A.P.Indl.Infrastructural Corp.Ltd.& ... vs M/S. Shivani Engineering Industeries

The Corporation (which is one of the State Undertaking Corporations established to promote the industrial growth and development in the State of Andhra Pradesh) on the application filed by M/s Shivani Engineering Industries-the respondent herein for allotment of industrial plot measuring 10,000 sq. mtrs., allotted plot No.181 of Phase-III, Industrial Park at Pashamylaram to an extent of 12000 sq. mtrs. at a price of Rs.72,00,000/- in its favour and the said amount was to be paid by the respondent within 90 days of the receipt of the provisional allotment and required to implement the project within 2 years from the date of possession of the allotted plot of land, failing which the plot was liable to be cancelled by the Corporation as per terms and conditions enumerated in the provisional allotment letter dated 20.6.2006. The relevant clauses from the provisional allotment order read thus:-

On 22.9.2006, it was found by the Corporation that the industrial plot allotted in favour of the respondent was more than the area mentioned in the provisional allotment, the area of the industrial land was revised as 14046 sq. mtrs. and the cost payable by the respondent was re-fixed at Rs.84,27,600/-. Despite having extended the time by the Corporation for making payment of land cost with interest @18% p.a. till 30.11.2006, the respondent again did not make the payment for the plot which resulted in cancellation of the provisional allotment of industrial plot made in favour of the respondent by the Corporation vide its letter dated 16.12.2006. Being aggrieved by the said action of the Corporation, the respondent made representation on 3.2.2007 for restoration of the provisional allotment of land in favour of the respondent. The Corporation acceded to its request and it has informed on 21.2.2007 to the respondent stating that the restoration of allotment of plot of land will be done subject to payment of total cost of the allotted land with interest on belated payment and penalty of 10% of the land cost at the prevailing rate and after making the payment the suit plot can be registered in favour of the respondent. The respondent made the payment on 2.3.2007 for the industrial plot allotted in its favour and an agreement of sale was executed on 13.3.2007 between the Corporation and the respondent and possession of the industrial plot was given to the respondent on the same day. The relevant clause Nos. '3 and 9c' of agreement of sale read thus :-

On 7.1.2011, a Circular Notice was issued to the respondent by the Corporation for charging fee @ 2% upto 1 year and 3% after 2 years as fee for condonation of delay in implementation of the project for which purpose the plot was allotted in its favour. On 10.8.2011 the respondent wrote a letter to the Corporation asking them for registration of the plot in its favour. On 8.11.2011, the Corporation asked the respondent to pay an amount of Rs.8,42,760/- being 3% of the allotted plot cost towards condonation fee for delay in implementation of the project.

Being aggrieved on the demand of condonation fee by the Corporation, the respondent filed writ petition No. 11978 of 2012 before the High Court of Judicature of Andhra Pradesh at Hyderabad, challenging the validity of demand of condonation fee from the respondent and prayed for issuing a direction to the Corporation to execute registered sale deed of the allotted plot in its favour. The said writ petition was opposed by the Corporation by filing its counter affidavit justifying the demand of condonation fee from the respondent for non-implementation of the project. The learned single Judge of the High Court has recorded the finding holding that the plea of the respondent that the project was implemented within a period of two years was not accepted, however it has allowed the writ petition on 26.4.2013 with a direction to the Corporation to execute the registered sale deed in favour of the respondent in respect of the allotted plot within two months without charging any condonation fee of Rs.8,42,760/- as demanded by the Corporation from the respondent for the delay caused for implementation of the project.

With the aforesaid observation and direction to the State Government and CoD, Police, the appeal is allowed, the impugned judgments and orders of both the learned single Judge and the Division Bench of the High Court are set aside. The Corporation is directed to withdraw the demand of condonation of delay fee issued to the respondent and take further action for resumption of the plot allotted to the respondent. The CoD/CID of the State Government of Telangana represented by its Inspector General of Police or Director General or whomsoever concerned, is directed to conduct investigation and conclude the same and submit the report before the jurisdictional court within four months from the date of receipt of the copy of this judgment. The Registry is directed to send the copies to them and submit its compliance report for perusal of this Court.