RANBAXY LABORATORIES LIMITED Vs. STATE OF PUNJAB AND OTHERS
LAWS(P&H)-2014-9-314
HIGH COURT OF PUNJAB AND HARYANA
Decided on September 02,2014

RANBAXY LABORATORIES LIMITED Appellant
VERSUS
STATE OF PUNJAB AND OTHERS Respondents

JUDGEMENT

- (1.) 10000 sq. yds. land situated in Development Scheme No. 1 (Giani Zail Singh Nagar) Ropar was allotted to the petitioner-Company, vide letter dated November 11, 1988. The entire sale consideration and the enhanced sale consideration was paid. Allotment letters dated 11.11.1988 and 3.5.1989 (Annexures-P-1 and P-2) were issued. An amount of Rs. 28,00,000/- demanded on 23.8.1999 on account of non construction fee was not paid. The plot was resumed on 20.4.2000. The petitioner- Company made various representations against said order. The extension fee of Rs. 57,88,000/- was demanded on 10.4.2001, which was opposed by the petitioner-Company. Vide letter dated December 26, 2001 (Annexure- P-12), the petitioner-Company was informed that the non construction charges qua the petitioner-Company have been waived off. The petitioner- Company submitted revised drawing for approval of the respondent-Trust.
(2.) The petitioner-Company wrote a letter dated 13.8.2002 (Annexure-P-15) to the respondent-Trust to execute the Conveyance Deed. On 30.9.2002, a request was made to the respondent-Trust to approve the drawing, so that construction could be started. The petitioner-Company received a Show Cause Notice dated 17.1.2003 (Annexure-P-17) and was asked to stop the construction work on the ground that building plan has not been approved. Vide another letter dated November 25, 2003 (Annexure-P-21), the petitioner-Company was asked to deposit Rs. 87,74,500/- towards non construction fee including the interest. The petitioner-Company was issued a Show Cause Notice dated 11.5.2005 (Annexure-P-22) asking it to show cause why the allotment of the plot could not be cancelled for non construction and non payment of the non construction fee. The petitioner- Company submitted its reply. Vide letter dated 29.12.2005 (Annexure-P- 24), the petitioner-Company was informed that the allotment has been cancelled. The petitioner-Company preferred an appeal before the Principal Secretary, Department of Local Bodies, Punjab, which was dismissed, vide order dated 5.5.2009 (Annexure-P-29). In the meantime, the Administrator, Improvement Trust, Roop Nagar, cancelled the allotment, vide letter dated 18.6.2007 (Annexure-P-26).
(3.) Now, the petitioner-Company seeks the quashing of the impugned order dated 18.6.2007 (Annexure-P-26) passed by respondent- Trust cancelling the allotment of plot, order dated 25.11.2003 (Annexure- P-21) passed by respondent-Trust seeking deposit of non construction fee and order in appeal dated 5.5.2009 (Annexure-P-28) passed by the Principal Secretary to Government of Punjab, Department of Government, whereby the appeal filed by the petitioner-Company was dismissed. In the reply, it was stated that the petitioner-Company did not pay the non construction fee. The petitioner-Company submitted the building plan only on 23.12.1999. The said building plan was returned back on 17.1.2000 after pointing out some discrepancies and also demanding extension fee of Rs. 27,25,000/- The petitioner-Company resubmitted the building plan on 24.1.2000. However, the petitioner- Company refused to deposit the extension fee saying that the boundary wall has been constructed on the land and that the land was used for the welfare/recreational purposes of the employees. The building plan was returned on 9.3.2000 and the plot was resumed, vide letter dated 20.4.2000. The petitioner-Company, vide letter dated 8.6.2000, requested for exemption of extension fee citing the disturbed conditions in Punjab and also requested to the Government on 26.6.2000 for waiver of the extension fee. The Government directed the respondent-Trust to proceed as per the existing instructions, which means that the representation of the petitioner-Company stood rejected. The petitioner-Company was informed of the Government decision and advised that resumption of the plot could be reconsidered if the allottee pay the pending extension fee amounting to Rs. 57,88,000/-. The reminders were sent to the petitioner- Company, but no response was received. The petitioner-Company made more representations to the Government and the State Government, vide letter dated 18.12.2001 decided to waive off the non construction charges pending against the petitioner-Company. The Trust informed the petitioner about the waiver of charges on 26.12.2001. The petitioner-Company was accordingly informed, vide letter dated 25.3.2002 (Annexure-P-14) that in the light of the said decision of the Government, the allotment of the plot is restored on the condition with regard to non construction fee in future and that the decision of the Government would be binding on the petitioner-Company. This was accepted by the petitioner-Company, vide letter dated 26.3.2002. Indemnity bond was submitted by the petitioner- Company on 1.10.2002 whereby petitioner-Company undertook to abide by the new policy of the Government regarding extension fee. The respondent-Trust approached the Government through its letter dated 26.12.2002. The Government, vide letter dated 25.2.2003, informed the Trust that the order dated 18.12.2001 waiving the extension fee amounting to Rs. 57,88,000/- has been stayed. Subsequently, a detailed order dated 1/11.9.2003 was passed by the Principal Secretary, Local Government, Punjab, vide which the earlier order of the Government dated 18.12.2001, was withdrawn and it was directed that the petitioner-Company is now liable to pay the extension fee. The petitioner-Company was informed on 4.11.2003 and 25.11.2003 in this regard and it was asked to pay the pending extension fee of Rs. 87,74,000/-. A number of reminders were also sent to the petitioner-Company. Thereafter, after issuing Show Cause Notice, the plot was resumed. The appeal filed by the petitioner-Company before the Appellate Authority i.e. Principal Secretary, Department of Local Bodies, Punjab, Chandigarh, was dismissed, vide order dated 5.5.2009 (Annexure-P-28).;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.