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2024 Supreme(J&K) 143

IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR
TASHI RABSTAN, MOHAMMAD YOUSUF WANI, JJ.

Abdul Rashid Zargar - Appellant
Versus
Union Territory of J.&K. & Ors. - Respondents
LPA No. 182 of 2021, CM No. 8410 of 2021 c/w CCP (D) No. 12 of 2022
Decided On : 06-05-2024

Advocates Appeared:
For the Appellant : Mr. Z.A. Shah, with Mr. Asif Feroz Bhat.
For the Respondents: Mr. G.J. Bala, with Ms. Maleeha Zainab.

The appellant's acceptance of the terms and conditions of the lease transferred in his favor and his acquisition of possession of the subject land estopped him from challenging only the unpalatable terms, and he was held liable to pay the premium for the transfer of leasehold rights.

Headnote:

Evacuee Property - Lease Transfer - Jammu and Kashmir State Evacuee (Administration of Property) Act, 2006 - Section 10-A, Rule 13-C - The court dismissed the appeal challenging the transfer of leasehold rights and the requirement to pay premium. The appellant's argument that he was not liable to pay the premium was rejected by the court, which held that the terms and conditions of the lease were accepted by the appellant, and he cannot challenge only the unpalatable terms. The court found no illegality with the impugned judgment and dismissed the appeal.

Fact of the Case:

The appellant challenged the order transferring the lease in his favor, arguing that he was not liable to pay the premium as he had not been sanctioned a fresh lease, but had been given the leasehold rights by way of transfer from the lessee. The court dismissed the petition filed by the appellant as being without any merit.

Finding of the Court:

The court found that the appellant had accepted the terms and conditions of the lease transferred in his favor and had acquired possession of the subject land. The court held that the appellant cannot accept the beneficial terms and conditions of the lease and avoid those which are unpalatable or may not be profitable to him. The court also found that the appellant is estopped under law to dispute the condition of the order after implied acceptance of the same.

Issues: The main issue was whether the appellant was liable to pay the premium for the transfer of leasehold rights, and whether he had accepted the terms and conditions of the lease.

Ratio Decidendi: The court held that the appellant had accepted the terms and conditions of the lease transferred in his favor and had acquired possession of the subject land, and therefore, he cannot challenge only the unpalatable terms. The court also found that the appellant is estopped under law to dispute the condition of the order after implied acceptance of the same.

Final Decision: The court dismissed the appeal, maintaining the condition attached to the order dated 15th February 2013, and allowed the respondent-department to initiate action against the appellant if he fails to pay the balance amount of premium along with the annual/monthly rent within a reasonable time.

JUDGMENT :

Mohammad Yousuf Wani, J.

1. Impugned in the instant Letters Patent Appeal (hereinafter referred to as ‘the appeal’ for short) is the judgement dated 11th of November, 2021 passed by the learned Writ Court in petition bearing OWP No. 1059/2013 filed by the appellant and titled as above, whereby the said petition was dismissed as being without any merit.

2. The brief facts of the case relevant for disposal of the instant appeal are that a big chunk of evacuee land measuring 24 kanals falling under Khasra Nos. 198/87/83, 199/87/83, 200/87/83, 201-205/87/83, 188/80/89, 189/84/84, 192/86/89 and 193/86/89 situated at Estate Suthoo Kuthar Bagh, Tehsil Chadoora of District Budgam was leased out by the Custodian Department in favour of one Farooq Ahmad Rather S/o Gh. Mohammad Rather resident of Ajas Bandipora (hereinafter referred to as ‘the lessee’) in terms of the order of respondent No. 2 i.e. Custodian General bearing No. CG(EP) 425-26/96 dated 4th of October 1996, for a period of 40 years for industrial purposes. The lease agreement was drawn between the aforesaid lessee and the Evacuee Department on 31st of March 1998. After the property was leased out to the lessee, he raised the superstructures on the same. On 28th of May 2004, the Evacuee Department cancelled the lease of the aforesaid lessee-Farooq Ahmad Rather, on the ground of having cut down the trees illegally and raising multi-story building unauthorizedly, besides being in arrears of rent. The lessee questioned the action of the Custodian Department regarding cancellation of his lease agreement before the learned Special Tribunal and the learned Tribunal, vide its order dated 22nd of August, 2006, upheld the cancellation order of the Custodian Department. The lessee-Farooq Ahmad Rather, thereafter, threw challenge to the order of the Tribunal dated 22nd of August 2006 before this Court through the medium of Writ petition bearing OWP No. 655/2006, which was allowed vide order dated 19thof May 2010 by setting aside the aforesaid order passed by the Tribunal in a Revision Petition, with directions to proceed afresh in the matter in accordance with the law after issuing a formal notice to the lessee in respect of the alleged violations committed by him and after providing him a reasonable opportunity to submit his objections.

The responded No. 3-Custodian Evacuee Property, processed the matter vide its order dated 6th of November 2010 and referred the same to responded No. 2 i.e. Custodian General for fixation of premium under section 10-A of the Jammu and Kashmir State Evacuee (Administration of Property) Act, 2006 (hereinafter referred to as ‘the Act’ for short).

The lessee, however, showed his reluctance to pay the premium on the ground that the lease in his favour was granted prior to the issuance of SRO 149 of 1985 dated 15th of April 1985 providing for payment of such premium and, therefore, he was not liable to pay the same. While this was going on, the lessee submitted an application to respondent No. 2, stating therein that he intends to transfer the leasehold rights in favour of the present appellant who has also been given full authority for dealing with the Custodian Department in respect of all the matters connected with the leased land. On the request of the lessee, made through the appellant, the case for transfer of the lease from the lessee to the appellant was processed in the office of responder No. 2. The lessee-Farooq Ahmad Rather negotiated the premium with the Custodian Department and deposited ?20.00 lacs in advance through the appellant. The respondent-Department in that behalf passed an order bearing No. 217 of 2013 dated 15th of February 2013. The aforesaid order, governing the transfer of leasehold rights from the lessee to the appellant subject to various terms and conditions, inter alia as per the condition No.01, provided : -

    01.“That the lessee shall pay premium of Rs. 1.28 crore (Rupees one crore and Twenty eight lacs) out of whic

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