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2012 Supreme(Pat) 803

IN THE HIGH COURT OF JUDICATURE AT PATNA
S.N. HUSSAIN, J.

Ahmad Abdullah, son of Late Abdullah A. Karim & Ors. (in 8840)
Motipur Sugar Factory Ltd., a company incorporated under the Companies Act, 1956, having its registered office at Motipur, District-Muzaffarpur, Bihar through its one of its share holders and former Director, Omer H. Ibrahim son of Late Ibrahim Oosman, resident of 2, Raj Mohan Street, Kolkata (West Bengal) (in 427)
Haji Zakaria Oosman Kutchi Memon Wakf Estate, EC No. 12737 through its Authorized Mutawalli Gulam Sharafuddin Oosman S/o Late Oosman Abdul Rahim, resident of No. 2, Raj Mohan Stree, Kolkata 700073, West Bengal & Ors. (in 710) - Petitioners
Versus
State of Bihar & Ors. (in 8840)
State of Bihar through the Chief Secretary, Government of Bihar, Patna & Ors. (in 427)
Secretary, Ministry of Industry (Department of Industrial Development), New Delhi & Ors. (in 710) - Respondents
Civil Writ Jurisdiction Case No.8840 of 2006; 427 of 2008; 710 of 2011
Decided on: 25.6.2012

Advocate Appeared:
For the petitioners (CWJC No.8840/2006):Mr. Raghib Ahsan, Sr. Advocate, M/s Khalid Ahsan and Shabbir Alam, Advocates.
For the petitioner (CWJC No.427/2008):Mr. Y.V. Giri, Sr. Advocate with M/s Raju Giri, Ashish Giri and Vikash Ratan Bharti, Advocates.
For the petitioners (CWJC No.710/2011):Mr. Umesh Kumar Singh, Sr. Advocate, Mr. Khatim Reza, Advocate.
For the State: Mr.Lalit Kishore, AAG-1 with Mr. Pritish Kumar, A.C. to G.P. 12.
For the Corporation:Mr. Gyan Shankar, Advocate.
For Indian Potash Ltd.:M/s Dhruba Mukherjee and Abbas Haider, Advocates.

Headnote:Bihar Sugar Undertaking (Acquisition) Act, 1985-Section 3 read with Industries (Development and Regulation) Act, 1951-Section 18-AA and Suger Undertaking (Taking over of Management) Act, 1978-Section 3-Vesting of Sugar Mill (in the present case, Motipur Sugar Factory) in the State of Bihar-State of Bihar leasing out the rights/ownership of the Motipur Sugar Factory to the Indian Potash Limited-Petitioners seeking reliefs to restrain the respondents from Transferring, leasing or handing over the right, title or possession of the petitioner's factory to anyone else and to hand over the industrial unit to the petitioner-company after discharging all its current liabilities-reliefs are sought for restraining the respondents from transferring or entering into any agreement with M/s. Indian Potash Ltd. and to determine the amount of compensation u/s 7 of the 1985 Act-Properties already transferred to petitioner-wakfs much prior to 1985 (in 1940-52), cannot be affected by the provisions of the Bihar Sugar Undertaking (Acquisition) Act, coming into force in 1985 as in the year 1985 the Motipur Sugar Factory Ltd. had no right or interest left in the properties dedicated to the said wakfs which had been duly registered in the Board of wakfs-So far the question of transferring, leasing or handing over petitioner's factory is concerned, once the undertaking has been transferred to the corporation, there can be no second transfer to any company either by the State or by the Corporation-further, the Corporation being itself a company, legally there cannot be any further transfer to another company-Hundreds of acres of land of the petitioner leased out to M/s. Indian Potash Ltd. for 60 yrs. renewable for a further period of 30 yrs. for merely Rs. 1.00 per annum and State authorities and the Corporation, by making such an illegal transfer played fraud on legislation-impugned lease being an unregistered lease not even fulfils the requirement of Transfer of Property Act or Section 17 (1) (d) of the Registration Act or even Section 3 of the Indian Stamp Act-Writ petitioners allowed-lease deed in favour M/s. of Indian Potash Ltd. and the agreement between State authorities and M/s. Indian Potash Ltd. quashed-If the petitioner files application for compensation as provided u/s 7 of the 85 Act before the 'Prescribed Authority' it be considered on merit. (Paras 39, 43, 44, 47, 50, 56 & 57)

       (2003)4 SCC 378, (1999)6 SCC 74, 2011 (6) Supreme Today, 737, (2007)4 SCC 221, (1998)2 SCC 1, AIR 1990 SC 1480, (2007)11 SCC 447, (2008)1 SCC 728, (2011)10 SCC 608-Referred to.

       

ORDER

All the aforesaid three writ petitions have been heard together and are being decided by this common order as the subject matters of both the writ petitions are the same, namely Motipur Sugar Factory Limited and the reliefs claimed by them are also similar in nature. The writ petitioners of CWJC No.8840 of 2006 are the affected employees of the Motipur Sugar Factory, whereas writ petitioner of CWJC No.427 of 2008 is the Motipur Sugar Factory Limited itself, and the petitioners of CWJC No.710 of 2011 are the five wakf estates, which claim to be the share holders of the aforesaid company and hence their interest is common and the points involved and the facts raised are also similar.

2. An interlocutory application bearing I.A. No.2771 of 2011 was filed in CWJC No.427 of 2008 by one Dr. Kumar Praveen for being impleaded as party respondent to the said writ petition and for grant of relief in his favour, namely directing the respondents to make payment of remuneration against acquisition to the intervener applicant claiming to be the Power of Attorney Holder of one Saiyed Amjad Hussain (successor of Late Nanhi Begum). It is claimed by the intervener that on 20.04.1898 one Thomas Barkali executed a lease in favour of Mostt. Nanhi Begum whose heirs had been raising claim from 1898 to 2005 and finally intervener had filed Title Suit No.553 of 2009 in Muzaffarpur Civil Court, which has not been taken up as yet. There is nothing to show that on the basis of the alleged deed of lease dated 20.04.1898 Mostt. Nanhi Begum or her heir had ever raised any such dispute with respect to the right and possession of Motipur Sugar Factory Limited or its co-sharers (petitioners of both the writ petitions) and it was only in the year 2009 that one Saiyed Amjad Hussain along with intervener filed Title Suit No.553 of 2009 for declaration of title of plaintiff no.1 and non-title of the defendants and for restoration of possession of plaintiff no.1. The documents annexed to the interlocutory application are all of the subsequent period of 2010 and 2011 which prima facie do not appear to prove any right, title or possession of Mostt. Nanhi Begum or her heirs, including Saiyed Amjad Hussain. Moreover, this matter has to be considered by the title suit and unless an order/judgment is passed by the trial court on the basis of pleadings of the parties and materials produced by them, no authenticity can be legally attributed to the claim of the intervener by any court or authority. Accordingly, the aforesaid interlocutory application bearing I.A. No.2771 of 2011 is rejected.

3. CWJC No.8840 of 2006 was filed by the employees of the Motipur Sugar Factory Ltd. for the following relief:-

(i) For quashing the decision taken by the Bihar State Sugar Corporation as contained in public notice dated 03.06.2006 issued by the General Manager of the Motipur Unit of the Corporation inviting applications to settle the agriculture land of the undertaking in favour of strangers.

4. In the said writ petition bearing CWJC No.8840 of 2006 the petitioners had filed I.A. No.49 of 2012 for adding a few more reliefs to the writ petition. The said application was allowed by this Court on 15.02.2012 and the reliefs so added are as follows:-

(ii) To quash the letter of intent dated 30.08.2010 for Long Term Lease of sugar unit, Motipur, in favour of M/s Indian Potash Limited issued by the Principal Secretary to the Government of Bihar, in the Department of Sugarcane Industry, whereby the bid submitted by M/s Indian Potash Ltd., for a price of Rs.56,20,00000.00 (Fifty Six Crores Twenty Lacs) was accepted and Motipur unit was offered to it for developing industries based on sugarcane, and land measuring 66 acres along with farm land measuring 200 acres were also offered for a long term period of 60 years, further renewable for 30 years, as also all the assets of the unit on outright ownership basis.

(iii) To quash the Deed of Lease dated 12th January 2011, executed by Bihar State Su
































































































































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