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2022 Supreme(SC) 1220

SUPREME COURT OF INDIA
M.R. Shah, M.M. Sundresh, JJ.
Nagpur Metro Rail Corporation Limited – Appellant
Versus
Orbit Motels and Inns Private Limited, Nagpur & Ors. – Respondents
Civil Appeal No. 8582 of 2022
Decided On : 06-12-2022

Advocates appeared:
For the Appellant(s) : Mr. Satyajit A. Desai, Adv. Ms. Anagha S. Desai, AOR Mr. Satya Kam Sharma, Adv. Mr. Siddharth Gautam, Adv. Mr. Abhinav Mutyalwar, Adv. Mr. Gajanan Tirthkar, Adv. Mr. Amit Kumar Pathak, Adv.
For the Respondent(s): Ms. Shwetal Shepal, Adv. Mr. Aditya Kumar, Adv. Mr. Chander Shekhar Ashri, AOR Mr. Anand Dilip Landge, Adv. Mr. Siddharth Dharmadhikari, Adv. Mr. Aaditya Pande, AOR Mr. Avineesh Jha, Adv. Mr. Sachin Patil, AOR M/S. S.M. Jadhav And Company, AOR

IMPORTANT POINT
Termination of lease and possession of land for Metro Rail Project – When appellant is allottee of land in question pursuant to allotment order and is in occupation and possession of allotted land which is being used for a public purpose, appellant cannot be said to be in illegal possession.

Headnote:

Metro Railways (Construction of Works) Act, 1978 – Section 39 – Constitution of India – Article 226 – Termination of lease and possession of land for Metro Rail Project – Order of allotment has not been challenged at all by original writ petitioner-respondent No. 1 – As such, when appellant is allottee of land in question pursuant to allotment order and is in occupation and possession of allotted land which is being used for a public purpose, appellant cannot be said to be in illegal possession – As such, High Court has materially erred in observing and holding that appellant is in illegal possession and occupation of land in question – Even otherwise, High Court ought not to have entertained writ petition preferred by respondent No. 1 considering fact that there was a cloud over title of respondent No. 1 – Unless and until, rights of original writ petitioner in land in question are established, which shall be decided in Civil Suit which is pending, writ petition filed by original writ petitioner could not have been entertained by High Court – In view of disputed question of facts that whether actual possession was taken over or not and / or whether appellant herein was handed over possession rightly or not, High Court ought not to have passed impugned judgment and order and ought not to have issued impugned directions in exercise of powers under Article 226 of Constitution of India – Impugned judgment and order passed by High Court quashed and set aside and original writ petition filed by respondent No. 1 dismissed. (Paras 6, 6.1, 6.2 and 7)

Facts of the case:

Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court of Judicature at Bombay Bench at Nagpur in Writ Petition (C) No. 6581 of 2015 by which the High Court has allowed the said writ petition preferred by the private respondent herein – original writ petitioner and has directed appellant – Nagpur Metro Rail Corporation Limited to remove itself from the property in question and hand over possession of the same to the original writ petitioner by holding that action on the part of the appellant - Metro of forcibly and highhandedly entering into the premises of the appellant and forcibly securing possession of the same is arbitrary and illegal, the original respondent No. 1-Metro has preferred the present appeal.

Findings of Court:

If respondent No. 1 succeeds in the suit filed by him, in that case, it may claim compensation, but unless and until its rights are crystallised in a pending suit, a public project cannot be stalled. The allotment order dated 25.08.2015 and the possession handed over to the appellant pursuant to the said allotment cannot be said to be per se illegal.

Result : Appeal allowed.

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court of Judicature at Bombay Bench at Nagpur in Writ Petition (C) No. 6581 of 2015 by which the High Court has allowed the said writ petition preferred by the private respondent herein – original writ petitioner and has directed the appellant – Nagpur Metro Rail Corporation Limited (hereinafter referred to as “Metro”) to remove itself from the property in question and hand over the possession of the same to the original writ petitioner by holding that the action on the part of the appellant - Metro of forcibly and highhandedly entering into the premises of the appellant and forcibly securing the possession of the same is arbitrary and illegal, the original respondent No. 1 – Metro has preferred the present appeal.

2. Area admeasuring 9343 square meters, bearing Survey No. 169, City Survey No. 1864 of Mouza Sitabuldi, District Nagpur was owned by the Public Works Department of the State of Maharashtra. A lease was executed in favour of the Maharashtra Tourism Development Corporation Limited (hereinafter referred to as “Tourism Corporation”) with respect to the subject land. That the land was sub-leased by the Tourism Corporation to the respondent No. 1 herein – original writ petitioner on 17.07.1995 for a period of 30 years. The said lease was subject to the right of requisition and consequent termination of the lease by the State of Maharashtra, in case, land in question was required for public purpose, without any right to the Tourism Corporation as well as the lessee to challenge such intention of the Government of Maharashtra.

2.1 It appears that in the year 2002, the Tourism Corporation vide letter dated 27.05.2002 terminated the lease dated 17.07.1995. The respondent No. 1 – original writ petitioner filed a Special Civil Suit No. 413 of 2002 against the Tourism Corporation for declaration and permanent injunction, which is reported to be pending in the Court of Civil Judge, Senior Division, Nagpur. It is reported that currently the said suit is at the stage of evidence.

2.2 It appears that the Tourism Corporation also initiated in the year 2004, the proceeding under Sections 5(1) and (2) of the Bombay Government Premises (Eviction) Act, 1995 against the respondent No. 1 herein – original writ petitioner seeking recovery of dues and peaceful possession of the land and structure erected thereon. However, it appears that the said proceedings came to be withdrawn stating settlement.

2.3 It appears that thereafter the Government of India conveyed its approval for the implementation of the Nagpur Metro Rail Project. The appellant herein – Nagpur Metro Rail Corporation Limited was to function as a special purpose vehicle for the implementation of the project, the legal framework of the project was to be as per the Metro Railways (Construction of Works) Act, 1978. Thus, the appellant herein - Metro came into existence. That thereafter, the Government resolution dated 01.06.2015 came to be issued by the Government of State of Maharashtra detailing the scope of “advance possession” and describing its necessity. The advance possession would mean possession that is delivered to an authority for a project for public purpose without completing the formality of actual permission. It appears that in order to implement the project in public interest, the project being the prestigious project of the city of Nagpur, and as the appellant was in need of the land, the appellant vide communication dated 27.07.2015 requested the State of Maharashtra for the Development of the Metro Rail Project as there was no land in the vicinity.

2.4 The Collector vide order dated 25.08.2015 considering the request of the appellant allotted the land in question admeasuring 9343 square meters. The Collector considered the resolution dated 30.01.2014 by which the State Government gave sanction and the approval dated 21.08.2014 was given by the Central


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