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2001 Supreme(All) 1145

IN THE HIGH COURT OF ALLAHABAD
G. P. Mathur and V. M. Sahai, JJ.
SHAKIRA KHATOON KAZMI - Appellant
Versus
STATE OF UTTAR PRADESH - Respondents
C. M. W. P. 32344 Of 2001
Decided On : 12/07/2001

Advocates Appeared:
A.K.Gaur, Ashok Mehta, S.U.KHAN, SANJAY GOSWAMI, Shakeel Ahmad Almi

Headnote:

Government Grants Act - Lease Cancellation - Sections 2 and 3 of the Government Grants Act, 1895 - The court discussed the legal provisions of the Government Grants Act, 1895, and their interpretations. It highlighted the unfettered discretion of the Government to impose conditions and limitations in its grants and the rights, privileges, and obligations of the grantee regulated according to the terms of the grant. The court found the order passed by the State government for lease cancellation and resumption of possession to be legally valid under the terms of the grant.

Fact of the Case:

The dispute related to the cancellation of a lease and resumption of possession of a plot by the State government for public purposes. The lessees challenged the order, claiming discrimination and violation of Article 14 of the Constitution.

Finding of the Court:

The court found the order passed by the State government to be legally valid under the terms of the grant. It dismissed the writ petition and clarified that the State government is not entitled to take forcible possession but may take possession in accordance with the procedure established by law.

Issues: The issues involved the legality of the order for lease cancellation and resumption of possession, the claim of discrimination, and the mode of possession by the State government.

Ratio Decidendi: The court held that the State government had the unfettered discretion to impose conditions and limitations in its grants, and the rights of the parties were determined with reference only to the terms contained in the deed. It also emphasized that the State government cannot take forcible possession but must follow the procedure established by law.

Final Decision: The writ petition was dismissed, and the State government was clarified to be not entitled to take forcible possession but may take possession in accordance with the procedure established by law.

G. P. MATHUR, J.


( 1 ) THIS petition under Article 226 of the Constitution has been filed for quashing of the government order dated 15. 12. 2000, notice dated 11. 1,2001 and the order dated 24. 8. 2001 passed by the District Magistrate, Allahabad. Parties have exchanged affidavits and therefore, the writ petition is being disposed of finally at the admission stage.

( 2 ) THE dispute relates to plot No. 59, Civil Station. Allahabad, having an area of 1 acre and 4272 sq. yards (9112 sq. yards or 7618 sq. metres ). A lease of the aforesaid plot was granted in favour of Thomas Crowby for a period of 50 years on 11. 1. 1868 by the Secretary of State for India in council and it was signed by the Commissioner of Allahabad Division. A fresh lease was executed in favour of his successors for a period of 50 years on 12. 4. 1923 which was to operate from 1. 1. 1918. With the permission of the Collector, Allahabad, the successors of the lessee transferred their leasehold rights in favour of Purshottam Das in the year 1945. Thereafter, on 31. 10. 1958, the legal representatives of Purshottam Das transferred the leasehold rights in favour of petitioner No. 1 Smt. Shakira Khatoon Kazmi, respondent No. 3 Smt. Sabira Khatoon Kazmi and their mother Smt. Maimoona Khatoon Kazmi. Petitioner Nos. 2, 3 and respondent Nos. 4 to 6 in the writ petition are heirs of late Smt. Maimoona Khatoon Kazmi. The lease, which had been granted on 12. 4. 1923, expired on 31. 12. 1967 but the same was not renewed for a long period. Subsequently, a fresh lease deed was executed on behalf of Governor of Uttar Pradesh in favour of the petitioners and respondent Nos. 3 to 6 on 19. 3. 1996 for a period of 30 years which was to operate with effect from 1. 1. 1968. This deed contained a clause that the lease deed may be renewed for two successive terms of 30 years each but the total period shall not exceed 90 years including the original term. The period of this deed expired on 31. 12. 1997 and on 17. 7. 1998 it was again renewed for a further period of 30 years with effect from 1. 1. 1998. The state Government passed an order on 15. 12. 2000 for cancelling the lease and resuming the possession of the plot in question. The District Magistrate, Allahabad, thereafter gave a notice dated 11. 1. 2001 to the petitioners and respondent Nos. 3 to 5 (hereinafter referred to as the lesseesl intimating them that the State Government had passed an order on 15. 12. 2000 cancelling the lease and resuming possession of the plot in question as the same was required for a public purpose. The notice further mentioned that the lessees should remove the structure standing on the plot failing which possession will be taken in accordance with the Clause 3 (C) of the lease deed. The lessees filed an objection against the notice before the District Magistrate on 2. 2. 2001. They further claim to have sent an objection to the Chief Minister of Uttar Pradesh on 31. 1. 2001 praying for revocation of the order of the State Government dated 15. 12. 2000. The District magistrate considered the objection and rejected the same by his order dated 24. 8. 2001. A copy of the aforesaid order along with cheques representing the compensation for the building standing over the plot (cheques for total amount of Rs. 10 lakhs) were served upon the lessees. The respondent Nos. 1 and 2 tried to dispossess the lessees on 1. 9. 2001 and their stand is that possession of open land was taken. It was at this stage that the present writ petition was filed and a stay order was passed on 2. 9. 2001 staying the dispossession of the petitioners.

( 3 ) THE first question which requires consideration is whether the order passed by the State government on 15. 12. 2000 for cancellation of the lease and resumption of possession is legally valid. There is a clear recital in the lease deed executed in favour of the lessees by the Governor of Uttar Pradesh on 19. 3. 1996 that the same is being done under the Government Grants Act.
























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