Judgment:
No one has appeared to oppose the writ application in spite of notice. National Textile Corporation (West Bengal, Assam, Bihar and Orissa) Ltd., became sick and was referred to the Board for Industrial and Financial Reconstruction, hereinafter referred to as BIFR, under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, hereinafter referred to as SICA.
Pursuant to orders of BIFR, in pursuance of a rehabilitation scheme which contemplated one time settlement with secured creditors, the assets of M/s. Bangasree Cotton Mills, a unit of National Textile Corporation Ltd. were put up for sale by inviting tenders. Advertisements were issued. The petitioners obtained tender documents and submitted their bid along with others. The bid of the petitioners, being the highest, the land was sold to the petitioners. The tender documents contained the following statement :
Permission from Govt. of West Bengal. The land intended for sale is free hold land. Govt. of West Bengal have given their consent for sale of land of the closed mill.
According to the petitioners, there was no excess vacant land of the mills, the land being covered by structures, ponds and dobas. Be that as it may, the Government of West Bengal issued memorandum no.4951-IR dated 19th October, 2004 granting permission for disposal of surplus land held by the closed, sick mills of National Textile Corporation Ltd. Paragraph 2 of the said communication is extracted hereinbelow for convenience :
2. In respect of surplus land held by the said Government company decided for sale it may be recalled that none of the provisions of the Urban Land (Ceiling and Regulation) Act and Rules, 1976 will be applicable to this Central Government owned Company as defined in section 617 of the Companies Act, 1956. This is as per the provision of section 19(1) of the Urban Land (Ceiling and Regulation) Act, 1976. It has also been observed that none of the NIC mills are located within the jurisdiction of Kolkata Municipal Corporation and therefore, the said act is not applicable.
However, in case of any of the surplus lands of the Company be sold to any private buyers, the provisions of any other acts coming in the way of prospective utilization of the land, if so applicable to these buyers will be favourably considered for such exemption by the Competent Authority of this Government on the merits of the case.
" A sale deed was executed on 18th July, 2007. The land was mutated on 11th March, 2008 without objection. On 27th May, 2008 certificate of mutation was issued by the Block Land and Land Reforms Officer, Barrackpore, being Mutation Case No.1226 of 2006. As advised, the petitioner applied for exemption under Section 20(1)(a) of the Urban Land (Ceiling and Regulation) Act, 1976 on or about 28th November, 2008. On 24th March, 2010 building plan submitted by the petitioner was sanctioned by the Panihati Municipality after which the petitioner commenced construction in accordance with building plan.
However, on 12th May, 2010, almost two years after the application for exemption, a letter was issued intimating the petitioner of rejection of No Objection Certificate by the Government of West Bengal Urban Development (Urban Land) Department. Prima facie the property has been sold pursuant to the orders of BIFR wherein the Government of West Bengal was duly represented and as observed above, the Government gave a clear representation that none of the provisions of Urban Land (Ceiling and Regulation) Act, 1976 or the Rules framed there under would be applicable to National Textile Corporation. The petitioner has made out a good case for interim relief.
There will be an interim order in terms of prayer (e) of the petition. The interim order shall remain in force till 22nd September, 2010 or until further orders whichever is earlier. Matter be listed on 13th September, 2010.
All parties are to act on a signed Photostat copy of this order on the usual undertakings.