M/S SWATI FERRO ALLOYS PVT. LTD. versus ORISSA INDUSTRIAL INFRASTRUCTURE DEVELOPMENT CORPORATION (IDCO) & ORS.

Citation: [2015] 1 S.C.R. 319 · Decided: 06-01-2015 · Supreme Court of India · Bench: S. J. MUKHOPADHAYA · Disposal: Dismissed

Judgment (excerpt)

[2015) 1 S.C.R. 319 
M/S SWAT! FERRO ALLOYS PVT. LTD. 
v. 
ORISSA INDUSTRIAL INFRASTRUCTURE 
DEVELOPMENT CORPORATION (IDCO) & ORS. 
(Civil Appeal No. 51 of 2015) 
· JANUARY 6, 2015. 
[SUDHANSU JYOTI MUKHOPADHAYA AND 
V. GOPALA GOWDA, JJ.] 
A 
B 
Constitution of India, 1950: Article 226 - Jurisdiction C 
under- Disputed question of facts - Dispute over land allotted 
to appellant whicf! had mortgaged it to the Corporation - High 
Court held that factual disputes cannot be decided in 
proceeding u/Article 226 - Held: There is disputed question 
of fact about the ownership of the plot - Therefore, the High D 
Court was justified in dismissing the proceeding and directing 
the parties to approach the Civil Court for resolving such 
dispute - Further, prima facie neither original borrower nor the 
appellant did any business on the plot in question, except for 
taking loan against the land - In this background while the 
E 
impugned judgment is upheld, the respondent-Corporation is 
directed to inquire into the matter to find out as to whether the 
land is properly used by one or other party for the purpose it 
was open or by opening different firms or companies in 
different names in same premises, they are availing loan 
F 
mortgaging the same very land - Corporation to issue notice 
to all the interested parties and pass an appropriate order. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 51 
of 2015 
From The Judgment and Order dated 18.04.2012 of the 
Division Bench of High Court of judicature for Orissa at Cuttack 
in Writ Petition (C) No. 16790/2008. 
319 
G 
H 
A 
B 
c 
320 
SUPREME COURT REPORTS 
[2015] 1 S.C.R. 
Dr. Rajeev Dhavan, Amit Gupta, Sarwa Mitter, Sumati 
Jumrani, Mitter & Mitter Co., for the Appellant. 
Guru Krishna Kumar, Raj Kumar Mehta, lshita Chaudhary, 
Kamaljit Kaur, Soumyajit Pani, Vinodh Kanna B., for the 
Respondents. 
The Judgment of the Court was delivered by. 
SUDHANSU JYOTI MUKHOPADHAYA,J. 1. Leave 
granted. 
2. This appeal has been preferred by the appellant-Mis. 
Swati Ferro Alloys Pvt. ltd. against the judgment dated 18th 
April, 2012 passed by the Division Bench of High Court of 
Orissa Cuttack in WP(C) No.16790 of 2008. By the impugned 
D 
judgment, the High Court obseNed and held as follows: 
E 
F 
G 
H 
"Admittedly the land in question belongs to IDCO and the 
same was leased out in favour of one M/s Prachi Vanijya 
(P) Ltd. for manufacturing of Konark Fans, which was 
mortgagable right in favour of OSFC and other financial 
institutions. 
Latter on M/s Prachi Vanijya changed its name to M/s 
Eastern Fan. Opposite parties 3 to 6 are the legal heirs 
of one Satya Narayan Swain, who was stated to be one 
of the partners of said Mis Eastern Fan and according to 
the petitioner, said Satya Narayan Swain had agreed to 
transfer the land in favour of the petitioner. 
Learned counsel for the IDCO seriously disputed the 
aforesaid transaction and submits that though the opposite 
parties 3 to 6 are the legal heirs of one of the partners of 
the M/s Eastern Fan, the said Mis Eastern Fan has not 
been made a party. 
Counsel for the opposite parties 3 to 5 also dispute 
transaction. Learned counsel for OSFC submits that they 
SWAT! FERRO ALLOYS PVT. LTD. v. ORISSA INDUS. INFRASTRUCTURE 321 
DEVELOPMENT CORPN. (IDCO) [SUDHANSU JYOTI MUKHOPADHAYA, J.] 
have no role to play as the land till date belongs to IDCO. 
A 
This writ application is full disputed facts and the prayer 
made in the writ application cannot be granted in a 
proceeding under Article 226 of the Constitution of India 
as factual disputes cannot be decided in this proceeding. 
8 
The writ application is accordingly dismissed. 
It is open for the parties to approach the Civil Court, if it 
so desires." 
3. The factual matrix of the case is as follows: 
The 1st respondent-Orissa Industrial Infrastructure 
Development Corporation ('IDCO' for short) allotted Plot no. Cl 
c 
9, Industrial Estate, Cuttack on 18.3.1982 in favour of a 
partnership firm-Mis Prachi Vanijya (P) Ltd. on hire-purchase D 
basis. A mortgage in favour of 2nd respondent-Orissa State 
Financial Corporation by Mis Prachi Vanijya was allowed by 
the 1st respondent to secure loan. The 1st respondent intimated 
the 2nd respondent on 27.11.1986 that the plot is transferred 
in favour of Mis Prachi Vanijya (P) Ltd. subject to payment of E 
outstanding amount of Rs.97,8881- as on 30.11.1986. 
4. The case of the appellant is that the assets of Mis Prachi 
Vanijya (P) Ltd.

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