The court emphasized the importance of upholding lease terms and the inapplicability of conversion schemes to terminated leases.

JUDGMENT

1. LPA 147/2023 is directed against the Order dated 23.09.2022, passed by the learned Single Judge in W.P.(C) 213/2010 and LPA 446/2023 is directed against the Order dated 23.09.2022, passed by the learned Single Judge in W.P.(C) 4250/2007.

2. The Appellants herein were Writ Petitioners in the abovementioned Writ Petitions.

3. W.P.(C) 213/2010 was filed by the Appellant in LPA 147/2023 seeking for quashing of the Order dated 06.06.2003, passed under Section 5(1) of the Public Premises (Eviction of Unauthorised Occupants) Act, l97l (hereinafter referred to as " the PP Act") passed by the Estate Officer, and Order dated 30.10.2009, passed by the learned District Judge, Karkardooma Courts, (hereinafter referred to as "the Appellate Court") in PPA No. 3/08/03.

4. W.P.(C) 4250/2007 was filed by the Appellant in LPA 446/2023 seeking for quashing and setting aside letter dated 20.03.2007, issued by the Respondents herein rejecting the representation filed by the Appellant for conversion of his premises, being Plot No. 133, Functional Industrial Estate, Patparganj, Delhi (hereinafter referred to as 'the premises in question') from leasehold to freehold.

5. Since both the appeals arise from the same facts, with the consent of all the parties they are being heard analogously and are being disposed of by a common judgment.

6. The premises in question was leased to M/s Jeps Pharma (P) Ltd. through its Directors Mr. Jatinder Singh Kohli and Mr. Rakesh Bajaj (hereinafter referred to as "the Lessee") by the Delhi Administration vide Perpetual Lease Deed dated 28.01.1993. It is pertinent to mention here that Clause 13 of the Lease Deed barred the Lessee from using the premises in question for purposes other than running the industry of "Human and Veterinary Pharmaceuticals viz tablets, capsules and liquids". Further, Clause 5(a) of the Lease Deed specifically restrains the Lessee from selling, transferring, assigning, sub-letting or otherwise parting with the possession of the whole or any part of the premises in question without obtaining previous consent of the Lessor.

7. A report dated 17.02.1997 of the Estate Officer revealed that the premises in question had been converted into Jhankar Banquet Hall. Show Cause Notices dated 26.09.1997 and 23.02.1998 issued to the original allottee and the same was also marked to Jhankar Banquet Hall to show cause as to why the lease should not be cancelled. The original allottee was to reply within 7 days of the Show Cause Notice dated 26.09.1997 and within 15 days of the Show Cause Notice dated 23.02.1998 but no reply was issued.

8. Material on record discloses that on 15.03.1995, an Agreement to Sell was executed by the Lessee in favour of Mahesh Kapoor (Appellant in LPA 446/2023 and Appellant No.2 in LPA 147/2023) and a General Power of Attorney (hereinafter referred to as 'GPA') was executed by the Lessee in his name. It is pertinent to mention here that no consent was obtained by the Lessee before selling the premises in question.

9. It is stated that vide letter dated 27.05.1998, the lease of the premises in question was cancelled by the Office of Commissioner of Industries, Government of NCT of Delhi, on the ground that the Lessee has violated Clause 5(a) of the Lease Deed which stipulated that the Lessee shall not sub-let, sell transfer or otherwise part with the possession of the whole or any part of the said premises except with the previous consent in writing of the Lessor. It is further mentioned in the said letter that by using the premises in question for running a restaurant/banquet hall, the Lessee has also violated Clause 13 of the Lease Deed wherein it is mentioned that the premises in question will not be used for purposes other than that of running the industry for manufacture of Human and Veterinary Pharmaceuticals viz tablets, capsules and liquids. The Lessee was directed to handover the peaceful possession of the premises in question to the Estate Office of the Co