SWARAJ ENGINES LIMITED Vs. PUNJAB STATE INDUSTRIAL DEVELOPMENT CORPORATION
LAWS(P&H)-2007-9-83
HIGH COURT OF PUNJAB AND HARYANA
Decided on September 05,2007

Swaraj Engines Limited Appellant
VERSUS
PUNJAB STATE INDUSTRIAL DEVELOPMENT CORPORATION Respondents

JUDGEMENT

HEMANT GUPTA, J. - (1.) THE plaintiff is in second appeal aggrieved against the judgment and decree passed by the Courts below, whereby the suit for permanent injunction restraining the defendant from recovering a sum of Rs. 74,12,411.58 was dismissed on a preliminary Issue No. 2, holding that the suit is not maintainable before the Civil Court.
(2.) THE brief facts, as pleaded by the appellant, out of which the present appeal arises are that the State of Punjab acquired 157.99 acres of land in village Kumbra, Kambala, Kambali and Chilla, Tehsil Khara, District Ropar. Out of such land, 80 acres of land was transferred to the defendant i.e. Punjab State Industrial Development Corporation (for short 'the Corporation') by the State Government. Land measuring 12.8 acres out of the land transferred to the defendant was allotted to the plaintiff vide letter of allotment dated 15.1.1988. The plaintiff was required to pay a total sum of Rs. 37,34,554/- towards the cost of the plot including development charges. The possession of the land was handed over to the plaintiff. Thereafter, the plaintiff invested Rs. 4.40 crores on the construction of the building and installing machinery, equipment and various facilities such as setting up of diesel storage tanks and generating set etc. The commercial production started in January, 1989. On 23.8.1990, the plaintiff received a notice from the defendant calling upon to remit an additional amount of Rs. 8,40,124/- as development charges. The said amount was paid on 27.12.1990. On 30.7.1992, the defendant issued a show cause notice calling upon the plaintiff to deposit a sum of Rs. 51,57,334/- towards enhancement in the cost of acquisition of land. No details of calculations were provided by the defendant. The plaintiff sought the details vide letter dated 23.9.1992 as to on what account, the enhanced amount was being claimed. But no reply has been received from the defendant. Thus, it was alleged that the demand raised is absolutely arbitrary, without jurisdiction in as much as no justification has been furnished by the defendant to claim the amount from the plaintiff. It is also pointed out that subsequently a registered notice dated 27.1.1993 was received from the defendant-Corporation that the compensation for the land in Phase-IX, SAS Nagar, Mohali, has been enhanced and the Corporation has been asked to pay a sum of Rs. 3,05,76,197.78 and that the plaintiff's share in the above mentioned enhanced compensation works out to be Rs. 74,12,411.58 as on 22.7.1993, subject to further enhancement, if any. It is alleged that such demand is wholly arbitrary and unsustainable as no details of claim have been furnished nor the appellant could be asked to pay the compensation of the entire land.
(3.) IN the written statement, the defendant by way of preliminary objection pointed out that in Clause-2 of the letter of allotment, it is contemplated that the price of the plot is subject to variation with reference to actual measurement of plot, cost of development and cost of acquisition of land by the Industries Department and in case of enhancement of compensation on account of acquisition of land of the Sector in question, by the Court or otherwise, the plaintiff is to pay additional price of the plot. Clause-2 of the letter of allotment, reads as under :- "Clause-2 : The above price of the plot is subject to variation with reference to the actual measurement of the plot, cost of development and cost of acquisition of land by the Industries Department. In case of enhancement of compensation on account of acquisition of land of this Sector by the Court of otherwise, you shall have to pay the additional price of the plot, if any, determined by this Corporation within 30 days from the date of demand." ;


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