Court No. - 40
Case :- WRIT - C No. - 16580 of 2021 Petitioner :- M/S Zap Information Technology Pvt. Ltd.
Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Tarun Agrawal,Vinayak Mithal Counsel for Respondent :- C.S.C.,Kaushalendra Nath Singh
Hon'ble Manoj Misra,J. Hon'ble Jayant Banerji,J.
On 6th August, 2021, a detailed order was passed, which is extracted below :
"This matter has been nominated to this Bench by order of the Hon'ble Acting Chief Justice dated 2.8.2021.
The petitioner was granted lease on 26.5.2006 of institutional plot of land by the New Okhla Industrial Development Authority (for short 'Noida') for a period of 90 years.
Clause 13 of the lease deed provided time limit within which the allotee/licensee had to establish unit and make it functional. For plot size above 2000 sq. metres and upto 4000 sq. metres, the time limit within which the unit was to be made functional was four years from the date of actual possession.
It is the case of the petitioner that by taking recourse to the provisions of Clause 13-B and 13-C of the lease deed, the petitioner had obtained extension, from time to time, of the time limit fixed by clause 13. The last such extension was accorded by Noida by letter dated 25.4.2019, as per which, the Unit was to be made functional by or before 31.12.2019.
According to the petitioner, on 31.12.2019 another application was submitted for further extension upto 30.6.2021, but no order was passed on the said application by Noida.
In between, the U.P. Industrial Area Development Act, 1976 was amended by the U.P. Act No. 25 of 2020 vide notification dated August 31, 2020. By the said amendment, a proviso was inserted in Section 7 of 1976 Act, whereunder, it was provided that where any land allotted is not utilized for the purpose for which it was allotted within the period of five years from the date of possession or within the period fixed for such utilization in the conditions of allotment, whichever is longer, the lease deed will stand cancelled and the land shall stand vested to the authority. It was also provided that where aforesaid period has already lapsed before the commencement of this Act, the authority shall give a notice to the allottee to use the land for the purpose for which it was allotted within a period of one year and if within the above period of one year, the allottee does not use the land, then the allotment and lease shall stand automatically cancelled.
It appears that in the light of amended provision of 1976 Act, the Noida authority issued the impugned notice dated 9.5.2021, by which the petitioner has been required to complete the construction and make the unit functional on or before 27.7.2021, failing which action would be taken against the petitioner.
In this petition, the petitioner has not only challenged the notice dated 9.5.2021, but also the amending Act (U.P. Act No. 25 of 2020).
The arguments of learned counsel for the petitioner, inter alia, is that the amended Act cannot be made applicable to existing leases and its application on an existing lease, would be arbitrary.
Sri Kaushalendra Nath Singh, who appeared for the second- respondent-Noida, has informed the Court that on 30.7.2021, a clarificatory letter has been issued by the Additional Chief Secretary, Government of U.P. to the Chief Executive Officer, Noida/Greater Noida and other industrial area authorities clarifying that the period within which the existing lessee is to complete the construction and make the unit functional would be one year from the date of issuance of the notice under the second proviso to the amended Section 7 of the 1976 Act and not one year from the date of insertion of the amended provision in the 1976 Act, therefore, the notice impugned issued to the petitioner should be treated as a notice granting one year time to the petitioner starting from 9.5.2021 to complete the construction and make the unit functional and it should not be treated as fixing time limit upto 27.7.2021.
In view of the above, we deem it appropriate to require the learned counsel for the petitioner as well as learned counsel for the Noida to seek fresh instructions so that they are in a position to make a categorical statement before us, in terms of which, the petition can be disposed of.
Put up this case as fresh on 11.8.2021."
Pursuant to the above order, the Special Officer (Establishment) Noida has provided written instruction dated 12th August, 2021 to the counsel representing Noida in which it is specifically stated that one year period would be counted from the date of issuance of the notice and therefore since the notice was issued on 9th June, 2021, one year period will be counted from 9th June, 2021.
The letter of the Special Officer (Establishment) Noida dated 12th August, 2021, provided by the counsel representing Noida, is taken on record.
In view of the above, Sri Tarun Agrawal, learned counsel for the petitioner, submitted an application for withdrawal of the writ petition with liberty to assail the impugned Act on accrual of fresh cause of action as and when the same arises.
In view of the above, the petition is dismissed as withdrawn with liberty as prayed for.
Order Date :- 13.8.2021. Rks.
Court No. - 40
Case :- WRIT - C No. - 16580 of 2021 Petitioner :- M/S Zap Information Technology Pvt. Ltd.
Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Tarun Agrawal,Vinayak Mithal Counsel for Respondent :- C.S.C.,Kaushalendra Nath Singh
Hon'ble Manoj Misra,J. Hon'ble Jayant Banerji,J.
In Re : Civil Misc. Withdrawal Application No. Nil of 2021.
Withdrawal application is allowed.
For detailed order, see order of date passed on order-sheet.
Order Date :- 13.8.2021. Rks.