New Delhi, Apr 6 The Supreme Court on Monday upheld the cancellation of an industrial plot allotted to Piaggio Vehicles Pvt. Ltd in Uttar Pradesh and said that the company failed to utilise the land and violated the lease conditions for several years.
A bench of Justices Vikram Nath, Sandeep Mehta and N V Anjaria was hearing the company's appeal challenging the Allahabad High Court order which had affirmed the decision of the Uttar Pradesh State Industrial Development Authority (UPSIDA) to cancel the lease.
The dispute was related to a 33-acre industrial plot in Greater Noida's Surajpur which was allotted to the company for setting up a manufacturing unit.
In an order, the court said, "We find no reason to interfere with the impugned judgment which does not suffer from any error or infirmity warranting interference."
The top court noted that despite being granted possession in 2002, the company failed to carry out construction or commence industrial production within the stipulated period, as required under the lease deed.
"The appellant-company failed to demonstrate any convincing effort or bona fide intent to establish a full-scale industrial manufacturing unit," the court said.
Rejecting the company's plea that it had sought extension of time, the bench held that the request was conditional upon timely payment of fees and submission of an affidavit in a prescribed format, the requirements that the company had admittedly failed to fulfil.
"Any consideration for extension was strictly conditional upon the timely payment of the fee and submission of an affidavit in a prescribed format, a condition which the appellant-company admittedly failed to fulfil by the date fixed for this purpose," the court said.
The court also found that even after several years, the company had neither obtained approval of a layout plan nor undertaken meaningful development on the plot, terming its conduct "lackadaisical" and in clear violation of contractual obligations.
"The appellant company did not indicate that any meaningful industrial activity, including the so-called testing activities, had ever been undertaken on the subject plot during the preceding six years," it said.
Emphasising the purpose behind industrial allotments, the bench said such land is provided at concessional rates to promote economic development, generate employment and ensure optimal utilisation, and allottees must strictly adhere to timelines.
"Equities cannot work in favour of litigants whose conduct is callous and in clear violation of rules," the court said.
The bench also declined to grant any equitable relief or restoration of the lease, noting that decisions regarding industrial land allotment fall within the domain of the state authorities and cannot be substituted by the court under its discretionary jurisdiction.
Accordingly, the apex court directed the company to hand over the vacant possession of the plot to UPSIDA within 30 days. However, it ordered that the amount of over Rs 10.95 crore deposited by the company during the proceedings be refunded along with accrued interest.
