High Court declares Punjab Government’s ownership rights resumption ‘inoperative’

Acting on a bunch of writ petitions filed by multiple industrial entities challenging Punjab’s decision to “resume” ownership rights in ongoing projects in Rajpura’s Industrial Estate on “totally illegal and erroneous grounds of non-completion”, the Punjab and Haryana High Court (HC) has declared notifications in this regard as “completely inoperative” at the current stage.

The petitioners, including SIEL Industrial Estate Ltd, Bodal Chemicals Ltd, Ajanta Chemical Industries and others, had challenged the Punjab Government’s move to resume the ownership rights citing alleged failure to complete the projects within the stipulated period under the memorandum of understanding (MoU) dated October 14, 1993.

Appearing before the Division Bench of Justice Sureshwar Thakur and Justice Vikas Suri, senior advocates Chetan Mittal, Ashwani Chopra and Puneet Bali argued that MoU’s termination was without jurisdiction particularly as the 10-year completion period was to commence only after encumbrance-free possession and requisite approvals were granted — conditions that, according to them, were not met.

The petitioners contended that the extreme step of resumption in the peculiar facts and circumstances of the case was not only unconstitutional, but also disproportionate as per the settled principles of law laid down by the Supreme Court as well as the High Court.

Punjab’s Advocate-General Gurminder Singh informed the court that the government was fully sensitised to grievances and assured that each petitioner would be granted a personal hearing. He further committed that the fresh decision would be taken in compliance with natural justice principles, statutory provisions and applicable rules and regulations.

Taking note of the assurance, the Bench asserted that interests of justice and equity demand that the impugned notifications should be declared completely inoperative “at this stage” since the Advocate-General had submitted before the court that a fresh speaking decision was required to be passed in accordance with the law.

“The outcome of the lawful decision taken by the Government of Punjab shall be placed on record before this court on April 8,” the Bench asserted before parting with the case.