ASSOCIATED INDEM MECHANICAL PVT LTD Vs. WEST BENGAL SMALL SCALE INDUSTRIAL DEVELOPMENT CORPORATION LTD
LAWS(SC)-2007-1-53
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on January 05,2007

ASSOCIATED INDEM MECHANICAL PVT. LTD. Appellant
VERSUS
WEST BENGAL SMALL SCALE INDUSTRIAL DEVELOPMENT CORPORATION LTD. Respondents





Cited Judgements :-

DLF GOLF RESORTS LTD VS. STATE OF HARYANA [LAWS(P&H)-2011-1-51] [REFERRED TO.]
NILESHKUMAR N. KOTAK VS. UNION OF INDIA [LAWS(GJH)-2014-9-278] [REFERRED TO]
INDIAN OLYMPIC ASSOCIATION VS. VEERESH MALIK [LAWS(DLH)-2010-1-331] [REFERRED TO]
STATE OF GOA VS. TARUNJIT TEJPAL [LAWS(BOM)-2022-4-276] [REFERRED TO]
DIPENDRA NATH BASU AND ORS. VS. THE BOARD OF WAKFS AND ORS. [LAWS(CAL)-2018-1-297] [REFERRED TO]
SAMAR KUMAR BASU VS. STATE OF WEST BENGAL [LAWS(CAL)-2014-12-14] [REFERRED TO]
VIJAY MADANLAL CHOUDHARY VS. UNION OF INDIA [LAWS(SC)-2022-7-97] [REFERRED TO]
SANTHOSH MAIZE AND INDUSTRIES LIMITED VS. STATE OF TAMIL NADU [LAWS(SC)-2023-7-13] [REFERRED TO]
TATA MOTORS LIMITED VS. STATE OF WEST BENGAL [LAWS(CAL)-2011-9-110] [REFERRED TO]
MALAY JAIN VS. HIGH COURT OF CHHATTISGARH [LAWS(CHH)-2022-11-9] [REFERRED TO]
PONDS INDIA LTD VS. COMMISSIONER OF TRADE TAX [LAWS(SC)-2008-5-70] [REFERRED TO]
VELLANKI FRAME WORKS, A SOLE PROPRIETORY CONCERN VS. COMMERCIAL TAX OFFICER, CHINAWALTAIR CIRCLE, VISAKHAPATNAM [LAWS(APH)-2014-12-34] [REFERRED TO]
REGISTRAR, THIYAGARAJAR COLLEGE OF ENGINEERING VS. REGISTRAR, TAMIL NADU INFORMATION COMMISSION AND MR. T.K. RAVINDRANATH [LAWS(MAD)-2013-4-310] [REFERRED TO]
AKHIL BANDHU SAHA VS. STATE OF WEST BENGAL [LAWS(CAL)-2014-3-70] [REFERRED TO]
COMMISSIONER OF INCOME TAX, DEHRADUN VS. M/S AANCHAL HOTELS PVT. LTD. [LAWS(UTN)-2016-6-35] [REFERRED]
KOTAK MAHINDRA BANK LIMITED VS. A. BALAKRISHNAN [LAWS(SC)-2022-5-115] [REFERRED TO]


JUDGEMENT

- (1.)Leave granted.
(2.)This appeal, by special leave, has been preferred against the judgment and order 13.12.2005 of a Division Bench of the Calcutta High Court by which the letters patent appeal filed by the appellant was dismissed, affirming the judgment and order dated 16.8.2004 of a learned Single Judge dismissing the writ petitions filed by the appellant wherein challenge was laid to the cancellation of lease deed which had been executed in its favour.
(3.)The facts leading to the filing of the writ petition by the appellant herein may be noticed in brief. The West Bengal Small Scale Industrial Development Corporation Ltd. (for short "Corporation") by three different indentures of lease each for a period of 99 years demised in favour of the appellant M/s Associated Indem Mechanical Pvt. Ltd., three separate industrial sheds bearing nos.Y-76, Y-73 and Y-72 at Baltikuri Industrial Estate, Howrah on 9.2.1970, 26.5.1972 and 31.8.1977 respectively. Clauses 2(f)1, 2(j) and 3(B) of the lease deed which are relevant for the controversy in hand are being reproduced below :-
"2(f)1. To use the demised premises as a place for carrying on manufacturing business and/or purposes connected with any manufacturing process including processing, manufacture or assembling of machine, tools, implements, instruments, furnaces, heaters, ovens, scientific apparatus, inventions and other industrial products.

2(j) To start manufacture and production as per Sub- Clauses (f)(1) of this Clause 2, (if not already started) within six months from the date of these presents or within any extended period which may be granted by Government under exceptional circumstances.

3(B). If the rent hereby reserved or any part thereof shall remain unpaid for six months after becoming payable or if any convents on the part of the Lessee herein contained shall not be performed/observed or if the demised premises be not used by the Lessee for purposes mentioned in Clause 2(f) hereof for a continuous period of six months then and in any such event, it shall be lawful for the lessor or the Government at any time thereafter to determine the Lease and to re-enter upon the demised premises or any part thereof in the name of the whole and thereupon this demise shall absolutely determine without prejudice to the rights of the Lessor or the Government in respect of breach of the Lessee's covenants herein contained."

All the three lease deeds contain identical clauses. The Prescribed Authority sent a notice under Section 3(1) of the West Bengal Government Premises (Tenancy Regulation) Act, 1976 (for short "the Act") to the appellant on 15.3.1999 as it failed to commence production and/or manufacturing activity, but the notice was returned with the postal endorsement "abolished". After about six months, the Prescribed Authority issued another notice on 13.9.1999 by which the lease deed was terminated and the appellant was asked to hand over possession of the industrial sheds. The notice was returned with the remarks "not known". The Corporation, thereafter, took over possession of the plots on 25.2.2000. However, on the representation made by the appellant and on furnishing undertaking to commence manufacturing activity and tendering rent, the possession was handed over back to it on 17.5.2000. Even thereafter the appellant did not commence any manufacturing activity and consequently two notices under Section 3(1) of the Act were issued by the Prescribed Authority on 29.5.2002 calling upon the appellant to hand over possession of the industrial sheds. The appellant filed two writ petitions before the Calcutta High Court which were disposed of by a learned Single Judge by separate orders. In view of the prayer made on behalf of the appellant, a direction was issued to the Chairman of the Corporation to give oral hearing to the appellant. The Chairman of the Corporation after affording an opportunity of hearing to the appellant passed a detailed order on 11.9.2002 holding that the appellant was liable to be evicted from the demised premises. The appellant then filed a writ petition before the Calcutta High Court challenging the aforesaid order dated 11.9.2002 of the Chairman of the Corporation. The writ petition was dismissed by a learned Single Judge on 16.8.2004 and the said order was affirmed in appeal by the Division Bench on 13.12.2005. It is these orders which are subject matter of challenge in the present appeal.



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