Idea Behind Developing And Allotting Industrial Plots Is To Act As Catalyst To Promote Economic Growth- Supreme Court

The Supreme Court upheld the decision of NCDRC and observed that the idea behind the development of industrial plots and allotting them to deserving applicants was to act as a catalyst to promote economic growth.

The Bench of Justice S. Ravindra Bhat and Justice Dipankar Datta observed that “the appellant never made any genuine effort to start its unit. There is no material to disclose that upon receipt of no less than three show cause notices, the appellant showed any sense of urgency in taking steps to live up to the bargain, (of setting up an industrial unit). The inference which this court is left to draw, is that the allottee’s intention was perhaps never to set up any industrial unit, despite its promise to the contrary, and speculatively deal with the plot. Having regard to these facts and circumstances, the court is of the opinion that the impugned order does not call for interference.” 

Advocate Rajiv K. Garg appeared for the appellant and Additional Advocate General Alok Sangwan appeared for the respondent- Haryana State Industrial Development Corporation Ltd. & Anr. (HSDIC)

In this case, the appellant had applied for allotment of the industrial plot and after he was interviewed and his credentials were verified, he was issued with the letter of intent. The final payment was made in respect of the plot and an agreement was executed between HSIDC and the appellant in which he agreed to complete the project in 2 years.

The appellant took possession of the plot, but construction could not be completed within the time stipulated. Notice was issued to the appellant, to which he replied that he could not start the unit due to a lack of infrastructural facilities. He alleged that road and electricity facilities were not adequate, which had hindered his project.

Thereafter, the HSDIC communicated that it had resumed the plot and cancelled the allotment. The appellant approached the District Forum allowed the complaint and directed the HSIDC to withdraw the resumption order. HSDIC appealed before the State Commission, which was also rejected. It then approached NCDRC which also rejected the appeal as it was filed belatedly.

Then the HSCIC approached the Apex Court, which remitted back the matter to NCDRC to hear it on merits. The NCDRC allowed the revision petition, aggrieved of which the appellant approached the Apex Court.

The Apex Court noted that there was nothing on record to show that there was any plan to construct a factory or industrial unit. Moreover, no plans were supplied for approval, no inclination was ever shown to procure the needed machinery and equipment required for the proposed industrial unit.

“In these circumstances, the conclusion which this court is compelled to draw is that the appellant was always insincere and perhaps never intended to follow up and set up the industrial project, which he proposed to HSIDC, as the basis for allotment of his plot.” observed the Court.

Accordingly, the appeal was dismissed.

Cause Title- Aman Semi Conductors (Pvt.) Ltd. v. Haryana State Industrial Development Corporation Ltd. & Anr.  

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