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2024 Supreme(Cal) 934

IN THE HIGH COURT AT CALCUTTA
BIVAS PATTANAYAK, J.
M/s. Twinstar Industries and Another – Petitioners
Versus
West Bengal Small Industries Development Corporation Ltd. and Others – Respondents
W.P.A. No. 4280 of 2014, W.P.A. No. 22402 of 2023
Decided On : 16-08-2024

Advocates:
Advocate Appeared:
For the Petitioners: Srijib Chakraborty, Aditya Mondal.
For the Respondents: Kamal Kr. Chattopadhyay, Susanta Pal.

IMPORTANT POINT
Tenants under the West Bengal Government Premises (Tenancy Regulation) Act, 1976 are entitled to renewal of lease upon payment of arrears, and eviction requires proper notice.

Headnote:

Eviction - Tenancy - West Bengal Government Premises (Tenancy Regulation) Act, 1976 - Sections 3(1), 4(2) - The court interpreted the provisions of the Act, emphasizing the necessity of proper notice for eviction and the tenant's right to renew the lease upon payment of dues, leading to the quashing of the eviction order.

Fact of the Case:

The petitioners, a proprietorship firm, were allotted industrial plots in 1989 but faced eviction due to non-payment of rent. They challenged the eviction notice under the West Bengal Government Premises (Tenancy Regulation) Act, 1976, claiming their right to renew the lease after paying arrears.

Finding of the Court:

The court found that the eviction order was issued without proper notice and that the petitioners had made efforts to pay their dues, thus entitling them to renewal of the lease and restoration of possession.

Issues: 1. Whether eviction proceedings under the Act are maintainable? 2. Are the petitioners entitled to lease renewal? 3. Was a fresh notice necessary before eviction? 4. Can the petitioners avail benefits of recent circulars? 5. Are they entitled to restoration of possession?

Ratio Decidendi: The court held that eviction under the Act requires proper notice and that tenants who pay arrears are entitled to lease renewal, emphasizing the beneficial nature of the legislation.

Result: The eviction order was quashed, and the petitioners were granted lease renewal and restoration of possession.

JUDGMENT :

BIVAS PATTANAYAK, J.

1. The fact in brief involved in the present writ petitions is enumerated as herein-below:

    (i) The petitioner no. 1 is a proprietorship firm under the name and style of ‘M/s Twinstar Industries’ represented by proprietor being petitioner no. 2. Upon application of the petitioners the respondent authorities allotted plot K-10 and K-10/2, Behala Industrial Estate, at 620, Diamond Harbour Road, Kolkata-700034 admeasuring about 2070 Sq. ft. and 689 Sq. ft. in favour of the petitioner no. 1-firm vide its memo no. SB561/5 dated 15th May, 1989 under a deed of lease executed between the petitioner no. 1-firm and respondent no. 1-West Bengal Small Industries Development Corporation Limited (hereinafter referred to as the ‘WBSIDCL’) on 8th June, 1989 for a period of nine years in lieu of certain consideration and the possession of the said property was handed over to the petitioner no. 1-firm on 8th September, 1989. Consequent thereof, the petitioner no. 1-firm took steps for development of the said property including level of raising land, construction of shed and replacement of electric lines.

(ii) By letter dated 24th February, 1997, the respondent authorities informed the petitioners that would take over the possession of the demised property with effect from 12th March, 1997. On 6th March, 1997 the petitioner no. 1-firm made a representation against the aforesaid letter. Since no action were taken in respect of the such representation, the petitioner no. 1-firm filed a civil suit being Title Suit No. 88 of 1997 before the learned Civil Judge (Junior Division), 1st Court, at Alipore against respondent no. 1-WBSIDCL praying for declaration that West Bengal Government Premises (Tenancy) Regulation Act, 1976 (hereinafter referred to as the ‘Act of 1976’) is not applicable to priority sector scheme of the Government of West Bengal and a decree of permanent injunction restraining respondent no. 3 herein from taking any action and/ or disturb the smooth working and functioning of the factory of petitioner no. 1.

(iii) The term of the lease was extended from time to time and the petitioners continued to be in possession of the allotted plots since 8th September 1989. Due to failure to deposit necessary rent before the respondent authorities, a show cause notice being No. 2348/1 dated 5th November, 2012 was served upon the petitioner. Pursuant thereto a hearing was conducted by the respondent authorities on 9th January, 2013 and an order was passed thereby directing the petitioners to pay all statutory dues in five equal instalments vide order no. SB-3172(3) dated 28th January, 2013.

(iv) Due to financial hardship the petitioners could not make payment in terms of the aforesaid order, as a consequence thereof the petitioners were served with a notice under Memo no. SB-400/3 dated 3rd May, 2013 whereby they were called upon to quit and deliver vacant possession of the said property within the period of 30 days.

(v) Challenging such notice for eviction issued under Section 3(1) of the Act of 1976, the petitioners preferred an appeal before respondent no. 2 on 17th May, 2013. Upon conclusion of hearing of appeal, the petitioners prayed for instalment mechanism and thereafter respondent no. 2 vide its letter dated 8th August, 2013 directed the petitioners to make payment of Rs. 4,00,000/- within 18th August, 2013 and remaining amount of Rs. 2,26,140/- by 16th September, 2013.

(vi) On 16th August, 2013 the petitioners replied to the letter dated 8th August, 2013 wherein it stated that in appeal a settlement was reached to the extent that the petitioners are required to pay a sum of Rs.4,00,000/- out of the outstanding dues of Rs. 6,26,140/- and remaining amount of Rs. 2,26,140/- was waived. Since no response was received from the respondent no. 1-WBSIDCL, the petitioners again renewed their prayer for payment of Rs. 4,00,000/- only and for waiver off the interest portion. The respondent authorities fixed the matter for he

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