NUPUR PROFESSIONALS PRIVATE LIMITED Vs. PRESTEEGE FIBRES LIMITED

JUDGEMENT

(1.) The petitioners in this petition under Article 226of the Constitution seek a writ of mandamus quashing the Letter of Intent dated 31/03/1994 issued to the first respondent by the Central Government in theMinistry of Industry, Department of Industrial Development, for establishing asugar factory at Dhaulana, District Ghaziabad in the State of Uttar Pradesh forthe manufacture of sugar with daily cane crushing capacity of 2500 TCD. Theyalso seek a writ of mandamus or any other appropriate writ, order or directiondirection the Central Government to consider the application of the petitioners forgrant to the first petitioner a licence for setting up of the sugar mill at Dhaulanaon the basis of the recommendation of the Screening Committee and theAdministrative Ministry being the Ministry of Food in view of the provisions ofArticle 77 of the Constitution read with Government of India (Allocation ofBusiness) Rules, 1961. Second petitioner is the Director of the first petitioner andreference to the petitioner would mean and include the First petitioner. There areas many as 18 respondents but the contesting respondents have been only two,namely, (1) the first respondent, a public limited company, which was amalgamated with the second respondent, another public limited company, by orderdated 22/07/1992 of the Allahabad High Court; and (2) Union of India in theMinistry of Industry. Affidavit in opposition has also been filed by respondentNo. 2(a) who was the Managing Director of the second respondent and a Directorof the first respondent.

(2.) 2. When the Letter of Intent for establishment of sugar factory was grantedto the first respondent, the petitioner was informed by letter dated 8/04/1994that anolder applicant has been granted Letter of in tent for the same to cation andfurther that in the circumstances the Central Government did not find itself in apositionto considertherequestofthepetitioner,but that Govemment would givean opportunity to the petitioner to state its case before reaching a final decisionin the matter. The petitioner was, therefore, asked to send its representation, if itso wish to make one, to the Directorate of Sugar, Krishi Bhawan, New Delhi,within a period of three weeks from the date of issue of the letter. It was alsomentioned that a copy of the letter was being endorsed to the State Governmentand representation of the petitioner when received will be examined in consultation with the State Government, that final orders would be passed after fullconsideration of the points urged by the petitioner and the State Governmentprovided "a representation is received from you not later than three weeks fromthe date of issue of this letter." Petitioner was finally told that infuture he wasto address all its future correspondence in the matter to the Directorate of Sugar,Krishi Bhawan, New Delhi. In the case of O.P. Parasrampuria, who wasadmittedly yet another older applicant than the first respondent, the groundof rejection communicated to him was that a sister concern had already beengranted a Letter of Intent, and for other applicants the ground of rejection was"since an older applicant has been granted LOI at the same location."In the Letterof Intent dated 31/03/1994 issued to the first respondent certain conditionswere stipulated with which we are not concerned except to note that it was statedthat the Letter of Intent would bevalid for a period of three years from the dateof issue. By letter dated 6/05/1994 the second respondent was informed thatthe Letter of Intent dated 31/03/1994 in favour of the first respondent wouldbe implemented by the second respondent subject to same terms and conditionsstipulated therein.

(3.) The relevant provisions for grant of licence/LOI are the Industries(Developmentand Regulation) Act, 1951 (forshort the 1.D. Act'); the Registrationand Licensing of Industrial Undertaking Rules, 1952 under the 1.D. Act; and theGuidelines for Licensing of New and Expansion of Existing Sugar Factoriesissuedby the Ministry of Industry in the Department of Industrial Development.