Madhya Pradesh High Court

### A Writ Petition Challenging Dispossession Based on Apprehension Without a Concrete Adverse Order Is Premature

M/s SAI Industries, Khargone M.P. v. The State of Madhya Pradesh and Others [NEUTRAL CITATION NO. 2026:MPHC-IND:6234]

Madhya Pradesh High CourtJUDGMENT: no citation2 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner, a proprietorship concern, was allotted industrial land (parts of Plot Nos. 32 and 45) in Khargone via a registered lease deed dated 09.06.2009, valid until 2039.

Source reference: para. 2

An adjoining portion of the same plots was allotted to a separate unit, M/s Ramkrishna Industries.

Source reference: para. 2

The respondent authorities initiated lease cancellation proceedings and prepared a possession Panchnama specifically against M/s Ramkrishna Industries on 08.05.2025.

Source reference: para. 2

The petitioner approached the High Court under Article 226, alleging that under the guise of the proceedings against the third party, the respondents were unlawfully dispossessing the petitioner without independent notice or due process.

Source reference: paras. 1–3

The State contended the petition was premature as no action had been initiated against the petitioner's specific lease rights.

Source reference: para. 4
02

Issues

1. Whether the writ petition is maintainable at a stage where the petitioner’s grievance is based on an apprehension of dispossession rather than a concrete adverse order.

Source reference: paras. 6–7

2. Whether the respondent’s actions against a third party (M/s Ramkrishna Industries) constitute a violation of the petitioner’s rights under Articles 14, 19(1)(g), and 300-A of the Constitution.

Source reference: paras. 3, 7
03

Law Applied

The Court primarily applied the principle of "cause of action" within the writ jurisdiction under Article 226 of the Constitution of India, establishing that extraordinary jurisdiction cannot be invoked based on mere apprehension.

Source reference: para. 7

It further reinforced the Principles of Natural Justice, which require that any adverse action against a leaseholder must be preceded by a show-cause notice and an opportunity for a hearing.

Source reference: para. 8

The court also relied on the doctrine of distinct legal entity, noting that proceedings against one unit do not automatically extend to another.

Source reference: paras. 3, 7
04

Reasoning

The Court examined the record and found an absence of any show-cause notice or independent lease cancellation order directed at the petitioner.

Source reference: para. 6

It reasoned that while the petitioner feared dispossession due to the Panchnama prepared against M/s Ramkrishna Industries, such a fear does not constitute a "sufficient cause of action" for judicial intervention at this juncture.

Source reference: para. 7

The Court determined that the petition was fundamentally "premature" because the respondents' legal actions were strictly confined to a separate legal entity.

Source reference: paras. 4, 7

However, the Court balanced this by observing that should the Department of Micro, Small and Medium Enterprises (MSME) decide to take any future action against the petitioner, it is legally bound to act strictly in accordance with the law and the principles of natural justice.

Source reference: para. 8
05

Holding

The Court held that the petition was premature and that no interference was warranted with the impugned notice dated 17.02.2026 at this stage.

The Court concluded that an apprehension of dispossession, without a specific adverse order, does not justify the exercise of extraordinary jurisdiction.

Source reference: para. 7

Accordingly, the Writ Petition was dismissed, and all pending applications were disposed of.

Source reference: paras. 9–10
Madhya Pradesh High Court

Original Court PDF

M/s SAI Industries, Khargone M.P. v. The State of Madhya Pradesh and Others [NEUTRAL CITATION NO. 2026:MPHC-IND:6234]

Madhya Pradesh High Court · no citation

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment