PRADEEP NANDRAJOG, J.

1. Perpetual lease-hold rights in Plot No.4 and 5 ad-measuring 7000 sq.metres, Phase-4, Industrial Area, Gwalthi, District Bilaspur, (Himachal Pradesh) belonging to the State of Himachal Pradesh were granted by the State of Himachal Pradesh in favour of M/s Pilot Technologies (India) Ltd. on September 19, 2007. As per the grant, the lessor had the right to recover upto 50% unearned increase if lease-hold rights were transferred for consideration; upon prior permission being granted by the lessor.

2. The lessee company sought for a permission to mortgage the subject property and on September 20, 2007 i.e. a day after the perpetual lease-deed was executed, the competent authority of the State of Himachal Pradesh conveyed approval for the property to be mortgaged, but wrote in the letter that the plot demise in perpetuity cannot be sold without the prior permission of the lessor; a condition which we find conflicts with the right conferred in favour of the mortgagee inasmuch as if the mortgagee cannot enforce the mortgage by requiring the mortgaged proper