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VIKRAM NATH, SANDEEP MEHTA, N. V. ANJARIA
Piaggio Vehicles Pvt. Ltd. – Appellant
Versus
State of U. P. – Respondent
| Table of Content |
|---|
| 1. factual basis for lease and forfeiture. (Para 2 , 3 , 10 , 12 , 13) |
| 2. claims of the appellant regarding intent and compliance. (Para 30 , 31 , 32) |
| 3. respondent's stance on breach of lease terms. (Para 39 , 45) |
| 4. court's analysis on compliance and relief. (Para 55 , 56 , 78) |
| 5. final disposition of the case. (Para 79 , 81 , 82) |
JUDGMENT :
1. Heard.
3. By order dated 25th August, 2008, UPSIDA forfeited the lease of Plot No. A-1, Site-B, admeasuring 33 acres at Surajpur Industrial Area, District Gautam Budh Nagar, Uttar Pradesh which had been granted under lease deeds dated 19th March, 2002 and 10th July, 2007. The former lease deed was executed in favour of M/s. Piaggio India (P) Ltd., while the latter was executed in the name of the amalgamated entity, M/s. Piaggio Vehicles Pvt. Ltd. i.e. the appellant-company. The forfeiture was on account of breach of terms and conditions stipulated under sub-clauses (e) and (o) of Clause 3 read with Clause 5 of the lease deed i.e. for failing to complete construction of the factory building within the stipulated period or the extended time permitted thereunder. By the very same order, UPSIDA also notified its intent to re-enter the
Failure to comply with lease conditions justifies cancellation of the lease, emphasizing the necessity for timely establishment of operations by allottees under industrial development regulations.
Developers are entitled to waivers and extensions when failure to provide essential infrastructure, such as access roads, obstructs project execution, affirming obligations under lease agreements.
The court held that the lessee is entitled to the provision of an approach road as stipulated in the lease deed, justifying waivers of interest and zero period until compliance by the lessor.
Repeated non-compliance with lease obligations justifies cancellation, prioritizing public interest and fiscal discipline over personal hardships.
Contractual obligations are binding, and failure to comply with lease conditions justifies the cancellation of allotment, with courts limited to examining the decision-making process for reasonablene....
Failure to utilize allocated industrial land justifies its cancellation under statutory provisions.
Resumption of industrial plot for non-fulfilment of terms and conditions of allotment is justified.
Express conditions in a lease must be strictly adhered to; violation justifies cancellation based on section 111(g) of the Transfer of Property Act.
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