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TMI Blog2011 (9) TMI 1254X X X X Extracts X X X X X X X X Extracts X X X X ..... lised portion of the land to the extent of 2 Acres. It was stated that under the conditions of allotment and in paragraph 14(1) of the Lease Deed it was stipulated that if the plot allotted to the allottee is not fully utilised, then there is no impediment for the Respondent/SIPCOT to resume the land and it was found that the Petitioner had not constructed in the area which is allotted to it as per the conditions of lease. 2. As per the conditions of lease which is appended in the typed set, it is stipulated that non compliance of the terms and conditions of the allotment will result in cancellation of the lease, including claiming of amount paid towards plot and interest already paid. One of the conditions that is set out is that the al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meanwhile, the Respondent/SIPCOT, by communication dated 12.6.2008, found that since the original condition was not complied with, they propose to resume the unutilised portion of land allotted to them. It is pursuant to the said warning the impugned order came to be passed on 13.1.2009. In the impugned order, it is stated that even after ninety days time was given for compliance of defects by the proceedings of the Respondent dated 28.3.2008, the Petitioner had not complied with the same and it is also stated that on inspection made by the Respondent, it was found that they have not even commenced civil works in the site and therefore, they were directed to show cause as to why allotment should not be cancelled. Challenging the said show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or because the allotment was made by a statutory body and every act of the statutory body need not involve the exercise of statutory power. In such circumstances, the Court exercising power under Article 226 of the Constitution of India cannot exercise its discretion to interpret the terms and conditions of such contract. In paragraph (11) of the judgment, it was held as follows: 11. A statute may expressly or impliedly confer power on a statutory body to enter into contracts in order to enable it to discharge its functions. Dispute arising out of the terms of such contracts or alleged breaches have to be settled by the ordinary principles of law of contract. The fact that one of the parties to the agreement is a statutory or public bod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplanation offered by one of the parties to the contract. In paragraph (7), it was observed as follows: 7. In our view, it is apparent that the order passed by the High Court is, on the face of it, illegal and erroneous. It is true that many matters could be decided after referring to the contentions raised in the affidavits and counter-affidavits, but that would hardly be a ground for exercise of extraordinary jurisdiction under Article 226 of the Constitution in case of alleged breach of contract. Whether the alleged non-supply of road permits by the Appellants would justify breach of contract by the Respondent would depend upon facts and evidence and is not required to be decided or dealt with in a writ petition. Such seriously disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al assistance in the shape of loans and advances, repayable within a period not exceeding 20 years from the date of loan. We agree that the corporation is not like an ordinary money-lender or a Bank which lends money. It is a lender with a purpose - the purpose being promoting the small and medium industries. At the same time, it is necessary to keep certain basic facts in view. The relationship between the corporation and the borrower is that of creditor and debtor. The corporation is not supposed to give loans once and go out of business. It has also to recover them so that it can give fresh loans to others. The corporation no doubt has to act within the four corners of the Act and in furtherance of the object underlying the Act. But this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the former does not present any difficulty, the latter needs a little reiteration of its precise meaning. What does acting unfairly or unreasonably mean? Does it mean that the High Court exercising its jurisdiction under Article 226 of the Constitution can sit as an appellate authority over the acts and deeds of the corporation and seek to correct them? Surely, it cannot be. That is not the function of the High Court under Article 226. Doctrine of fairness, evolved in administrative law was not supposed to convert the writ courts into appellate authorities over administrative authorities. The constraints - self-imposed undoubtedly - of writ jurisdiction still remain. Ignoring them would lead to confusion and uncertainty. The jurisdiction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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