FELICIOUS FRESH FRUITS PRIVATE LIMITED Vs. MANAGING DIRECTOR, STATE INDUSTRIES PROMOTION CORPORATION OF TAMIL NADU LTD.

JUDGEMENT

(1.) The petitioner has come out with the present Writ Petition challenging the impugned demand notice/letter issued by the respondent dtd. 4/4/2022, in Ref.No.D1/SIP-VV/Fecilious Fresh/2021 and to quash the same.

(2.) .The petitioner, with a view to set up a cold storage and fruit packing unit to import and export fruits, had sent an application on 20/8/2018 to the respondent seeking allotment of plot at SIPCOT Industrial Park, Vallam-Vadagal. After consideration of the application of the petitioner, the respondent by allotment order dtd. 19/9/2018, allotted plot No.G-114-1(Southern Side) to the petitioner to an extent of 2.50 acres in the SIPCOT Industrial Park for the purpose of setting up a cold storage and fruit packing unit. The cost of the plot was tentatively fixed as Rs.1.27 Crores per acre and the project (construction of cold storage facility) shall be completed within a period of 30 months from the date of order and that failure will lead to cancellation of allotment and forfeiture of initial deposit. The plot allotted to the petitioner was full of pits and ditches. The soil experts and engineers suggested that 400 lorry loads of savudu earth would be required to level the entire land area. The District Collector, Kancheepuram and the Mining Department processed the application of the petitioner dtd. 29/3/2019 and granted permission to take savudu earth from Echur Lake. Due to heavy rains and floods, the petitioner could not procure savudu earth from Echur lake as it was full of water. After rainy season, the petitioner leveled the ground with savudu earth and constructed compound wall at the cost of Rs.50.00 Lakhs. While the petitioner was taking steps to proceed further, due to the spread of COVID-19 pandemic, total lock down was imposed throughout India from March 2020 by both Central and State Governments. In view of the lock down, the migrant workers had gone out to their native places. Due to the strict imposition of lock down, there was no supply of construction materials like cement, sand, bricks, blue-metal, etc. The Government of Tamilnadu also, in an effort to arrest the spread of Covid 19 virus, issued G.O.Ms.No.172, Revenue and Disaster Management Department/Disaster Management Wing, DM II Sec. , dtd. 25/3/2020, directing closure of offices of the Government of India/State Government and all the Private and Industrial Establishments, Places of worship, Temples and all Transport Services-Air, Rail, Roadways, Hospitality services etc., The petitioner even though spent a considerable amount for levelling the ground and constructing the compound wall, could not get labour force, construction materials and could not proceed with the construction work to complete the project within the remaining short period. Taking into consideration of the pandemic period, the Central and State Government and their institutions like RBI extended the limitation to pay income tax, property tax, EMIs on various loans etc. The Hon'ble Apex Court, taking suo motu cognizance of the Covid 19 pandemic situation, by order dtd. 23/3/2020 reported in 2020-SCC Online-SC-343, extended the period of limitation with effect from 15/3/2020 till further orders and again by subsequent order dtd. 8/3/2021, ordered the extension of exclusion of the period of limitation for any proceedings either under General law or Special law for the period from 15/3/2020 till 14/3/2021. The Hon'ble Apex Court, by noticing the surge of second wave of pandemic, on 27/4/2021, further extended the limitation period from 15/3/2020 until further orders. In view of the hardship and difficulties to which people have been subjected due to two big waves of pandemic, the extension of limitation was ordered by excluding the Covid 19 period. The respondent, without considering the above facts and ground reality and difficulties of the petitioner, issued impugned notice dtd. 4/4/2022.

(3.) .The learned counsel appearing for the petitioner further contended that the respondent without proper assessment issued the impugned order. The respondent failed to see that the petitioner has taken every effort to complete the project by spending huge amount of Rs.50.00 Lakhs for levelling the ground and putting up the compound wall. The petitioner was unable to proceed with the completion of project due to the pandemic situation leading to the nonavailability of labourers and materials. Therefore, the impugned demand notice suffers from arbitrariness as the respondent has extended time to some of the allottees for payment of cost of plot and extended time for completion of project without any penalty whereas the respondent did not consider the representation of the petitioner dtd. 26/2/2021 and issued the impugned demand notice in a casual way. The respondent, not only failed to take into consideration the huge investment spent by the petitioner to complete the project, but also the G.O.Ms.No.172, Revenue and Disaster Management Department/Disaster Management Wing, DM II Sec. , dtd. 25/3/2020, the orders of the Hon'ble Apex Court extending the period of limitation from 15/3/2020 until further orders as on 27/4/2021 and also the further extension period granted by the Government for payment of Income Tax, Property Tax, Statutory dues, EB charges, EMI for loans, etc.