GODREJ PROPERTIES LTD. Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) By an order passed by the Mumbai bench of the Hon 'ble National Company Law Tribunal in Transferred Companies Scheme Petition No. 23 of 2017, Happy Highrises Limited merged and stood amalgamated with the petitioner Company which stepped into the shoes of the earlier Company. National Textile Corporation Limited having become sick towards 1992-1993, reference was made under sec. 15(1) of the Sick Industrial Companies (Special Provision) Act, 1985 (in short SICA) before the Board for Industrial and Financial Reconstruction (in short BIFR) and after much deliberation, the BIFR sanctioned the scheme under sec. 18(4) of the SICA, 1985 and issued directions for sale of the land in question by an order dtd. 4/4/2002. By a letter issued on 19/10/2004, the Government of West Bengal granted permission for disposal of surplus land held by the sick industrial Company and for conversion of the land to any character on an assurance that the Urban Land (Ceiling and Regulation) Act, 1976 shall not apply to such sale. The petitioner Company purchased the entire land from National Textile Corporation Limited by an indenture dtd. 18/7/2007 upon being the successful bidder in the tender for sale floated by the Corporation and the land was accordingly mutated in the name of the Company.

(2.) In a proceedings under sec. 14(T)(3) of the West Bengal Land Reforms Act, 1.176 acres of land of the petitioner Company at Sukchar mouza and 1.334 acres in Rambhadrabati mouza were declared to have vested with the State by an order dtd. 6/11/2008. The Company gifted 1.3 acres of land in Rambhadrabati mouza to Panihati Municipality, being the 9th respondent herein, by virtue of a deed of gift for setting up a water treatment plant in the total area comprising 3.81 acres. An agreement was entered into between the Company and the Municipality on 4/8/2010 to the effect that the Municipality would facilitate release of 1.176 acres of land in Sukchar mouza from vesting in lieu of an area of 1.176 acres in mouza Rambhadrabati offered by the Company. The land comprising 1.3 acres, 1.334 acres as well as 1.176 acres in Rambhadrabati mouza has been taken possession of by the 9th respondent and the water treatment plant has been constructed therein covering the gifted land, vested land as well as the offered land in Rambhadrabati mouza.

(3.) It is submitted on behalf of the petitioners that despite handing over the aforesaid land in Rambhadrabati mouza to the respondents for facilitating construction of water treatment plant therein which is functioning, the land in Sukchar mouza comprising 1.176 acres has not been returned to the petitioner Company in terms of the agreement entered into with the Municipality. According to the petitioner, the vested land of 1.176 acres in Sukchar mouza is part and parcel of the land of the Company under development and the Panihati Municipality has sanctioned plan for construction of building thereon on the basis of mutation in favour of the Company and has also accepted sanction fees to the extent of about Rs.25.00 Lakhs. By a letter dtd. 9/1/2014, the Company applied for divesting of the vested land in Sukchar mouza comprising 1.176 acres before the State respondents who by a letter dtd. 18/3/2014, observed as follows:-