Industrial Plot Resumption Upheld: Supreme Court Dismisses Appeal Against Haryana Government

The Supreme Court of India recently ruled on the case of Dalip Singh and Others v. State of Haryana and Others, which involved the resumption of an industrial plot due to non-compliance with the conditions of allotment. The appeal was dismissed, and the Court upheld the decisions of the High Court and other authorities that had ruled in favor of the resumption of the land.

Background of the Case

The case revolved around Industrial Plot No. 306 in Phase-II, Panchkula, which was allotted to M/s Shiva Dairy & Oil Mills in 1984. The allottee was required to commence production within a stipulated time. However, despite multiple notices and hearings, the production never commenced for nearly twenty years. The authorities decided to resume the plot under the Haryana Urban Development Authority (HUDA) Act, 1977.

Legal Proceedings and Key Arguments

The original allottee, Rabinder Nath, failed to comply with the conditions. His legal heirs filed multiple appeals challenging the resumption:

• The Estate Officer of HUDA resumed the plot in 2004.
• The Appellate Authority dismissed the appeal in 2008, citing prolonged non-compliance.
• The Revisional Authority upheld the decision in 2014, noting that industrial plots are meant for economic growth and employment generation.
• The Punjab and Haryana High Court also ruled in favor of resumption in 2014.

Supreme Court’s Observations

The Supreme Court, after hearing the case, stated:

“The allotment of industrial plots is made at concessional rates to promote industrial growth and employment. Non-utilization of such plots for an extended period defeats this purpose.”

The Court rejected the appellants’ argument that their inability to commence production was due to personal hardships. The Court also noted:

“Sympathy cannot be a ground to override the rules and policies governing industrial allotments.”

Final Judgment

After considering the arguments, the Supreme Court dismissed the appeal and upheld the resumption of the plot, stating:

“The appellants failed to start production for twenty years, thereby violating the purpose of industrial allotments.”

Conclusion

This judgment reinforces the principle that industrial plots allotted at concessional rates must be used for their intended purpose. It upholds the government’s authority to reclaim unused plots to ensure fair utilization of industrial land.

Petitioner Name: Dalip Singh and Others.
Respondent Name: State of Haryana and Others.
Judgment By: Justice R. Banumathi, Justice Indira Banerjee.
Place Of Incident: Panchkula, Haryana.
Judgment Date: 25-10-2018.

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