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2022 Supreme(Cal) 1174

IN THE HIGH COURT AT CALCUTTA
Sabyasachi Bhattacharyya, J.
Cossipore Kanch Sangh & Anr. - Appellants
Versus
Union Of India & Ors. - Respondents
W.P.A. No. 20621 of 2021, IA No: CAN 1 of 2022
Decided On : 19-12-2022

Advocates appeared:
M.M. Verma, Advocate, Abhishek Verma, Advocate, Punam Verma, Advocate, Sumita Sarkar, Advocate, Souvik Nandy, Advocate, Snehashis Sen, Advocate, Abhishek Banerjee, Advocate

The pending proceeding before the Estate Officer was the appropriate forum for adjudication of disputed factual issues.

Headnote:

Societies Act - Kolkata Port Trust - 1971 Act - Major Ports Act, 1963 - Transfer of Property Act, 1882 - Public Premises (Eviction of Unauthorised Occupants) Act, 1971 - [SOCIETIES ACT] - [Kolkata Port Trust] - [1971 Act, Major Ports Act, 1963, Transfer of Property Act, 1882] - The court discussed the validity of the lease, termination of tenancy, unauthorised occupation, and the applicability of the Limitation Act to the proceedings under the 1971 Act. The court also considered the principles of acceptance of rent, fraud, estoppel, and res sub-judice. The judgment highlighted the need for detailed evidence to decide disputed factual issues and concluded that the pending proceeding before the Estate Officer was the appropriate forum for adjudication.

Fact of the Case:

The petitioners, a society and its Secretary, challenged a Notice from Kolkata Port Trust (KoPT) seeking possession of premises and arrears of rent and taxes. They also sought rent receipts and refund of premium. The petitioners argued that they were granted monthly tenancy and were not unauthorised occupants under the 1971 Act. They cited guidelines to prevent arbitrary use of eviction powers and contended that the proceedings were time-barred. The KoPT claimed that the petitioners were unauthorised occupants and defaulters in paying rent and occupation charges.

Finding of the Court:

The court found that the pending proceeding before the Estate Officer was the appropriate forum for adjudication of disputed factual issues. It concluded that the exercise of power under Article 226 at the present juncture would be premature and beyond the scope of the writ court's jurisdiction.

Issues: Validity of the lease, termination of tenancy, unauthorised occupation, applicability of the Limitation Act, acceptance of rent, fraud, estoppel, and res sub-judice.

Ratio Decidendi: The court emphasized the need for detailed evidence to decide disputed factual issues and concluded that the pending proceeding before the Estate Officer was the appropriate forum for adjudication.

Final Decision: The court disposed of the case by granting liberty to the parties to urge all points raised in the present writ petition on merits in the pending proceeding before the Estate Officer. It made clear that the merits of the contentions had not been entered into by the court and it would be open to the Estate Officer to decide all such issues independently in accordance with law without being influenced by any of the observations made.

JUDGMENT

Sabyasachi Bhattacharyya, J. - The petitioner no.1-Club is a society registered under the West Bengal Societies Act, 1961 and petitioner no.2 is its Secretary. The writ petition has been filed, challenging a Notice dated September 24, 2004 whereby the Kolkata Port Trust (KoPT) asked for possession of the disputed premises to be handed over to the KoPT by the petitioners and payment of Rs.16,67,633/- as arrears of rent and taxes for the period between June, 1998 and August, 2004 in respect of occupation. In the said Notice, it was pleaded that a long term lease for 20 years was given to the petitioner from August 2, 1992 without any option for renewal. An allegation of unauthorised construction was also made therein.

2. The petitioners have also challenged a Bill dated September 24, 2004 containing a demand for compensation for alleged unauthorised use of occupation of KoPT-property by the petitioners.

3. The petitioners have also sought for a Rule in the nature of mandamus, commanding the respondents to grant rent receipts in the names of the members of the petitioner no.1-club after fixing the rate of rent and refunding the premium of Rs.5,27,040/- with interest as well as returning the Kisan Vikash Patras (KVPs) of value Rs.1,58,500/- for encashment by the petitioners.

4. It is argued by the petitioners that although negotiations were initially going on for grant of lease to the petitioner, ultimately the petitioners were granted monthly tenancy upon payment of the amount of Rs.5,27,040/-and deposit of KVPs worth Rs.1,58,500/-, as per the demand of the KoPT.

5. It is argued that the individual members of the petitioners, who were all along in possession of the premises, were granted individual monthly tenancies by the KoPT and, as such, the said members have been in authorised occupation of the said premises in such capacity.

6. In the absence of any termination of such tenancy in accordance with law, it is contended that the members of the petitioner no.1 have remained in authorised occupation, which was never rendered 'unauthorised' for the purpose of attracting the provisions of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (for short, 'the 1971 Act).

7. It is further submitted that no Notice under sections 4 and 7 of the 1971 Act were ever served by the KoPT on the petitioners. In fact, a proceeding under Section 5 of the 1971 Act was initiated against the petitioner without arriving at any preliminary finding that the petitioners are unauthorised occupants in respect of the property as envisaged in Section 4 of the said Act.

8. Learned counsel for the petitioners also argues that the proceeding for eviction and recovery of alleged arrear of rents are, in any event, palpably time-barred.

9. Learned counsel cites guidelines to prevent arbitrary use of powers to evict genuine tenants from public premises under the Control of Public Section Undertakings/financial institutions, published in the Gazette of India, Part-I, Section 1 dated June 8, 2002 vide Resolution No.21013/1/2000-POL.1 dated May 30, 2002. In Clause 2(iii) thereof, it is stipulated that a person in occupation of any premises should not be treated or declared to be an unauthorised occupant merely on service of Notice of termination of tenancy, but the fact of unauthorised occupation shall be decided by following the due procedure of law. Further, the contractual agreement shall not be wound up by taking advantage of the provisions of the 1971 Act.

10. It is submitted that the said guidelines have been blatantly violated in the present case.

11. It is contended by the petitioners that, since there was no registered lease-deed for a period of 20 years executed between the parties, as alleged in the Notice dated September 24, 2004, there was no valid Notice under Section 4 of the 1971 Act. That apart, the said Notice did not terminate the monthly tenancy of the petitioner, which is still existing.

12. The petitioners, it is submitted, were grant

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