JUDGMENT :

J. Chelameswar, J.

Leave granted.

2. Aggrieved by the judgment of the Jharkhand High Court dated 10.09.2012 in Writ Petition No.6042 of 2008, the unsuccessful petitioner therein preferred the instant appeal.

3. The writ petition was filed aggrieved by an order dated 17.11.2008 of the Managing Director (respondent no.3 herein) of the Adityapur Industrial Area Development Authority, (respondent no.2 - hereinafter referred to as the "AUTHORITY"), a body corporate created under Section 3 of the Bihar Industrial Areas Development Authority Act, 1974 (hereinafter referred to as "the ACT").

4. The first respondent (the State of Jharkhand) is carved out of the State of Bihar on 15th November 2000 by a parliamentary enactment called 'the Bihar Reorganisation Act, 2000'. The first respondent is the successor-in-interest of the State of Bihar insofar as the property in dispute is concerned.

5. The appellant herein is a company running various industries. At the request of the appellant, the State of Bihar transferred an interest in land admeasuring 350 acres at Adityapur for a period of 99 years. It appears from the impugned judgment that the said land was divided into "a few hundreds of plots of different dimensions in various small areas". The transfer is covered by a document dated 18.03.1969, purported to have been executed on behalf of the Governor of Bihar in favour of the appellant company. Parties have been described as LESSOR and LESSEE in the said document. The crux of the transaction is described in the document as follows:

"WHEREAS the lessee has applied for the lands described and specified in Part 1 of the Schedule appended hereto together with all rights, covenants and appurtenances thereto belonging except and reserving unto the lessor all mines, minerals in and under the said land or any sort thereof for establishing (i) Alloy Tool and Special Steel Plant (ii) the Roll Foundry Project.

NOW THIS INDENTURE WITNESSETH:

In consideration of the payment to the lessor by the lessee of the premium or salami of Rs. 24,48,670/- (Rupees Twenty four lacs forty eight thousand six hundred seventy only) calculated at Rs. 7000/- (Rupees Seven thousand only) per acre (including proportionate development case of the area on or before the execution of these presents and of the rent hereby reserved and of the covenants and agreements on the part of the lessee and fully mentioned in Part II of the Schedule, the lessor doth hereby demise unto the lessee all the piece of land mentioned and described in Part I of the Schedule."

The transfer is subject to various terms and conditions specified in Part-II of the said document. Under condition No.1, the "lease" is given for 99 years subject to renewal at the option of either party for such period as may be mutually agreed upon. Condition No.2 stipulates annual payment of Rs. 17,490.50 at the rate of Rs. 50/- per acre in one installment payable on or before 31st March every year. Rent is liable to be revised every twenty years.

"1. That the lease of land detailed in Part I of the Schedule is given for ninety nine (99) years to the lessee by the lessor subject to renewal at the option of either Party for such period as may be mutually agreed upon.

2. That the lessee shall pay annually to the State Government or their nominee as rent, the sum of Rs. 17,490.50 (Rupees Seventeen Thousand Four Hundred Ninety and Fifty Paisa only) at the rate of Rs. 50/- per acre in one installment on or before 31st March, every year. The said rent is liable to be revised every twenty years in accordance with provisions of law or any Rules framed by Government of Bihar as may be in force for the time being and in the absence of any such law rules then as may be fixed by the lessor."

6. Condition No.4 contains various "covenants" between the parties. Clause (xiv) stipulates that the land shall be used by the appellant for the specified purpose within a period of one year from the date of the lease failing which the lease ma