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2. The petitioner firm further submit that despite the fact of making strenuous efforts due to financial difficulties and other various set backs, the Company could not utilise the exempted land fully for the said industrial purpose within the period of two years and so applied for extension of time of another three years to utilise the said land vide letter dated 19.12.1994 addressed to the third respondent, who vide letter dated 26.12.1994 recommended to grant extension of time for two years duly inspected the site and noted the actual position. Instead of granting necessary extension of time, the first respondent, vide letter dated 18.05.1995, issued a show-cause notice calling for explanation of the Company within 15 days as to why the exemption granted in G.O.Ms.No.2212, dated 26.10.1990, should not be withdrawn. However, the petitioner firm sent an application vide letter dated 03.06.1995 to the first respondent requesting to grant extension of exemption for another two years for utilizing the exempted land and also sent a copy of the application for exemption through the General Manager District Industries Centre on 22.01.1996. Despite the fact of issuing several reminders, no order was passed by the first respondent granting extension of time of exemption to utilise the land for the purpose for which the exemption was granted within the period of two years. Since the Company incurred heavy loss due to the fact of the theft of the machineries purchased for the said purpose and financial strains as well as delay in getting extension of time of exemption, the Company parted with a portion of the exempted land as well as the entitlement area for setting up of an Industrial School as well as a Matriculation School and accordingly sought for exemption to hold the excess vacant land for the said purpose under Section 21(1)(a) of the Act vide letter dated 12.05.1997.

3. The petitioner firm further submits that although the Government vide letter dated 10.07.1998 had examined the proposal in consultation with the second respondent regarding the change of utilisation of the excess vacant land for the alternative purpose of setting up of School instead of utilising the said land for the named industrial purpose for which the exemption was granted, the Government was not inclined to consider to grant the exemption for the reason that the Company did not obtain the permission of the Director of School Education to establish the School and that the purpose was also a violation of the condition of granting the exemption and so the Government reiterated their earlier stand and issued the show-cause notice as to why the exemption granted should not be withdrawn and requested the Company to offer its explanation within 15 days from the date of receipt of the said letter. The petitioner firm, vide letter dated 21.07.1998, explained that as the request for extension of the exemption for another two years applied for had not been received for quite a long period despite the fact of several reminders and due to the financial difficulties, the Company was not in a position in utilizing the said lands within the time granted for the purpose of granting the exemption and so the Company parted with the portion of the exempted land to a partnership Firm to establish an Industrial School in the name of Indian Seafarers Training Academy and entrusted a portion of the entitlement area of the land to a Trust created for locating a Matriculation School and sought the permission of the Government for the change of utilization of a portion of the exempted lands to run industrial School under Section 21(1)(a) of the Act, for which also no reply was received and so in anticipation of getting exemption of the Company created the Trust and started to run an Industrial School and also a School upto 7th Standard in a portion of the land recognized by Government entitled to hold by the Company for which no permission to start the School is required to be obtained from the Director of School Education. As the petitioner firm desired to utilize the exempted land for some other public purpose, namely, to run the Industrial School and Matriculation School, the Company applied for fresh exemption under Section 21(1)(a) of the Act. Since no reply had been received from the Government, the petitioner firm established a Matriculation School by putting up of necessary building in the entitlement area and entrusted the Management and Administration to a Public Trust in the name of Pioneer Educational and Charitable Trust to locate the School in the portion of entitlement area of land held by the Company and also made arrangement to start an Industrial Training School in the name and style of 'Indian Seafarers Training Academy' to impart training for student in the field of Pre-Sea Training towards deck, engine and Saloon (Catering) Department in the ship, in the portion of the exempted land held by the Company. The third respondent inspected the site and noted the functioning of the Matriculation School and the Indian Seafarers Training School and directed the Company to produce authenticated records towards the functioning of the institutions as evidenced by his letter, dated 27.09.2001.

6. The respondents further submit that the petitioner firm themselves has admitted that it is unable to use the land for industrial purposes for which exemption was granted and had used the land for running a school. The exemptee could have put forth the difficulty they faced and could have applied for permission for change in activity. Instead of using the land for industrial purpose for which exemption was granted, the petitioner firm changed the utilization from industrial purpose to educational purpose without prior permission from the first respondent and thereby violated the condition laid down in the exemption order. The petitioner firm stated about their inability to use the land for industrial purposes and had requested for change of utilization to educational purpose instead of industrial purpose. Exemption was granted under Section 21(1)(a) of the said Act for utilizing the land for industrial purpose and they changed the usage of the land from industrial to educational purpose without getting prior orders from the Government. The petitioner firm admitted that they have parted with a portion of the exempted land to a partnership firm to establish an industrial school in the name of Indian Seafarers Training Academy and also entrusted the entitlement area to a Trust named Pioneer Educational and Charitable Trust to a start a matriculation School. The petitioner firm failed to utilise the land for industrial purpose and changed the line of activity from industrial use to Educational purpose. Section, they transferred the land to a partnership firm for establishing an industrial school and a portion to a Trust for running a matriculation school. These facts are clear violation of condition laid down in the exemption order wherein the first condition is that the land should be fully utilized for specified industrial purpose within a period of two years and secondly that the exempted land should not be transferred by way of sale, gift, mortgage, lease or otherwise. The first respondent rightly passed orders withdrawing the exemption granted in view of the above reasons.

13. Further, the company decided to utilize the exempted land for some other public purpose namely to run the Industrial School and Matriculation School. Hence, fresh application was submitted for exemption. In the meanwhile, the company established a Matriculation School after raising superstructure the management and administration in the name of the petitioner's educational and Charitable Trust. The 3rd respondent had also inspected the premises and confirmed the functioning of the matriculation school. Under the circumstances, the 1st and 3rd respondents have issued proceedings to acquire the said lands under the Tamil Nadu Urban Land Ceiling Act, in their proceedings dated 01.08.2002 which is prejudiced to the petitioner's Educational and Charitable Trust.