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IN THE HIGH COURT OF MADHYA PRADESH

AT GWALIOR

BEFORE

HON'BLE SHRI JUSTICE ANAND PATHAK

ON THE 14^th OF JUNE, 2023

WRIT PETITION NO. 12136 of 2023

BETWEEN:-

STAR AVIATION PVT. LTD. HAVING ITS

REGISTERED OFFICE AT SHOP NEAR POLE NO.

19, SMALAKHA NEW DELHI THROUGH ITS

DIRECTOR SHRI SUKHWINDER SINGH GILL S/O

SARDAR HARI SINGH GILL AGED 62 YEARS, R/O

P-76 NEW PALAM VIHAR, SECTOR 110, GURGAON

(HARYANA)

…..PETITIONER

(BY SHRI N.K. GUPTA – SENIOR ADVOCATE WITH SHRI CHETAN

KANOONGO - ADVOCATE)

AND

1.

STATE OF MADHYA PRADESH THROUGH ITS

PRINCIPAL SECRETARY, DEPARTMENT OF

AVIATION,

GOVERNMENT

OF

MADHYA

PRADESH,

VALLABH

BHAWAN

BHOPAL

(MADHYA PRADESH)

2.

THE COMMISSIONER, DEPARTMENT OF

AVIATION,

GOVERNMENT

OF

MADHYA

PRADESH,

VALLABH

BHAWAN

BHOPAL

(MADHYA PRADESH) Email -mpaviation@mp.gov.in

3.

THE COLLECTOR, DISTRICT DATIA OFFICE AT

COLLECTORATE, DATIA (MADHYA PRADESH)

…..RESPONDENTS

(BY SHRI MPS RAGHUVANSHI – SENIOR ADVOCATE AND

ADDITIONAL ADVOCATE GENERAL WITH SHRI NEELESH SINGH

TOMAR - GOVERNMENT ADVOATE)

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This petition coming on for admission this day, the Court passed

the following:

ORDER

1.

The present petition under Article 226 of the Constitution of India

is preferred by the petitioner seeking following reliefs:

“1)

Issue a writ of certiorari or any other

appropriate writ/order quashing and setting aside the

termination order dated 25 April 2023 of the Lease

and Development Agreement dated 11 June 2019;

2)

Issue a writ of certiorari or any other

appropriate writ/order quashing and setting aside

order dated 16 May 2023 passed by Respondent No.3

forfeiting the performance security/bank guarantee;

3)

Issue a writ of mandamus or any other

appropriate writ/order/directing the Respondents to

fulfill its obligations under the lease and development

agreement including taking all necessary steps to get

the airstrip at Datia notified by the competent

authority i.e. Union Ministry of Civil Aviation;

4)

Issue a writ of prohibition or any other

appropriate writ/order directing the Respondents not

to dispossess, evict the petitioner from the leased

premises or to take any coercive measures;

5)

That, any other relief which this Hon'ble Court

deemed fit and proper may also be awarded in favor

of the petitioner.”

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2.

Precisely stated facts of the case are that petitioner is Private

Limited Company incorporated under the Companies Act and is

engaged in aviation business. Respondents are instrumentality of

State as per Article 12 of the Constitution. Respondents wanted to

develop Aero -sports Facilities and/or Aviation Academy at Datia

where it already had an Airstrip, therefore, issued Request for

Proposal dated 18-12-2018 in this regard where petitioner also

appeared in the bid and stood successful. Therefore, an agreement

was executed on 11-06-2019 between the petitioner and

respondents. As per terms of the lease and development

agreement, petitioner was given the Airstrip and the site on lease

for 15 years at lease rental of Rs.5,25,000/- each year subject to

increase by 10% at the end of every 3 years.

3.

It appears that after execution of the agreement, Airstrip was

handed over to the petitioner on 04-11-2019 to develop the area.

Since no development took place, therefore, intimation was given

to the petitioner from time to time vide letters dated 28-07-2022,

03-08-2022, 24-01-2023. Last show cause notice was given on

10-04-2023 and reply was solicited.

4.

As reflected from the impugned order, no affirmative steps were

taken by the petitioner to comply the condition even after lapse of

1400 days (around 4 years), therefore, vide impugned order dated

25-04-2023 (Annexure P/1) agreement dated 11-06-2019 was

cancelled and security deposit of Rs.15 lacs were recommended

for forfeiture. Petitioner was restrained to use