TATA CUMMINS LIMITED Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) THE question arising for a decision in this writ petition is whether the Tata Cummins Limited, petitioner No. 1 herein, is entitled to the benefit of the Notifications issued by the Government of Bihar on December 22, 1995 as S. O. Nos. 478 and 479. While petitioner No. 1 claims that it is entitled to the benefit of those notifications, the State of Jharkhand contends that it is not entitled to that benefit. Brief history :

(2.) A substantial extent of land was held by the Tata Iron and Steel Company Limited (hereinafter referred to as "tisco") under the State of Bihar on lease. As of now, the lease has expired and negotiations are on between TISCO and the State of Jharkhand. A portion of that extent was sub-leased by TISCO to the Tata Engineering and Locomotive Company Limited (TELCO) for a period of 99 years. Subject to various disputes that had cropped up consequent upon the expiry of the lease in favour of TISCO, the position is that the said extent of land is held by TELCO on the basis of that sub-lease and in terms of section 7e of the Bihar Land Reforms Act.

(3.) THIS joint venture agreement led to the incorporation of the Tata Cummins Limited under the Indian Companies Act, 1956. On March 25, 1995, an agreement was entered into between Tata Cummins Limited and Tata Engineering and Locomotive Company Limited (TELCO ). As per the agreement, it was acknowledged by TELCO that as one of the promoters of Tata Cummins Ltd. , it has allotted, subject to the terms and conditions of the lease to be executed by mutual consent, an extent of 37. 19 acres of land in TELCO Township, Jamshedpur and Tata Cummins Limited was constructing a factory and other buildings therein. By that agreement, TELCO recognised the title and the ownership of Tata Cummins Limited over the factory and the buildings that were being constructed at the site. The agreement also provided that the agreement was to be deemed to be effective from April 1, 1994. It is the case of TELCO and the Tata Cummins Limited that a formal lease deed had not been executed or could not be executed, in view of the cropping of disputes between the State and TISCO regarding the renewal of the original lease in favour of TISCO. It is the case of TELCO and the Tata Cummins Limited that buildings have been constructed by Tata Cummins Ltd. , in the extent of 37. 19 acres made available to it by TELCO and that an industry has been started therein at an investment of above rupees 300 crores. Background of the dispute :