IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SONIA GOKANI, HEMANT M. PRACHCHHAK, JJ.
The Legal Heirs Of Deceased Fakirchand Ambaram Patel & others – Appellants
Versus
O.L.of M/s.Shri Amruta Mills Ltd. & 1 Others – Respondents
R/O.J.APPEAL NO. 60 of 2003, R/COMPANY APPLICATION NO. 47 of 1993, COMPANY APPLICATION NO. 428 of 2008, CIVIL APPLICATION (OJ) NO. 1 of 2009, R/O.J.APPEAL NO. 13 of 2009
Decided on : 24-02-2023
| Table of Content |
|---|
| 1. ownership and transfer of leasehold land. (Para 1 , 2 , 3) |
| 2. judicial review on lease continuity and rights. (Para 4 , 19 , 20 , 21) |
| 3. arguments regarding non-payment and lease termination. (Para 5 , 6 , 8) |
| 4. legal determination and binding conditions of lease. (Para 9 , 11 , 18) |
| 5. dismissal of appeals and order against possession. (Para 22 , 23) |
JUDGMENT :
HEMANT M. PRACHCHHAK, J.
1. The O. J. Appeal No.60 of 2003 is filed challenging the impugned judgment and order dated 30.07.2002 passed by this Court (Coram: Hon’ble Mr.Justice D.A. Mehta) in Company Application No.47 of 1993 in Company Petition No.72 of 1991 whereby the learned Company Judge rejected the said application. The O. J. Appeal No.13 of 2009 is filed challenging the impugned judgment and order dated 17.11.2008 passed by this Court (Coram: Hon’ble Mr.Justice K. A. Puj) in Company Application No.428 of 2008.
2. Brief facts of O. J. Appeal No.60 of 2003 are in nutshell as under:-
2.1 That deceased Fakirchand Ambaram Patel and deceased Shakerbhai Boghabhai and deceased Channabhai Boghabhal were owners of the land bearing survey No. 46/3, 47, 50/1 and 46/2 and they were in possession of the said land. The predeceased had executed the lease deed in favour Shri Ramanlal Lallubhai vide survey no. 1788 dated 20.04.1928 and accordingly being legal heirs, the appellants have derived the interest and ownership of the land in question.
2.2 Pursuant to the lease deed, the possession of the land was transferred to lessee i.e. Ramantal Lallubhai and Ramanilal Lallubhai transferred his leasehold right to M/s Vikram Mills Ltd., and M/s Vikram Mills Ltd. transferred the land in question to the company in liquidation i.e. M/s. Shri Amruta Mills Limited and M/s. Shri Amruta Mills Limited has been lead into winding up process and the original appellant preferred Company Petition No.72 of 1991 and in pursuance of the order dated 22.11.1991 passed by learned Company Judge in the said company petition, the official liquidator has taken over the possession of the properties of company on 17.12.1991.
2.3 As there is arrears of the land revenue of the company in winding up, the lease deed is terminated and appellants are entitled to receive peaceful and vacant possession of the land in question. The notice came to be issued to the official liquidator on 09.03.1992, however, the official liquidator has not taken any action in that regard.
2.4 The land revenue authority has initiated the action and the Collector has issued notice for recovery of land revenue stating that if the land revenue is not paid, the land shall be attached and sold away by public auction.
2.5 The official liquidator had addressed a letter dated 09.03.1992 with regard to handing over the possession of land. The appellants preferred Company Application No.47 of 1993 before the Company Court. Thereafter, the learned Company Judge had passed an order on 07.10.1994 in Company Application No. 47 of 1993 and allied matters and against that order, the appellants and other persons had filed O.J. Appeal No. 48 of 1998 before this Court and this Court after hearing all the parties passed an order on 16.12.1999 by which the matter was remanded back for deciding a fresh and accordingly the order passed by learned Single Judge was set aside.
2.6 Thereafter, the appellants preferred Company Application No.47 of 1993, which came to be disposed of along with the group matters by this Court vide the impugned judgment and order dated 07.10.1994. Against the said order, the appellants preferred O.J. Appeal No.48 of 1998, which came to be disposed of by the Division Bench (Coram: Hon’ble Mr. Justice B. C. Patel and Hon’ble Mr. Justice K. M. Mehta) vide order dated 16.12.1999 by remanding back the matter for deciding afresh and after the order dated 07.10.1994, the respondent - Company failed to make payment of the rent and the Company is bound to take care of the land in question and it was obligatory on the part of the lessee th
Anthony Vs. K. C. Ittoop and sons and others reported in (2000) 6 SCC 394;
Balwant Singh v. Daulat Singh (D) By Lrs.
Chapsibhai Dhanjibhai Danad Vs. Purushottam reported in (1971) 2 SCC 205;
Jabal C. Lashkari and others Vs. Official Liquidator and others reported in (2016) 12 SCC 44;
M/s. Bajaj Auto Limited Vs. Behari Lal Kohli reported in (1989) 4 SCC 39;
Samir Mukherjee Vs. Davinder K. Bajaj and others reported in (2001) 5 SCC 259;
Suraj Bhan v. Financial Commissioner
K.B. Saha and Sons Private Limited Vs. Development Consultant Limited reported in (2008) 8 SCC 564;
Shyam Narayan Prasad Vs. Krishna Prasad and others reported in (2018) 7 SCC 646;
Shantibai and others Vs. Dinkar Balkrishna Vaidya and others reported in (1994) 4 SCC 85;
Shree Chamundi Mopeds Ltd Vs. Church of South India Trust Association GSI Cinod Secretariat
Ravindra Ishwardas Sethna and another Vs. Official Liquidator, High Court
Devinder Kumar Bajaj and others Vs. Pure Drinks (New Delhi) Pvt. Ltd. Reported in 2001 (57) DRJ 773;
Uttra Achuyt Chinubhai Vs. O.L. Nanikram Shobhraj Mills reported in 2010 (5) GLR 4029;
Bhimabai Mahadeo Kambekar v. Arthur Import & Export Co.
Dunlop India Limited Vs. A. A. Rahna and another reported in (2011) 5 SCC 778;
Faqruddin v. Tajudd in (2008) 8 SCC 12
International Coach Builders Ltd Vs. Karnataka State Financial Corporation
Jabal C. Lashkari and others Vs. Official Liquidator and others reported in (2016) 12 SCC 44
Municipal Corporation, Aurangabad v. State of Maharashtra
Prahlad Pradhan v. Sonu Kumhar
Rajinder Singh v. State of J&K
Shree Chamundi Mopeds Limited Vs. Church of South India Trust reported in (1992) 3 SCC 1;
Sunitibala Debi vs. Dharae Sundari Deb
T. Ravi v. B. Chinna Narasimha
Trivenibai and another Vs. Smt. Lilabai reported in AIR 1959 SC 620
Vora Rahimbhai Haji Hasanbhai Vs. Vora Sundarlal Manilal and others reported in (1985) 4 SCC 551;
A statutory body retains no right to resume possession of leased land post-winding up without permission from the Company Court, despite lease cancellation being legally permissible.
The court clarified that an involuntary sale by the Official Liquidator does not violate lease restrictions requiring consent for voluntary sales.
A lease must be explicitly stated as permanent to be considered as such; otherwise, it is interpreted as a lifetime tenancy, allowing for the reversion of possession upon the death of the lessee.
Court clarified that post-liquidation, property possession must be secured legally; unauthorized dispossession is not permitted, aligning with principles of due process.
Tenancy rights are not assets of a company in liquidation, and the official liquidator must substantiate the need for premises to retain possession under Section 446 of the Companies Act.
The court affirmed that mere acceptance of rent does not imply lease renewal, allowing eviction under Article 226 when the lease has expired without mutual agreement for renewal.
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