PUNJAB SMALL INDUSTRIES & EXPORTS CORPORATION LTD CHANDIGARH & ANR Vs. RAGHAV SPINFAB PRIVATE LTD AMRITSAR & ORS

JUDGEMENT

(1.) This is defendants' second appeal challenging the judgement and decrees of the courts below, whereby suit of plaintiffrespondent No.1 for permanent injunction restraining the appellants from cancelling the allotment of disputed plot with further prayer of mandatory injunction was decreed.

(2.) As per the averments made in the suit, in response to an offer made by respondent No.4 for allotment of industrial plots on leasehold basis in Industrial Focal Point Expn.Amritsar under off-the-shelf scheme, plaintiff respondent applied for allotment of a plot measuring 5000 sq.yards for setting up a textile unit in the name of Raghav Synthetics Limited, now known as Raghav Spinfab Pvt.Ltd., Amritsar. Respondent No.4 vide its letter dated 09.12.1994 intimated the plaintiff-respondent regarding the approval of the Allotment Committee for the allotment of plot to it and further advised respondent No.1 to approach the appellants for necessary action. The Registrar of Companies vide their letter dated 28.12.1994 allotted the name of the company to respondent No.1 as Raghav Spinfab Pvt.Ltd.instead of Raghav Synthetics Limited because of non-availability of the name earlier demanded by the plaintiff-Company. Accordingly, respondent No.1 informed the appellants to effect the necessary change in their records. It is the further case of the plaintiff-respondent that a sum of Rs.1,40,000/- was further deposited with the appellant on 06.05.1995 as 20% cost of the plot towards the earnest money which was duly acknowledged by the appellant vide receipt No.12758 dated 17.05.1995. Subsequently, appellant issued allotment letter No. PSIEC/EW/EO/Allot/5677 dated 07.06.1995 and allotted plot No.432 Expn. Measuring 5000 square yards at Industrial Focal Point Expn.Amritsar on 99 years leasehold basis. Respondent No.4, through its Chief Co-ordinator vide its letter dated 25.08.1995 directed the appellant to hand over the possession of the plot to the appellant. Co-ordinator of appellant vide its letter dated 19.06.1996 conveyed the appellants its approval for change of the name of respondent No.1 from Raghav Synthetics Pvt.Ltd.to Raghav Spinfab Pvt.Ltd.as decided in their meeting held on 06.06.1996.

(3.) Respondent No.1 again requested to accord their approval of the change in the name of the company so that the project is taken in hand as per schedule and the future payments are made. However, appellant paid no heed to plaintiff's genuine demand and instead of accepting the same threatened to cancel the plot. Respondent No.1 further deposited a sum of Rs.4,20,000/- by way of bank draft but appellant neither accorded their approval for the change of their name nor delivered the possession of the plot nor executed the lease deed. Hence the suit.