- (1.) ACKNOWLEDGING emergence of the information technology in business and industry, the Rajasthan State Industrial Development and Investment Corporation Limited (hereinafter referred to as "the Corporation") planned a new information technology park at Udaipur with an assurance to provide quality infrastructure such as communication facility, power, road, drainage etc. As per information technology policy of the Government of Rajasthan the Corporation while making efforts to inspire entrepreneur to set up IT Projects at proposed information technology park Udaipur also extended concessions and facilities including (1) land rebate upto 50% in land cost (development charges); (2)100% exemption from stamp duty; (3)50% exemption from electricity duty for seven days; (4)benefits under STP Scheme of Government of India for 100% EOU units registered with STPI; and (5) instalment facility for payment of 75% cost over a period of five years in 19 equal quarterly instalments with 13% interest per annum.
(2.) THE petitioner, a company (hereinafter referred as "the Company") incorporated under the Indian Companies Act, 1956 acting upon the plan forwarded by the Corporation applied for allotment of industrial plot to instal information technology project, accordingly, a piece of land measuring 6444 sq. mtr. was allotted and a lease agreement in this regard was executed and registered on 16-5-2007. The company, to establish its ambitious projects also availed an advance in a tune of Rs.100 lacs from State Bank of India and invested about Rs.90 lacs in raising part construction. The petitioner company also made certain commitments to various clients in India and abroad for strategic alliance. At this stage, a letter dated 23-7-2007 from the respondent Corporation was received by the petitioner company revoking allotment of land and also the lease agreement dated 16-5-2007, hence this petition for writ is preferred. In reply to the writ petition the reasons given by the respondent Corporation compelling it to cancel allotment of land and revoking lease agreement are as follows:- "6.That in the month of December, 2006, 17 applications were received in the Unit office, Udaipur within a period of 22 days. These 17 applications were forwarded in bunch to Head Office by Udaipur Unit for examination and advice so that the Unit Level Committee may take a view for allotment Under the rules, unit level committee is competent for allotment of land in IT Park, Udaipur. 7.That on examination of the applications it was observed that applicants have not submitted details relating to experience in IT promoters/directors and project reports did not have details relating to project. Since, availability of land in IT parks is very limited these applications were returned and unit office was directed to prepare an expression of interest for wider publicity and transparency as the earlier public advertisement was issued in January, 2004 so that serious and good IT projects are attracted in the IT Park. 8.That in the meanwhile, few entrepreneurs of Udaipur have represented for allotment of land to them in the IT Park based on the applications already submitted by them under the prevailing land allotment policy. 9.That it was also observed that earlier the land allottees except the petitioner and also by one party have not started any main building construction activities over the subject allotted plots. It was also thought proper to review the earlier land allotment cases in IT Park, Udaipur by a Committee comprising of Advisor (Infra), GM (IT), two members from IT sector, OIC STPI, Jaipur & Sr.DGM (P&D) and to do allotments for the remaining plots available with the RIICO to IT companies in IT Park, Udaipur. It is, therefore, submitted that the basic issue for allotment of IT Park was to set up an Industry with respect to Information Technology, if companies of IT are not allotted subject piece of land and Industries of IT are not established in IT park then the very purpose of the same will be frustrated." It is also asserted that the Corporation by virtue of Rule 27 of the Rajasthan Industrial Development and Investment Corporation Limited Disposal of Land Rules, 1979 (hereinafter referred to as "the Rules of 1979") is empowered to revoke allotment of plot made in favour of the company. Looking to the fact that any delay in disposal of this petition will adversely effect economic and industrial development plan, this matter is finally heard at admission stage with consent of the parties.
(3.) THE decision of the Corporation is assailed by the petitioner company mainly on plea based on doctrine of promissory estoppel with the factual background that the petitioner company on solemn assurance given and representation made by the respondent Corporation acted upon to avail allotment of land and for that purpose it paid Rs.48.36 lacs towards development charges. THE company also obtained loan from State Bank of India for the sum of Rs.100 lacs. A huge amount of that was spent on constructing a building for the purpose of setting up an infotech industry. THE petitioner company also made certain commitments with its clients in India and abroad but by revoking lease agreement and cancelling allotment of land the respondent Corporation has put the company in disadvantageous position i.e. against the principles of promissory estoppel. On other terminal, the stance of the respondent Corporation is that whatever action taken by it is justified in view of the provisions of Rule 27 of the Rules of 1979 and also that by making allotment of plot to the petitioner and certain other companies it was found not viable to achieve object for establishing I.T. Park. It is further contented that there was no contractual or pre-existing legal relation between the petitioner company and the respondent Corporation, thus, the plea of promissory estoppel is not available. In view of the rival contentions, the question in focus is for application of doctrine of promissory estoppel in present set of facts. Fortunately I am having good number of precedents in hand to examine the issue involved. ;