Noting that industrial land allotments were intended for economic development and industrial growth, the Supreme Court recently ruled that it must be utilised by the allottee for such purpose only.
The Bench of Justice Surya Kant and Justice N Kotiswar Singh passed the order on Friday on a petition challenging a December 2024 verdict delivered by the Kerala High Court.
The Division Bench of the High Court upheld the cancellation of an industrial land allotment to a company called Poyilakada Fisheries Private Limited, after it failed to utilise the land for its intended purpose.
Refusing to interfere with the High Court verdict, the top court of the country observed that if the petitioner was eligible for compensation as per a single judge order, it should be decided by a competent authority. The land should be used for generation of income and employment, it added.
As per the case, the patta (legal document proving ownership of property) issued to Poyilakada Fisheries (appellant) in 1990 required the land to be used for industrial purposes, specifically for manufacturing frozen marine products, and prohibited alienation or encumbrance without prior government approval.
In 2004, Poyilakada Fisheries stopped regular operations, citing economic hardship.
Despite several notices from authorities and assurances to resume operations, the unit remained non-functional.
The General Manager of the District Industries Centre re-allotted the land to four others in 2014 on the grounds that Poyilakada had not been using it for the intended purpose.
Aggrieved by the decision, the appellant challenged the state government decision in the Kerala High Court.
A single-judge Bench of the High Court dismissed the writ petition, stating that the appellant failed to utilise the land for its intended purpose.
The High Court, however, granted liberty to Poyilakada Fisheries to raise any claim for compensation or for value of improvement in accordance with the Rules.
The judgment was later upheld by a Division Bench of the High Court.
Poyilakada Fisheries then moved the Apex Court.
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