GAMA HOTEL AND RESORTS PRIVATE LTD. AND ANR. Vs. WEST BENGAL INDUSTRIAL INFRASTRUCTURE DEVELOPMENT CORPORATION AND ORS.
LAWS(CAL)-2010-5-118
HIGH COURT OF CALCUTTA
Decided on May 10,2010

Gama Hotel And Resorts Private Ltd. And Anr. Appellant
VERSUS
West Bengal Industrial Infrastructure Development Corporation And Ors. Respondents




JUDGEMENT

D. Datta, J. - (1.)THE first petitioner is a company incorporated under the Companies Act, 1956 (hereafter the company). It has been carrying on business and has a hotel -cum -resort at plot Nos. H and H -3, Sector IV, Falta Industrial Growth Sector, Falta in the district of South 24 Parganas (hereafter the said centre). The second petitioner is a director of the company.
(2.)IT appears from the document being Annexure R -4 to the counter affidavit filed by and/or on behalf of the West Bengal Industrial Infrastructure Development Corporation (hereafter the Corporation) that the petitioners had applied for allotment of a plot of land in the said centre on 2.7.2004. They proposed to run a hotel from the plot of land to be allotted in their favour. Upon receipt of such application, the Corporation allotted .50 acre of land at Sector IV of the said centre, vide allotment letter dated 2.2.2006 on terms and conditions mentioned therein. It is not in dispute that the petitioners having complied with the terms and conditions mentioned in the offer of allotment, the building for the hotel was constructed and the petitioners are carrying on business therefrom.
(3.)IN this petition presented before the Court on 27.8.2009, the petitioners have questioned allotment of a plot of land by the Corporation, adjacent to their land, in favour of M/s. Mcmet India Limited, respondent No. 9 (hereafter the disputed plot).
According to Mr. Ghosh, learned Advocate appearing for the petitioners, Sector IV of the said centre has been earmarked by the Corporation for residential use. Believing in such representation, the petitioners had applied for allotment of land to set up a hotel and on acceptance of the offer started their business. Had the petitioners been told at the very beginning that the adjacent plots would be allotted for setting up industries, they would either not have accepted the allotment or in the alternative would not have invested substantial quantum of money required to spruce up the hotel. If at this stage an industry which the respondent No. 9 proposes to set up on the disputed plot is allowed, that would be contrary to the development plan prepared by the Corporation whereby Sector IV had been earmarked for residential use. He referred to the definition of 'building', 'industrial area', 'industry', and 'industrial estate' as defined in the various Sub -sections of Sec. 2 of the West Bengal Industrial Infrastructure Development Corporation Act, 1974 (hereafter the Act) as well as provisions contained in Ss. 13 and 14 thereof detailing the functions and general powers of the Corporation and contended that without earmarking Sector IV as an industrial area in the manner required by the statute, the Corporation by allowing respondent No. 9 to set up an industry within a residential area has acted illegally, wrongfully and unreasonably. The doctrine of promissory estoppel, he contended, would squarely apply in the facts and circumstances of the case since the petitioners by acting on the representation of the Corporation had altered position to their detriment.



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