pipes. The claim of Respondent No.1 must therefore be rejected. At the same time it is absolutely clear on record that the Appellant has been having allotment of three sheds namely B-6, C-1 and C-2 in its favour in the same Industrial Estate. No special equities are in its favour and no case is therefore made out for allotment of concerned shed to the Appellant. The observation of the High Court that the order dated 15.06.1998 was issued without any public auction or inviting tenders and as such was completely unsustainable, in our view is absolutely correct.

6. In the circumstances we allow the present appeal with following directions:-

The authorities are directed to recover the possession forthwith and report compliance to this Court.

(b) In view of the change in circumstances namely allotment of sheds C-1 and C-2 in its favour, the Appellant is not entitled to claim any special equity. The order of allotment dated 15.6.1998 passed in its favour therefore stands set aside.

(c) The authorities are directed to conduct public auction or invite tenders for allotment of the concerned shed at the present market value. Needless to mention that the present Appellant and Respondent No.1 or any other person is free to participate in such public auction or tender.

7. This appeal thus stands allowed and the judgment of the High Court under appeal stands modified to the aforesaid extent. No order as to costs.

……………………………J. (V. Gopala Gowda) ……..………………..……J. (Uday Umesh Lalit) New Delhi, January 19, 2016 ITEM NO.1E-For Judgment COURT NO.10 SECTION XI S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS C.A. No.361/2016 @ Petition(s) for Special Leave to Appeal (C) No(s).

Date : 19/01/2016 This appeal was called on for pronouncement of JUDGEMENT today.

For Petitioner(s) Mr. Anil Kumar Mishra,Adv.

For Respondent(s) Mr. Gaurav Dhingra,Adv.

Mr. Akshit Gadhok, Adv.

Mr. Munawwar Naseem,Adv.

Hon'ble Mr. Justice Uday Umesh Lalit pronounced the judgment of the Bench comprising Hon'ble Mr. Justice V. Gopala Gowda and His Lordship.

Leave granted.

The appeal is allowed in terms of the signed non-reportable judgment.

(Signed Non-Reportable Judgment is placed on the file)