The Supreme Court has reinforced the principle that industrially allotted land must serve its intended purpose: fostering economic development and generating employment. Upholding a Kerala High Court ruling, the apex court emphasized that such land should not remain idle or underutilized.
A bench comprising Justices Surya Kant and N. Kotiswar Singh addressed the matter involving Poyilakada Fisheries Pvt. Ltd., a company that failed to use the industrial land allotted to it for manufacturing frozen marine products. The land, granted in 1990, came with specific conditions prohibiting alienation or encumbrance without prior government approval. However, operations ceased in 2004 due to economic difficulties, leaving the site unused for years despite repeated notices from authorities.
In 2014, the land was reallocated to four other entities by the District Industries Centre after Poyilakada failed to resume operations. Aggrieved by this decision, the company contested the cancellation of its ownership documents, first at the Kerala High Court and later in the Supreme Court.
The High Court had previously dismissed the company’s plea, asserting that industrial plots provided at concessional rates must contribute to industrial growth and economic progress. The court observed that failure to utilize the property defeats the purpose of such allotments. While the single judge offered Poyilakada the opportunity to pursue compensation under applicable rules, the Division Bench upheld the cancellation, prompting the appeal to the Supreme Court.
The Supreme Court, however, found no merit in interfering with the High Court’s decision. “Let the land be used by someone who will generate income and employment now,” it observed, emphasizing the broader intent of industrial land allocation schemes.
This case underscores the judiciary’s firm stance on ensuring productive use of resources earmarked for industrial development, aligning with the nation’s economic priorities.
