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2021 Supreme(MP) 768

High Court of Madhya Pradesh
Sanjay Dwivedi, J.
NARMADA GINNING AND PRESSING FACTORY, HARDA – APPELLANT
Versus
STATE OF MADHYA PRADESH & ORS. – RESPONDENTS
W. P. No. 7460 of 2020
Decided On : 27-10-2021

Advocates appeared :
For the Appellant : Ravish Agrawal, Sanjay Agrawal
For the Respondent : Pushpendra Yadav, R. N. Singh, Akshay Pawar

Headnote:(A) Constitution of India - Article 226 - Leasehold land - Challenging the impugned orders for possession of land after expiry of lease period - Court emphasized that application for conversion submitted before the lease expired must be decided, hence, arbitrary actions taken by authorities to reject it were illegal. (Paras 10, 13, 36)

(B) Jurisdiction - Principle of natural justice - The petitioner was not afforded opportunity to justify reasons for the land’s usage, making the committee's report invalid. The authority must decide applications within stipulated timeframes as per the statute. (Paras 14.19, 26-34)

(C) Resolution - Cancellation of earlier resolutions by the Municipal Council regarding conversion was deemed discriminatory and without jurisdiction. The authority acted beyond its power, conflicting with established provisions for conversion. (Paras 14.25, 14.26, 14.14)

(D) Provision for renewal of lease - The petitioner maintained rights to apply for renewal even after lease expiry, thus possession cannot be claimed based on the expiry of the lease alone. (Paras 14.20, 35)

Facts of the case:
The petitioner, a registered partnership firm, governed by lease for land since 1989, faced actions from authorities for possession after lease expiry claiming non-renewal and improper use. Petition contended against illegal orders and sought conversion from leasehold to freehold.

Findings of Court:
Impugned orders urging possession were set aside; the court directed the authorities to recognize the pending conversion application and restore possession.

Issues: The issues included the legal status of an application for land conversion during lease subsistence, authority powers for conversion, and improper lease usage claims.

Ratio Decidendi: The court clarified that administrative lapses should not prejudice the petitioner's rights, emphasizing the need for timely action as per statutory obligations.

Result: Petition allowed.

Table of Content
1. petition filed under article 226 (Para 1 , 2)
2. factual background on the lease of land (Para 3)
3. arguments from petitioner and respondents (Para 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12)
4. legal questions framed for consideration (Para 13 , 14)
5. summary of arguments from both sides (Para 15 , 16)
6. court's observations and decision (Para 36 , 37)
7. final directions from the court (Para 38)

ORDER : – This petition is filed under Article 226 of the Constitution of India challenging the order dated 16-3-2020 (Annexure-P/10) passed by respondent No. 3 whereby the petitioner has been asked to return back the land to respondent No. 3 which was allotted to the petitioner on lease for a period of 30 years i.e. from 1-4-1989 to 31-3-2019.

2. By urging multifarious grounds assailing the action of the respondents, the petitioner has sought following reliefs : –

    “(i) That, this Hon’ble Court be pleased to call for the entire record leading to issuance of the impugned communication/letter dated 16-3-2020 (Annexure-P/10) from the Respondent No. 3. (ii) That, this Hon’ble Court be pleased to set aside the impugned communication/letter dated 16-3-2020, passed by the Respondent No. 3, contained in Annexure-P/10. (iii) That, this Hon’ble Court be further pleased to direct the respondents to decide the petitioner’s application (Annexure-P/8) for conversion of land in question from lease hold into free hold within the specified time frame. (iii-a) The impugned orders dated 12-5-2020 passed by respondents No. 2 and 3 contained in Annexures-P-11 and P-12 respectively be set aside. (iii-b) The possession of the property in question be directed to be restored to the petitioner. (iii-c) That, the Resolution No. 1014 dated 16-10-2019 of the Municipal Council, Harda (Respondent No. 3) contained in Annexure-R-3/7 be set aside. (iv) That, this Hon’ble Court be further pleased to directed the respondents not to take possession of the land in question from the petitioner even if an application for conversion of land from lease hold land to free hold is rejected by the respondents as the petitioner has a right to submit an application for renewal of lease in accordance with Clauses-3 and 12 of the lease deed dated 16-8-1989 (Annexure-P-2), Rule 17 of Rules of 2016 (Annexure-P-5) and order dated 1-8-2016 passed by Hon’ble Division Bench of High Court in Writ Appeal No. 459/2009 and if such an application is submitted the same is required to be considered by the respondent No. 3. (v) That, any other relief which this Hon’ble Court deems fit and proper in the facts and circumstances of the present matter be also granted to the petitioner. (vi) Cost of the petition.”

3. To resolve the controversy involved in the case necessary facts are required to be taken note of which in a nutshell are;

    (3.1) That the petitioner is a registered partnership firm, which was registered in the year 1983 in the name and style “M/s Narmada Ginning and Pressing Factory” and is engaged in the business of Ginning and Pressing of Cotton and also Dal and Oil Mills. The petitioner-firm have three units located over the land of different khasras i.e. Khasra Nos. 58/1, 58/2 and 58/11, total area around 8.95 acres. This land has been purchased by the petitioner through six different registered sale-deeds dated 9-1-1953, 12-3-1953, 13-5-1953, 30-5-1953, 6-7-1953 and 1-2-1953. Adjoining to the aforesaid land, Khasra No. 56 having an area of 6.43 acres belonging to respondent No. 3 (Municipal Council, Harda) was situated and the petitioner since interested to construct godown and residential quarters for its labourers on the said land, therefore, they moved an application for granting lease in respect of the said land to respondent No. 3 in the year 1966.

    (3.2) The lease was granted to the petitioner for 6.43 acres of land which is a part land of Khasra No. 56 situated at


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