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2024 Supreme(All) 2142

IN THE HIGH COURT OF ALLAHABAD, LUCKNOW BENCH
Alok Mathur, J.
M/s. Oriental Structural Engineers Pvt. Ltd. - Petitioner
Versus
State of U.P. and another - Respondents
Civil Misc. Writ Petition No. 22622 of 2021
Decided On : 19-12-2024

Advocates:
Advocate Appeared:
For the Petitioner: Abhishek Khare, Akber Ahmad, Amrendra Nath Tripathi, Avdhesh Kumar Pandey, Chinmay Mishra, Gaurav Mehrotra, Rani Singh, Saumya, Sudeep Kumar, Tushar Mittal and Yogeshwar Sharan Srivastava
For the Respondent: C.S.C., Prashant Kumar, Sachin Upadhyay and Waseeq Uddin Ahmed

Actual physical possession must be established for lease obligations; mere issuance of possession certificate is insufficient.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4 and 17 - U.P Urban Planning and Development Act, 1973 - Section 41(3) - Dispute over possession of land allotted by GNIDA - Petitioner claimed non-receipt of actual physical possession and sought benefit of Zero Period Policy - GNIDA's rejection of claims led to writ petition. (Paras 2-10, 21-50)

(B) Possession - Actual physical possession must be handed over for lease obligations to arise - Mere issuance of possession certificate is insufficient - Court emphasized the necessity of actual possession as per established legal principles. (Paras 21-24, 40-44)

(C) Zero Period Policy - Policy allows deferment of payments when possession is not handed over - Court found GNIDA's refusal to extend benefits arbitrary given the circumstances. (Paras 33-50)

Facts of the case:
The petitioner was allotted a plot by GNIDA but claimed actual possession was never given despite multiple representations. The petitioner sought relief from penalties and interest due to non-possession.

Findings of Court:
The court found that actual physical possession was never handed over to the petitioner, and the GNIDA's actions were arbitrary.

Issues: Whether actual physical possession was handed over and the applicability of the Zero Period Policy.

Ratio Decidendi: The court ruled that actual physical possession must be established for lease obligations, and the GNIDA's failure to do so invalidated their claims for penalties.

Result: Writ petition allowed; GNIDA directed to hand over possession and grant Zero Period benefits.

JUDGMENT :

Alok Mathur, J.

Heard Sri Nitesh Jain, learned counsel for the petitioner as well as learned Standing counsel and Sri Sachin Upadhyay for the respondents.

2. The Petitioner who had been allotted a plot from the Greater Noida Industrial Development Authority (hereinafter referred to as GNIDA) has disputed the handing over of the possession of the said plot and has claimed benefit of the zero period policy of the respondents. The respondents on the other hand have rejected his claim of possession and proceeded to levy penalty and notice for cancellation of the allotment of the plot, and even the revision preferred before the State Government has been rejected leading to the present writ petition.

3. It has been submitted by learned counsel for the petitioner that on 12.3.2008 and 30.6.2008 notifications under Section 4 read with Section 17 of the Land Acquisition Act, 1894 were issued by the State Government for acquisition of land of 589.188 Ha. situated at village Patwari, Greater Noida, Gautam Budh Nagar. Subsequent to the acquisition, the land was developed and offered for allotment of institutional plots for setting up educational hub, University, Training centers, Schools, Hospitals and office plots for self-use of various sizes. The petitioner made an application on 30.5.2008 for allotment of a plot of 20,000 m² for the purpose of setting up an office for self-use and deposited 10% of the application amount. The application of the petitioner was successful, and he was informed that he has been allotted a plot of 20,000 m² for a total premium of Rs. 15.80 Crores. Considering that the petitioner has already paid 10% of the sale consideration, he was required to pay the 20% of the amount within 60 days of the allotment letter, and the balance 70% of the premium was to be paid in 12 half yearly installments with an interest of 12% from 12.7.2009 onwards.

4. According to the terms and conditions of the allotment, the petitioner was required to complete the construction over the plot within 5 years from the date of the allotment. Though by means of the letter of allotment 20,000 m² of space was allotted to the petitioner, but the plot number was never communicated, but he proceeded to deposit further 20% of the premium. It is only on 13/11/2009 that the GNIDA informed the petitioner that the plot of an area 20,007.52 m² has been allotted at plot No. 3, Techzone IV, Greater Noida, and that he was to complete the formalities to get the lease deed registered. On 16.3.2010 a lease deed was executed in favour of the petitioner and a formal letter of possession was also issued by the GNIDA on the same day.

5. It has been submitted that plot No. 3 Techzone IV Greater Noida was carved out from khasras Nos. 321, 323, 324, 325, 342, 343, 344, 340, 331 village Patwari, District Buddhnagar. The petitioner stated that despite possession certificates having been issued in favour of the petitioner, the actual physical possession of the said plot was never given to him, and therefore the petitioner made repeated representations to the respondents to hand over the actual physical possession.

6. It is stated that on 15.6.2010, the Manager Institutional wrote a letter to the Officer on Special Duty (Project, Greater Noida) to nominate some officer to hand over actual physical possession. According to the petitioner, the letter dated 15.6.2010 evidences the fact that actual physical possession was never given to the petitioner, and even subsequently a number of letters and representations by the petitioner did not yield the result.

7. It is stated that by means of letter dated 2.6.2011, the petitioner was informed that the revised lease plan has been received by the respondents according to which the total area of the plot of the petitioner has been reduced from 20,007.52 m² to 20,000.76 m² and accordingly a correction deed was executed on 24.6.2011. Simultaneously a corrected possession certificate was also signed and delivered to the petition

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