Devendra Kumar Varshneya And 5 Others vs State Of U.P. And 2 Others on 16 May, 2025

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Allahabad High Court

Devendra Kumar Varshneya And 5 Others vs State Of U.P. And 2 Others on 16 May, 2025

1. Heard Sri Pramod Kumar Singh, learned counsel for the petitioners and Sri M.C. Chaturvedi, learned Senior Counsel assisted by Sri Ankit Prakash, learned counsel appearing for Uttar Pradesh Industrial Development Authority (UPSIDA) (respondents no. 2 and 3) and Sri Rajiv Gupta, learned Additional Chief Standing Counsel for the State.

2. The following prayers have been made in the writ petition:

"a) issue a writ, order or direction of the nature of mandamus commanding the respondent no. 2 and 3 to give effect allotment of industrial plot no. A-5 (area 4805 Sq. Mts) at Integrated Industrial Township "Tala Nagari" Aligarh as per letter no. Memo-SIDC dated 08-04-1997 by issuing formal allotment letter, and execute deed thereof in favour of the petitioners within stipulated period.

b) issue a writ, order or direction of the nature of mandamus commanding the respondent no.3 to take appropriate action on petitioners' application dated 02-09-2024 (Annexure no.15) in accordance with law pending for formal allotment of industrial plot no. A-5 (4805 Sq. Mts) at Integrated Industrial Township Tala Nagari' Aligarh as per letter no. Memo-SIDC dated 08-04-1997 and execution of deed."

3. The UPSIDC, the predecessors in interest of the respondents no.2 and 3 herein had published notice for registration of plots in an Integrated Industrial-cum-Residential Towhship in the name of 'Tala Nagari' Aligarh in the year 1991. In pursuance thereof, the petitioner no.1 and his brother Diwakar Varshneya applied for the plots in the said township. Accordingly, the petitioner no.1 herein was allotted plot no. D-27 area 600 sq. mts. on 28.02.1992 and plot no. E-13 area 420 sq. mts. was allotted to the brother of petitioner no.1 namely Diwakar Varshneya. The petitioners no. 4, 5 and 6 are legal heirs of said Diwakar Varshneya, who is now deceased. After the allotment of said plots, the petitioners have paid the total sale consideration with regard to both these plots. Subsequent thereto on 20.03.1997, both the petitioners jointly requested the UPSIDC to allot a larger industrial plot to them. The UPSIDC accepted the request of the petitioners and vide letter dated 08.04.1997, allotted plot no. A-5 area 4805 sq. mts. in place of previous allotments made in favour of the petitioners of plots no. D-27 area 600 sq. mts. and E-13 area 420 sq. mts. with the following provisions:

"???? ?????? ?? ??????? ???? ??? ?????? ?????? ??-27 ????????? 600 ???????? ??? ?-13 ????????? 420.0 ???????? ?? ????? ?? ?????? ?????? ?-5 ????????? 4805.0 ???????? ????? ?????? ?? ????????? ???? ???? ???-

1. ???? ??? ????????? 3785.0 ???????? ?? ?????? ??? 275/= ????? ???????? ?? ?? ?? ???? ?????

2. ?????????? ????

3. ???? ??????? ??? 2,78,736.00 ?? ?????? (25%) ???????????? ?????? ?? ???? ??? ???? ?????? ?? ???? ?? ??? ??? ?? ????? ???? ?????

4. ????? ?????? 75% ?? ?????? ?? ?????? ??????? ??? 18% ????? ?? ?? ?? ???? ????? ??? ?? ?????? ???? ?? ????? ??? 2% ?? ??? ??? ?????

5. ??????? ????????? ??????? ?? ?? ?????????

?????? ??????? ??????? ???? ?? ?? ???? ???? ??? ??????? ????? ???? ???? ???? ?? ??????"

4. As per the terms of the allotment of new plot, the petitioners were required to deposit 25% of the total cost being Rs. 2,78,736/- within 30 days and the remaining 75% amount was payable in six monthly installments along with interest at the rate of 18% and if the installments are paid in time, the petitioners would be entitled for rebate of 2% in the rate of interest.

5. In compliance of the aforesaid communication, the petitioners deposited a total sum of Rs. 2,78,736/- within 30 days as required by the letter dated 08.04.1997 and thereafter the petitioners have also paid the installments and till 02.07.1999, the petitioners had deposited a total sum of Rs. 8,02,736/- against the increased area. Thereafter the petitioners continuously requested to the respondents for issuance of the formal allotment in respect of plot no. A-5 area 4805 sq. mts. The respondents instead of issuing the formal allotment order with respect to plot no. A-5 area 4805 sq. mts. issued a demand notice dated 03.02.2000 demanding a sum of Rs. 1,56,870/- payable till 01.01.2000. The petitioners contested the said demand and submitted that by 02.07.1999, the petitioners have already deposited the total amount of Rs. 8,02,736/-, therefore, the demand raised by the respondents were illegal.

6. In respect thereof, the petitioners filed a civil suit challenging the demand by the respondents. The civil suit was ultimately decreed in favour of the petitioners vide judgment and decree dated 28.02.2015 holding that the demand raised by the respondents were illegal as the petitioners have already paid the entire sale consideration in terms of the communication dated 08.04.1997.

7. Against the said judgment and decree dated 28.02.2015, an appeal was preferred by the respondents, which was also dismissed vide judgment dated 14.10.2022. After dismissal of the appeal filed by the respondents, the petitioners vide letter dated 02.09.2024 requested the respondents to inform the necessary formalities to be completed for issuance of the formal allotment letter and execution of the deed in favour of the petitioners. In response thereof, vide letter dated 09.09.2024, respondent no.3 informed that against the judgment dated 14.10.2022, whereby the appeal was dismissed, the respondents have preferred Second Appeal (Defective) No. 95 of 2023 before this Court, which is pending consideration. The petitioners sent reminders dated 19.09.2024 and 25.09.2024 to the respondents asking them for issuance of formal allotment letter and execution of the lease deed in favour of the petitioners. Since the respondents did not issue any formal allotment letter nor executed the lease deed in favour of the petitioners, the instant petition has been filed by the petitioners seeking a direction for issuance of formal allotment letter and to execute the transfer deed in favour of the petitioners within stipulated period.

9. The respondents no.2 and 3 have filed counter affidavit in the instant case as per the directions issued by this Court.

10. Since, demand raised by the respondents, was set aside in suit and appeal against the same was dismissed and the second appeal filed by the respondents UPSIDA has still not been admitted, nor there is any stay in favour of UPSIDA, therefore, counsel for the respondents was directed to take instructions with regard to execution of transfer deed in favour of the petitioners subject to outcome of the pending second appeal on a undertaking to be furnished on behalf of the petitioners.

11. Today, learned Senior Counsel appearing on behalf of UPSIDA has shown inability on part of UPSIDA in execution of the transfer deed in favour of the petitioners in view of the pendency of the second appeal.

12. Learned counsel for the petitioners submitted that they are ready to furnish the undertaking that if any demand is sustained in the second appeal then they will abide by the same. It is submitted that the petitioners are being deprived of the utilization of the said plot since more than 26 years and they are not able to establish the industry for which the plot was allotted to them and therefore, they are suffering huge loss.

13. Per contra, the learned Senior Counsel appearing for UPSIDA submits that since the petitioners have failed to deposit the total dues as per the communication dated 08.04.1997, they could not issue formal letter and execute the deed in favour of the petitioners. It is urged that though the demand raised by the UPSIDA has been set aside in the civil suit and also in appeal, but the Authority is well within its right to challenge such decree and judgment of the Appellate Court, which has been accordingly done as per the legal provisions and till the pendency of the second appeal, they are not in position to execute the transfer deed in favour of the petitioners.

14. Having heard the rival submissions made by learned counsel for the parties, this Court has carefully considered the entire aspect of the matter. The dispute between the parties is with regard to the payment made by the petitioners in terms of the communication dated 08.04.1997. According to petitioners, they have paid the entire sum and according to the Authority, some amount was due against the petitioners. However the stand of the Authority has not been accepted by the trial court nor by the first appellate court. The second appeal preferred by UPSIDA is still lying defective. There is no stay in favour of UPSIDA. The findings recorded by the trial court and first appellate court that full amount stood paid and the demand was illegal are binding till set aside. The stand of UPSIDA that it will not abide by the findings recorded in the civil suit merely because its appeal, which is defective, is pending, cannot be sustained. Mere filing of the appeal does not operate as stay of the judgment under challenge. The petitioners are ready to furnish an undertaking that if the Authority succeeds in their second appeal and if any demand subsists against them, they will make payment of the same provided the formal allotment and a transfer deed is executed in favour of the petitioners, so that the petitioners could utilize the industrial plot for establishing an industry, for which it was got allotted by them.

15. In view thereof, looking at the entirety of the matter, the interest of justice would be sub-served by directing the respondents no.2 and 3 to issue a formal allotment letter and execute the transfer deed in favour of the petitioners upon furnishing undertaking and indimnity bond by the petitioners that if any demand is sustained in the pending second appeal, then they will make the payment thereof. Thus the instant petition is disposed of with following directions:

(i) The respondents shall issue a formal allotment letter in favour of the petitioners with regard to industrial plot no. A-5 area 4805 sq. mts. in the Integrated Industrial-cum-Residential Towhship 'Tala Nagari' Aligarh within two weeks from the date of communication of the instant order.

(ii) Along with the formal order, the respondents shall also provide list of all necessary documents to be furnished by the petitioners within two weeks from the date of communication of the instant order.

(iii) On receipt of such communication from the respondent Authority, the petitioners shall comply with the necessary formalities within a period of four weeks from such communication and shall also furnish an undertaking in the form of an affidavit and indemnity bond to respondent no.3 that in case any demand is sustained in the pending second appeal, the petitioners shall abide by the same and make the payment thereof.

(iv) On furnishing all such documents, undertaking and indemnity bond by the petitioners, the respondents no.2 and 3 shall execute the transfer deed in favour of the petitioners within further period of four weeks.

(v) Dues if any, shall be payable by the petitioners in terms of the final orders to be passed in the pending second appeal.

Order Date :- 16.5.2025 Ashish Pd.

(Anish Kumar Gupta,J.) (Manoj Kumar Gupta,J.)

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Allahabad High Court