The judgment establishes the principle that sitting occupants covered by a notice granting 'first right of refusal' in an auction can participate in the auction without vacating the premises, provided they comply with the conditions of the notice.

JUDGMENT

Per Kausik Chanda, J. - In view of the common set of facts and law points involved in this batch of appeals, they were heard together and are disposed of by this common judgment.

2. It appears that the premises in question situated at 103/24/1, Foreshore Road, Shibpur, Howrah, was allotted to M/s. Binani Metals Ltd. on long term lease for ten years commencing from April 1, 1980, without any option for further renewal by the Kolkata Port Trust, presently known as Syama Prasad Mookerjee Port, Kolkata (in short SMPK). After the expiry of the said lease period on 31st March 1990, on July 21, 1997, SMPK demanded possession from said M/s. Binani Metals Ltd. with the claim for occupation charges for the period March 31, 1990, to July 31, 1997. Ultimately three eviction proceedings being nos.752, 753, and 754 of 2006 were initiated by the SMPK against said Binani Metals before the Estate Officer under the provisions of the Public Premises (Eviction of Unauthorized Occupants) Act, 1971. In the said proceedings M/s. Ashamangal Portfolio Pvt. Ltd. (Ashamangal in short) sought to intervene by making out a case that a proposal for settlement of the tenancy in its favour was approved by SMPK and it unconditionally accepted the offer in the year 2000 for settlement of tenancy.

3. The said eviction proceedings were challenged by Ashamangal by filing three writ petitions being WP No.857 of 2009, WP No. 860 of 2009, and WP No.861 of 2009 under Article 226 of the Constitution of India. An interim order dated September 2, 2009, was passed in the said writ petitions with the following observations:

'In view of the above-noted situation, I admit the writ petition and order that during its pendency the respondents shall not take any steps for dispossessing the petitioners of the immovable property in question. On what terms and conditions this interim order will continue will be examined next day when Mr. Mukherjee shall inform this court the amounts for arrears and current the petitioners should pay for enjoying the possession and use of the property. The petitioners are given liberty to apply before the Estate Officer for appropriate order citing pendency of the writ petition. List the matter as new motion next Monday (07/09/2009).'

4. Subsequently, on the said writ petitions another Coordinate Bench of this Court by an order dated November 15, 2016, directed as follows:

'In view of defaults made by the petitioners to comply with the order dated September 27, 2016, it would be appropriate to direct the occupants as disclosed in the affidavit dated November 3, 2016 as also any other occupants of the plots concerned to make over all payments to the Kolkata Port Trust Authorities on and from the month of November, 2016.

The occupants also will make such payment wholly without prejudice to their rights and contentions. The Kolkata Port Trust Authorities will accept such payment from such occupants wholly without prejudice to their rights and contentions. Neither the payments nor the acceptance of such payments will create any receipt or equity in favour of the occupants or any of them in any manner whatsoever. These payments will not in any manner diminish or extinguish any obligation of any of the petitioners to pay the Port authorities. All the parties before the Estate Officer being present in Court, it would be appropriate to direct the Estate Officer to continue with the hearing of the proceedings on a day to day basis commencing from tomorrow (November 16, 2016). He will not adjourn the hearing on any ground whatsoever. In the event, the Estate Officer is required to grant any party time to file any pleading or documents he will not grant time for such purpose in excess of three working days from the date of the first request for such purpose.

In view of defaults made by the petitioners in paying the November instalment, it would be appropriate to attach the assets and properties of all the petitioners as also the Directors of the petitioners.

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