TATA COFFEE LTD Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) The action of the respondents, in rejecting the petitioner's request for grant of NOC for using the subject land for a different purpose, vide proceedings dated 04.03.2013 and memo dated 24.06.2011 relying on an earlier memo dated 24.04.2008, is questioned in this writ petition as being illegal and arbitrary. A consequential direction is sought to have the orders dated 04.03.2013 and 24.06.2011, as also the memo dated 24.04.2008, set aside and to direct the respondents to grant NOC, for utilization of the subject land for the purpose sought for, without reference to the restrictions imposed earlier while granting exemption under Section 20 of the Urban Land (Ceiling and Regulation) Act, 1976 (hereinafter called the 'Act'). Facts, in brief, are that SIFCO Limited, (a Company incorporated under the Companies Act, 1956), filed their statement under Section 6(1) of the Act declaring that the properties in Sy. Nos. 89, 93, 94, 96, 101 and 105, covering an extent of 1,02,168 square meters at Fathenagar Village, Balanagar Mandal, Ranga Reddy District was in excess of the ceiling limit. They also filed an exemption application before the Commissioner of Industries for grant of exemption. The Government, vide G.O.Ms. No. 1577 dated 23.09.1978, granted exemption of the entire extent of 1,02,168 square meters subject to the condition that an extent of 45,944 square meters in Sy. Nos. 101, 105 and part of Sy. No. 96 of Fathenagar should be utilized for the manufacture of time pieces and defense computer fuses for rotors; and the remaining land of an extent of 56,224 square meters in Sy. Nos. 93, 94 and 96 of Fathenagar, should be used for future expansion or for other purposes connected with the industry. SIFCO Ltd. was granted exemption under Section 20(1)(a) of the Act, vide G.O.Ms. No. 1577 dated 23.09.1978, for an extent of 45,944.00 square meters in Survey Nos. 101, 185 and a part of 96 of Fathenagar-Sanathnagar Village and an extent of 56,224.00 square meters in Survey Nos. 89, 93, 94 and a part of 96 of Fathenagar-Sanathnagar Village in Hyderabad Urban Agglomeration subject to the conditions that (a) it should not be leased out or sold without the permission of the Government; (b) the land should be utilized, for the purpose for which it is retained, within two years from the date of grant of exemption failing which the exemption granted shall stand cancelled and the excess land will be subject to the provisions of the Act; and (c) the land may be mortgaged to any bank as defined in clause (iii) of sub-section (1) of Section 19 of the Act for the purpose of raising finance for the industry. Alleging violation by them, of the conditions of G.O.Ms. No. 1577 dated 23.09.1978, a show-cause notice was issued to SIFCO Ltd. on 09.10.1986. In response thereto, SIFCO Ltd. filed their explanation on 09.10.1988 seeking condonation of the delay in utilizing the land.

(2.) While matters stood thus, SIFCO Ltd. was amalgamated with Consolidated Coffee Ltd. in the year 1989 pursuant to the scheme of amalgamation being sanctioned by the Bombay and Karnataka High Courts. Consequent upon sanction of the said scheme of amalgamation the subject lands, exempted under Section 20(1)(a) of the Act, stood transferred in favour of Consolidated Coffee Ltd. The name of Consolidated Coffee Ltd. was later changed to Tata Coffee Ltd. and a fresh certificate of incorporation dated 11.08.2000 was issued by the Registrar of Companies.

(3.) The Urban Land (Ceiling and Regulation) Repeal Act, 1999 (Act 15 of 1999) (hereinafter called the "Repeal Act") was enacted to repeal the Urban Land (Ceiling and Regulation) Act, 1976. The Repeal Act was adopted in the Andhra Pradesh State Legislative Assembly on 27.03.2008. Circular instructions were thereafter issued, vide Memo dated 24.04.2008, including, among others, that all cases, in which orders were passed under Section 20(1) of the Act, shall be saved and further action should be continued in future in those cases only as if the Principal Act had not been repealed. As they continued to be in possession of the subject lands, even after the Act was repealed, the petitioner sought a No-Objection Certificate ("NOC" for short) from the Joint Collector, Ranga Reddy District for utilization of the subject lands for the purpose of development of a housing scheme including providing of shelter to the weaker sections of society. As the Joint Collector, vide Memo dated 20.12.2010, informed them that an NOC could not be granted unless the State Government accorded permission, the petitioner submitted their representation dated 03.01.2011 requesting the Government to grant permission for issuing an NOC. By its memo dated 24.06.2011, the Government rejected the petitioner's request for change of land use; and the Special Chief Secretary & Chief Commissioner of Land Administration was requested to inform the petitioner that the exemption, which was given under Section 20 of the Act in favour of SIFCO Ltd., held good and was saved; their request for change of land usage did not, therefore, deserve consideration; and there was no provision to grant permission or to issue No Objection Certificate under the Repeal Act. Aggrieved thereby the petitioner filed W.P. No. 5135 of 2013 before this Court. During the pendency of the Writ Petition the 2nd respondent informed them, vide proceedings dated 04.03.2013, that their request for permission for change of land usage deserved no consideration as the exemption granted earlier under Section 20(1)(a) of the Act held good and stood saved; and there was no provision to grant permission or to issue a No Objection Certificate under the Repeal Act.