Avtec Ltd v. West Bengal Industrial Infrastructure Dev., Corp. And ANR
jdt.
02.03.2022 jb.
W.P.A. 3247 of 2022 Avtec Limited vs.
West Bengal Industrial Infrastructure Development Corporation & Anr. Mr. Mainak Basu Mr. Rajarshi Dutta Mr. Ajay Bhargava Mr. A. Kr. Ray Mr. Trideb Bose Ms. Sweta Kabra Mr. Debjyoti Saha Ms. Amita Bhargava ... For the Petitioner Mr. Amit Kr. Nag Mr. Abhishek Nag ... For the Respondents The notice of termination issued by the respondents on 20th January, 2022 to the petitioner is under challenge in the writ petition. The facts are not in dispute. The writ petitioner was granted lease of the property in question on 4th August, 2008 for setting up an industrial unit manufacturing of automobile components and the said unit was accordingly set up by the petitioner and was operational till 2012.
With the closure of the Tata Project in 2012,
the industry of the petitioner came to a halt and the petitioner explored the viability of starting other manufacturing units in the said land. By a letter dated 9/12th November, 2021 the respondents invited the petitioner to submit documents relating to new project proposal, a detailed project report commencement of commercial production within subject land an undertaking to utilise the land within a stipulated time frame. In reply to the said letter the petitioner, by a letter dated 17th December, 2021 requested the Authority to provide time till 31st March, 2022 for proposing the details project.
The notice termination was issued on 20th January, 2022. Learned counsel appearing petitioner submits that even in case of breach terms lease by petitioner, the respondents are required to evict the petitioner from the demised land only in due course of law and re-entry of the respondents in the said land and taking possession of the same by dismantling the construction therein are not enjoined in law.
Learned counsel respondents draws the attention of the Court to the terms of the deed of lease as well as the agreement lease which demonstrate that petitioner was required to utilise demised land only for setting up industrial unit manufacturing automobile components such exercise was to be completed within a period of three years from the date of issuance of the lease. It is not in dispute that such manufacturing unit was started by petitioner within stipulated time frame and had to be closed down only in 2012. Placing reliance on clause 11 of the deed of lease, learned counsel submits that the lessee was bound to deliver vacant possession of the demised land upon termination of the lease within 30 days of issuance of the termination notice, failing which the lessor would be at liberty to deal with the demised land together with all structures sheds, etc. as full owner thereof. Clause 11 of the deed of lease is not disputed.
The said covenant undoubtedly entitles the lessor to re-enter into the property and take possession of the same upon termination of lease deed. But at the same
time, such act is required to be done by taking recourse to law and not otherwise. It is trite law that a lessee or for that matter, any person in occupation a premises can be evicted therefrom only in due course of law. It is not denied by learned counsel for the respondents that such act can be undertaken by the Authority in accordance with law and not otherwise.
The portion of the notice dated 20th January, 2022 which is under challenge is reproduced:- "... ... ... ...
failing which the Corporation shall exercise its right of re-entry and take possession land including boundary wall standing thereon as full owner thereof all & everything therein, without any liability, pecuniary or otherwise, and without prejudice to any other rights of the Corporation."
In view of the above, the portion of the notice impugned as stated above is set aside/quashed.
The respondents are at liberty to act in terms of the deed of lease as well as the notice of termination in accordance with law. W.P.A. 3247 of 2022 is thus disposed of.
There shall be no order as to costs.
Since no affidavit has been invited, allegations contained in the writ petition shall be deemed not to have been admitted.
Urgent certified website copy of the order, if applied for, be given to the parties on compliance requisite formalities.
(Suvra Ghosh, J.)