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High Court Of Calcutta
A. K. MATHUR, J. K. BISWAS
BOARD OF TRUSTEE OF THE PORT OF CALCUTTA - Appellant
Versus
PEARL TRANSPORT CO.LTD - Respondent
F. M. A. 777 Of 1988
Decided On : 04/03/2003
MAJOR PORT TRUSTS ACT, 1963 - SECTION 49 - LEASE OF PROPERTY - WRIT JURISDICTION - MANDATORY INJUNCTION - COURT CANNOT DIRECT ALLOTMENT OF LAND OR FIX RENT - SUCH ORDER IS AN ABUSE OF POWER AND WITHOUT JURISDICTION.
Fact of the Case:
Calcutta Port Trust, the owner of a piece of land, obtained a decree and possession of the land from the Official Liquidator after the previous lessee, OFU LYNX CO. LTD., went into liquidation. Pearl Transport Company Limited, a company with no connection to OFU LYNX CO. LTD., filed a writ petition seeking allotment of the land and grant of a lease. The learned single judge passed an interim order directing the Port Trust not to prevent the petitioner from obtaining possession of the land and fixing the rent at Rs. 3639.74 per month.
Finding of the Court:
The court held that the mandatory injunction passed by the learned single Judge in Extra Ordinary Jurisdiction under Article 226 of the Constitution of India is totally misconceived. The court found that the order was passed without jurisdiction and was an abuse of power. The court also held that the Court cannot force any party to necessarily enter into an agreement involving disposal of its property.
Issues: 1. Whether the court can direct allotment of land or fix rent in a writ petition? 2. Whether the interim order passed by the learned single judge was without jurisdiction?
Ratio Decidendi: 1. The court held that the Court cannot direct allotment of land or fix rent in a writ petition. The court reasoned that such an order is an abuse of power and without jurisdiction. 2. The court held that the interim order passed by the learned single judge was without jurisdiction. The court reasoned that the Port Trust is a statutory authority and its functions are regulated by statutory provisions, that is, the Major Port Trusts Act, 1963. Hence, the interim order passed by the learned single Judge is not sustainable by any stretch of imagination.
Final Decision: The court allowed the appeal and set aside the interim order passed by the learned single judge. The court also directed the writ petitioner to hand over vacant possession of the land and to pay the cost of Rs. 50,000/- to Calcutta Port Trust within one month.
( 1 ) THIS appeal is directed against an Interim order passed by a learned single Judge dated 7th april, 1986, whereby the learned single judge while entertaining the writ petition passed the following order:"the pendency of this writ petition will not prevent the writ petitioner from obtaining possession of the disputed plot of land No. LM3536d measuring 11,564. 285 sqm. At transport Depot Road from the ex-workers of M/s. OFU LYNX CO. LTD. (Now in liquidation) on the usual terms and conditions of the Calcutta Port Trust to set up business by the petitioner and to absorb the ex-worker of the said company on the undertaking by the petitioner to deposit and pay calcutta Port Trust Rs. 6369. 74 (Rupees six thousand three hundred sixty nine and paise seventy four only) per month from the date of taking possession of the said premises. The pendency of the writ petition will not, however, prevent the Calcutta Port Trust to issue fresh allotment in favour of the petitioner in accordance with law. "
( 2 ) BEING aggrieved by and dissatisfied with aforesaid order the present appeal has been preferred by the Calcutta Port Trust.
( 3 ) THE brief facts which are necessary for the purpose of disposal of this appeal are that there is a piece of land belonging to calcutta Port Trust, LM 3635 D comprising a godown. The area of the said land is 11,564. 285 sq. mt. This land was let out by a registered deed of lease dated 2nd March, 1962 by the Trustees of Calcutta Port Trust in favour of one OFU LYNX LIMITED for a period of 30 years commencing from 22nd march, 1962 with an option for renewal for another period of 30 years.
( 4 ) ON 28th September, 1970 the Calcutta Port Trust filed a suit being Title Suit no. 21 of 1971 in the Court of the Learned subordinate Judge, 5th Court. Alipore for recovery of possession and arrears of rent. The suit was decreed in 1974 and possession was obtained by the Calcutta Port Trust on 11th January, 1978. M/s. OFU LYNX limited went in liquidation by the order of the Honble High Court in Company Petition No. 21 of 1974. It is admitted that the possession of the land was taken from the official Liquidator by the Calcutta Port trust.
( 5 ) THE writ petitioner who had nothing to do with OFU LYNX LIMITED filed the present writ petition and alleged that since they are Interested in the aforesaid piece of land and the same has not been leased out by the Calcutta Port Trust for a long time, it may be leased out to them. It is alleged that calcutta Port Trust earlier wanted to allot this land to M/s. Jainex Limited but that could not be materialized and likewise with the M/s. Warren Metal Industries also all deal fizzled out. Therefore, the writ petitioner, M/s. Pearl Transport Company Limited approached the Land Manager of the calcutta Port Trust for lease of this land from time to time but they could not succeed. It is alleged that some proposal was mooted out and some assurance was given by the port Trust that they are likely to consider their proposal. But this allegation was categorically denied by the Port Trust that no such assurance was given to the petitioner that they are likely to lease out the present piece of land in favour of the writ petitioner.
( 6 ) SINCE the land was in possession of the Calcutta Port Trust and the writ petitioner was anxious to get this land allotted in their favour but failed in their attempt to get the land, the present writ petition was filed on 7th April, 1986 with the following prayers:" (A) A writ of or in the nature of mandamus be issued commanding the respondent Nos. 1, 2 and 3 and their officers and agents and subordinates to allot the plot of land LM 3536d measuring 11,564. 285 sq. mt. At No. 1, Transport Depot Road, Calcutta to the petitioner company and to grant the lease thereof on a lease of 30 years with option for renewal for 30 years under the terms and conditions of the Calcutta Port trust as per the prevailing rate; (B) A writ of or in t
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