- (1.) SEEKING a direction for regularisation of land initially allotted to M/s Jaishree Engineering Works comprised in plot nos. 166 and 167 at Tupudana Industrial Area, in terms of recommendation/decision taken in the meeting of PCC/LAC dated 03.03.2012, the present writ petition has been filed. A further prayer seeking declaration that the petitioner is entitled for substitution of its name in place of M/s Jaishree Engineering Works for remaining period of leasehold right of M/s Jaishree Engineering Works, without making payment of cost for grant of fresh lease, has also been made in the writ petition.
(2.) THE facts narrated in the writ petition are summarized thus : The petitioner is a partnership firm which purchased the land comprised in plot nos. 166 and 167, total area measuring 50500 sq. ft. at Tupudana Industrial Area for a total sale consideration of Rs. 6.25 lacs. Initially, the land in question was allotted to one M/s Jaishree Engineering Works by Ranchi Industrial Area Development Authority. M/s Jaishree Engineering Works secured loan of Rs. 2.64 lacs on 22.06.1979 from Bihar State Financial Corporation for setting up an industry for manufacturing of fabrication work. The loan agreement was signed on 25.10.1979 and about 80 decimal of land in plot nos. 166 (A) and 167(A), out of total allotted land to M/s Jaishree Engineering Works was mortgaged by executing mortgage deed in favour of the Bihar State Financial Corporation. After the said M/s Jaishree Engineering Works failed to implement the scheme and committed defaults in payment of loan, the Bihar State Financial Corporation initiated action under Section 29 of the State Financial Corporations Act, 1951 however, M/s Jaishree Engineering Works failed to discharge loan liability and therefore, the unit of the said M/s Jaishree Engineering Works was put on sale. The Board of Director of BSFC in its meeting dated 25.08.2006 approved the sale of the mortgaged assets of the M/s Jaishree Engineering Works in favour of the petitionercompany and accordingly, the petitioner was communicated sale order dated 28.03.2007. In terms of the sale, out of total consideration amount of Rs. 6.25 lacs, the petitioner was required to make payment of Rs. 1.60 lacs and remaining amount of Rs. 4.65 lacs was treated as term loan to be repaid in two years in eight quarterly installment of Rs. 58,125/, besides the payment of interest on due dates. The sale order was issued in favour of the petitioner on "as is where is basis" with a further stipulation that statutory liability would be the personal liability of the original promoters except, the liabilities of municipal dues, land revenue, Ranchi Industrial Area Development Authority's dues and water cess etc which were to be paid by the purchaser. The sale order dated 28.03.2007 was accepted by the petitioner vide letter dated 27.04.2007 and thereafter, agreement for salecumpayment was executed on 26.06.2007. The mortgage assets along with land and building, plant and machinery and other assets of M/s Jaishree Engineering Works were handed over to the petitioner on 25.07.2007. The petitioner made payment of the entire consideration amount with interest to the Bihar State Financial Corporation and accordingly, BSFC issued "No Dues Certificate" vide memo dated 10.05.2010. Thereafter, sale deed for assigning the remaining period of leasehold right was executed on 07.04.2011 which was duly registered in the office of SubRegistrar, Ranchi in favour of the petitionercompany. Thereafter, the petitioner approached the respondentRIADA for substituting the name of the petitionercompany in place of the erstwhile promoter namely, M/s Jaishree Engineering Works. The petitioner was informed vide letter dated 14.10.2011, the total outstanding dues against the erstwhile promoter to the tune of Rs. 1,97,126.88 which was also paid by the petitioner vide cheque dated 13.02.2012. The respondentRIADA in its meeting dated 03.03.2012 recommended regularisation of the land allotted to the M/s Jaishree Engineering Works in plot nos. 166 and 167 in favour of the petitionercompany, as per the prevailing terms and conditions of the Authority. The petitioner vide letter dated 18.05.2012 made representation for regularisation of the land in question in its favour by substituting its name. The petitioner again made representation to the RIADA on 23.05.2012 for issuing "No Dues Certificate" and the respondentRIADA issued "No Dues Certificate" vide memo dated 22.06.2012. However, the name of the petitionercompany was not substituted with respect to the remaining leasehold right of M/s Jaishree Engineering Works. Constrained, the petitioner has approached this Court.
(3.) A Counteraffidavit has been filed by the respondentRIADA taking the objection of nonjoinder of necessary party i.e. Bihar State Financial Corporation. It is stated that the land comprised in plot no. 166A and 167 A, Khata No. 33, 89, 15, 69, 33, 70 and 98 admeasuring 1.16 acres allotted to M/s Jaishree Engineering Works by RIADA exclusively belongs to the RIADA and in case of mortgage, the Authority has the first charge on the properties under mortgage "paripassu" with the charge of the financial institution. Clause 6 of the lease deed dated 25.09.1979 which was executed on 27.09.1979 contains stipulation of first charge over the mortgage property in favour of Authority. The respondentRIADA is not a confirming party either to the mortgage deed or the sale agreement and copies of which were never supplied to respondentRIADA. The various documents executed between the petitionercompany and BSFC indicate that the consideration amount paid by the petitionercompany does not include dues of RIADA though, the various clauses therein make it obligatory for the purchaserpetitioner to pay the Authority's dues. It is stated that the Authority was not the consenting party to several documents executed between the petitionercompany and BSFC in connection with the auction sale/purchaser transaction. Since the land belongs to the respondentRIADA, the Bihar State Financial Corporation could not have sold the same. After an inspection was carried out, during which it was found that the unit of M/s Jaishree Engineering Works was closed and non functional, a showcause notice was issued on 14.05.1991 for cancellation of allotment to M/s Jaishree Engineering Works. It is further stated that entire auction sale proceeded illegally and in violation of the settled principles of law. As far back as on 15.03.2010, the petitioner was provided details of outstanding dues of M/s Jaishree Engineering Works however, the petitionercompany failed to deposit the dues and in an unauthorised manner started using the premises in question, without permission of the RIADA and accordingly, a showcause notice dated 15.09.2011 was issued to one Shashi Shekhar for using the premises without permission of the RIADA. Thereafter, the petitionercompany deposited the dues of M/s Jaishree Engineering Works. In the meeting of PCC/LAC dated 03.03.2012, the Committee approved regularisation as per the prevailing terms and conditions of the Authority. Vide office order no. 94/94 dated 24.08.1994, it was decided that in case of mortgage and subsequent purchase, the prevailing rate/new rate has to be charged. Initially, RIADA allotted land for 99 years however, after creation of the new State of Jharkhand, lease for 30 years only is being executed. In terms of the direction of the State Government, the rates have been revised and the conditions have also changed. The petitioner is undertaking a new project and the name of the unit has changed and its constitution has also changed and thus, the petitioner cannot claim substitution of its name without paying market rate etc. A rejoinder affidavit has been filed by the petitioner denying the allegation of suppression of material facts. The copy of lease deed and the mortgage deed have been filed by the petitioner by filing supplementary affidavit. It is stated that since the original allottee was granted lease on a long term basis for a period of 99 years, the Bihar State Financial Corporation has sold the mortgaged right for remaining period of lease. In terms of lease deed dated 27.09.1979, erstwhile promoter namely, M/s Jaishree Engineering Works which was registered as a small scale industry was not permitted to take separate permission for mortgaging its assets to the financial institution for raising loan. After the petitionercompany purchased the assets of M/s Jaishree Engineering Works in auction sale, it has stepped into the shoes of the original promoter and thus, entitled for substitution of its name in place of original promoter.;