MEDICAL DESIGNS (INDIA) PVT. LTD. Vs. RAJASTHAN STATE INDUSTRIAL DEVELOPMENT & INVESTMENT CORPORATION LTD. AND ORS.

JUDGEMENT

(1.) Present writ petition has been filed under Article 226 of the Constitution of India praying that the order dated 10.3.2006 (Annx. 1A) whereby lease deed in favour of petitioner was terminated and allotment of Plot No. F -28(N), Malviya Industrial Area, Jaipur was cancelled, be set aside alongwith the order dated 26.12.2014 (Annx. 5) passed by the Appellate Authority whereby appeal of the petitioner was dismissed.

(2.) Petitioner on 16.9.1987 was allotted Plot No. F -28(N) measuring area 1752.88 sq. mtr. in Malviya industrial Area, Jaipur. Petitioner company had given a proposal for setting up universal legs bracing system and modular bracing system and orthopedic surgical equipments for fracture and limb injuries including aids for disabled injuries. As per Clause -8 of the allotment letter, petitioner had to commence construction on the allotted plot within six months of allotment. It was obligatory on the part of the petitioner to complete the construction work within a period of two years. It is not denied that possession of the allotted land was given to the petitioner on 3.8.1989, but no construction was started. A show cause notice was issued to the petitioner on 6.4.1990 to explain as to why construction work had not commenced. A site plan report was obtained by the respondents on 24.2.1995 and since the petitioner company had only constructed boundary wall and guard room, allotment in favour of petitioner was cancelled on 5.12.1995 by the respondent No. 2 and refund of the deposited amount was ordered. It is stated that on the assurance given by the petitioner that the construction activity will commence, cancellation of the allotment was withdrawn on 31.1.1996 and a lease deed was executed between the petitioner company and the respondents on 16.7.1996. Clause 2(n) of the lease require that the lessee shall construct and complete the building within a period of three years from the date of agreement or from the date of possession of the said land. It is not denied that even after execution of the sale deed on 16.7.1996, petitioner company had not constructed the building and hence, again allotment was cancelled on 10.3.2006.

(3.) I have heard learned counsel for the parties.