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SUPREME COURT OF INDIA
S. ABDUL NAZEER, DEEPAK GUPTA, JJ.
West Bengal Small Industries Development Corporation Ltd. and Others – Appellants
Versus
M/s. Sona Promoters Pvt. Ltd. and Others – Respondents
Civil Appeal No. 2201 of 2020, S.L.P. (Civil) No. 36170 of 2014
Decided On : 18-03-2020
West Bengal Government Premises (Tenancy Regulation) Act, 1976 - Section 2(b) - Appellant Corporation, a registered company - Under administrative control of State Government which holds almost all shares of Corporation - Appellant-company is a “Government undertaking”. (Para 22)
West Bengal Government Premises (Tenancy Regulation) Act, 1976 - Section 2(a) and 2(c) - definition of ‘premises’ u/s 2(c) has to be read into definition of Government premises u/s 2(a) - Means any premises owned by the Government or a Government undertaking except the official residences and includes “appurtenant to it” - Instantly bare land was leased to respondent which remained bare on the date of initiating eviction proceedings - The leased land cannot be termed as government premises - Eviction proceeding not maintainable. (Para 24, 26, 29)
West Bengal Government Premises (Tenancy Regulation) Act, 1976 - Section 2(a) and 2(c) - Eviction proceedings under the Act not maintainable - However, liberty reserved to appellant to seek eviction of respondent 1 under West Bengal Public Land (Eviction of Unauthorized Occupants) Act, 1962. (Para 34)
Facts of the case:
The Corporation executed a first lease deed dated 14.12.2007 in favour of respondent No. 1 in respect of plot Nos. 7 and 15 being part of Tangra Industrial Estate, Phase-II for setting up of a small-scale industry and possession of these two plots was handed over to respondent No. 1. Another lease deed dated 04.03.2009, in respect of plot No. 8 was executed in the same industrial area in favour of respondent No. 1. Mutation process of the said three plots was completed.
On 10.10.2012, the Corporation issued a notice calling upon respondent No. 1 to show-cause as to why the tenancy should not be terminated for violation of the terms of the lease. This notice was issued invoking clause 3 of the lease deed. Respondent No. 1 submitted a reply dated 06.11.2012 to the show-cause notice. After hearing, respondent No. 1 was informed by a letter dated 12.12.2015 that three months’ time had been extended to commence construction work at the plots. Since nothing was done, the prescribed authority, by notice dated 09.11.2013,
Since no construction was dome till 10.12.2012 the lease deed was. Respondent No. 1 was directed to vacate the premises within 30 days.
Respondent No. 1 preferred an appeal before the Managing Director of the Corporation, the designated Appellate Authority, against the order of the prescribed authority.
While the appeal was pending, respondent Nos. 1 and 2 filed the writ petition in the High Court seeking, inter-alia, setting aside of the termination notice dated 09.11.2013. The Appellate Authority by order dated 16.01.2014, upheld the order of the prescribed authority.
Being aggrieved by the order of the Appellate Authority, respondent No. 1 filed a general application in the pending writ petition, inter-alia, seeking to set aside and/or quash the order of the Appellate Authority dated 16.01.2014.
The Division Bench dismissed the appeal.
Finding of the Court:
The eviction proceeding initiated by the Corporation against respondent No. 1 under the Act was without jurisdiction.
Result: Appeal dismissed.
JUDGMENT :
S. ABDUL NAZEER, J.
1. Leave granted.
2. This appeal is directed against the order dated 19.09.2014 in G.A. No. 1172/2014, A.P.O.T. No. 175/2014 with Writ Petition No. 36 of 2014, whereby the Division Bench of the Calcutta High Court has allowed the Writ Petition and has quashed the order of eviction passed by appellant No. 5 against respondent No. 1.
3. Appellant No. 1 herein, namely, the West Bengal Small Industries Development Corporation Ltd. (for short ‘the Corporation’) is a government of West Bengal undertaking engaged in developing, assisting and encouraging growth of small-scale industries within the State of West Bengal. It is a government company as defined under Section 617 of the Companies Act, 1956. The entire shareholding of the Corporation is held by the State Government and/or its nominees. The Directors appointed by the Corporation are the nominees of the State Government. The other appellants are the functionaries of the first appellant-Corporation.
4. Registered small-scale industries apply to the Corporation for allotment of industrial plots which are allotted at concessional rates to assist the small-scale industries to set up factories and to operate thereon. The Corporation acts as an arm of the State Government in providing industrial plots to small-scale industries. Whenever an allottee remains a nonstarter or its production closes down, after giving reasonable opportunity to restart/ reopen, the plots of land and in some cases the structures, are resumed by the Corporation. The resumed plots/structures thereafter are re-allotted to other small-scale industries which are in the waitlist.
5. Bengal Potteries Limited, a company registered under the Companies Act, owned land with factory standing thereon situated at Tangra in the city of Calcutta. The company went into liquidation and all its immovable properties, including the factory with land were put up for auction by the Calcutta High Court on “as is where is basis.” The Corporation participated in the auction and its bid was accepted by the company court. The Corporation became the owner of all the buildings and structures along with all lands appurtenant thereto and all assets therein.
6. After purchase of the said property, the Corporation decided to set up a small-scale industrial zone according to the site plan which was sanctioned by the concerned authorities.
7. Thereafter, the Corporation, after demolition of the existing structure, wherever necessary, constructed an administrative block, set up adequate infrastructure, divided the area into small plots and invited applications from small-scale industrial units for leasing out of such plots and for construction of small-scale industrial units.
8. On an application by respondent No. 1, the Corporation executed a first lease deed dated 14.12.2007 in favour of the said respondent in respect of plot Nos. 7 and 15 being part of Tangra Industrial Estate, Phase-II for setting up of a small-scale industry on the terms and conditions mentioned therein. On 17.01.2008, the possession of these two plots was handed over to respondent No. 1. Another lease deed dated 04.03.2009, in respect of plot No. 8 was executed in the same industrial area in favour of respondent No. 1. Mutation process of the said three plots was completed on 26.09.2012 by the Calcutta Municipal Corporation.
9. On 10.10.2012, the Corporation issued a notice calling upon respondent No. 1 to show-cause as to why the tenancy should not be terminated for violation of the terms of the lease. This notice was issued invoking clause 3 of the lease deed. Respondent No. 1 submitted a reply dated 06.11.2012 to the show-cause notice. After hearing, respondent No. 1 was informed by a letter dated 12.12.2015 that three months’ time had been extended to commence construction work at the plots. Since nothing was done, the prescribed authority, by notice dated 09.11.2013, terminated the lease deed in accordance with Section 3(2) of the West Bengal Go
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