ECI ENGINEERING AND CONSTRUCTION COMPANY LIMITED Vs. ANDHRA PRADESH INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED

JUDGEMENT

(1.) THE Petitioner company -M/s ECI Engineering & Construction Co., Ltd. dealing in manufacturing of metallurgical coke, Hyderabad filed this writ petition for a declaration that the letter No.151/D1/RO/VSP/76 dated 31.3.2003 issued by the 4th respondent - Zonal Manager, Andhra Pradesh Industrial Infrastructure Corporation Ltd., Visakhapatnam intimating the petitioner cancelling the allotment of Ac.9.97 of land made in it's favour in Aganampudi Industrial area of Visakhapatnam and forfeiting the sale consideration paid for purchase of the land as arbitrary and illegal and for a direction to the respondents not to interfere with the possession of the company in respect of the said land.

(2.) ON the application of the petitioner-company for extension of it's business land to an extent of Ac.9.97 was allotted at the aforementioned industrial area by proceedings dated 5.12.1994 at a total cost of Rs.15,95,200.00 by Andhra Pradesh Industrial Infrastructure Corporation Ltd., Visakhapatnam (for short 'APIIC') and an agreement for sale was entered into by the parties and possession of the land was handed over to the petitioner on 9.11.1998. As per Clause 9(c) of the agreement, though the petitioner is required to implement the project within a period of two years from the date of handing over of the plot, it could not proceed with the project. Petitioner putforth various reasons for not proceeding with the project viz., that the plot being rectangular in shape is not suitable for construction of the industry, therefore, it has applied for allotment of additional land, the Pollution Control Board has not issued clearance certificate and due to fluctuations in the market for metallurgical coke. The APIIC by their letters dated 6.3.200 and 3.8.2000 called upon the petitioner to explain the reasons for not commencing the project and ultimately by show cause notice dated 29.12.2000 was issued for non-implementation of the project to which the petitioner addressed letter dated 16.1.2001 putforthing reasons for not commencing the project and requested for extension of time for 12 more months. By letter dated 7.2.2001, the 4th respondent rejected the request of the petitioner and was asked to commence construction activity within one moth of receipt of the said letter, failing which, it was intimated that the allotment will be cancelled determining the sale agreement executed and possession of land will be resumed. It appears that even after lapse of two years from the letter dated 7.2.2001, the petitioner has not commenced the project, therefore, the 4th respondent by the impugned letter dated 31.3.2003 cancelled the allotment of land made in favour of the petitioner and determined the sale agreement dated 9.11.1998 forfeiting the amounts paid by the petitioner towards use and occupation of the land and directed to surrender vacant possession of the land to APIIC.

(3.) DURING the pendency of the writ petition, it appears that the petitioner made a representation dated 25.2.2008 to the respondents for allotment of alternative land of Ac.10.00 at F-Block, Visakhapantam in lieu of land at Aganampudi for setting up a Tower Fabrication Unit. APIIC through their letter No.13060/AMW/D8/AGM/07 dated 3.3.2008 has agreed for the same subject to finalization of certain things viz., approval of layout plan by VUDA, formation of roads and withdrawal of the writ petition.