Bishambhar Prasad Vs. M/s Arfat Petrochemicals Private Limited & Ors

WHAT IS THIS CASE ABOUT 

The State of Rajasthan allotted approximately 271.39 acres of land to J.K. Synthetics Ltd in the Large-Scale Industrial Area, Kota (“LIA, Kota”). Following this, a deed was entered between the JKSL and the Collector, Kota, and permission to set up its industrial units in the area was given to JKSL. Later, the Rajasthan State Industrial and Mineral Development Corporation Ltd. (“RSIMDC”) was formed to carry out different projects in the State, and the Corporation was divided into two entities. RIICO acted as its direct successor, and to regulate RIICO’s activities, the RIICO Disposal of Land Rules, 1979 (“1979 Rules”), were issued. Through these rules, RIICO could grant permissions regarding the usage of industrial lands. However, even after these rules were passed, JKSL continued to deal directly with the District Collector, Kota, and not RIICO. The present writ petition was filed by respondent No. 1 to challenge the cancellation of its lease and to seek for use of land. 

CONTENTIONS OF THE PARTIES 

Counsels representing the State argued that the land allocated to respondent No. 1 was always with the State and never remained with the RIICO. The respondent was fully aware that the state revenue authorities and the collector had power regarding the management of the area in question and held that the government had all rights to act by the changing trends. The counsels for the respondent submitted that the reasons for cancellation of the lease were never provided by RIICO anywhere and that the land in LIA, Kota remained with RIICO.

OBSERVATIONS OF THE COURT

The court held that the leases signed between Respondent No. 1 and RIICO were not maintainable. The land in LIA, Kota, was allocated to the state government and hence, RIICO did not have any ownership regarding the same. The court upheld the cancellation of the deeds and held that RIICO had no authority to allow the conversion of land or sub-division of plots.

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