Case: DALIP SINGH  Vs. STATE OF HARYANA

3. Brief facts of the case which led to filing of this appeal are that Industrial Plot No.306, Industrial Area,, Panchkula was allotted to Rabinder Nath, in his capacity as MD of M/s Shiva Dairy & Oil Mills vide Memo No.21015 dated 25.07.1984 and the possession of the said plot was given on 19.09.1984. Letter of allotment was subject to the provisions of Haryana Urban Development Authority (HUDA) Act, 1977 and the Rules and Regulations applicable thereunder as amended from time to time and also the Industrial Policy of the State of Haryana. The terms and conditions of the allotment letter, specifically Condition No.18, required the allottee to complete the construction over the allotted plot within two years of the date of offer of possession after completing the necessary formalities governing the construction of the building; otherwise the plot was liable to be resumed and the whole or any part of the money in respect of the same is liable to be forfeited in accordance with the provisions of the HUDA Act, 19774. Since the allottee Rabinder Nath (NRI) did not comply with the terms and conditions of the allotment and did not commence the production within the stipulated time, Show Cause Notice dated26.08.2003 was issued to the allottee under Section 17(4) of the HUDA Act, 1977. One Rakesh Sarna claiming to be the Power of Attorney sent the reply dated 14.11.2003 saying that the original documents are missing and requested for issuance of duplicate copies. In the said reply, the said Rakesh Sarna (GPA) stated that they wouldconstruct the building within six months from the date of receipt of the missing documentsNot being satisfied with the reply received, the allottee was offered an opportunity of personal hearing vide Memo dated 06.01.2004. The said Rakesh Sarna (GPA) appeared and gave a written reply. On perusal of the reply dated14.11.2003 and report submitted by the Junior Engineer of HUDA, the Estate Officer, HUDA held that the allottee failed to commence the production in spite of grant of sufficient opportunities and vide order dated 25.02.2004 resumed the plot forfeiting 10 per cent of the consideration money5. Being aggrieved by the order of resumption of plot, Satyawati wife of Rabinder Nath through her GPA Rakesh Sarna filed appeal under Section 17(5) of the HUDA Act, 1977 before the appellate, HUDA. During the pendency of said appeal, the application was moved on 07.03.2006 to the effect that the appellant Satyawati had expired on 03.10.2005 leaving behind a will dated 02.09.2005 in favour of her four children namely the appellants. The said application was allowed and the appellants were impleaded as parties. The appeal was dismissed by respondent, HUDA vide order dated 11.01.2008 on the ground that the appellants did not start the construction as well as the production over the plot in question and the appellants have not been able to give even a single reason for not starting construction as well as production for a long time of twenty years. It was held that the reasons stated by the power of attorney that the original papers were lost somewhere in September, 2003 does not carry any weight for explaining the delay of twenty years6. The order of the Appellate authority dated 11.01.2008 was assailed by the appellants before Principal Secretary, Government of Haryana, Department of Town and Country Planning and Urban Estates (the Revisional authority) under Section 30(2) of HUDA Act, 1977 and the same was dismissed by order dated 15.04.2014 inter alia on the following grounds:That the allotment of industrial plot was made at concessional rates with a view to generate employment for the unemployed and keeping in view the economic development of the State and the allottee has defeated the very purpose of allotment of such industrial plot by not commencing the production for twenty years from the date of allotment and delivery of possession;That the revision preferred by the appellants is barred by limitation having been filed after a delay of one year and three months and that too without any application for condonation of delay; andThat the plot was allotted to M/s Shiva Dairy & Oil Mills and the appellants could not show how they stepped into the shoes of the firm and it was an act of the appellants to appropriate the plot to the exclusion of the legal heirs of the partners of the firm7. Being aggrieved by the dismissal of the revision, the appellants filed Writ Petition (C) No.19256 of 2014 before the High Court which came to be dismissed by the impugned order dated 16.09.2014. The High Court noted that as rightly observed by the Revisional authority, the plot was allotted at a concessional price with the object of commencing production or industrial activities within a reasonable time which would generate employment for the unemployed youth and also generate revenue in the form of leviable taxes for the public exchequer besides adding to the economic development of the nation. The High Court held that the failure of the allottee to start production for such a long time after the allotment defeated the very purpose of allotment of the plot.

Court's reasoning:
10. With a view to ensure rapid industrial growth on sustainable basis to achieve the twin objects of economic development and generation of adequate employment, the industrial estates/areas were established in order to achieve the said purpose, the industrial policy was framed by the State of Haryana aiming at balancing regional development. After completion of various formalities, Industrial Plot No.306, Industrial Area,, Panchkula was allotted vide letter dated 25.07.1984 and possession thereof was delivered on 19.09.1984. The undertaking of the production as per the approved project is the foundation for the allotment of industrial plots. These plots are allotted at a very reasonable rate/concessional rate with a view to provide incentives to the allottees/entrepreneurs with intent to encourage industrialization and growth in employment opportunities. These allotments are not only governed by the provisions of the HUDA Act, 1977 and the Rules and Regulations framed thereunder but also by the provisions of the industrial policy of the State of HaryanaThe appellants have admittedly not commenced the industrial production on the plot for twenty long years after allotment and delivery of possession. The appellants seem to have woken upon only after issuance of the Show Cause Notice. Evidently, there is breach of condition of allotment of the plot13. As pointed out earlier, the allotment of industrial plot was with the twin objects of economic development and generation of adequate employment. In order to achieve the said purpose, the industrial policy was framed by the State of Haryana aiming at balanced regional development and with a view to generate adequate employment. The allotment of industrial plot was at concessional rate and was subject to terms and conditions and the allottee was bound to comply with the terms and conditions. In such kind of allotment of industrial plots, based on government industrial policy with twin objectives of economic development and generation of adequate employment, sympathy cannot be the ground for considering the case of the appellants as to theire of the terms and conditions of allotment especially for twenty long years after the allotment15. As discussed earlier, the industrial plots were allotted at a very reasonable rates/concessional rates with a view to provide incentives to the allottees/entrepreneurs with intent to ensure industrial growth and economic development of the State and generation of adequate employment opportunities. These allotments are not only governed by the provisions of HUDA Act, 1977 Rules and Regulations framed thereunder but also by the provisions of the industrial policy of the State. Construction of building and commencement of production are the integral part of the terms and conditions of the order of allotment. The appellate and Revisional authority as well as the High Court cannot be faulted for the observation that the buildings were not constructed for twenty long years after allotment. If the construction of the building was really complete, the appellants could have very well filed the completion certificate; but that was not to be so.In the case in hand, per contra, the allottee has failed to complete construction within the stipulated time as per condition No.18 and commence production for a period of almost twenty years despite there being a clear stipulation in the allotment letter requiring them to complete construction within a period of two years. They have also failed to explain sufficient cause for this inordinate delay occasioned by them. As rightly held by the authorities, the allottee has defeated the very purpose of allotment of such industrial plot20. This Court issued notice (vide order dated 07.01.2015) on the basis of submissions made on behalf of the appellants that they are agreeable to pay the present market value of the plot in question.21. The allotment of Industrial Plot No.306, Industrial Area,, Panchkula in 1984 to Rabinder Nath was in his capacity as Managing Director of M/s Shiva Dairy & Oil Mills. The plot was thus allotted to the partnership firm. The appellants have not been able to show as to how they stepped into the shoes of the partnership firm, apart from the mere fact that they are legal heirs of Rabinder Nath. As discussed earlier, at the time of making application for allotment of industrial plot, the applicant has to clearly disclose all the facts regarding the type of industry to be started, licence if necessary under law, project report, estimated cost of project, details regarding time required in completing the project, details of employees required, source of fund etc. The project so submitted is then approved by the competent authority after considering its viability. The applicants are then issued letter of intent/provisional allotment letter with condition to complete the other formalities within the stipulated period of time and after completion of formalities, regular allotment letter is issued in favour of the applicant. As pointed out earlier, the undertaking of the production as per the approved project is the foundation for the allotment of the industrial plots which is with twin object of economic development and generation of employment opportunities. Over the years, the State has undergone substantive changes and economic growth. Land/industrial plots now becoming very scarce, governed by the present EMP, the appellants cannot seek for revocation of resumption by contending that they are ready to pay the current market rate22. The court can interfere with the revocation of resumption of land only if the executive has not carried out its duty or acted in violation of the procedure. Clause (11) of the terms and conditions of allotment clearly stipulates that in the event of breach of any of the conditions of transfer, the Estate Officer may resume the land in accordance with the provisions of Section 17 of the HUDA Act, 1977.