IN THE HIGH COURT AT CALCUTTA
Bibek Chaudhuri, J.
Maruti Suzuki India Ltd. – Petitioner
Versus
Kolkata Metropolitan Development Authority & Anr. – Respondents
WPA 6764 of 2010
Decided On : 15-06-2023
Companies Act, 1956 - Section 21- Allotment of Land – Lease Deed -Whether due to change of name of company is required to pay stamp duty on total amount of original lease deed - Held, even if the policy decision is accepted as a whole, the said policy is not applicable in respect of the petitioner as the petitioner never credited any interest in favour of any third party by way of sub-leasing, sub-tenancy, assignment or alienation -Impugned decision of the competent authority as manifest in the letter of the respondent No.2 dated 21st July, 2009 and 23rd March, 2010 to realize as service charges from the petitioner an amount of Rs.17,02,500/-being 10% of the premium amount is quashed - Writ Petition Allowed.
JUDGMENT :
BIBEK CHAUDHURI, J.
1. The petitioner Maruti Suzuki India Limited is a public limited company, previously the above named company was incorporated as Maruti Udyog Limited and subsequently the name of the company was changed from Maruti Udyog Limited to Maruti Suzuki India Limited. In or about 2003 when the company was named as Maruti Udyog Limited, the company approached the Kolkata Metropolitan Development Authority (hereinafter referred to as KMDA), respondent No.1 herein for allotment of a plot of land for the establishment of Regional Training Centre at Kolkata. By a letter dated 16th /17th May, 2005 the Deputy Secretary, Works Cell, KMDA wrote a letter to the Regional Manager of Maruti Udyog Limited that a plot of land measuring about 10.04 katha was offered for allotment of land in favour of the said company. Subsequently, the company found the said land to be unsuitable and finally an alternate plot measuring about 11.44 katha in EKADP was proposed to be allotted by the KMDA. Accordingly, Officer Documents were executed by KMDA MUL for allotment of the land on certain terms and conditions mentioned in the letter dated 24th August, 2005. The terms and conditions for allotment of land are delineated below:-
1. Area of land offered is more or less 11.44 cuttahs.
2. The land shall be allotted on lease-hold basis for 99 (Ninety Nine) years solely for the purpose of construction of Regional Training Centre and not for any commercial exploitation. In case of any violation of this direction the land shall be resumed by KMDA without any compensation to SAIL.
3. A nominal ground rent of Re.1/-(one) per cottah or part thereof per annum shall be payable by the leasee under the terms of lease. Pending execution of the deed of lease the allottee shall be liable to pay license fee @ Re.1/-(one) per cottah or part thereof per annum from the date of delivery of possession of the land.
4. The sum of Rs.68,64,000/-lakhs already paid to KMDA as price of 11.44 cuttahs of land at Plot No.I-5/A under EKADP shall be treated as premium payable by M/s. Maruti Udyog for the land hereby offered for allotment.”
2. On 28th November, 2005 the Regional Service Manager –East-1 of MUL informed KMDA that the company did not get the land and the title deed from KMDA which are necessary for commencement of construction work of the training institute. Again on 20th February, 2007 it was mentioned in a letter written to the KMDA by the Regional Service Manager, East-1 of MUL that on their request KMDA allotted land for construction of regional training center at Kolkata. MUL paid Rs.68 lakhs as premium. However, KMDA failed to execute the lease deed and proposed to accept an alternate site as a licensee with licence fees. MUL again requested KMDA to deliver possession of the land in question. Finally on 18th December, 2008 the KMDA handed over permissive possession of bulk land under East Kolkata Area Development Project at plot No.I-28/3, Mouza Nonadanga at Sector ‘K’ free from all encumbrance measuring about 11.35 cottahs.
3. Further case of the petitioner is that in the year 2009 M/s Maruti Udyog Limited changed its name to M/s Maruti Suzuki India Limited and the new name was also incorporated with the register of companies under Section 21 of the Companies Act, 1956. Subsequently, the KMDA was asked to change the name of the licensee from M/s Maruti Udyog Limited to M/s Maruti Suzuki India Limited. On 30th June, 2009 the Regional Manager (East-1), MSIL wrote a letter to the Administrative Officer and Estate Manager, KMDA, Kolkata that as per the agreement construction of building is to be completed within 24 months from the date of taking possession of the plot. In order to apply for the approval of the building plans etc MSIL wanted to execute two license deeds between them and KMDA. On 21st July 2009 the Administrative Officer and Estate Manager, KMDA informed MSIL that the compet
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