Jammu and Kashmir High CourtAdministrative and Public LawProperty and Real Estate Law

State must protect migrant property and cannot cancel allotments for abandonment caused by forced migration.

SPORTS GOODS INDUSTRYv.STATE TH.INDS.AND COMMERCE DEPTT.AND ORS

State must protect migrant property and cannot cancel allotments for abandonment caused by forced migration.. SPORTS GOODS INDUSTRY vs STATE TH.INDS.AND COMMERCE DEPTT.AND ORS. Jammu and Kashmir High Court. LawLens
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In brief

The question

1. Whether the State's action of cancelling the allotment of industrial sheds at Rangreth was legally and equitably sustainable given the petitioner’s status as a forced migrant?

The court held

The High Court quashed the impugned cancellation order No. IDC/B/2004/73 dated 06.04.2004

It also directed

The court held that the petitioner had been subjected to unfair treatment and was entitled to the restoration of his rights, adjusted for current equities

The court directed the official respondents to allot two sheds at the Industrial Estate, Rangreth, to the petitioner

If the previously identified sheds were unavailable, new ones must be provided without charging any premium

The court further ordered that the rent should be at the prevalent rate but must be prospective, effective only from the date the petitioner takes actual possession, without any insistence on arrears

The petition was disposed of with these directions to restore justice to the petitioner

01Facts

The petitioner, a registered small-scale industrial unit owned by a Kashmiri Pandit, was originally allotted Shed No. 5 at Bagh-i-Ali Mardan Khan Industrial Area, Srinagar, in 1978

¶ 02

Due to the mass migration of 1989-1990, the proprietor fled to Jammu, and the unit was abandoned

¶ 03, 04

In 1991, the unit suffered fire damage

¶ 05

Subsequently, the State re-allotted the petitioner’s shed to Respondent No. 6. In a previous litigation (OWP No. 488/1996), the High Court directed the State to either provide a similar shed or restore Shed No. 5 to the petitioner

¶ 06

In purported compliance, the State offered two sheds at Rangreth but demanded a premium and significantly higher rent

¶ 07, 08

While the petitioner challenged these terms via contempt petitions, the respondents issued Order No. IDC/B/2004/73 on 06.04.2004, cancelling the Rangreth allotment on the grounds that the petitioner failed to complete formalities and lacked interest in the unit

¶ 09-12

The petitioner subsequently filed this writ petition to quash the cancellation and seek restoration of the original premises

¶ 13

02Issues

i.1. Whether the State's action of cancelling the allotment of industrial sheds at Rangreth was legally and equitably sustainable given the petitioner’s status as a forced migrant?

¶ 21-23

ii.2. Whether the official respondents violated the principles of natural justice and their obligation as a "protector" of migrant property by imposing new financial burdens and cancelling allotments during the pendency of contempt proceedings?

¶ 22, 23

03Law Applied

The court applied the Principles of Natural Justice, which mandate that a party must be heard before their vested rights are prejudiced, especially when circumstances like regional turmoil prevent compliance with standard administrative procedures

¶ 23

It further invoked the Doctrine of State Responsibility, establishing that the State and its instrumentalities have a solemn obligation to protect and preserve the property of citizens forced into migration for safety

¶ 21

The court also applied the Principle of Equity, noting that the State must act fairly and not exploit the absence of a displaced person to their detriment

¶ 22

04Reasoning

The court observed that the petitioner was forced to abandon his industrial unit due to a "historic mass migration" for the safety of life and limb

¶ 03

It reasoned that the respondents "played upon the misery" of the petitioner by treating a displaced person as a new allottee rather than an original one whose rights needed restoration

¶ 21

The court found it "unfair and inequitable" to demand a premium and higher rent for the alternate Rangreth site when the original site (Shed No. 5) had been held under significantly lower rates

¶ 11, 22

The court criticized the State for acting as a "predator" instead of a "protector" of migrant property

¶ 22

Furthermore, the court held that the rules of natural justice were "thrown to the winds" because the State expected the petitioner to restore industrial activity in Srinagar during a period of extreme turmoil when his personal safety was not secured

¶ 23

Consequently, the cancellation of the Rangreth sheds for "failure to complete formalities" was deemed a perversion of justice

¶ 21, 23

05Holding

The High Court quashed the impugned cancellation order No. IDC/B/2004/73 dated 06.04.2004

¶ 13, 24

The court held that the petitioner had been subjected to unfair treatment and was entitled to the restoration of his rights, adjusted for current equities

¶ 22

The court directed the official respondents to allot two sheds at the Industrial Estate, Rangreth, to the petitioner

¶ 24

If the previously identified sheds were unavailable, new ones must be provided without charging any premium

¶ 24

The court further ordered that the rent should be at the prevalent rate but must be prospective, effective only from the date the petitioner takes actual possession, without any insistence on arrears

¶ 24

The petition was disposed of with these directions to restore justice to the petitioner

¶ 25, 26
Jammu and Kashmir High Court

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SPORTS GOODS INDUSTRYvsSTATE TH.INDS.AND COMMERCE DEPTT.AND ORS

Jammu and Kashmir High Court · April 25, 2023

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