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2019 Supreme(All) 1965

IN THE HIGH COURT OF ALLAHABAD
Sudhir Agarwal, Virendra Kumar Srivastava, JJ.
Indian Press Pvt. Limited - Appellant
Vs.
State of U.P. And Others - Respondents
Writ C No. 32096 of 2018
Decided On : 31-10-2019

Advocates Appeared:
Komal Mehrotra, Adv., Maya Shankar Srivastava, Adv., Pramod Kumar Jain, Adv., Ajit Kumar Singh, Adv., Nimai Das, Adv.

In the matter of Government Grant, the relations of Lessor and Lessee are governed by lease deed and no other Statute including TP Act, 1882 will have any application.

Headnote:

Writ petition challenging the resumption of Nazul land by the State Government for public purpose. The petitioner, an Indian Press Private Limited, was granted a lease for 30 years commencing from 15.09.1926 for construction of building, garden and hospital. The lease was renewed twice for 30 years each. The last renewal expired on 14.09.2016. The State Government issued a notice to the petitioner to vacate the land as it was required for public purpose. The petitioner challenged the notice on the ground that it was entitled to renewal of lease in view of the judgment in Purushottam Dass Tandon and others vs. State of U.P., Lucknow and others, (1989) Supp2 SCC 412. The High Court held that the petitioner was not entitled to renewal of lease as the maximum period of lease of 90 years had already expired. The court also held that the State Government was within its right to re-enter/resume the land in terms of the lease deed and that the petitioner could not claim renewal of lease after expiry of the maximum period of lease.

Fact of the Case:

The petitioner, an Indian Press Private Limited, was granted a lease for 30 years commencing from 15.09.1926 for construction of building, garden and hospital. The lease was renewed twice for 30 years each. The last renewal expired on 14.09.2016. The State Government issued a notice to the petitioner to vacate the land as it was required for public purpose. The petitioner challenged the notice on the ground that it was entitled to renewal of lease in view of the judgment in Purushottam Dass Tandon and others vs. State of U.P., Lucknow and others, (1989) Supp2 SCC 412.

Finding of the Court:

The High Court held that the petitioner was not entitled to renewal of lease as the maximum period of lease of 90 years had already expired. The court also held that the State Government was within its right to re-enter/resume the land in terms of the lease deed and that the petitioner could not claim renewal of lease after expiry of the maximum period of lease.

Issues: 1. Whether the petitioner was entitled to renewal of lease in view of the judgment in Purushottam Dass Tandon and others vs. State of U.P., Lucknow and others, (1989) Supp2 SCC 412? 2. Whether the State Government was within its right to re-enter/resume the land in terms of the lease deed? 3. Whether the petitioner could claim renewal of lease after expiry of the maximum period of lease?

Ratio Decidendi: 1. The court held that the petitioner was not entitled to renewal of lease as the maximum period of lease of 90 years had already expired. The court relied on the judgment in Azim Ahmad Kazmi and others vs. State of U.P. and Another, (2012) 7 SCC 278, wherein it was held that in terms of the provisions of the Government Grants Act, 1895 read with the conditions of the lease deed, the parties are bound by the terms of the lease and the rights of respective parties are governed by the terms and conditions of the lease deed. Therefore, once the maximum period, for which lease and its renewal could have been granted, has expired, the petitioner is not entitled to claim renewal of lease. 2. The court held that the State Government was within its right to re-enter/resume the land in terms of the lease deed. The court relied on the judgment in Azim Ahmad Kazmi and others vs. State of U.P. and Another, (2012) 7 SCC 278, wherein it was held that in the matter of Government Grant, the relations of Lessor and Lessee are governed by lease deed and no other Statute including TP Act, 1882 will have any application. The court also held that the procedure prescribed under the lease deed for re-entry / resumption of land is a special procedure and that can be followed for re-entry and no other Statute or procedure is to be observed. 3. The court held that the petitioner could not claim renewal of lease after expiry of the maximum period of lease.

Final Decision: The writ petition was dismissed.

JUDGMENT :

Sudhir Agarwal, J.

'Prayagraj' has an old historicity tracing back to Vedic period. Lord Rama while in exile, rested in Rishi Bharadwaj Ashrama, on the bank of river Ganga. It is also known for King Harshvardhana, who used to come every twelve years to donate his entire wealth to needy and poor people. From the time of Lord Buddha, it is also a well known centre of education which continued when Allahabad University was founded on 23rd September, 1887 and reached its glory called "Oxford of East". A large number of social Reformers, Literary Scholars and Political personalities have their birth place at Allahabad. In 1575, when Akbar came to Allahabad and built a big fort, he was so fascinated by cultural, spiritual and also strategic location that he named it as "Abode of God" i.e. "Alhabas", which later changed to Allahabad under Shah Jahan and now again as 'Prayagraj'. City lies close to "three-river confluence" i.e. Triveni Sangam, Originally known as "Prayag" i.e. place of sacrifice or offering. It plays a central role in Hindu Scriptures. The city was also called Kaushambi (now a separate district) by Kuru rulers of Hastinapur, who developed it as their capital. In 17th century under the reign of Jahangir, it was a Provincial capital. In 1580, Akbar created "Subah of Ilahabas" with Allahabad as its capital. In mid 1600, Salim had made an abortive attempt to seize Agra's treasury and came to Allahabad, seizing its treasury and setting himself up as a virtually independent Ruler. He however, reconciled with Akbar and returned to Allahabad where he stayed before returning to Royal Court in 1604. In 1833, it became the seat of ceded and conquered Provinces region before its capital was moved to Agra in 1835. Allahabad became the capital of North-Western Provinces in 1858 and was capital of India for a day. It was capital of United Provinces from 1902 to 1920. It had remained at the forefront of national importance during struggle for Indian independence and even thereafter till date. It has given three strong and most popular Prime Minister to the country namely Pt. Jawahar Lal Nehru, Smt. Indira Gandhi and Sri Vishwanath Pratap Singh.

2. Geographically, it lies at peninsula of Island having on three sides, two major rivers of India namely Ganga and Yamuna. During British period, they developed it as a strong military centre and what we called today "Civil Lines Area", was developed as Civil Station for civilians having huge land which was owned by Government in the form of Nazul. At that time, the then Government allotted land on long lease to its well wishers and others to oblige and otherwise pamper. The terms of lease though given enough control to Government towards its title but premium and rent was almost negligible. With the passage of time, population influx from nearby rural area increased number of local inhabitant multifold causing huge scarcity of land availability in the city.

3. Recently newly elected Central Government evolved a policy of developing various cities as 'Smart City' and for this purpose Allahabad, (now named as 'Prayagraj'), is also chosen to be developed as 'Smart City'. This has resulted in demand of huge land by various Government departments for own establishments necessary to develop the city as 'Smart City'. Since most of the State's land is in the hands of individuals, it has given rise to a virtual clash of interest and this High Court is witnessing a lot of litigations on this account.

4. The present writ petition is outcome of such dispute where State has sought to resume/re-enter its own land i.e. Nazul for public purpose and that is being opposed by petitioner. Land in dispute is sought to be resumed/re-entered by State, is required for developing as "Nurseries for Horticulture Department, Homeopathic/Ayurvedic/Unani Hospital, Office of Information Department and Office of Central Ground Water Board".

5. Indian Press Private Limited, sole petitioner has filed this writ petition

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