BHARAT WOOLS LUDHIANA Vs. STATE OF PUNJAB

JUDGEMENT

(1.) These three petitions are interrelated and in each of these writ petitions a prayer has been made for allotment of plots in phase-VI, Focal Point, Chandari Kalan, Ludhiana. In the year 1992, the Government of Punjab announced new Industrial Policy for speedy growth in the State. In order to implement that policy, the Government issued notification No. SI/ Allotment Policy/ 12095-E dated 24-11-1992 for simplification of procedures, revamping the single window clearance and provision of better infrastructure facilities etc. The Government also decided to meet with the demand of the entrepreneurs for development and, therefore, a fresh comprehensive policy for allotment of plots in the areas already developed and in the new areas had been evolved. Paragraphs 1, 3, 5 and 6 of this policy, which have important bearing on the issues raised in these writ petitions requoted below :-

(2.) For allotment of plots in Hosiery/ Knitwear and Allied Industries Complex, Focal Point, Phase-VI, Dhandari Kalan, Ludhiana, for general category industries, the Punjab State Hosiery and Knitwear Development Corporation Ltd. (respondent No. 3 and hereinafter called the Corporation, issued advertisement and got it published in the daily newspapers. Two plots measuring 5000 sq. yards, one plot measuring 2300 sq. yards and four plots measuring 1000 sq. yards were shown to be available for the purpose of allotment. Al the three petitioners and four other parties submitted their applications for allotment of the plots and deposited earnest money as required by the policy laid down by the Government of Punjab. On 23-6-1994, the Managing Director of the Corporation issued letters to the petitioners- M/s. Bharat Wools and M/s. Hindustan Tex Industries, whereby they were conveyed about the proposal of the Corporation to allot plot nos. HAA-69 and HAA-70 respectively on 99 years leasehold basis for setting up of a unit of textiles manufacturing. The tentative price of the plot was shown to be Rs. 17,50,000/-. Both the petitioners were called upon to deposit Rs. 5.25 lacs being 30% price of the plot in addition to the amount of Rs. 3,50,000/which the two petitioners had deposited as earnest money. Both the petitioners deposited ' Rs. 5.25 lacs as required by letter dated 23-6-1994. The petitioners did not get possession of the plots which were proposed to be allotted by the Corporation and, therefore, they made representations to the various authorities of the Government and the Corporation. Representations were also made by the President, Ludhiana Textile Board of which the petitioners M/s. Bharat Wools and M/s. Hindustan Tex Industries are members.

(3.) It appears from the record that after the issue of letter dated 23-6-1994 the representative of M/s. Goyal Impex and Industries Limited made representation to the Managing Director of the Corporation-cum-Director, Industries, Punjab and to the Ministers, Punjab, alleging violation of the policy laid down by the Government of Punjab for allotment of industrial plots. On that application, the State Minister for Industries, Punjab called upon the Director, Industries, to place the entire record before him and at the same time, directed that the three companies be informed to appear before him for a meeting. Initially this meeting was to be held on 7-7-1994 but ultimately it was held on 8-7-1994. Thereafter, the Minister of State for Industries passed an order dt. 12-71994 and directed that the allotment made by the Director, Industries, without taking merit into consideration be set aside and the Committee be directed to allot the plots within ten days. The Allotment Committee was also directed to dispose of the applications for allotment of plots keeping in view the various points indicated in the policy circulated on 24-11-1992. It further appears from the record that at one stage, the then Chief Minister of Punjab directed the allotment of plots to M/s. Bharat Wools and M/s. Hindustan Tex Industries but no order for allotment of plots was passed in favour of the petitioners. Instead, the General Manager, District Industries Centre, Ludhiana, was directed to submit a report regarding the entitlement of the petitioners M/s. Bharat Wools and M/s. Hindustan Tex Industries. The General Manager submitted his report vide Memo No. GOK/LDH/111-A dated 26-9-1994. Thereafter, the matter remained under correspondence at different levels. Ultimately, it was considered in the meeting of the Allotment Committee held on 5-5-1995. The Committee decided that offer made to the petitioners M/s. Bharat Wools and M/s. Hindustan Tex Industries for allotment of the plots of 5000 sq. yards be withdrawn. In pursuance of this decision of the Allotment Committee, the Managing Director of the Corporation issued letter dated 8-6-1995 withdrawing the offers made to the two petitioners for allotment of plots. At the same time, the earnest money and 30% amount of the total tentative price of the plots deposited by the petitioners, were also returned by the Corporation.