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Jai Bhagwan Goel Dal Mill v. Delhi State Industrial and Infrastructure Development Corporation

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 5613 of 2010)Decided 2 Sept 2014
Civil Appeal No. 5613 of 2010
Justice Ranjan Gogoi · Justice R.K. Agrawal

Background

A partnership operated two dal-processing units at separate premises and applied for two subsidised industrial plots under Delhi's relocation scheme. Two plots were allotted and paid for, but before possession the corporation discovered a policy requiring the requirements of units at multiple locations to be combined. It required the firm to keep one plot and surrender the other, refunding that payment.

Decision Breakdown

The Court dismissed the firm's appeal. The policy capped eligible plot size and combined applications from units functioning at more than one premises. An allotment mistakenly made against that policy did not give the firm a right to retain two subsidised plots. Its right to fair consideration had been respected, and a different High Court case did not establish an entitlement on these facts.

Lesson Learnt

A mistaken government allotment does not necessarily create a permanent right to a benefit forbidden by the governing scheme. Businesses should check the scheme's eligibility and size limits before treating an allotment as final.

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

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