writ petition from Tech Mahindra Ltd, Pune

Source :  Business Line: January 3, 2012

There was “no unreasonableness” in SIPCOT (State Industries Corporation of Tamil Nadu) cancelling land measuring 3.07 acres allotted to Axes Technologies I P Ltd at SIPCOT Information Technology Park, the Madras High Court has held.

Hearing a writ petition from Tech Mahindra Ltd, Pune, challenging said the order dated July 26, 2006, Mr Justice K. Chandru, said it was not clear as to how the petitioner had the locus standi to challenge the order. 

Even if it was taken that the original allottee company (Axes Technologies) was amalgamated with the petitioner company, they had no right to challenge the same. Such amalgamation came long after the cancellation of land allotted.

Even now, there was no explanation for not proceeding with the construction of factory buildings according to the lease deed dated March 10, 2005, which incorporated the conditions to be fulfilled by the allottee. This was clear violation of Clause 18 of the condition of allotment of land.

The respondent, SIPCOT, contended that under the said clause, construction should be completed within 24 months. No extension of time was sought for implementing the project.

Following the cancellation of land allotment, notice was issued on July 3, 2008, under the TN Public Premises (Eviction of Unauthorised Occupants) Act by Estate Officer, SIPCOT IT Park (R-2).

The petitioner said they had intimated SIPCOT about the amalgamation of the petitioner-company with Axes Technologies. After amalgamation, they were in rightful possession of land, they contended.

It was stated that even after the original allotment, conditions regarding starting of the project was never done by original allottee. Hence, the original allotment was cancelled.

The judge held that this court did not find any unreasonableness in the action of respondent. The writ petition would stand dismissed.