Case Note & Summary
The petitioner, Ambar Auto Engineers Pvt. Ltd., was allotted an industrial plot by the Maharashtra Industrial Development Corporation (MIDC) in Nashik. The allotment letter dated 18th March 2022 required the petitioner to pay 50% of the premium within 60 days and the balance 50% within 60 days thereafter. The petitioner paid the first installment but failed to pay the balance despite several extensions and reminders. MIDC cancelled the allotment on 30th June 2023 and forfeited the amount paid. The petitioner challenged the cancellation by way of a writ petition. The court examined the terms of the allotment letter and the correspondence between the parties. It found that the petitioner had been given multiple opportunities to pay the balance amount but failed to do so. The court held that the cancellation was not arbitrary and that the petitioner had no right to retain the plot without paying the full premium. The court also held that the forfeiture of the amount paid was in accordance with the terms of the allotment. The petition was dismissed.
Headnote
A) Industrial Law - Allotment of Industrial Plot - Cancellation for Non-Payment - The petitioner was allotted a plot by MIDC but failed to pay the balance 50% of the premium within the stipulated period despite several extensions. MIDC cancelled the allotment and forfeited the amount paid. The court held that the cancellation was not arbitrary as the petitioner failed to comply with the payment schedule and conditions of allotment. (Paras 1-10) B) Contract Law - Breach of Contract - Forfeiture of Amount - The petitioner paid only 50% of the premium and did not pay the balance despite repeated reminders and extensions. The court held that the forfeiture of the amount paid was in accordance with the terms of the allotment letter and the MIDC policy. (Paras 11-15) C) Writ Jurisdiction - Contractual Matters - Scope of Judicial Review - The court held that in matters of contract, writ jurisdiction is limited and cannot be used to enforce contractual obligations unless there is arbitrariness or violation of statutory provisions. The petitioner failed to show any illegality or arbitrariness in MIDC's action. (Paras 16-20)
Issue of Consideration
Whether the cancellation of allotment of an industrial plot by MIDC for non-payment of installments was arbitrary and illegal, and whether the petitioner is entitled to restoration of allotment or refund of amounts paid.
Final Decision
The writ petition is dismissed. The cancellation of allotment by MIDC is upheld. No order as to costs.
Law Points
- Allotment of industrial plots by MIDC is contractual
- subject to terms and conditions
- failure to pay installments as per schedule justifies cancellation
- no right to retain plot without payment
- writ jurisdiction not to be used for enforcing contractual obligations without illegality.
