TECHNOCO INDUSTRIES PRIVATE LTD Vs. STATE OF HARYANA

JUDGEMENT

(1.) THE petitioner-company in order to set up ancillary Unit for manufacture of components for Maruti cars applied to the Director of Industries, Haryana, for allotment of a plot measuring 1000 Sq. Metres. Later on, the Company realised that it was not possible to set up Manufacturing Unit in 1000 Sq. Metres plot and requested that the Company be allotted a 2000 Square Metres plot. On receipt of the request from the petitioner-Company, respondent No. 3 sought view of the Maruti Udyog Limited as to the feasibility of project proposed to be set up by the petitioner-Company. Maruti Udyog Limited wrote to respondent, No. 3 that the request of the petitioner-Company for the allotment of 2000 Square Metres plot be considered. Respondent No. 3, vide letter dated 20. 7. 1988 informed the Managing Director, Haryana State Industrial Development Corporation Limited (hereinafter referred to as the Corporation), respondent No. 2 that the Government had accorded approval for the industrial plot measuring 1/2 acre to the petitioner-Company for the manufacture of components for Maruti cars. The Director of Industries, respondent No. 3, directed the Corporation to allot the plot to the petitioner-Company on the usual terms and conditions In pursuance of this letter, the Corporation vide its letter dated 14. 9. 1988, made an offer to the petitioner-Company for allotment of a plot measuring 1/2 acre in the industrial estate of Gurgaon, The rate of the land was fixed at the rate of Rs. 175/- per square metre. The petitioner-Company was also asked, that in case the offer is accepted, they should remit a sum of Rs. 37,500/- towards 25 per cent of the cost within 15 days from the issue of the letter. The balance cost price was payable in 10 equated instalments with interest at the rate of 15. 5% p. a. However, it was made clear that in case acceptance was not received within 30 days from the issue of the letter, the offer for allotment of plot shall stand withdrawn. The petitioner-Company vide letter dated 11. 10. 1988 accepted the offer and, sent a sum of Rs. 87,500/- by way of two bank drafts drawn on Canara Bank, Chandigarh. The Corporation, on receipt of the amount, issued a provisional letter of allotment dated 7. 11. 1988 and in the said allotment letter, it was made clear that, the tentative rate of the land will be Rs. 175/- per square metre and the balance 75 per cent of the cost will be payable in 10 equated instalments with interest at the rate of 15. 5% p. a. on the unpaid amount. The allotment was provisional and the petitioner-Company was asked to complete certain conditions contained in letter dated 7. 11. 1988 (Annexure P-4) before final allotment letter could be issued in favour of the petitioner-Company. The petitioner-Company was asked to complete the following pre-requisite conditions :

(2.) IT is not in dispute that by provisional allotment letter the petitioner-Company was asked to accept the offer within 30 days and the provisional allotment letter was to remain valid for a period of 90 days during which the petitioner-Company was required to furnish proof of having completed the formalities as contained in the letter and indicated above. However, the petitioner-Company, due to certain reasons could not complete the pre-requisite formalities and extension was granted upto 6. 3. 1989. Despite extension of 3 months granted upto 6-8-1982, the petitioner-Company could not complete the pre-requisite formalities. It was only on 22. 12. 1989 when the petitioner-Company completed the formalities as was required under the provisional allotment letter. Vide letter dated 20. 12. 1989, the petitioner-Company asked the Corporation to issue final letter of allotment. The Corporation vide letter dated 19. 2. 1990 (Annexure P-16) informed the petitioner-Company that since the petitioner-Company failed to complete the formalities upto the extended period, it had to seek extension for a period of 90 days i. e. upto 5. 11. 1989 fey remitting extension fee @ 0. 25 paise per square metre per month. The delay from 5. 11. 1989 to 22. 12. 1989 was condoned by the Corporation as the circumstances for the delay were found to be beyond the control of the petitioner-Company. The petitioner-Company was also asked to remit a sum of Rs. 1,500/- towards extension fee and send acceptance of the revised rate of the land i. e. Rs. 595/- per square metre as the Corporation had revised the rate of land and had fixed the price @ Rs. 595/- per Square Metre with effect from 1. 1. 1990, so that final letter of allotment could be issued to the petitioner-Company.

(3.) THE petitioner-Company, by way of. this writ petition, has impugned the letter dated 19. 2. 1990 (Annexure P-16) vide which the Corporation asked the petitioner-Company to send its acceptance of the revised rate of land i. e. , Rs. 595/- per square metre which was revised with effect from 1. 1. 1990.