M. Chockalingam, J. - (1.) CHALLENGE is made to the Order of a learned single Judge of this Court dated 12.11.2008 made in Company Application No,3013 of 2007 in Company Petition No.125 of 1988.
(2.) THE Court heard the learned Additional Advocate General and also the learned counsel for the respondents. The appeal, at the instance of the Revenue Department, Government of Tamil Nadu, has arisen under the following circumstances An extent of 242.05 acres of land was granted to the Company in liquidation, as per G.O.Ms.No,360, Public Works Department (Irrigation) dated 23.02.1937, for a total value of Rs.90,000/-. The alienation was conditional with a right to resume. The said land was surveyed and fixed as 278.83 acres. As per the terms and conditions of the alienation, the Government could resume the land wholly or in part, if the land was required for public purpose or for conducting mining operations and in the event of such resumption or acquisition of land for any reason, the compensation payable for the lands should not exceed the amount paid by the grantee or their value at the time of resumption or acquisition whatever was less. Out of the said extent of 278.83 acres of land held by the company, an extent of 209.08 acres was acquired by the Government from the company under the Land Acquisition Act, 1894, for the establishment of Industrial Estate for Chemical Industries, Developed Plots Estate, other industries, etc. An extent of 25 acres was, however, ordered to be reserved for allotment to the company if they come up with a concrete proposal to utilise the said 25 acres. Compensation was paid at the rate of Rs.87.37 per acre. The company filed an appeal before the Sub Court, Salem, seeking enhancement of compensation. The Sub Court, Salem, awarded enhanced compensation at the rate of Rs.4, 000/- per acre. Challenging the same, the State filed an appeal before this Court. After acquisition of 209.08 acres, the remaining extent left with the company was only 69.75 acres. In the year 1971, Mettur Beardsell Company approached the Government with a compromise proposal, requesting to order, (i) outright assignment of 67.83 acres then in their possession to enable them to improve their title over the land (ii) to grant outright assignment of an additional extent of 25 acres of land lying immediately adjoining their factory site and to the east of it and (iii) to agree to the cost being recovered from the company for the total extent of 92.83 acres mentioned in item No.(i) and (ii) above at the rate of Rs.200/- per acre. The Government examined the said request and by G.O.Ms.No,49, Industries Department, dated 11.01.1972, directed that the total extent of 92.83 acres be assigned to Mettur Beardsell Company Limited at the rate of Rs.200/- per acre. The Government also approved the draft assignment deed and the draft memorandum of compromise to be executed with the company. The draft modification deed was also approved by the Government in September, 1975 and sent to the Collector, Salem District, for necessary action. Following the same, the appeal filed by the State was withdrawn and the same was dismissed as settled out of Court. The said company went into liquidation and was ordered to be wound up by an order of this Court dated 02.07.1993 in C.P.No.125 of 1988. The Liquidator had taken possession of the land, pursuant to the orders of this Court, for settling the claims of the creditors. The Official Liquidator, in his letter dated 10.12.2007, addressed to the Secretary to Government, Revenue Department, informing that he has filed C.A.No,3013 of 2007 in C.P.No.125 of 1988, for sale of the land and building and other structures belonged to the company, in liquidation. Under such circumstances, the Government raised its objections on the ground that the Government could resume the land since there was a breach of the conditions, as found in the assignment. Those objections were negatived by the learned single Judge. Under such circumstances, the State has brought forth this appeal.
(3.) THE learned Additional Advocate General, inter alia, would submit that the company was granted an extent of 242.05 acres of land in the G.O.referred to dated 23.02.1937 for a total value of Rs.90,000/- that the alienation was conditional with a right to resume that subsequently, the land was surveyed and fixed as 278.83 acres that out of the said measurement, 209.08 acres was required by the Government from the company under the Land Acquisition Act that the Company came forward with the request for additional extent of 25 acres and the Government has also reserved for allotment of 25 acres to the company if they come up with concrete proposal to utilise the 25 acres that compensation has been paid at Rs.87.37 per acre that the company filed an appeal for enhancement of compensation and in which, the same was also enhanced to Rs.4,000/- per acre that the appeal was filed before this Court by the State that while the appeal was pending, the assignee company came forward with a proposal that the same was also considered and directed that the extent of 92.83 acres of land be assigned to M/s. Beardcell Company Limited for their industrial purposes at Rs.200/- per acre that the draft assignment deed and also a memorandum of compromise were approved and that under such circumstances, the appeal was withdrawn and the same was dismissed as settled out of court. Pointing out clauses 15 and 17 of the assignment deed, the learned Additional Advocate General would submit that the land should be used for the construction and operation of a textile mill or other mills and for carrying any related activities, which the assignee was empowered to carry on and in the event of breach of the condition in clause 15, the land was liable to be resumed and taken back by the assignor on repayment to the assignee, the amount of Rs.12,639.70 or the estimated market value of the lands at the time of resumption that in the instant case, the Government can resume the land if the conditions found in the assignment deed were either not fulfilled or the purpose for which the lands were assigned did not exist that the assigned company was not the absolute owner of the property and that on this score alone, the company application filed by the Official Liquidator for disposal of the land held by the Government, in order to discharge the liabilities of the company, should have been dismissed.;