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2020 Supreme(Pat) 379

IN THE HIGH COURT OF JUDICATURE AT PATNA
Mohit Kumar Shah, J.
Sanjay Singh Son Of Late Nityanand Singh - Appellant
Versus
Patna Municipal Corporation, Municipal Commissioner - Respondent
Civil Writ Jurisdiction Case No. 6546 of 2017, 2432 of 2017, 7404 of 2017, 10975 of 2017
Decided On : 02-11-2020

Advocates Appeared:
Jitendra Kishore Verma, Advocate, Prasoon Sinha, Advocate, Yashraj Bhardhan, Advocate, Prakash Chandra, Advocate, Chitranjan Sinha, Advocate, Siddhartha Prasad, Advocate, Prabhakar Singh, Advocate, Umesh Prasad Singh, Advocate, Nilanjan Chatterjee, Advocate

Headnote:(A) Bihar Town Planning and Improvement Trust Act, 1951; Bihar Regional Development Authority Act, 1981; Bihar Municipal Act, 2007 - Lease Resumption - The Municipal Commissioner invoked erroneous authority in terminating leases based on building violations without due process. The court upheld the argument of perpetual lease, emphasizing that legal recourse was required for resumption of possession, not executive orders. (Paras 68-91)

(B) Natural Justice - Failure to provide adequate reasons in decisions is a breach of principles of fairness and natural justice. (Paras 86-90)

(C) Transfer of Property Act, 1882 - Lease cancellation requires due process: lessees cannot be forcibly dispossessed without legal remedy. (Paras 74-80)

Facts of the case:
This case involved multiple petitions of lessees challenging the orders of the Municipal Commissioner to resume possession of their leased properties for alleged building violations. The petitioners claimed compliance with construction laws and argued for their rights under perpetual lease provisions.

Findings of Court:
The court found that the Commissioner acted beyond his authority in resuming possession, and such actions require a judicial process. The impugned orders were deemed illegal and consequently quashed.

Issues: Whether the Municipal Commissioner had the authority to resume leases and whether his actions violated principles of natural justice.

Ratio Decidendi: The court asserted that the resumption of leased land must adhere to legal procedures, emphasizing that unilateral executive orders are insufficient to terminate leases, especially given these agreements granted perpetual rights. Failure to provide cogent reasons in the orders violated principles of natural justice.

Result: All challenged orders regarding lease resumption quashed, with petitioners directed to seek appropriate legal remedies for damages.

Table of Content
1. facts of the case regarding lease and ownership. (Para 2 , 3 , 5 , 8 , 11 , 12)
2. legal changes affecting ownership and lease agreements. (Para 4 , 6 , 7 , 10)
3. irregularities and compliance with building regulations. (Para 14 , 18 , 19)
4. arguments from both parties regarding violation of lease. (Para 20 , 22 , 23)
5. court's final judgment on jurisdiction and enforcement of rights. (Para 68 , 69 , 70 , 71 , 72 , 73 , 74 , 75 , 76 , 79 , 81 , 83)

JUDGMENT

Mohit Kumar Shah, J. - With the consent of the parties, all the four writ petitions have been taken up for hearing together since the issues to be adjudicated in the said cases are the same, hence they are being disposed of by the present common Judgment.

    Facts of the Case (CWJC No. 6546 of 2017)

2. At the outset, this Court would advert to the facts of the first case i.e. CWJC No. 6546 of 2017 (Sanjay Singh vs. Patna Municipal Corporation & Ors.). The said writ petition has been filed for setting aside the order dated 23.03.2017 passed in Appeal No. 137 of 2014 (arising out of Vigilance Case No. 97A of 2013), by the Municipal Building Tribunal, Patna Division, Patna, whereby and whereunder the appeal of the petitioner has been dismissed. The petitioner has further prayed for setting aside the order dated 28.11.2014 passed in Vigilance Case No. 97A of 2013 by the Commissioner, Patna Municipal Corporation, Patna and for restraining the authorities from taking the possession of the building from the lessee or sealing the same in pursuance to the said order dated 28.11.2014 as also to permit the petitioner to carry on with his construction work in accordance with law. Lastly, it has been prayed to compensate the petitioner for the loss occurred on account of illegal and high-handed action by the corporation authorities.

3. The brief facts of the case are that prior to the year 1974, the Patna Improvement Trust, created under the BIHAR TOWN PLANNING AND IMPROVEMENT TRUST ACT , 1951, had settled the land vested in it with the father of the petitioner, late Nityanand Singh. In fact, two allotments were made to the father of the petitioner, one pertaining to 5.209 kathas of land and another for 1.795 kathas of land, whereafter possession was also handed over to the father of the petitioner. A lease deed dated 16.6.1966 was then executed for the first allotment i.e. with regard to 5.209 kathas of land, admeasuring 788.33 sq. yards, in between the Patna Improvement Trust and the father of the petitioner, pertaining to Plot No. 134/B, Sri Krishnapuri, Patna, for a period of 99 years with effect from 26.4.1966. After the death of the father of the petitioner, a fresh lease deed cum agreement was executed with regard to the second allotment of plot, admeasuring 271.44 sq. yards, in between the Patna Municipal Corporation and the petitioner herein for a period of 99 years with effect from 03.03.1970. At this juncture itself, it would be appropriate to reproduce the relevant clauses of the aforesaid lease deed herein below:-

    "(1) That this lease has been granted to the Second Party for constructing a building for the express purpose of residence, subject to the proprietary right in the land demised remaining with the First Party.

    (2) That subject to the provisions of clause 4 following, the lease shall be a lease for 99 years with an option to renew the lease on the same terms and conditions as herein appearing for a further period of 99 years; (the First Party shall however give six months' notice before the expiry of the period of this lease enquiring whether the Second Party is willing to renew the lease, and on expression in writing of such willingness on the part of Second Party to renew the lease no fresh premium shall be chargeable).

    Provided, however, that if the Government of Bihar charges any premium for the renewal of the lease for the Rajendra Nagar area, then a proportionate premium so charged shall be chargeable by the First Party from the Second Party at the t

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