IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Venkateswarlu Nimmagadda, J.
P.T.Gopala Chari and Sons – Petitioners
Versus
State of Andhra Pradesh – Respondent
Writ Petition No.18404 OF 2021
Decided On : 30-07-2024
Lease - Writ Petition - G.O.Ms.No.528, G.O.Ms.No.571 - The court interpreted the provisions of the Government Orders regarding lease renewals and rental calculations, emphasizing the necessity of compliance with legal procedures and the authority of the government in fixing lease amounts.
Fact of the Case:
The petitioner, a registered firm, sought to challenge the government's order fixing a substantial lease amount after years of non-payment and illegal occupation of government land, despite previous court orders regarding lease renewal.
Finding of the Court:
The court found that the petitioner had continued to occupy the land without valid lease approval and had failed to comply with previous court orders, thus justifying the government's demand for the enhanced lease amount.
Issues: Whether the government's order fixing the lease amount was legal and whether the petitioner was entitled to relief despite non-compliance with court orders.
Ratio Decidendi: The court held that the petitioner could not benefit from their own non-compliance with court orders and that the government had the authority to fix lease amounts based on market value.
Result: The writ petition is dismissed with costs.
ORDER :
Venkateswarlu Nimmagadda, J.
1. This writ petition is filed claiming the following relief:
2. The case of the petitioner is as follows:
3. The petitioner herein is a registered firm under the provisions of the Indian Partnership Act and the said firm was appointed as a dealer of Bharat Petroleum Corporation Limited. Pursuant to the G.O.Ms.No.528, dated 22.11.1995, the area was leased out in favour of the petitioner firm for a period of five years with effect from 22.12.1995 at an annual rent of Rs.4,500/-. In pursuance of the lease, the petitioner entered into an agreement with Respondent No.3 herein on 22.12.1995 and spent a huge amount to make the area fit for the establishment of the retail outlet. After the expiry of the lease period, Respondent No.3 herein issued proceedings renewing the lease vide proceedings dated 26.12.2000 for a further period of five years i.e., upto 21.12.2005. The petitioner was regularly paying the rents to the department as fixed in the agreement.
4. After expiry of the period, the petitioner submitted a representation to Respondent No.3 on 16.12.2005 seeking renewal of lease for a further period of five years with reference to the terms of the G.O.Ms.No.528, dated 22.11.1995. Then, Respondent No.3 addressed a letter dated 14.02.2006 to the petitioner stating that the O/o. Accountant General raised an objection for renewal of the lease period by the Executive Engineer and for further extension, orders have to be obtained from the Government. Accordingly, the petitioner submitted another application/representation to Respondent No.1 on 01.03.2006 requesting for renewal of the lease. Pursuant to the said request, the petitioner was issued notice dated 25.06.2006 and directed the petitioner to pay a sum of Rs.10,95,428/- towards rent as per terms and conditions of the agreement along with renewal for further lease period beyond 21.12.2005.
5. Then, the petitioner submitted a detailed representation to Respondent No.3 on 26.06.2006 and also to the Government on 05.08.2006 seeking fixation of reasonable lease amount and the amount demanded by the Executive Engineer is nearly 85 times higher than the lease amount fixed by the Government. Later, Respondent No.3 issued a notice dated 13.12.2006 directing the petitioner to pay the amount by 25.01.2007 and in default, the petitioner has to vacate and hand over the premises.
6. Aggrieved by the proceedings of Respondent No.3, the petitioner filed W.P.No.2384 of 2008 before this Court challenging the action of Respondent No.3 in demanding arrears out of enhancement of lease amount Rs.10,95,428/- retrospectively from the year 2000 onwards as illegal and arbitrary. The said writ petition was allowed by this Court and directed the Respondents to dispose of the application of the petitioner for renewal of lease subject to such terms and conditions as are permissible under law. Till the disposal of the petitioner’s application for renewal, the Respondents shall not interfere with the business of running an outlet by the petitioner on the site in question, subject to the petitioner continuing to pay the pre-existing lease amount.
7. It is further stated that even though this Court on 17.04.2008 directed the Respondents for disposal of the application of the petitioner for renewal of the lease, the Respondents neither disposed of the renewal application of the petitioner nor granted any renewal and kept quiet for a period of more
A party cannot seek relief while simultaneously disobeying court orders, and the government has the authority to fix lease amounts based on prevailing market values.
The court determined that a fresh lease agreement is unnecessary for a reduced area and mandated the petitioner to pay specified arrears and monthly rent.
Lease agreements govern the terms of rent adjustments over statutory provisions unless explicitly limited by the agreements themselves.
The central legal point established in the judgment is the application of G.O.(Ms).No.92, Municipality Administration and Water Supply Department dated 03.07.2007, which mandated a 15% increase in re....
The court ruled that administrative demands must align with prior approvals and cannot be unilaterally altered without justification.
The eviction notice was set aside due to violation of natural justice, as the petitioner was not given the opportunity to respond to the allegations before the order was issued.
The court emphasized the importance of adhering to the specific terms of lease agreements in determining rental obligations.
Government retains the right to cancel lease agreements for non-payment of rent and violations of established conditions under statutory regulations.
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