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2022 Supreme(Cal) 1493

IN THE HIGH COURT AT CALCUTTA
HARISH TANDON, SHAMPA DUTT (PAUL), JJ.
W.B. State Warehousing Corporation – Appellant
Versus
Adventz Securities Enterprises Ltd. – Respondent
FAT 267 Of 2021 with IA No. CAN 2 Of 2022 With FAT 268 Of 2021
Decided On : 25-11-2022

Advocates Appeared:
For the Appellant : Mr. Sagar Bandyopadhyay, Mr. Mainak Krishna Ghosh, Ms. Debdatta Saha, Mr. Soumya Mukherjee.
For the Respondent: Mr. Probal Mukherjee, Ms. Monika Kalra, Mr. Farhan Ghaffar, Mr. Ankit Shroff, Ms. Ananya Chatterjee.

Headnote:

Transfer of Property Act - Section 106 and 111 - Commercial Courts Act, 2015 - Suit premises - Wrongful and illegal occupation - Mesne profits - Recovery of possession - Suit for recovery of possession and arrear rent - Decreed - Whether the reliefs sought for come within the commercial dispute - Held, first witness of defendants has admitted receipt of said notice and even went on to say that they did not comply requisitions made therein - Section 111 of Transfer of Property Act determines lease on expiration of period given in statutory notice - Respondent has been able to prove that by virtue of a scheme of amalgamation/arrangement sanctioned by High Court all assets of outgoing concern stood vested in transferee company and mere change of name does not alter position - Position would have been different when owner of premises who have leased out same to an outgoing concern does not accept scheme of amalgamation and/or arrangement but it is not open to sub lessee who attorned his tenancy upon payment of rent to challenge derivative title of transferee company - Appeal dismissed

JUDGMENT :

(Harish Tandon, J.) :

1. The instant appeal arises from a judgment and decree dated 15th March, 2021 passed by the Commercial Court at Alipore in Title Suit no. 26 of 2019 whereby and whereunder the suit for recovery of possession and the arrear rent was decreed.

2. The said title suit was filed by the appellant in the Court of Civil Judge (Senior Division) at Alipore for recovery of possession, outstanding rent with interest and the mesne profits for the wrongful and illegal occupation of the appellant at the suit premises.

3. The facts emanate from the plaint of the said suit are adumbrated hereunder. One Poddar Projects Ltd. was a lessee in respect of a godown measuring 30 thousand square feet area at 1, Oil Installation Road, Calcutta – 88 under the Kolkata Port Trust. By virtue of the scheme of arrangements sanctioned by the Calcutta High Court in CA no. 226 of 1997, all the assets of the said Poddar Projects Ltd. stood transferred and vested in Hope Cardamom Estate Ltd. Subsequently by the scheme of amalgamation sanctioned by the High Court in CA 462 of 1999 all the state of the said Hope Cardamom Estate Ltd stood transferred to and vested in Precision Paper Industries Ltd. Thereafter, the name of the said Precision Paper Industries Ltd. was changed to Poddar Heritage Corps Ltd. with effect from 19th September, 2002 which was again changed to Poddar Heritage Corp Ltd. with effect from 4th February, 2003. Subsequently, the name of the Poddar Heritage Corp Ltd. was again changed to Adventz Securities Industries Ltd. the respondent herein with effect from 5th August, 2010. The appellant was inducted as a sub-lessee in respect of the said demised premises by the original lessee i.e., Poddar Projects Ltd. at a rent of Rs. 3.50 per square feet per month on the basis of an agreement dated 24th November, 1995. It is stipulated in the said agreement that the tenure of the said lessee would be for a period of 3 years and in the event the possession is not delivered upon the expiration of the term, the rent would be increased by 15 per cent for the next 15 years and if such default still continues then it would further be increased for 15 years after an interval of every three years on the same terms and conditions. Admittedly, the possession was never delivered and by virtue of the agreement, the appellant continued in possession of the demised premises. In and around the month of January, 2002, a suit for recovery of possession was filed against the appellant, being Title Suit no. 3 of 2002 before the learned 8th Civil Judge (Senior Division) at Alipore. Since the said suit was filed under the provision of West Bengal Premises Tenancy Act which, according to the respondent is not applicable, the same was withdrawn upon obtaining leave of the Court to file a fresh suit. Such leave was granted on 22nd November, 2010. After obtaining such leave, a notice under Section 106 of the Transfer of Property Act was issued on 24th May, 2011 determining the said tenancy which was duly served upon the appellant. It is thus stated in the said plaint that after the expiration of the period provided in the said statutory notice, the appellant failed and neglected to comply the requisition made therein by delivering the possession of the demised premises and, therefore, are in wrongful occupation for which they are liable to pay the mesne profits and/or damages. It is further alleged that the appellant has also neglected to pay the arrear rent and, therefore, a decree for the recovery thereof is also sought.

4. The appellant appeared and contested the suit by filing the writing statements raising a plea that the respondent has no right, title and interest in respect of the suit premises. It is stated that one Kolkata Port Trust is the owner of the demised premises which was leased out to the Poddar Projects Ltd. for 30 years with effect from 15.09.1972 with the right to sublet the said premises. Since the said lease expired on 14.09.2002 an

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