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Gujarat High Court

Reliance Industries Limited & vs State Of Gujarat & 2 on 15 December, 2014

Bench: Vijay Manohar Sahai, R.P.Dholaria

          C/SCA/6593/1998                                   JUDGMENT




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

               SPECIAL CIVIL APPLICATION NO. 6593 of 1998
                                    With
                      CIVIL APPLICATION NO. 5901 of 1999
                                      In
               SPECIAL CIVIL APPLICATION NO. 6593 of 1998
                                    With
                      CIVIL APPLICATION NO. 3854 of 2002
                                      In
               SPECIAL CIVIL APPLICATION NO. 6593 of 1998


FOR APPROVAL AND SIGNATURE:



HONOURABLE THE ACTING CHIEF JUSTICE MR. VIJAY MANOHAR
SAHAI


and
HONOURABLE MR.JUSTICE R.P.DHOLARIA

================================================================

1     Whether Reporters of Local Papers may be allowed to see
      the judgment ?

2     To be referred to the Reporter or not ?

3     Whether their Lordships wish to see the fair copy of the
      judgment ?

4     Whether this case involves a substantial question of law as
      to the interpretation of the Constitution of India, 1950 or any
      order made thereunder ?

5     Whether it is to be circulated to the civil judge ?

================================================================
             RELIANCE INDUSTRIES LIMITED & 1....Petitioner(s)
                               Versus
                 STATE OF GUJARAT & 2....Respondent(s)


                                   Page 1 of 7
        C/SCA/6593/1998                                         JUDGMENT



================================================================
Appearance:
MR KRUNAL NANAVATI, ADVOCATE for NANAVATI ASSOCIATES,
ADVOCATE for the Petitioner(s) No. 1 - 2
MR PARTH BHATT, AGP for the Respondent(s) No. 1 - 3
================================================================

        CORAM: HONOURABLE THE ACTING CHIEF JUSTICE MR.
               VIJAY MANOHAR SAHAI
               and
               HONOURABLE MR.JUSTICE R.P.DHOLARIA

                            Date : 15/12/2014


                            ORAL JUDGMENT

(PER : HONOURABLE THE ACTING CHIEF JUSTICE MR. VIJAY MANOHAR SAHAI)

1. Rule. Mr.Parth, learned AGP waives service of rule on behalf of the respondents. With the consent of learned counsel for the parties, the matter is taken up for final disposal today.

2. We have heard Mr.Krunal Nanavati for the petitioners and Mr.Parth Bhatt, learned AGP for the respondents.

3. Learned counsel for the petitioners has very fairly stated that relief claimed in the petition no longer survives and this petition has become infructuous in view of the agreement and settlement arrived at between the parties which is clear from the letter dated 28.3.2003 written Page 2 of 7 C/SCA/6593/1998 JUDGMENT by S.K.Anand, Director (Operations), Indian Petrochemicals Corporation Limited. Copy of this letter has been produced as Annexure-2 to the affidavit filed on behalf of respondent No.3. The entire letter dated 28.3.2003 is extracted below :

"IPCL/GOG/Water/02 March 28, 2003 To Shri P.T.Patel Under Secretary - Irrigation, Government of Gujarat, Narmada, Water Resources & Water Supply Department, 9/1, Sardar Bhavan, Sachivalaya, Gandhinagar 382 010 Dear Sir, Re : Settlement of payment for water supply to IPCL from Panam Dam/River Mahi.
This has reference to communication No.Narmada/SUT/1097/3174/40/Part-1/P dated 5th March 2003 from Under Secretary, Irrigation and No.VID/AB/Industries/IPCL/Vadodara/1139 dated 17th March 2003 from the Executive Engineer, Vadodara wherein we have been intimated that the Government of Gujarat has kindly accepted our various contentions consequent to cancellation of Panam Dam partnership agreement and have agreed to settle all the pending issues pertaining to supply of water from Panam Dam/River Mahi on payment of Page 3 of 7 C/SCA/6593/1998 JUDGMENT lumpsum amount of Rs.56,71,27,968/-.
We are grateful to the Government of Gujarat and Narmada Water Resources and Water Supply Department for considering and judiciously deciding this complex matter. In pursuance of this settlement of all the pending issues, IPCL pays herewith Rs.51,71,27,968/- (Fifty one crores seventy one lakhs twenty seven thousand nine hundred and sixty eight only) vide SBI IPCL (Koyali) Cheque No.958410 dated 28/3/2003 drawn in the favour of "Executive Engineer, Irrigation Deptt., Vadodara". It may be noted that we have already made an adhoc payment of Rs.5 crores on the 18th of June, 2002. With this the total demand of Rs.56,71,27,968/- has been satisfied and with such payments, the following issues are deemed to be finally settled/withdrawn by both parties herein, viz.:
1) IPCL undertakes to withdraw all the pending litigations against Government of Gujarat/Irrigation Department in respect of Panam River/Water Supply matters;
2) The Government of Gujarat/Irrigation Department confirms that all the pending issues, relating to supply of water to Baroda Complex, from inception of Panam Dam till date are settled with by payment of this amount of Rs.56,71,27,968/-.
3) The future dealings would be governed by the terms of the agreement entered into on 4th December 2002 between the parties.

May we request you to kindly arrange Page 4 of 7 C/SCA/6593/1998 JUDGMENT to acknowledge receipt of this payment and confirm settlement of all issues till date.

Thanking you, Yours faithfully, For and on behalf of Indian Petrochemicals Corporation Limited Sd/-

(S.K.Anand) Whole Time Director c.c. : The Executive Engineer, Vadodara Irrigation Circle - To please issue receipt for SBI IPCL (Koyali) Cheque No.958410 dated 28/3/2003 for Rs.51,71,27,968/-.

Shri M.S.Patel, Secretary (Water Resources), Government of Gujarat, Sachivalaya, Gandhinagar, Gujarat - for information, please."

4. It appears that in view of paragraph 2) of the letter dated 28.3.2003, all the pending issues between the Government of Gujarat / Irrigation Department and IPCL were settled by payment of amount of Rs.56,71,27,968/-. Thereafter, representation dated 7.2.2006 has been made by the IPCL to the State Government with regard to the charges for drinking water to IPCL - page 229 of the paper book.

5. In the affidavit of respondent No.3, another Annexure-6 has been filed which is dated 9.5.2009 wherein respondent No.3 has made request Page 5 of 7 C/SCA/6593/1998 JUDGMENT to the Government of Gujarat that demand of Rs.164.91 lacs for Panam Dam from erstwhile IPCL which has been taken over by the Reliance Industries Limited, but respondent No.3 would be entitled for refund of Rs.164.91 lacs which has been adjusted without knowledge and consent against advance fixed demand charges paid for the year 2007-2008 towards water charges and reminder dated 17.7.2009 for adjustment of Rs.164.91 lacs in furtherance to the representation dated 9.5.2009 at page 258 of the paper book. However, this representation made by respondent No.3 at Annexure-6 to the affidavit of respondent No.3 is still pending disposal before the State Government.

6. In view of the above, this petition stands disposed of with a direction to the State Government to decide aforesaid three representations made by the petitioners within a period of three months from the date of copy of this order is produced before the Secretary, Narmada Water Resources and Water Supply and Kalpasar Department, in accordance with law by reasoned and speaking order. Rule is discharged. The parties shall bear their own costs.

7. In view of the above order, both the civil applications do not survive and the same Page 6 of 7 C/SCA/6593/1998 JUDGMENT are dismissed.

(V.M.SAHAI, ACJ.) (R.P.DHOLARIA,J.) pathan Page 7 of 7