ADITI COMMODITIES PVT LTD Vs. STATE WEST BENGAL

JUDGEMENT

(1.) In this writ petition, the petitioner, a company within the meaning of the Companies Act, 1956, has challenged the letter dated 18th November, 2011 whereby the West Bengal Industrial Development Corporation Ltd. ('WBIDC for short) has cancelled the allotment of the plot in its favour. The facts are that the petitioner, intending to set up a manufacturing unit within the industrial area/estate set up by the WBIDC, made an application for an industrial plot in the Second Phase of Plasto-Steel Park at Barjora in the district of Bankura. Pursuant to such application, the WBIDC agreed to allot a plot measuring 7.80 acres of land in the said industrial estate. The petitioner deposited a sum of Rs. 35,10,000/- being the total payment towards the long term lease of the plot and possession of the plot was handed over on 26th May, 2005. Allegation is in spite of requests for execution of lease deed, it is yet to be entered into. Statement is though the petitioner had obtained trade licence and No Objection Certificate from the Gram Panchayat, industry could not be set up for lack of infrastructure which the WBIDC was to provide under condition 13 contained in the Brochure. In such background, however, the WBIDC issued a show-cause notice dated 31st May, 2011 asking the petitioner company to show-cause why the allotment of land would not be terminated as on physical inspection it was found that it was yet to be utilised for the purpose of setting up the industry. By letter dated 17th June, 2011 the petitioner had replied, Thereafter, the letter dated 18th November, 2011 was issued intimating that the allotment of land in favour of the petitioner stood cancelled. Aggrieved this writ petition has been filed.

(2.) Learned advocate appearing on behalf of the petitioner, reiterating the statements in the writ petition, submits that though meetings were held by the WBIDC with the petitioners and with the authorities of the DVC for providing electricity, there was no tangible result. Submission is as no lease deed has been executed as contemplated in the Brochure containing the terms and conditions, the WBIDC is not entitled to cancel the allotment. Referring to condition 28 of the general terms and conditions, submission is since it has been mentioned that Brochure is not a legal document and the terms and conditions outlined are only illustrative and not exhaustive, WBIDC is not entitled to rely on condition 16 thereof as mentioned in the notice to show cause dated 31st May, 2011.

(3.) Learned advocate appearing on behalf of the respondents submits that the action taken by the WBIDC is just and proper as the show cause notice dated 31st May, 2011 for non-utilisation of the plot was issued after conducting an inspection on 20th April, 2011. Thereafter, the petitioner by letter dated 17th June, 2011 replied. After considering the reply, which is silent regarding noncompliance of the provisions contained in condition 16 and as it was found on further inspection on 16th September, 2011 that the factory was yet to be set up, the letter dated 18th November, 2011 terminating the allotment of land was issued.