LawforAll

Showing posts with label ORISSA INDUSTRIAL INFRA.DEV. CORPORATION Vs. M/S MESCO KALINGA STEEL LTD. & ORS.. Show all posts
Showing posts with label ORISSA INDUSTRIAL INFRA.DEV. CORPORATION Vs. M/S MESCO KALINGA STEEL LTD. & ORS.. Show all posts
Tuesday, February 14, 2017

Not only the conduct of Mesco was unfair, third party rights had also intervened. Lawful method had been exercised for resumption of land and cancellation of letter of handing over the possession.=The High Court has totally misdirected itself in directing to lease out the balance land. The High Court has also ignored that certain intervening events have taken place and there was total failure on the part of Mesco to carry out its obligations. The High Court could not have issued the direction more so in the changed situation and in view of the defaults committed by Mesco. As a matter of fact, Mesco was never inclined to abide by the terms of the letter dated 4.7.2003. When resumption was made on 25.7.2003, a representation was submitted on 20.8.2003 by Mesco. In that, an attempt was made to dictate its own terms in the garb of prayer for payment. As a matter of fact, it is apparent from the conduct of Mesco that it had no justification at any point of time not to execute the lease deed. It was delaying the same for the reasons best known to it which was wholly impermissible conduct, particularly after taking possession. The breach was not remedied for several years much less for three months in which it was to be remedied. Thus, High Court misadventured into holding the action of IDCO of resumption of land to be illegal. There was no equitable or legal consideration in favour of the respondent herein and a writ is not issued to perpetuate an illegality. Not only the conduct of Mesco was unfair, third party rights had also intervened. Lawful method had been exercised for resumption of land and cancellation of letter of handing over the possession. Resultantly, the impugned order passed by the High Court is hereby set aside. The appeals are allowed. The writ petition stands dismissed. Cost of Rs.5 lakhs is directed to be paid by Mesco to IDCO within a period of two months from today.

                                                                  REPORTABLE                         IN THE SUPREME COURT OF INDIA      ...