JOHN JACOB Vs. STATE OF KERALA AND ORS

JUDGEMENT

(1.) A hapless entrepreneur, frustrated by his effort to start an industry despite huge investments made, is before us in this appeal.

(2.) The admitted facts are that the Government, by issuance of a notification under Section 2(f) and Section 5 of the Kerala Industrial Area Development Act, 1999 (Act 5 of 2000); (hereinafter referred to as "the KIAD Act"); declared an extent of 12.69 acres of land in Chethipuyzha Village, coming within the jurisdiction of the 6th respondent-Panchayat, as 'Private Industrial Estate'. The appellant having floated a proprietary concern, by name "M/s.Pepturn India", with the object of setting up a unit of packaged drinking water, purchased 3.64 ares of property lying adjacent to a water-body. The said water-body also being in the possession of the owner who was in possession of the land declared as 'Private Industrial Estate', an agreement was entered into with the said owner for drawing water from the said water-body.

(3.) However, when the appellant commenced construction of the industrial unit, the 6th respondent-Panchayat issued a stop memo, upon which the appellant was before this Court challenging the same as being illegal in view of the non obstante clause in Section 6 of the KIAD Act. Section 6 exempted all industrial undertakings being established or proposed to be established in the industrial area, as notified under the KIAD Act, from obtaining permits from the Local Self Government authorities for construction of building or for starting of the industrial undertaking. However, the Panchayat resisted the writ petition on the ground that though 12.69 acres of land was declared as an industrial estate under the provisions of the KIAD Act, the Panchayat had resolved to acquire a water-body lying adjacent to the said industrial estate and a portion of the land notified as the industrial estate for the purpose of a drinking water project. The learned Single Judge though took note of the contention of the Panchayat, since the notification was still in force; reserving liberty of the Panchayat to take any action permissible in law for withdrawal of the said notification; all the same directed that the stop memo issued by the Panchayat interdicting the construction of the industrial undertaking was bad and hence, the same was invalidated.