Punjab & Haryana HC Declares Punjab Govt's Notification On Resuming Ownership Rights In Rajpura's Industrial Estate Projects As Inoperative

The Punjab & Haryana High Court has declared Punjab Government's decision to “resume” ownership rights in ongoing projects in Rajpura's Industrial Estate as "inoperative."Justice Sureshwar Thakur and Justice Vikas Suri said, "there is a necessity of passing a fresh speaking decision, in accordance with law, as such both the interest of justice and equity demands, that the presently impugned notification(s), at this stage, be declared to be completely inoperative."The Court noted the submissions of the AG Punjab wherein it was stated that, "Government of Punjab has been completely sensitized about the grievances, which have been raised by the petitioners in the instant bunch of writ petitions. He further assures that the Government of Punjab, shall reassign an opportunity of personal hearing to each of the petitioners, so that all the grievances, raised in the instant bunch of writ petitions become lawfully and judiciously adjudicated upon."AG Punjab Gurminder Singh further assured the Court, that "completest adherence would be made to the principles of natural justice, as well as to all the relevant rules, regulations and statutory provisions, which are to be made applicable to the grievances raised in the instant bunch of writ petitions by the petitioners."The Court was hearing a batch of petitions challenging the Punjab Government's decision to resume ownership rights in ongoing projects in Rajpura's Industrial Estate on “totally illegal and erroneous grounds of non-completion.”The petition was filed by the companies, including SIEL Industrial Estate Ltd, Bodal Chemicals Ltd, Ajanta Chemical Industries, and others, who 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 dated October 14, 1993.It was submitted 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, and the same were not met. Considering the submissions of the AG Punjab, the Court opined thatthe Punjab Government needed to pass a fresh decision on the issue.While adjourning the matter, the bench said, "The outcome of the utmost lawful decision taken by the Government of Punjab be placed on record before this Court on 08.04.2025."Title: M/S SIEL INDUSTRIAL ESTATE LTD v. STATE OF PUNJAB AND OTHERSClick here to read/download the order

Punjab & Haryana HC Declares Punjab Govt's Notification On Resuming Ownership Rights In Rajpura's Industrial Estate Projects As Inoperative

Aiman J. Chishti

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