ANAPURNA JAISWAL versus INDIAN OIL CORPORATION LTD. AND ORS.

Citation: [2021] 9 S.C.R. 204 · Decided: 30-09-2021 · Supreme Court of India · Bench: K.M. JOSEPH · Disposal: Dismissed

Judgment (excerpt)

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SUPREME COURT REPORTS
[2021] 9 S.C.R.
ANAPURNA JAISWAL
v.
INDIAN OIL CORPORATION LTD. AND ORS.
(Civil Appeal No.6119 of 2021)
SEPTEMBER 30, 2021
[K. M. JOSEPH AND PAMIDIGHANTAM SRI
NARASIMHA, JJ.]
Transfer of Property Act, 1882 – s.105 – Registration Act,
1908 – s.47 – An advertisement was published on 12.10.2011 by
the respondent-Corporation inviting applications for grant of
dealership of petrol pumps – Appellant applied on 11.11.2011 –
After evaluation, the appellant was placed in the first position – A
complaint was made – Pursuant thereto, the respondent took the
view that the lease dated 08.11.2011 which was the foundation for
the offer made by the appellant would commence from the date of
approval of the petrol outlet – This meant that the possession over
the premises did not amount to a lease and on the date of the
execution of the lease deed the lease had not come into force –
Appellant made several representations, which were rejected by the
Corporation – Writ petition filed before the High Court was also
dismissed – On appeal, held: In the instant case, here is a lease
deed which contemplated the period of the lease commencing at a
point of time in the future – What is more it would commence only
with effect from the date of approval of the petrol pump – The parties
in fact contemplated in clause 7 that in case the petrol pump was
not approved then the second party (the appellant) must handover
the land transferred on rent to the first party – Further, a perusal of
clause 5 would reveal that lease period is explained as after ‘the
expiry of 30 years’ and it speaks about the renewal of the lease
period – The completion of the lease period which is after the expiry
of the 30 years again would have to be reckoned only with effect
from the date of approval of the petrol pump – Therefore, it is clear
that the lease which the appellant laid store by contemplated the
period of the lease commencing not on the date of the lease but at a
point of time in the future – The lease did not take effect on the date
of the lease namely 08.11.2011 or on date of application 11.11.2011
[2021] 9 S.C.R. 204
204
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– As a result, the appellant cannot be possibly entitled to the benefit
of 35 marks which is vouchsafed only for those applicants who
inter alia had a long-term lease as on the date of the application –
As far as s.47 of the registration Act is concerned, on facts, it would
not have the effect of preponing the period of the lease as
commencing from the date of the execution of the lease – The lease
would operate on its terms and the period of the lease would
commence only upon approval being granted despite it being
registered – Thus, there is no reason to interfere with the impugned
judgment passed by the High Court.
Dismissing the appeal, the Court
HELD: 1. A lease of immovable property is a transfer of
immovable property. The transfer consists of the transfer of a
right to enjoy immovable property. It creates an interest in the
property. One of the essential elements of the lease is the period
of time for which the demise holds good. A lease may be for certain
time which may be express or implied. It may also be in perpetuity.
Therefore, when one thinks of a lease of an immovable property
one of the essential terms would be the period for which the lease
operates. In this case, the lease or the period of the lease is 30
years. The question would immediately arise as to when the lease
bears life. The expression ‘certain time’ is premised on there
being a beginning in point of time and the end again with reference
to time. ‘Certain time’ would in other words be a period of time.
The answer is given by the lease itself, namely that the period
begins with effect from the date of approval of the petrol pump.
In other words, here is a lease deed which contemplated the
period of the lease commencing at a point of time in the future.
What is more it would commence only with effect from the date
of approval of the petrol pump. The parties in fact contemplated
in clause 7 that in case the petrol pump was not approved then
the second party (the ‘appellant’) must handover the land
transferred on rent to the first party. [Para 13][211-C-G]
2. A perusal of clause 5 would reveal that lease period is
explained as after ‘the expiry of 30 years’ and it speaks about the
renewal of the lease period. The completion of the lease period
which is after the expiry of the 30 years again would have to be
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