IMPORTANT POINT
The court established the principle that the terms and conditions of an allotment order/lease deed must be adhered to, and the authority has the power to cancel the lease deed in case of violation.

ORDER :

1. The issue involved in these writ petitions is common, hence, with the consent of the counsel for the parties arguments have been heard together and both these writ petitions are decided by the present common order.

2. For the sake of convenience, the facts and the prayer mentioned in the SB Civil Writ Petition No.7306/2022 are taken into consideration. The instant petition has been filed by the petitioner with the following prayer:

“In view of the above, it is respectfully prayed that the Hon’ble High Court by way of appropriate writ, order or direction be pleased to grant the following reliefs to the Petitioner:-

i. To allow the present Writ Petition;

ii. To quash and set aside the Impugned Judgment dated 03.03.2022 in its entirety passed by the Ld. JDA Appellate Tribunal, Jaipur in Appeal No.365 of 2018 titled as Axis Trustee Services Ltd. vs State of Rajasthan & Ors.;

iii. To allow the Appeal No. 365 of 2018 titled as Axis Trustee Services Ltd. vs State of Rajasthan & Ors. filed by the Appellant before the Learned JDA Appellate Tribunal Below as prayed therein and to quash and set aside the impugned order dated 23.08.2017 cancelling the allotment letter dated 09.08.2007 and the lease deed dated 16.09.2009 issued by Jaipur Development Authority;

iv. To hold and to declare that SARFAESI Act, 2002 will override the provisions of the Jaipur Development Authority Act, 1982 to the extent of inconsistency;

v. To hold and to declare that the Petitioner as well as the banks and financial institutions have a right under SARFAESI Act, 2002 as a secured creditor to take physical possession of the subject property namely “40 acres of land out of 188.08 bigha land in Khasra No. 165 and 505 area of 188.08 bigha land in village Jamdoli, Jaipur” and to sell the same under section 13(4) of the SARFAESI Act, 2002 for recovery of their dues which as of now are more than Rs.600 Cr.

vi. Any just and proper order which the Hon’ble court may deem fit may please be granted in favour of the Petitioner.”

RIVAL SUBMISSIONS:

3. Learned counsel for the petitioners submit that the land in question was allotted by the Jaipur Development Authority (for short ‘JDA’) to M/s Neesa Leisure Limited (for short “NLL”) on certain terms and conditions for construction of Golf Course and Golf Academy, for which a lease deed was also executed in between the petitioner-NLL and the JDA. Subsequently, a clarification was made by the JDA and thereafter, the NLL was allowed to raise construction of Golf Course-9 Hole, Golf Academy with audio video classroom, two driving ranges with 24 hilling stations, mini Golf for children, virtual Golf, Golf Cottages, conference halls, indoor and outdoor banquets, Billiard room, indoor sports facilities, outdoor sport facilities, night Golfing facilities, pro-shop, Swimming pool, Spa, Gymnasium, business lounge and Coffee Shop. For raising construction of all these facilities, the petitioner-NLL applied for loan of Rs.175 Crore from different Banks and financial institutions i.e. 1. Asset Care and Reconstruction Enterprise Ltd. (Assignee of Axis Bank Ltd.), 2. Bank of India, 3. Corporation Bank, 4. Oriental Bank of Commerce, 5. Edelweiss Asset Reconstruction Company Ltd., 6. Edelweiss Asset Reconstruction Company Ltd., 7.SIDBI, Navjeewan Amrit Jayanti Bhawan, Ahmedabad, 8. Syndicate Bank and thereafter, the loan of the aforesaid amount was advanced to the petitioner-NLL. Counsel submits that the construction raised as per the terms and conditions of the allotment order and the lease deed but all of a sudden, allotment of the petitioner-NLL was cancelled by the JDA vide impugned order dated 23.08.2017 indicating therein that there were certain violations of the terms and conditions and a 5-Star hotel, villas, etc. were constructed over the land allotted to the petitioner-NLL. Counsel submits that a registered lease deed cannot be cancelled by the JDA. It is only the competent Civil Court who can cancel the registered lease deed, in cas