HC censures authorities for ‘predatory’ conduct, grants relief to migrant industrial unit

19/04/2026

Jammu, Apr 18: In a strongly worded judgment, the High Court of Jammu & Kashmir and Ladakh has granted relief to a migrant industrial unit while pulling up the authorities for what it termed as "predatory" and inequitable conduct in dealing with the allotment of an industrial shed in Srinagar.
Justice Rahul Bharti, while deciding a writ petition filed by M/s Sports Goods Industry against the Union Territory administration and others, held that the petitioner had been subjected to unfair treatment despite being a registered small-scale industrial unit.
The court noted that the unit had originally been allotted Shed No. 5 at Bagh-i-Ali Mardan Khan Industrial Area, Srinagar, where it was engaged in manufacturing wooden and joinery items, carpet looms and sports goods. However, the proprietor was forced to migrate to Jammu during the 1990 turmoil for safety, leading to disruption of industrial activity.
It further recorded that the unit suffered extensive damage in a fire in 1991, but the principal grievance arose when the same shed was subsequently allotted to another during the petitioner's displacement.
The court observed that although directions had earlier been issued for allotment of an alternative shed, the compliance by the authorities was "illusory", as the petitioner was asked to pay premium and enhanced rent on terms different from the original allotment.
The situation worsened when even the alternate allotment at Rangret was cancelled, prompting the petitioner to file the present writ petition challenging the action of the authorities.
Coming down heavily on the respondents, the court held that the State and its instrumentalities were under a duty to protect the leasehold rights of the petitioner, particularly in view of the extraordinary circumstances that forced the proprietor to leave the Valley.
"Instead of acting as protectors, the authorities acted as a predator, taking advantage of the petitioner's absence and prejudicing his vested rights," the court observed.
The court also found that principles of natural justice had been violated and that the authorities failed to appreciate that the petitioner could not have resumed operations in Kashmir at a time when personal safety was at risk.
Disposing of the petition, the court directed the respondents to allot two industrial sheds at the Industrial Estate, Rangret, in favour of the petitioner, subject to availability. In case the sheds are not vacant, the authorities have been directed to provide alternative accommodation. The court further ordered that no premium shall be charged for the allotment and that the petitioner shall not be burdened with any arrears. It clarified that rent would be payable only prospectively from the date the petitioner takes possession and begins use of the allotted premises.
The ruling is being seen as a significant reaffirmation of the rights of migrant industrial allottees and a reminder that the State cannot take advantage of displacement caused by extraordinary circumstances to defeat legitimate claims.

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