The authority to cancel a lease lies solely with the government, and any cancellation must adhere to principles of natural justice, including providing the lessee an opportunity to be heard.

JUDGMENT :

1. By way of the present writ petition, the petitioner-Firm has challenged the order dated 16.10.2014 passed by the respondent- Gulmarg Development Authority, (‘GDA’ for short) cancelling the lease of 06 kanals and 05 marlas of land bearing Survey No. 282, located at Gulmarg Kashmir, which was leased out to the petitioner-Firm namely M/S Indo Kashmir Carpet Factory, on the ground that the petitioner had not utilized the leased land for the purpose it was leased out in its favour and the said land is also vacant as on date and without any construction. The petitioner has complained in the writ petition that though the lease stood executed, however, on account of dispute between the Gulmarg Development Authority and the Forest Department, clear possession was not handed over to the petitioner and that the petitioner was not given any permission to raise construction. Also challenge is thrown to the order of eviction issued under Section-5 of the Jammu & Kashmir Public Premises (Eviction of Unauthorized Occupants) Act 1988.

2. On perusal of the impugned cancellation order dated 16.10.2014, it is clearly evident that before the eviction order was issued under Section 5 of the Jammu & Kashmir Public Premises (Eviction of Unauthorized Occupants) Act 1988, there was a finding rendered by the Chief Executive Officer, Gulmarg Development Authority to the effect that though the land was leased out for the purpose mentioned in the lease agreement, including construction of huts/hotel, however, no constructions were made by the petitioner. Accordingly, it was considered by the Chief Executive Officer, Gulmarg Development Authority that the petitioner had violated the conditions of the lease by not utilizing the leased land for its intended purpose, and the land remained vacant without any construction. Furthermore, as mentioned in the impugned cancellation order, the petitioner was given an opportunity by way of issuance of show case notice to explain as to why the lease shall not be cancelled. However, the petitioner failed to explain and consequently, by the impugned order dated 16.10.2014, the lease deed dated 11.03.1978 for the land measuring 06 kanals and 05 marlas was declared to be cancelled with immediate effect. The petitioner was deemed an encroacher of the land previously leased in his favour and was consequently ordered to be evicted in terms of Section 5 of the Jammu & Kashmir Public Premises (Eviction of Unauthorized Occupants) Act 1988.

3. It would be advantageous to give briefly the following factual background of the present case:-

3.1. That, in acceptance to bid offered vide Government Order No.140-UD of 1978 dated 11.03.1978, amongst others, sanction was accorded to the leasing out of Plot Nos. 1, 2, 3 and 4 at Site No. 4 in favour of the petitioner for a period of 40 years. That, consequent to the issuance of aforesaid order and in compliance to the mandate of the Land Grants Act 1960, and the Rules framed thereto, a lease agreement was executed between the Government and the petitioner. As per the terms and conditions of Condition No. 2(1) of the lease, the petitioner had to erect thereon a building, for commercial purposes, according to a plan and elevation approved by the prescribed authority within two years.

3.2. Petitioner claims, that immediately after execution of the lease agreement, the petitioner submitted a site plan and drawing to the competent authority. On consideration of the application, an objection was taken by the then Chief Executive Officer, Gulmarg Project Organization before the Chairman BOCA pointing out that the site declared as a hotel site, is not in conformity with the land use declared in the Master Plan of Gulmarg. That, the petitioner, thereafter, was informed that in the year 1988, the office of the Chief Executive Officer, Gulmarg Project Organization was gutted in fire during the night of the 27th and 28th October 1984, thereby destroying the entire record. This fact was admitte