High Court of Bombay at Goa Allows Writ Petition Challenging Resolution to Re-Advertise Industrial Plot — Petitioner's Application for Plot B-12 Wrongly Ignored Due to Irregularities in Screening Committee Process.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The petitioners, Gaonkar Chemicals and its proprietor Jaisatchitanand Gaonkar, filed a writ petition challenging Resolution No.26/21 dated 24 September 2021 and its confirmation on 13 December 2021 by the Goa Industrial Development Corporation (respondent) to re-advertise plot No. B-12 at Kundaim Industrial Estate. The petitioner had applied for this plot pursuant to an advertisement dated 31 January 2019 under the Goa Industrial Development Corporation Regulations, 2014. The Screening Committee, in its meeting on 10 January 2020, recommended allotment of plot B-12 to M/s Maruti Plastic Industries, even though that entity had applied only for plot 17-G and had not paid the security deposit for plot B-12. The petitioner alleged that this allotment was illegal and that he was wrongly denied the plot. Subsequently, the respondent resolved to re-advertise the plot, which the petitioner challenged as arbitrary. The court examined the Screening Committee minutes and found that M/s Maruti Plastic Industries had mentioned both plot numbers in its application but had only paid security for plot 17-G. The court held that the allotment to M/s Maruti Plastic Industries was illegal and that the respondent's decision to re-advertise, rather than consider the petitioner's application, was arbitrary. The court quashed the impugned resolutions and directed the respondent to consider the petitioner's application afresh in accordance with the Regulations, without being influenced by the earlier illegal allotment. The petition was allowed with no order as to costs.

Headnote

A) Administrative Law - Allotment of Industrial Plots - Legitimate Expectation - The petitioner applied for plot B-12 as per advertisement dated 31 January 2019 under the Goa Industrial Development Corporation Regulations, 2014. The Screening Committee recommended allotment to another party despite irregularities, and later the Corporation resolved to re-advertise the plot. The Court held that the petitioner had a legitimate expectation and the resolution to re-advertise was arbitrary and unsustainable. (Paras 1-10)

B) Industrial Development - Allotment of Plots - Screening Committee Irregularities - The Screening Committee minutes dated 10 January 2020 showed that M/s Maruti Plastic Industries, which applied only for plot 17-G, was also considered for plot B-12 without paying the required security deposit. The Court held that such allotment was illegal and the Corporation's subsequent resolution to re-advertise was not justified. (Paras 6-9)

C) Constitutional Law - Article 226 - Writ Jurisdiction - The Court exercised its writ jurisdiction to quash the impugned resolutions and directed the respondent to consider the petitioner's application afresh in accordance with the Regulations, as the earlier process was vitiated by irregularities. (Paras 10-12)

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Issue of Consideration

Whether the Resolution No.26/21 dated 24 September 2021 and its confirmation on 13 December 2021 to re-advertise plot No. B-12 is arbitrary and illegal, and whether the petitioner is entitled to allotment of the said plot.

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Final Decision

The court quashed Resolution No.26/21 dated 24 September 2021 and its confirmation dated 13 December 2021, and directed the respondent to consider the petitioner's application for plot B-12 afresh in accordance with the Regulations, without being influenced by the earlier illegal allotment. The petition was allowed with no order as to costs.

Law Points

  • Allotment of industrial plots
  • Screening Committee recommendations
  • Legitimate expectation
  • Arbitrariness in administrative action
  • Compliance with regulations
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Case Details

2022 LawText (BOM) (11) 88

WRIT PETITION NO.278 OF 2022

2022-11-28

M.S. Sonak, Bharat P. Deshpande

2022:BHC-GOA:1714-DB

Pranay Kamat for Petitioners, A.D. Bhobe for Respondent

Gaonkar Chemicals and Jaisatchitanand Gaonkar

Goa Industrial Development Corporation

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Nature of Litigation

Writ petition challenging resolution to re-advertise industrial plot and seeking allotment.

Remedy Sought

Petitioners sought quashing of Resolution No.26/21 dated 24 September 2021 and confirmation dated 13 December 2021, and direction to allot plot B-12 to them.

Filing Reason

Petitioners alleged that their application for plot B-12 was illegally ignored and the plot was allotted to another party, and later the respondent resolved to re-advertise the plot instead of considering their application.

Previous Decisions

Screening Committee dated 10 January 2020 recommended allotment of plot B-12 to M/s Maruti Plastic Industries; respondent resolved on 24 September 2021 and 13 December 2021 to re-advertise the plot.

Issues

Whether the resolution to re-advertise plot B-12 is arbitrary and illegal. Whether the petitioner is entitled to allotment of plot B-12.

Submissions/Arguments

Petitioners argued that the allotment to M/s Maruti Plastic Industries was illegal as they did not apply for plot B-12 and did not pay security deposit; the resolution to re-advertise is arbitrary. Respondent argued that the resolution to re-advertise was taken in the interest of transparency and to rectify irregularities.

Ratio Decidendi

The Screening Committee's recommendation to allot plot B-12 to M/s Maruti Plastic Industries was illegal as they had not applied for that plot and had not paid the required security deposit. The respondent's subsequent resolution to re-advertise the plot, rather than considering the petitioner's valid application, was arbitrary and unsustainable. The petitioner had a legitimate expectation that his application would be considered in accordance with the Regulations.

Judgment Excerpts

Petitioner is basically challenging Resolution No.26/21 dated 24 September 2021 which was confirmed in the meeting of the Respondent dated 13 December 2021 thereby resolving to re-advertise for auction plot No. B-12 admeasuring 787 square metres at Kundaim Industrial Estate. From the said information, it was revealed that though Petitioner applied for allotment of plot No.B-12 admeasuring 787 square metres, M/s Maruti Plastic Industries in its application requested for allotment of plot No.17-G admeasuring 840 square metres. However, said Maruti Plastic Industries mischievously put both the numbers of the plots in column nos.2 and 7 even though their application was only for plot No.17-G. Thus, the Screening Committee minutes clearly show that the allotment of plot No.B-12 to M/s Maruti Plastic Industries was illegal and the Respondent Corporation cannot be allowed to take advantage of such illegal allotment.

Procedural History

The petitioner applied for plot B-12 on 18 February 2019. The Screening Committee on 10 January 2020 recommended allotment to M/s Maruti Plastic Industries. The petitioner sought information on 27 January 2021 and learned of the allotment. The respondent resolved on 24 September 2021 and 13 December 2021 to re-advertise the plot. The petitioner filed the writ petition on an unspecified date, and the court heard and disposed it on 28 November 2022.

Acts & Sections

  • Goa Industrial Development Corporation Regulations, 2014:
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High Court High Court of Bombay at Goa Allows Writ Petition Challenging Resolution to Re-Advertise Industrial Plot — Petitioner's Application for Plot B-12 Wrongly Ignored Due to Irregularities in Screening Committee Process.
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