Land Allotment Case: Supreme Court Upholds Resumption of Chandigarh IT Park Plot

The Supreme Court of India recently ruled in favor of the Estate Officer, Union Territory of Chandigarh, in a dispute over the resumption of an allotted plot in the Chandigarh Information Services Park. The case involved the alleged transfer of shares by M/s. Esys Information Technologies Pvt. Ltd., which led to the cancellation of the land allotment.

Background of the Case

In 2006, the Chandigarh Administration allotted six acres of land to M/s. Esys Information Technologies Pvt. Ltd. under the Allotment of Small Campus Site in Chandigarh Information Services Park, Rules, 2002. The rules and allotment letter contained strict conditions, including:

• No transfer of the campus site for ten years without permission.
• Construction to be completed within three years.

However, in 2008, it was discovered that the company had transferred a major portion of its shares to another entity, M/s. Esys Global Holdings, Dubai, without seeking prior approval.

Key Issues in the Case

• Did the transfer of shares violate the land allotment conditions?
• Was the resumption of the plot justified?
• Did the company attempt to conceal information regarding further share transfers?

Arguments Presented

Petitioner (Estate Officer, UT Chandigarh)

• Argued that the transfer violated Rule 9 of the Allotment Rules and Clause 15 of the allotment letter.
• Highlighted that the company transferred shares further to Teledata Informatics Ltd., Chennai.
• Claimed that the transactions indicated a clear attempt to sell the property indirectly.

Respondent (M/s. Esys Information Technologies Pvt. Ltd.)

• Claimed there was no technical violation as the allottee company remained the same.
• Argued that share transfers did not amount to a sale of land.
• Denied any intention to profit from speculative land deals.

Supreme Court’s Judgment

The Supreme Court ruled in favor of the Estate Officer and upheld the resumption of the land. The Court observed:

• “The respondent has suppressed the facts with respect to its deal with M/s. Teledata Ltd.”
• “The provisions of Rule 9 of the Rules and Clause 15 of the allotment letter have been clearly violated.”
• “The respondent is guilty of suppressio veri and suggestio falsi and has violated order dated 16.7.2015 passed by this Court as to disclosure.”

As a result, the Supreme Court set aside the High Court’s decision and reinstated the land resumption order.

Conclusion

This case highlights the importance of adhering to land allotment conditions and ensures that entities do not bypass regulations through indirect transfers. The ruling serves as a precedent in preventing speculative land dealings.

Don’t miss out on the full details! Download the complete judgment in PDF format below and gain valuable insights instantly!

Download Judgment: Estate Officer UT Ch vs Ms. Esys Informatio Supreme Court of India Judgment Dated 11-05-2016-1741860810046.pdf