A public authority has the competence to prescribe fresh, uniform terms and conditions for the renewal of leases, as renewal is considered a fresh grant rather than an automatic extension of the original lease; judicial interference is restricted to cases of manifest arbitrariness, discrimination, or constitutional violation.

Order on Board

Per Ramesh Sinha, C.J.

15.04.2026

1. Heard Mr. Anmol Verma, learned counsel for the appellant. Also heard Mr. Prasun Bhaduri, learned Deputy Advocate General, appearing for the respondents/State and Mr. Pranjal Agrawal, learned counsel, appearing for respondent/BSP.

2. This intra Court appeal has been filed against the impugned order dated 31.10.2025 passed by the learned Single Judge in WPC No. 2337 of 2025 (B. K. Ghosh v. Steel Authority of India & Othrs) and batch of writ petitions, whereby the learned Single Judge has dismissed the said batch of writ petitions.

3. Brief facts, necessary for disposal of this appeal, are that the writ petitioner / appellant is long-standing lessees of plots situated in the Bhilai Steel Plant Township, having acquired the same either directly or through their predecessors-in-title pursuant to registered sale lease deeds execute during the years 1989-1991, each for a fixed tenure of 30/33 years. The relevant terms of the lease deed are as follows :

i) Enhancement of ground rent at the time of lease renewal shall not exceed 50% of the existing rent;

ii) No other charges, including lease premium or “renewal charges”, are payable

iii) the lease deeds bind the parties to the conditions and obligations stipulated therein.

4. On 21st and 25th of July, 2008, the respondent No.1 conducted a meeting of its Board of Directors, wherein various modifications were undertaken in the terms and conditions for allotment of land in Steel Plants, including the allotments which had already been made and would be due for renewal in the future. In the said meeting it was decided by the Steel Authority of India Limited “SAIL” that henceforth any lease will be renewed subject to the following conditions :-

- Payment of Renewal Charges to be calculated as 25% of the Applicable Land Premium prevailing on the date of renewal.

- Grounds rent to be 1% of the Applicable Land Premium.

- Service Charge to be 2% of the Applicant Land Premium.

5. The Shopkeepers were made aware of the decision taken by the Board of SAIL dated 21.07.2008, whereby the terms of the lease due for renewal were unilaterally changed. As a consequence of the sudden and drastic increase in the charges to be paid for renewal of the Lease, the Shopkeepers approached various authorities, including the District Collector for redressal of their grievances. In furtherance of one such meeting between the District Administration and the Management of Bhilai Steel Plant a letter was issued by the District Collector, Durg, on 31.07.2019, whereby the management of the Plant was informed that as per the extant rules applicable on the grant of land on lease, any premium or charge is payable only at the time of initial lease agreement and for any subsequent renewal no such premium is to be paid by the Land Holder. The Management of the plant was thereafter directed to act as per the rules and regulations of the State Government. The relevant portion of the said letter are as follows:-

i) Any premium or additional charge is payable only tat the time of initial lease grant.

ii) No premium or extra charges may be imposed at the time of renewal,

iii) The management of the plant was directed to act in accordance with State Government rules and policy.

6. In furtherance of the Collector’s directive, the Chief General Manager (TA) Bhilai Steel Plant, issued a letter dated 23.11.2019 to the Corporate Office of SAIL reiterated that charging premium