ORIENTAL AROMA CHEMICAL INDUSTRIES LTD Vs. GUJARAT INDUSTRIAL DEVELOPMENT CORPORATION
LAWS(SC)-2010-2-13
SUPREME COURT OF INDIA (FROM: GUJARAT)
Decided on February 26,2010

ORIENTAL AROMA CHEMICAL INDUSTRIES LTD Appellant
VERSUS
GUJARAT INDUSTRIAL DEVELOPMENT CORPORATION Respondents

JUDGEMENT

G.S. Singhvi, J. - (1.) Leave granted.
(2.) Whether the Division Bench of Gujarat High Court was justified in condoning more than four years' delay in filing of appeal by the respondents against judgment and decree dated 30.10.2004 passed by Civil Judge (Sr. Division) Gandhinagar (hereinafter referred to as "the trial Court") in Special Civil Suit No. 32 of 2001 is the question which arises for consideration in this appeal.
(3.) The appellant was allotted a piece of land for setting up an industrial unit at Ankleshwar subject to the terms and conditions embodied in agreement of licence dated 2.4.1976 which, among other things, provided for consumption of specified quantity of water by the appellant. The agreement also provided for payment of 70% of the cost of agreed quantity of water irrespective of consumption. In 1982, respondent No. 1 demanded non utilization charges amounting to Rs. 4068/-, which were deposited by the appellant. After some time, respondent No. 1 demanded Rs. 2,69,895/- towards water charges. For next 10 years, the parties entered into long correspondence on the issue of levy of water charges, etc. Finally, respondent No. 1 issued bill dated 13.1.1996 requiring the appellant to pay Rs. 22,96,207/- towards water charges. The appellant challenged the same in Special Civil Suit No. 32 of 2001. The summons issued by the trial Court were duly served upon the respondents but no written statement was filed on their behalf to controvert the averments contained in the plaint and none appeared on the dates of hearing despite the fact that the case was adjourned on more than one occasion. The suit was finally decreed on 30.10.2004 and it was declared that the appellant is not liable to pay Rs. 22,96,207/- by way of minimum charges for water for the period between 1978 and 16.4.2001 and, thereafter, till the water was supplied by respondent No. 1. After few months, the appellant filed another suit which was registered as Civil Suit No. 222 of 2005 and prayed that respondent No. 1 be directed to issue no objection certificate in its favour. The summons of the second suit were also served upon the respondents, but neither the written statement was filed nor any one appeared on their behalf. The second suit was also decreed on 12.12.2007 and respondent No. 1 was directed to issue no objection certificate to the appellant. In compliance of the decree passed in the second suit, the concerned authority of the Corporation issued no dues certificate dated 9.7.2008.;


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