2011 Supreme(MP) 72

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
A.K. Shrivastava, J.
Bharat Petroleum Corporation
Vs.
State of M.P. and Ors.
W.P. No. 465 of 2002
Decided On: 25.01.2011

Headnote:(l) Lease -- in 1955 for establishing petrol pump lease for period of five years grunted --lessee continued in possession -- premium and yearly lease rent paid -- applications from time to time for permanent lease but not considered -- ultimately, on11.1.1995 permanent lease of 7000 square feet land with effect from 1971 to 2001 granted by State Government-premium of Rs.5,60, 000/- and yearly rent of Rs.42,000/- fixed on guideline of 1993-94 -- such amount so Fred not deposited by lessee -- no fault of lessee -- premium and lease rent cannot be fixed retrospectively -- order of cancellation of lease, demand of premium and lease rent with interest quashed -- petition partly allowed.

       Held: The bald statement in the return that petitioners predecessor company did not turn up to execute lease-deed will not be sufficient in order to hold that at any point of time the said company was at fault in absence of any correspondence submitted along with the return indicating that the said company was at fault. Even otherwise, no action was taken by the respondents terminating the lease of the petitioner in default of executing the lease-deed. [Para 2.1

       It has been mentioned that rent has been paid upto 1989-90 and copy of the rent receipt was also enclosed and under these circumstances it was requested to grant the permanent lease but nothing was done by the respondents. [Para 22

       Ultimately, the respondent No.1 vide order dated 11.1.1995 (document No.5) directed to allot patta of 7000 square feet land with effect from 1971 to 2001 fixing the premium of Rs.5,60,000/ and yearly rent of Rs.42,000/- by giving further direction that the. entire amount be deposited within a period of six months from the date of issuance of the order. [Para 23

       Held: On bare perusal of the averments made in the return this Court finds that by allotting the land in question on permanent lease basis the rent prevailing in the year 1993-94 was taken into consideration and in this regard the circular of the Government dated 2nd August, 1994 was taken into consideration. [Para 23

       If the decision was taken on 11.1.1995 vide document No.5 on the has is of the guideline of the year 1993-94, it should not have been applied retrospectively with effect from 1971 because the petitioner was not at fault at any point of time. On the contrary, he was repeatedly requesting the respondents to provide the permanent lease and continued to deposit the yearly rent. Hence, according to me the demand to pay the yearly rent as well as fixing the premium on the guidelines of the year 1993-94 is arbitrary so far as fixing the annual rent and the premium from 1971 to 11. .1995 and indeed, the yearly rent and the premium should have been fixed in accordance to the norms of the respondents prevailing from time to time from the year 1971 to 1995. The said action of the respondents is arbitrary and hence that part of the order of respondent No.1 dated 11.1.1995 (document No.5) directing to pay the premium and yearly rent with effect from 1971 to 11.1.1995 is set aside and quashed with a direction to respondent No.1 that guideline of the Government which was prevailing during these years from time to time and on the basis of those guidelines the premium and the yearly rent be fixed with effect from 1971 to 11.1.1995. [Para 23

       (2) Transfer of Property Act, 1882 -- S.111 --lease -- efflux of period -- lessee continued in possession and depositing yearly rent -- status of lessee -- would still remain as lessee unless and until lease is determined in accordance with law.

       Held : If by the efflux of the period of lease the petitioner continued as a lessee and was depositing yearly rent which was being accepted by the respondents, its status would still remain as a lessee unless and until the lease is determined in accordance with law in terms of the provisions of the Transfer of Property Act. [Para 21

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