AMAN ELECTRIC WORKS PVT LTD Vs. DELHI STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT CORPORATION LTD

JUDGEMENT

(1.) By this writ petition under Article 226 of the Constitution of India, the petitioner seeks a writ of certiorari to quash and set aside the cancellation of the industrial plot allotted to the petitioner, vide cancellation letter dated 09.03.2005. The allotment of Plot No. 43, Pocket-J, Sector-2, Bawana Industrial Area had been conveyed to the petitioner vide letter dated 23.10.2000. The petitioner also seeks a mandamus to the respondents, directing the respondents to allot the said plot to the petitioner, as originally allotted to the petitioner, or in the alternative, the petitioner seeks allotment of any other industrial plot at the rate prevalent in the year 2000. The case of the petitioner is that one of the Directors of the petitioner company, namely, Smt. Ram Shree Bhati was running her business as a proprietary concern under the name & style of "M/s Aman Electric Works" in a non-confirming area. Under the orders of the Supreme Court, the said works of the said director had to be closed down. She was entitled, under the relocation scheme, for allotment of an industrial plot in Bawana Industrial Estate. Accordingly, she made an application on 26.12.1996 for an industrial plot to the respondent. Before the allotment was made in favour of the petitioner or Smt. Ram Shree Bhati, she had already made a deposit of Rs. 2,25,600/-. The allotment of the aforesaid plot was made in the name of M/s Aman Electric Works vide allotment letter dated 23.10.2000. The cost of the plot indicated in the allotment letter was Rs. 10,50,000/-. 50% of the estimated cost, i. e. Rs. 5,25,000/- was required to be deposited initially. The date for making the said deposit was extended by the Supreme Court up to 31.03.2001. The remaining amount had to be paid in installments.

(2.) The case of the petitioner is that, in the meantime, the said proprietary business was taken over by the petitioner company, i. e. M/s Aman Electric Works Private Limited on 07.04.1997. The initial directors of the said company were Smt. Ram Shree Bhati and Sh. Mahesh Prakash Bhati, who are mother and son respectively.

(3.) The petitioner company applied for obtaining a loan from the Delhi Financial Corporation (DFC) on 15.12.2000 to make payment of the amount payable against the allotment of the aforesaid plot. The said loan was provisionally sanctioned for Rs. 7,37,000/- vide letter dated 26.02.2001. In the meantime, the petitioner applied to the respondent No. 1/DSIIDC for change of constitution of the firm from a proprietary concern to a private limited company as also for issuance of a "No Objection Certificate? (NOC) to that effect as a mandatory condition of sanction letter by DFC, on 28.03.2001. The respondent allowed the said change vide letter dated 14.05.2001 from a proprietary firm to the private limited company aforesaid, of which Smt. Ram Shree Bhati and Sh. Mahesh Prakash Bhati were the two directors.