Amitava Roy JUDGMENT
Arun Mishra, J.
1. Leave granted.
2. The appeals have been preferred by Orissa Industrial Infrastructure Development Corporation (in short 'IDCO') and also by Jindal Stainless Ltd. aggrieved by the impugned judgment and order dated 30.10.2007 passed by the High Court of Orissa, thereby directing IDCO to lease out 825.68 acres of land and to enter into a lease agreement with M/s. Mesco Kalinga Steel Ltd.
3. The factual matrix discloses that Mesco Kalinga Steel Ltd. (in short 'Mesco') had applied to IDCO for allotment of 2500 acres of land on 30.6.1994 and IDCO in turn, requested the Government of Orissa to issue necessary orders to process the allotment. On 28.10.1994 the State Government conveyed in principle approval for allotment of 2500 acres of land on the terms and conditions laid down in the policy decision of the State Government as revised on 25.1.1995 for establishment of steel plant.
4. Initially the State Government had agreed for equity participation of Rs. 25 crores towards the cost of land. This offer was withdrawn by the State Government on 2.2.1995 and was communicated to Mesco. IDCO wrote a letter on 21.3.1995 to Mesco to deposit the land cost in twenty half-yearly equal instalments and further requested to deposit Rs. 1.25 crores towards the first instalment and Rs. 13.08 lakhs towards ground rent and cess. Mesco deposited Rs. 1.25 crores with IDCO on 3.4.1995. On 13.6.1996 IDCO requested Mesco to take over possession of 1756.29 acres of land in the first phase and to submit the draft lease deed for execution. Mesco took over possession of the land on 18.6.1996. However, lease deed was not executed. Thereafter, on 13.10.1997, the State Government intimated the proceedings of the meeting held on 26.9.1997 to IDCO and required it to execute the lease deed in favour of Mesco and also to realize the instalments due.
5. On 27.10.1997, IDCO requested Mesco to submit draft deed of lease agreement for execution within 15 days, failing which steps will be taken for cancellation of allotment and resumption of land. IDCO again requested on 26.11.1997 to submit the draft deed of agreement for execution. However Mesco kept quiet and failed to get the lease deed executed. Thereafter, for more than 5 years nothing happened. No steps were taken by Mesco to get the lease deed executed. Thereafter, IDCO gave final notice to Mesco on 4.7.2003 to deposit the balance defaulted amount of Rs. 22.44 crores along with statutory dues and to execute the lease deed by 19.7.2003 failing which it was intimated that the said land shall be resumed at their cost and the amount paid shall be adjusted towards compensation for use and occupation of the land; apart from that, Mesco shall also be liable for damages. Ultimately on 25.7.2003 on failure to get the lease deed executed, land was resumed and possession letter of 1756.29 acres of land was cancelled by IDCO. The amount of Rs. 1.25 crores deposited by Mesco was forfeited and adjusted towards compensation for use and occupation of the land and damages.
6. After resumption o........