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Hamdard Laboratories v. Haryana State Industrial and Infrastructure Development Corporation & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 11773 of 2016)Decided 5 Dec 2016
Civil Appeal No. 11773 of 2016
Justice Kurian Joseph · Justice Rohinton Fali Nariman

Background

Hamdard Laboratories had been allotted industrial land by HSIIDC, and a dispute arose over whether it was entitled to a 20% rebate on the additional (enhanced) cost of land it had already paid, after the High Court held otherwise. When notice was issued in February 2016, the Supreme Court limited the scope of the appeal to the single question of whether the High Court was wrong to deny the 20% rebate on the additional land cost, given that no such restriction was written into the governing notification.

Decision Breakdown

On hearing both sides, the Court was satisfied that the 20% rebate applied to the enhanced cost of land as well, since that enhanced cost was itself part of the overall land cost contemplated by the rebate scheme. It allowed the appeal, declared that Hamdard Laboratories was entitled to the 20% rebate (noting the appellant had already paid the enhanced compensation), and directed that the resulting amount due be paid to the appellant within two months of receipt of the judgment, with no order as to costs.

Lesson Learnt

A rebate or benefit tied generally to "cost of land" will usually be read to cover later enhancements/additions to that cost too, unless the governing notification or policy explicitly carves out such enhancements from the benefit.

Official source (sci.gov.in)View Judgment (PDF)

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