High CourtsSingle Bench(2008) 03 GUJ CK 0065

O.L. Shree Ambica Mills Ltd. vs Dy. Estate Officer, South Zoneestate and City Development Dept. and Others

Gujarat High Court · Decided on 7 March 2008

HON’BLE JUDGES
K.A. Puj, J
RESULT
Allowed
CASE NUMBER
Official Liqudator Report No. 221 of 2007 in Company Petition No. 66 of 1988 and Company Application No. 530 of 2007

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Judgment

11 paragraphs · 1,204 words

K.A. Puj, J.—The Official Liquidator has filed this report praying to quash and set aside the notice dated 2nd March 2007 received in the office of the Official Liquidator on 27th June 2007 from Ahmedabad Municipal Corporation for acquisition of land of the company''s Tube division. The Official Liquidator has sought for the direction to the Ahmedabad Municipal Corporation not to demolish the compound wall of the company''s Tube division without permission of this Court.

2.

This Court had issued notice in the above Official Liquidator''s Report on 30th August 2007. On service of notice, Ahmedabad Municipal Corporation has preferred Company Application No. 530 of 2007 praying for permission to implement the notice dated 21st March 2007 for implementing the Town Planning Scheme road which passes through the land of Ambica Mills Ltd (in liquidation) as per the said notice in accordance with law and in the interest of justice. Since prayers made in the Official Liquidator''s Report as well as in Company Application are interconnected both these matters are heard together and are being disposed of by this common order.

3.

Mr Rashmin Chhaya learned advocate appearing for Ahmedabad Municipal Corporation has submitted that Ahmedabad Municipal Corporation is the appropriate authority to undertake the preparation and acquisition of Town Planning Scheme under the provisions of Gujarat Town Planning and Urban Development Act, 1976. Under the provisions of Section 41 of the said Act, Ahmedabad Municipal Corporation has resolved and declared its intention to prepare Town Planning Scheme No. 87 (Vatva-Vinzol) and after following due process of law as prescribed under the Act and the rules Ahmedabad Municipal Corporation has drafted Town Planning Scheme for the area comprising of (Vatva- Vinzol) of Ahmedabad city being Town Planning Scheme No. 87 at (Vatva- Vinzol).

4.

Mr. Chhaya, has further submitted that the draft scheme prepared and published by the Corporation was submitted before the State Government for its sanction as contemplated u/s 41(8) of the Act and after examining the same, the State Government sanctioned the said draft town planning scheme being Town Planning Scheme No. 87 (Vatva- Vinzol) vide its Notification dated 25th May 2005. On sanctioning of the said draft Town Planning Scheme the land in question is abated by Town Planning road and therefore notice dated 21st March 2007 was issued to the Official Liquidator of the Company in liquidation u/s 48A of the Act.

5.

Mr. Chhaya has further submitted that the corporation has undertaken an ambitious project of constructing overbridge over railway crossing No. 306 which abuts on main Ahmedabad-Mumbai broad-guage line. The tender of the said work which has stipulated the time limit of 18 months is sanctioned by Ahmedabad Municipal Corporation and the estimated expenses are to the tune of Rs 24,09,35,713=20 ps. It is further submitted that it is eminently necessary to implement the scheme in question under the provisions of Section 48A of the Act and hence, notice has been given to the Official Liquidator and the same is legal, proper and in accordance with the provisions of the Act. He submitted that Ahmedabad Municipal Corporation is the appropriate authority for implementation of Draft Town Planning Scheme. He has further submitted that in response to Official Liquidator Report No. 221 of 2007 challenging the notice issued by Ahmedabad Municipal Corporation, a detailed affidavit in reply has been filed explaining as to how the said notice is legal and proper and in accordance with the statutory provisions of the Act and the rules. He has therefore submitted that this Court while exercising original jurisdiction will permit the applicant corporation to implement the said notice so as to complete the project within the stipulated time.

6.

On the notice being served in this application the Official Liquidator has filed his report. Mr. J. S Yadav learned advocate appearing for the Official Liquidator has submitted that without going into the question of powers of Ahmedabad Municipal Corporation to implement the Town Planning Scheme, the Court may consider the present issue in light of the increase in the value of the property of the company in liquidation as a result of construction of a new road and for that purpose if some portion of the land is given to Ahmedabad Municipal Corporation subject to adequate compensation and/ or other allotment of land the Official Liquidator has no objection to part with the land, as required by Ahmedabad Municipal Corporation.

7.

Mr. D. S Vasavada learned advocate appearing for Textile Labour Association has no objection if the land is required by the applicant for the purpose of widening road, but since the present case stands on different footing the compensation which is required to be fixed, should be fixed in accordance with law and considering the present market price. He has further submitted that the applicant should be directed to deposit certain amount with the Official Liquidator.

8.

Since the Official Liquidator''s Report centers round the same issue challenging the notice issued by Ahmedabad Municipal Corporation and pleading as well as submissions made by the parties are also same as made in the Company Application, no separate discussion is required so far as this Official Liquidator''s Report is concerned.

9.

Having heard learned advocates appearing for the respective parties and having considered the application as well as Official Liquidator''s Report along with supporting documents and having further considered the statutory provisions contained in the Town Planning Act, the Court is of the view that since Ahmedabad Municipal Corporation requires the land in question for the purpose of widening of road and notice was issued under the provisions of Town Planning Act, the land is required to be given to Ahmedabad Municipal Corporation. A draft Town Planning Scheme was framed much earlier which was sanctioned by the State Government. A major work of the road has already been completed and the road is approaching to the railway over bridge. Therefore there being no objection from the Official Liquidator or Textile Labour Association or other creditors of the company in liquidation the application requires to be allowed. It is however, required to be noted that there is already existing wall which is required to be pushed back and if the existing wall is demolished there would not be any protection to the land which is in possession of the Official Liquidator. It is therefore necessary to construct a new wall after demarcating the land which is required for widening of road so that illegal encroachment can be prevented. The Ahmedabad Municipal Corporation is therefore directed to hold a joint meeting with the Official Liquidator for the purpose of demarcation and to finalise the construction of new wall and thereafter demolition work of existing wall would be started. Looking to the concern shown by Mr Vasavada on behalf of the workers, corporation may also decide the issue with regard to the grant of compensation on priority basis. From the map which is produced before the Court.

10.

Subject to the aforesaid observations and directions this application is accordingly allowed permitting Ahmedabad Municipal Corporation to implement the impugned notice.

11.

Since the above application is allowed, there is no question of quashing the notice in question and hence, Official Liquidator''s Report is accordingly disposed of.