JUDGMENT :

1. Appellant-defendant-Urban Improvement Trust (hereafter referred as ‘UIT’) has preferred this second appeal under Section 100 CPC assailing the judgment and decree dated 05.01.2018 passed in Civil First Appeal No.78/2017 by the Court of District Judge, Kota affirming the judgment and decree dated 18.05.2017 passed in Civil Suit No.7/2014 by the Court of Additional Civil Judge No.1, Kota (South) wherein and whereunder the civil suit for declaration and permanent injunction filed by the respondent No.1-Plaintiff (hereafter referred as ‘the plaintiff’) was decreed.

2. In short the UIT had executed registered lease deed dated 02.03.2012 for the commercial plot measuring 1002.80 Sq. Mts. Situated near Petrol Pump, MPS Nagar, Station Road, Kota in favour of the plaintiff pursuant to the auction proceedings and possession had also been delivered whereupon the plaintiff had obtained loan from the Rajasthan Financial Corporation (RFC) after obtaining NOC from the UIT, however later on, the UIT cancelled the lease deed vide order dated 26.12.2013. Hence, the plaintiff instituted civil suit to declare the order dated 26.12.2013 passed by the UIT canceling the registered lease deed of plaintiff dated 02.03.2012 as null and void and consequential relief for permanent injunction not to cause interference in use and occupation of the commercial plot in question. The plaintiff’s suit has been decreed, however, the UIT is assailing the judgments and decree for upholding the cancellation of lease deed on the ground that the plaintiff participated in the auction proceedings in the name of partnership firm Orbit Enterprises, whereas the lease deed has been got executed in favour of M/s Orbit Enterprises & Developers Pvt. Ltd., a private limited company, hence the lease deed suffers from misstatement and misrepresentation. As such the UIT has rightly canceled the lease deed invoking the provisions of Section 11 ( [k of the registered lease deed dated 02.03.2012.

3. The facts of case which are required to be considered to decide the issue involved in the second appeal, succinctly stated, are as under:-

3.1 That the UIT issued an advertisement to auction the commercial plot in question measuring 1002.80 Sq. Mts. Situated near Petrol Pump, MPS Nagar, Station Road, Kota for the scheduled date of 19.10.2011. The plaintiff participated in the auction proceedings and was found to be highest bidder. The auction was confirmed in favour of plaintiff, who as per the rules of auction, deposited 25% i.e. Rs.65,34,935/- of the auction through cheque and later on, deposited the remaining 75% i.e. Rs.2,48,96,463/- through cheque. The UIT executed lease deed dated 02.03.2012 in favour of the plaintiff and the same was got registered before the Sub-registrar, Kota on 15.03.2012. Thereafter, plaintiff sought permission from UIT to take the loan from the Rajsthan Financial Corporation (RFC) by mortgaging the commercial plot in question. The UIT, issued NOC dated 27.03.2012, permitting the plaintiff to mortgage the plot in question with RFC for loan purpose. Thereafter, the UIT issued notice dated 27.11.2013 asking the plaintiff to submit the relevant documents of the registration of private limited company. The plaintiff submitted the required document, however the UIT issued another notice dated 11.12.2013 alleging inter alia that the plaintiff company had not participated in the auction and the lease deed issued in favour of and in the name of plaintiff company suffers from misstatement and misrepresentation, as such the lease deed is liable to be cancelled. Basically the stand of UIT is that in fact one partnership firm M/s Orbit Enterprises through partners Smt. Omwati and Smt. Manju participated in the auction proceedings on 19.10.2011 and on that date, the plaintiff company M/s Orbit Enterprises and Developers Pvt. Ltd. even was not incorporated, however later on at the time of execution of the lease deed, certain persons of the plaintiff-company hobn