{"id":286532,"date":"2023-03-07T15:00:47","date_gmt":"2023-03-07T09:30:47","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=286532"},"modified":"2023-03-07T14:42:27","modified_gmt":"2023-03-07T09:12:27","slug":"upon-receipt-of-three-show-cause-notices-allottee-showed-no-urgency-in-taking-steps-to-set-up-the-industrial-unit-supreme-court-upholds-ncdrc-order-legal-research-legal-news-upd","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/03\/07\/upon-receipt-of-three-show-cause-notices-allottee-showed-no-urgency-in-taking-steps-to-set-up-the-industrial-unit-supreme-court-upholds-ncdrc-order-legal-research-legal-news-upd\/","title":{"rendered":"\u201cUpon receipt of three show cause notices, allottee showed no urgency in taking steps to set up the industrial unit\u201d, Supreme Court upholds NCDRC order"},"content":{"rendered":"<p><script type=\"text\/javascript\">\n\tdocument.title = 'SC directs HSIDC to refund sum upholding NCDRC orders | SCC Blog'\n\tdocument.querySelector('meta[name=\"description\"]').setAttribute(\"content\", \"Supreme Court upheld NCDRC order and directed Haryana State Industrial Development Corporation (HSIDC) to refund the amount paid for the plot.\");\n<\/script><\/p>\n<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><b>Supreme Court:<\/b> In an appeal against orders of the National Consumer Disputes Redressal Commission (&#8216;NCDRC&#8217;), wherein the NCDRC allowed a revision petition filed by the Haryana State Industrial Development Corporation \/respondent, the division bench of <b>S. Ravindra Bhat*<\/b> and Dipankar Datta JJ. held that the appellant\/allottee is only entitled to refund of the sum of 1,66,425\/- which was paid for the plot. However, there is no denial of the fact that the cheque issued to him was returned and HSIDC had the benefit of those monies all these years. In these circumstances, HSIDC is directed to refund the sum of &#8377; 1,66,425\/- with interest at 6% p.a. from 18-09-1998 till date. The amounts shall be paid to the appellant, within six weeks of this judgment.<\/p>\n<p style=\"margin-bottom: 3%;\">In the case at hand, the appellant, a proprietary applied for an industrial plot on 28-02-1994 in Industrial State Udyog Vihar, Gurgaon. On 02-11-1995 possession was handed over to the appellant. An agreement was executed between HSIDC and the appellant, in which he agreed to complete the project in 2 years. The agreement also contained the condition that extension could be granted upon payment of a fee. The appellant was called upon to show cause why he did not complete construction and set up the unit. Upon receiving this notice, he replied that he could not start the unit due to lack of infrastructural facilities. Since appellant did not come forward to satisfy the HSIDC by producing any document in response to its letter about the steps taken, HSIDC, resumed the plot stating that the appellant was not serious in implementing the project and that the plot was lying vacant. Thus, HSIDC enclosed a cheque with the letter towards the refund and the appellant was requested to handover the possession of the plot to the Field Officer.<\/p>\n<p style=\"margin-bottom: 3%;\">The appellant approached the District Forum, Gurgaon with a complaint. The District Forum, Gurgaon, assumed that since the State Government has changed the policy without referring to the policy, it went on to hold that the complainant was unable to complete the project not on account of negligence on the part of the complainant but because of the circumstances which were beyond his control. HSIDC appealed to the State Commission. The State Commission dismissed the appeal, upon which HSIDC filed a revision petition before the NCDRC, which was dismissed on the ground of delay.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court noted that the appellant&#8217;s arguments were two-fold: First is that HSIDC violated principles of natural justice, did not grant him a hearing and unilaterally cancelled the allotment. The second was that, in the absence of essential infrastructural facilities such as roads, overall development of the industrial area availability of electricity and other amenities, HSIDC could not have expected the appellant or any other allottee to construct the plot within the time granted, i.e., two years.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court took note of the agreement between HSIDC and the appellant and observed that there is nothing on the record even till date pointing to any plan to construct a factory or industrial unit. He did not supply any plans for approval; nor did he ever show any inclination to procure the needed machinery and equipment required for his proposed industrial unit. Other steps such as securing tax registration, etc., too were not shown to have been taken. Thus, it concluded that that appellant was always insincere and perhaps never intended to follow up and set up the industrial project.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court said that, in the present case the facts are stark; the appellant never made any genuine effort to start its unit. There is no material to disclose that upon receipt of no less than three show cause notices, the appellant showed any sense of urgency in taking steps to live up to setting up the industrial unit. Further, it inferred that the appellant&#8217;s intention was perhaps never to set up any industrial unit, despite its promise to the contrary, and speculatively deal with the plot. Thus, it opined that the impugned order does not call for interference.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Aman Semi-Conductors (P) Ltd. v. Haryana State Industrial Devlopment Corpn. Ltd., <a href=\"http:\/\/www.scconline.com\/DocumentLink\/Ilsq7uoD\">2023 SCC OnLine SC 195<\/a><\/span>]<\/p>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">Judgment by: Justice S. Ravindra Bhat<\/span><\/strong><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"IGrOlcoqX0\"><p><a href=\"https:\/\/www.scconline.com\/blog\/post\/2022\/10\/21\/know-thy-judge-justice-s-ravindra-bhat-2\/\">Know Thy Judge | Justice S. Ravindra Bhat<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Know Thy Judge | Justice S. Ravindra Bhat&#8221; &#8212; SCC Blog\" src=\"https:\/\/www.scconline.com\/blog\/post\/2022\/10\/21\/know-thy-judge-justice-s-ravindra-bhat-2\/embed\/#?secret=SYNB2SfiHa#?secret=IGrOlcoqX0\" data-secret=\"IGrOlcoqX0\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p><i>Supreme Court directed HSIDC to refund the sum of &#8377; 1,66,425\/- with interest at 6% p.a. from 18-09-1998 till date to the allottee.<\/i><\/p>\n","protected":false},"author":67512,"featured_media":286555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[55824,55825,3095,5363],"class_list":["post-286532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-haryana-state-industrial-development-corporation","tag-hsidc","tag-NCDRC","tag-supreme-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>\u201cUpon receipt of three show cause notices, allottee showed no urgency in taking steps to set up the industrial unit\u201d, Supreme Court upholds NCDRC order | SCC Times<\/title>\n<meta name=\"description\" content=\"In an appeal against orders of the National Consumer 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In the present case,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":243195,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/01\/ncdrc-if-there-is-no-express-provision-in-allotment-letter-and-sale-agreement-can-allottee-be-asked-to-pay-pending-dues-of-previous-allottee-commission-answers\/","url_meta":{"origin":286532,"position":1},"title":"NCDRC | If there is no express provision in allotment letter and Sale agreement, can allottee be asked to pay pending electricity dues of previous allottee? Commission answers\u00a0","author":"Bhumika Indulia","date":"February 1, 2021","format":false,"excerpt":"National Disputes Redressal Commission (NCDRC): C. Viswanath (Presiding Member) addressed an issue wherein an allottee after the purchase of the Shed could not get electricity connected due to pending dues of the previous allottee. The instant revision was filed against the Order passed by the State Consumer Disputes Redressal Commission,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":214336,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/06\/ncdrc-inordinate-delay-by-builder-in-delivery-of-flats-possession-amounts-to-deficiency-of-service-allottee-granted-complete-refund-along-with-compensation\/","url_meta":{"origin":286532,"position":2},"title":"NCDRC | Inordinate delay by builder in delivery of flats\u2019 possession amounts to deficiency of service \u2013 allottee granted complete refund along with compensation\u00a0","author":"Bhumika Indulia","date":"May 6, 2019","format":false,"excerpt":"National Consumer Disputes Redressal Commission: Justice V.K. Jain (Presiding Member), allowed a consumer complaint seeking a refund of money paid to book a residential flat in a construction project being carried out by the developer.\u00a0 Complainant herein had booked a residential flat in a project started by the opposite party\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":251680,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/23\/will-a-subsequent-purchaser-who-steps-into-the-shoes-of-an-original-allottee-have-the-same-rights-as-that-of-the-original-allottee-sc-explains\/","url_meta":{"origin":286532,"position":3},"title":"Will a subsequent purchaser who steps into the shoes of an original allottee of a housing project have the same rights as that of the original allottee? SC explains","author":"Bhumika Indulia","date":"July 23, 2021","format":false,"excerpt":"Supreme Court: The Bench of Uday Umesh Lalit, Hemant Gupta and S. Ravindra Bhat, JJ., while giving major relief to homebuyers, held that rights of purchasers are the same as that of original allottees. Appellant (builder) was aggrieved by the order of the National Consumer Disputes Redressal Commission (NCDRC). Respondent\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":6446,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/01\/14\/builder-entitled-to-forfeit-the-earnest-money-in-default-of-payment-of-instalments\/","url_meta":{"origin":286532,"position":4},"title":"Builder entitled to forfeit the earnest money in default of payment of instalments","author":"Sucheta","date":"January 14, 2015","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):While reiterating that builder would be entitled to forfeit the amount paid by way of installments in a case where the allottee defaults in making the payment of the remaining instalments, NCDRC set aside the orders of Consumer Forum and State Commission directing DLF Southern\u2026","rel":"","context":"In &quot;Tribunals\/Commissions\/Regulatory Bodies&quot;","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":197870,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/06\/30\/supreme-court-declines-to-extend-term-of-ncdrc-members\/","url_meta":{"origin":286532,"position":5},"title":"Supreme Court declines to extend term of NCDRC members","author":"Saba","date":"June 30, 2018","format":false,"excerpt":"The Supreme Court on 26-06-2018 declined to extend the term of three members in the National Consumer Disputes Redressal Commission (NCDRC) until all seven vacancies are filled up. A Bench headed by Justice Arun Mishra, while refusing to give any relief said that there were many vacancies in the Supreme\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/286532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67512"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=286532"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/286532\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/286555"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=286532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=286532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=286532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}