ARFAT PETROCHEMICALS PRIVATE LIMITED Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) This petition has been filed under Article 226 of the Constitution of India challenging the scope of authority of the State Government over the Rajasthan State Industrial Development and Investment Corporation (RIICO) under Article 138 of its Articles of Association and seeking directions to quash and set aside the decision dated 03.08.2019 of the Cabinet Committee of the State Government which was constituted to review the decisions taken by the previous Government in the last six months, and consequential orders issued pursuant thereto, whereby the permissions/approvals granted to the petitionercompany by the RIICO have been cancelled.

(2.) On perusal of the pleadings and material made available on record, the relevant factual position has emerged out that a total 271.39 acres of land was allotted to J.K. Synthetics Ltd. (JKSL) in Large Scale Industrial Area, Kota for setting up of industries. JKSL was declared as "sick" vide order dated 02.04.1998 passed by Board for Industrial and Financial Reconstruction (BIFR), Delhi. The Appellate Authority of BIFR (AAIFR) vide its order dated 23.01.2003 sanctioned its rehabilitation scheme of JKSL and in terms thereof, 227.15 acres of land of JKSL was transferred to the petitioner-company, the scheme of JKSL had run it's course and accordingly, lease deeds were executed/renewed by the District Collector, Kota in favour of the petitioner-company.

(3.) The petitioner-company made the Acrylic Fibre unit operational but due to a devastating fire in the year 2007, the same was closed. In the rehabilitation scheme, a tripartite agreement was executed between JKSL, the petitioner-company and the workers unions regarding the due payment to the labourers. Liability of payment to labourers of JKSL was computed to 40.42 crores of rupees, against which 34.06 crores of rupees were paid by the petitioner-company and rest of the amount could not be paid as the whereabouts of the concerned labourers could not be known. The litigation for non revival of Kota units and regarding payment of dues to labourers attained finality with the dismissal of petitions before the Hon'ble Supreme Court on 17.08.2017 and 06.03.2018. The petitioner-company made an application before the District Collector, Kota for clearance to develop affordable housing scheme on the lease land under Chief Minister Jan Aavas Yojana (CMJAY) scheme. Correspondence in this regard was also made between the District Collector and RIICO but it could not get the desired clearance.