IN THE HIGH COURT OF JHARKHAND AT RANCHI
KAILASH PRASAD DEO, J.
Holy Cross Institute Hazaribagh – Petitioner
Versus
Steel Authority of India Limited – Respondent
W.P. (C) No. 943 of 2019
Decided On : 10-08-2022
Societies Registration Act, 1860 – Charges for payment – Steel Authority of India Limited – Petitioner has further prayed for a direction upon respondents to grant renewal of lease to petitioners-society for land under lease held and used for charitable educational purpose at rates applicable to lease of land to societies for charitable educational purpose without profit and in terms of earlier renewable lease agreement – Held, Court has also taken view in analogous matter about commercial or commercial-cum-residential plots of Sector-IV of Bokaro Steel Limited and directed respondent-BSL to reassess the same based on revenue rate of adjoining areas – Apart from this, present institution is a charitable institution imparting education and other facilities for building up moral of students, who are future of country, as such, Court is not inclined to sustain impugned demand, which seems irrational and not based upon any scientific method, as same is exorbitant and thus same is not sustainable and hereby quashed – Court directs respondents-SAIL to reassess rate through a rational agency, considering value of land of surrounding area of North, South, East, and West of Bokaro – Land leased out for school cannot be treated as for commercial purpose, it ought to have been considered, that it is for educational purposes and wards of employees of Bokaro Steel Plants are getting education there, apart from other students of vicinity – Accordingly, impugned order is set-aside – Writ petition allowed.
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 has further submitted, that in the year 1981, the President of Holy Cross Institute, Hazaribagh applied before the Manager, Bokaro Steel Limited (hereinafter referred as ‘BSL’) with request to lease out 5 acres of land for expansion of the Holy Cross School at Bokaro Steel City by constructing staff quarters and playground. Subsequently, 4 acres of vacant land belonging to Steel Authority of India Limited (hereinafter referred as ‘SAIL’) bordering on existing campus of Holy Cross School, Bokaro was leased out on 14.09.1982. The lease deed was specified for a period of 33 years, renewable at option of the lessee for a further period.
4. Learned counsel for the petitioners has further submitted, that the President of Holy Cross Institute, Hazaribagh vide letter dated 15.09.1982 expressed her gratitude to the authorities of SAIL for the grant of land, under lease for expansion of school facilities and assured him that the wards of the employees of BSL shall be provided all facilities at the school.
5. Learned counsel for the petitioners has further submitted, that on 28.09.1982, the Town Administrator, Bokaro Steel Plant specified the land leased to the school, so that the school at Bokaro Steel City will extend the same facilities as are being given to the wards of railway employees.
6. Learned counsel for the petitioners has further submitted, that the petitioner No. 1, namely, Holy Cross Institute, Hazaribagh on execution of the agreement for lease by SAIL authority in the year 1982 has developed the lease hold property and constructed at its own cost, school building and school Auditorium/hall for the use of Holy Cross School, Bokaro.
7. Learned counsel for the petitioners has further submitted, that since lease is to be expired after 33 years from the year 1982, thus on 08.04.2015, Holy Cross Institute through its Principal applied to the SAIL authorities, requesting them for renewal of the land for further period as the lease deed was of dated 14.09.1982. The application was kept pending till 2018, while without any hindrance, the petitioners are running their school and imparted education to the children in the building as specified in the original lease deed.
8. Learned counsel for the petitioners has further submitted, that a letter was issued on 22.11.2018, under the signature of Assistant Manager, (TA-Land), Bokaro Steel City, has been served upon the petitioners on 30.01.2018, with an offer to renew the lease, whereby demand of Rs. 4,08,74,713.44/- has been made with additional liability for payment of annual land rent of Rs. 29,62,080/- and service charge of Rs. 59,24,160/- therefore, it has been prayed before this Hon’ble Court for a direction upon the respondent-authorities to renew the lease.
9. Learned counsel for the petitioners has further s
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SupremeToday
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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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