SUDARSAN SHAJI. V Vs. STATE OF KERALA

JUDGEMENT

(1.) These writ petitions are filed challenging the orders passed under the provisions of the Kerala Allotment of Land In Development Areas on Hire Purchase For Industrial Purpose Rules, 1969 (the 1969 Rules for short) resuming the industrial plots allotted to the petitioners. The petitioners in these writ petitions contend that they had been allotted industrial lands in terms of the Rules. The petitioner in W.P.(C).No.34843 of 2017 was an auction purchaser of the land from the Kerala Financial Corporation. It is stated that the petitioners had started industrial units in the land in question. They had also paid the entire value of the land and had obtained permission for mortgaging the property. In W.P.(C).No.34942 of 2017, the property was mortgaged and the Indian Overseas Bank to which it had been mortgaged had initiated SARFAESI proceedings. The respondents had proceeded to pass orders of resumption and has consequently allotted the plots to other industrialists, who had submitted applications and were awaiting the availablity of land. These orders are under challenge.

(2.) Heard learned counsel for the petitioners, learned Government Pleader as well as the learned Standing Counsel appearing for the Banks.

(3.) Though several factual aspects of the matter have been placed before me and argued in detail, the main contention which arises for determination is whether the petitioners, who are allottees of industrial plots and who have paid the purchase value in full, have a right under law to claim that the property cannot be resumed, even if the Industrial purpose is not satisfied. The learned counsel for the petitioners would rely on the provisions of the Kerala Allotment of Land In Development Areas on Hire Purchase For Industrial Purpose Rules, 1969 as well as the agreements executed by them with the General Manager of the District Industries Centre to contend that the right to resume the land for not putting it to proper use would be available with the Government only as long as the Hire purchase agreements subsist. It is contended that as soon as the entire value of the land, as demanded, is paid by the petitioners, they become eligible for outright purchase of the property and the right of the Government to resume the land ceases. It is contended that the language of the 1969 Rules as well as the agreement would make it abundantly clear that once the entire amount is paid, it is for the Director of Industries and Commerce to take steps for assigning the land to the purchasers. Reliance is placed on Clauses 4, 5,9 and 10 of the agreement as well as Rules 12, 26 and 28 of the Kerala Allotment of Land In Development Areas on Hire Purchase for Industrial Purpose Rules, 1969.