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KAILASH PRASAD DEO
Holy Cross Institute Hazaribagh – Appellant
Versus
Steel Authority of India Limited – Respondent
JUDGMENT :
KAILASH PRASAD DEO, J.
1. Heard, Mr. K.M. Joseph, learned counsel for the petitioner assisted by Mr. Peter Martin T.J. and Mr. Vijay Kant Dubey, learned counsel for the respondents-SAIL.
2. The Petitioners, namely, Holy Cross Institute Hazaribagh through its President Sr. Rosily Kolencherry and Holy Cross School, Bokaro through its Principal Sr. Kamala Paul Bihari, have preferred this writ petition for setting aside the impugned offer of renewal of lease dated 22.11.2018 (Annexure-8), whereby under the signature of Assistant Manager, (TA-land), a demand has been made to the Principal, Holy Cross School, Balidih, Bokaro Steel City of the school with regard to payment of premium, annual rent and service charge at par with that applicable to commercial category of lease. The petitioner has further prayed for a direction upon the respondents to grant renewal of lease to the petitioners-society for the land under lease held and used for charitable educational purpose at the rates applicable to lease of land to societies for charitable educational purpose without profit and in terms of the earlier renewable lease agreement dated 14.09.1982.
3. Learned counsel for the petitioners h
The court emphasized that unilateral alterations to established lease terms infringe upon contractual rights and due process, reaffirming the need for transparency in public sector dealings.
The government must act fairly and reasonably when fixing lease rents, reflecting public policy, and cannot unilaterally revise contract terms against original agreements.
The discretion of a landlord in rent fixation and renewal terms is valid, and tenants must adhere to clearly established lease terms, particularly when challenged during eviction proceedings.
The court upheld the significance of adhering to lease terms and natural justice in lease renewal matters, affirming the state's actions in rejecting the renewal request based on documented breaches.
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