IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
Hindustan Auto Agency, Sector-IV, Bokaro Steel City, Bokaro, through one of its partners, Gopal Kumar Lodha - Petitioner
Versus
Steel Authority of India Ltd., Bokaro Steel City, Bokaro, through its Chief Executive Officer - Respondent
W.P.(C) No. 1338 of 2021
Decided On : 02-07-2021
License Agreement - Unauthorized Occupation - Public Premises (Eviction of Unauthorized Occupants) Act, 1971 - Indian Easements Act, 1882 - [Sections 5 & 7 of the Act, 1971] - [Indian Easements Act, 1882] - The court discussed the unauthorized occupation of the premises by the petitioner, the terms of the license agreement, and the revocation of the agreement. The court also referred to the provisions of the Public Premises Act, 1971 and the Indian Easements Act, 1882, and their applicability to the case.
Fact of the Case:
The petitioner was declared an unauthorized occupant of a plot and directed to vacate the premises and pay arrears of rent and damages. The petitioner argued that the structure on the premises was temporary and that it had not violated the license agreement.
Finding of the Court:
The court found that the petitioner had occupied the premises without renewing the license agreement and had made permanent constructions, violating the terms of the agreement. The court upheld the orders of the Estate Officer and the District Judge, dismissing the petitioner's appeal.
Issues: Unauthorized occupation, validity of the license agreement, revocation of the agreement, and alleged violations of the agreement.
Ratio Decidendi: The court held that the petitioner's occupation was unauthorized, the license agreement was not irrevocable, and the revocation was valid as per the terms of the agreement.
Final Decision: The writ petition was dismissed as devoid of merit.
JUDGMENT :
The present writ petition has been filed for quashing the judgment dated 03.03.2021 (Annexure-17 to the writ petition) passed by the learned District Judge-III, Bokaro in Civil Miscellaneous Appeal No. 15 of 2019 whereby the appeal preferred by the petitioner against the order dated 07.08.2019 passed by the Estate Officer, Bokaro Steel City, Bokaro in Case No. A/E 117 of 2018 has been dismissed affirming the order passed by the Estate Officer, B. S. City, Bokaro. Further prayer has been made for quashing the order dated 07.08.2019 (Annexure-14 to the writ petition) passed by the Estate Officer, Bokaro Steel City, Bokaro in Case No. A/E 117 of 2018 whereby the petitioner has been declared as an unauthorized occupant of Plot No. R-2, City Centre, B. S. City, Bokaro and has been directed to vacate the said premises within 15 days from the date of issuance of the order and to pay arrears of rent @ Rs.16,140/- per month w.e.f. 13.05.2018 till its final payment as well as for payment of damages of Rs.4,50,000/- for the period of unauthorized occupation and construction over the said premises w.e.f. 13.05.2018 till the date of its final payment.
2. The factual background of the case, as stated in the writ petition, is that on 15.04.1997, Maruti Udyog Ltd. issued a Letter of Intent (LOI) in favour of the petitioner offering authorized dealership of the vehicles of Maruti Udyog Ltd. at Bokaro. In pursuance of the said LOI issued by Maruti Udyog Ltd., the petitioner requested the respondent to allot the land for constructing a dealership show room of Maruti Udyog Ltd. Thereafter, the respondent allotted Plot No. R-1, measuring an area of 1500 sq. mts. at Sector-IV, City Centre, B.S. City, Bokaro to the petitioner vide Letter of Allotment No. TA/A/P&S/CC/R-1 dated 24.04.2001. Since the existing plot was insufficient to meet the requirements of the customers, the petitioner vide letter dated 09.11.2005, requested the respondent for allotment of adjoining Plot No. R-2, City Centre, B.S. City, Bokaro, measuring an area of 1500 sq. mts. (i.e. 16,140 sq. ft.) [hereinafter referred to as ‘the said premises’]. The said request of the petitioner was accepted by the respondent vide its letter No. TA/A/P&S/06-1575 dated 24.05.2006. However, the respondent finally vide its letter dated 12.10.2009, offered for allotment of the said premises on license basis for a period of 11 months from the date of execution of license agreement on terms and conditions mentioned in the agreement. The respondent thereafter issued the license vide allotment No. TA/P&S/2009/3148 dated 10.11.2009 on the terms and conditions as agreed upon between the parties and embodied in the agreement. Accordingly, the parties entered into a license agreement dated 13.02.2010 on monthly payment of license fee @ Rs.1/- per sq. ft. per month i.e. total Rs.16,140/- per month apart from electricity, sanitation and water charges. The said license was granted to the petitioner for a period of 11 months. The license agreement specifically contained a renewal clause which entitled the parties to renew the license agreement for such further period as agreed upon by them. The possession of the said premises was handed over to the petitioner on 31.03.2010. The license agreement for 11 months was being renewed by the respondent time to time. However, according to the petitioner, the lease agreement for 33 years for the said premises was not being executed by the respondent for which it approached the respondent on several occasions. The respondent wrote letter no. TA/LRA/2013/533 dated 10.02.2013 informing the petitioner that a new and modified set of guidelines for allotment of land on lease basis was likely to be framed at Corporate Level and as such the allotment of the said premises on lease basis cannot be accepted under the present circumstances. The license agreement was lastly renewed for further period of 11 months which was valid up to 12.05.2018. The petitioner had earlier r
Gulshera Khanam Vs. Aftab Ahmad reported in (2016) 9 SCC 414
Hindustan Petroleum Corpn. Ltd. v. Dilbahar Singh
Surya Dev Rai v. Ram Chander Rai
Ram Sarup Gupta (Dead) by LRs Vs. Bishun Narain Inter College & Ors. reported in (1987) 2 SCC 555
M.F. De Souza v. Children Education Uplift Society [AIR 1959 Bom 533]
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The distinction between a license and a lease is determined by the intention of the parties, as reflected in the deed, rather than merely the possession of the property.
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