IN THE HIGH COURT OF ORISSA AT CUTTACK
Arindam Sinha, S. K. Mishra, JJ.
Rupalaxmi Sethi – Appellant
Versus
State of Odisha & Ors. – Respondents
Writ Petition (C) No. 2916 of 2018
Decided On : 13-01-2023
Fraud - Leasehold Interest - The court set aside the impugned order cancelling the leasehold interest in favor of the original allottee, citing the decision in Acrux Realcon Pvt. Ltd. vs. State of Orissa. The court found that the power under section 7-A(3) was not duly exercised in this case, contrary to the decision in Asha Hans vs. State of Odisha and others.
Fact of the Case:
The authority initiated Lease Revision Case no.9 of 2015 to cancel the lease sanctioned in favor of the original allottee, affecting successive subsequent purchasers, including the petitioner.
Finding of the Court:
The court set aside the impugned order, citing the decision in Acrux Realcon Pvt. Ltd. vs. State of Orissa, and allowed the writ petition, granting the petitioner the liberty to seek consequential action on her interest in the land.
Issues: The main issue was the validity of the impugned order cancelling the leasehold interest and the applicability of the decision in Acrux Realcon Pvt. Ltd. vs. State of Orissa.
Ratio Decidendi: The court found that the power under section 7-A(3) was not duly exercised in this case, contrary to the decision in Asha Hans vs. State of Odisha and others, and therefore set aside the impugned order.
Final Decision: The impugned order was set aside and quashed, and the writ petition was allowed, granting the petitioner the liberty to seek consequential action on her interest in the land.
JUDGMENT
Arindam Sinha, J. - Mr. Padhy, led by Mr. Rath, learned advocates appear on behalf of petitioner. With leave of his leader Mr. Padhy submits, his client is one of successive subsequent purchasers, from original allottee, in respect of the leasehold interest transferred to him. Lease Revision Case no.9 of 2015 was initiated suo motu by the authority. In said case by impugned order dated 8th November, 2017 the authority cancelled the lease sanctioned in favour of original allottee, on 25th July, 1973.
2. Original allottee had transferred his leasehold interest in the meantime. Successive transfers were made and ultimately his client purchased leasehold interest in respect of part of original lease allotment. Other similarly placed purchasers had, by separate respective writ petition assailed impugned order passed in Lease Revision Cases initiated against them. By decision dated 11th December, 2019 of co-ordinate Bench in Acrux Realcon Pvt. Ltd. vs. State of Orissa, reported in 2020 (I) ILR-CUT, 262 orders passed by the Additional District Magistrate, Bhubaneswar in Lease Revision Case nos.1 to 13 of 2015, were set aside. Mr. Padhy points out, Lease Revision Case no.9 of 2015, dealt with by the authority, is one of the cases, in which impugned orders herein passed was set aside by the co-ordinate Bench.
3. State filed Special Leave Petition, inter alia, against said decision. By order dated 27th November, 2020 in Special Leave Petition (Civil) no.20294 of 2020 ( The State of Odisha and others vs. M/s. Acrux Realcon Pvt. Ltd.), the Supreme Court was not inclined to interfere with impugned order and accordingly the Special Leave Petition was dismissed.
4. Mr. Sharma, learned advocate, Additional Government Advocate appears on behalf of State. He submits, the Additional District Magistrate invoked provision in section 7-A (3) of Odisha Government Land Settlement Act, 1962. He relies on order dated 6th April, 2022 passed by the First Division Bench of this Court in, inter alia, W.P.(C) no.33349 of 2011 (Asha Hans vs. State of Odisha and others) to submit, said Bench took view that with fraud being played on the authority concerned, who failed to follow procedure and as a result illegality was committed, the Court was of considered view that the fraud detected, in that case, in year, 1998 and therefore, the authority had promptly taken action and proceeded to cancel the leases. He submits, this was also done regarding sanction of lease dated 27th July, 1973 to original lessee Hari Dehury. The cancellation was in respect of the lease and took effect against all subsequent transferees. He submits further, ground of limitation is not available to petitioner.
5. Only ground taken by petitioner is that impugned order stands covered by Acrux Realcon Pvt. Ltd. (supra). As aforesaid impugned order was passed in Lease Revision Case no.9 of 2015 being included in those Lease Revision Cases, on which it was made. The co-ordinate Bench had set aside the order. State had unsuccessfully petitioned for Special Leave Petition. In the circumstances, petitioner must succeed.
6. View taken in Asha Hans (supra) is of no aid to petitioner because the power under section 7-A(3) is to be exercised and was found to have been duly exercised in that case. In this case converse was found and decided by Acrux Realcon Pvt. Ltd. (supra).
7. Impugned order is set aside and quashed. The writ petition is allowed and disposed of. Petitioner is at liberty to produce this order and seek consequential action on her requirement to have her interest in the land recorded.
The central legal point established in the judgment is the application and interpretation of the power under section 7-A(3) of the Odisha Government Land Settlement Act, 1962, and the influence of pr....
The detection of fraud and material irregularities in the lease settlement process, and the fair and justified action taken by the authority in promptly cancelling the leases.
Due process must be observed in lease cancellations, including the right to notice and opportunity to be heard; failure to do so violates natural justice principles.
Amendments to legislation cannot apply retrospectively, emphasizing the importance of limitation periods in lease cases.
The Assistant Settlement Officer acted without jurisdiction in cancelling a lease, violating statutory authority under the Orissa Government Land Settlement Act, 1962 and established legal principles....
The statutory requirement of notice before lease cancellation is crucial; failing to comply invalidates such actions, reinforcing principles of due process.
The cancellation of a lease without affording a proper hearing violates principles of natural justice, warranting judicial intervention and remand for fresh consideration.
The court ruled that administrative decisions affecting rights must provide specific grounds and ensure the affected parties have a right to a fair hearing.
Mandatory provisions for cancellation of leases require notice and opportunity for hearing, underscoring the importance of due process.
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