AZIM AHMAD KAZMI AND ORS. versus STATE OF U.P. & ANR.
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A B [2012] 6 S.C.R. 960 AZIM AHMAD KAZMI AND ORS. v. STATE OF U.P. & ANR. (Civil Appeal No. 2006 of 2003 etc.) JULY 16, 2012 [G.S. SINGHVI AND SUDHANSU JYOTI MUKHOPADHAYA, JJ.] Government Grants Act, 1895 - ss. 2 and 3 - Grant of C lease by Government , Cancellation of before expiry of the lease period - Dispossession of lessee - Writ petition challenging cancellation and dispossession - Dismissed by High Court but observing that State shall not dispossess except in accordance with the procedure established by Jaw - o On appeal, held: Since the State has absolute power under the terms of the grant of lease to resume the leased property for itself or for any public purpose, the order canceling the lease is valid and legal - The State followed the special procedure as laid down under Clause 3(c) of the lease deed E to dispossess the lessee, it was not required to follow any other procedure or law - Lease. A lease-deed of the premises in question was executed by the State in favour of the appellants (in Civil Appeal No. 2006 of 2003) on 19.3.1996. The State F cancelled the deed before expiry of the lease period and proceeded to resume the premises by order dated 15.12.2000. District Magistrate sent a notice dated 11.1.2001 to the lessees informing about the same. The objection raised by the lessees was rejected by order G dated 24.8.2001 but with the observation that the lessor- State was not entitled to take forcible possession, and could take possession only in accordance with the procedure established by law. The lessees challenged H 960 AZIM AHMAD KAZMI AND ORS. v. STATE OF U.P. & 961 ANR. the orders dated 15.12.2000 and 24.8.2001 and the notice A dated 11.1.2001 by filing a writ petition. The writ petition was dismissed by High Court affirming the cancellation of the lease deed. Lessees filed appeal to this court aggrieved by the dismissal of the petition. Lessor-State also filed appeal to this court aggrieved against the part B of the order whereby it was held that the State was not entitled to take forcible possession but for in accordance with the procedure established by law. The questions for consideration before this Court were (i) whether the order of the State for cancellation of C the lease and resumption of possession was legally valid; and (ii) whether the State could dispossess the lessee in accordance with the Government Grants Act, 1895, without resorting to other procedure established by any other law. D Dismissing the appeal of the lessee and disposing of the appeal of the lessor-State, the Court HELD: 1.1 As the State Government is resuming the leased property for itself or for any public purpose, which under the terms of the grant it has absolute power to do, the order passed by it on 15th December, 2000 is perfectly valid and does not suffer from any illegality. Clause 3(C) of the lease deed clearly confers power upon the lessor State that if the plot in question is required by the State Government for its own purpose or for any public purpose, it shall have the right to give one month's notice in writing to the lessees to remove any building standing E F on the plot and to take possession thereof on the expiry of the two months' from the date of service of notice. G There is a further condition in the clause that if the lessor is willing to purchase the building standing on the plot, the lessee shall be paid such amount as may be determined by the Secretary to the State Government in the Nagar Awas Department. The clause of re-entry was H 962 SUPREME COURT REPORTS [2012] 6 S.C.R. A not introduced for the first time in the deed executed in 1996. [Paras 13 and 14] [970-B-D, E, G-H] 1.2. The plea of the lessee that it was for the first time in their case that a lease had been cancelled and the plot 8 has been resumed by the State Government under the terms of the deed, is not correct as a similar course of action has been taken in the past also. Therefore, the violation of Article 14 cannot be alleged in the present case. [Para 15] [971-E-F] C 2. For taking possession, the State Government is required to follow the law, if any, prescribed. In the absence of any specific law, the State Government may take possession by filing a suit. In the case in hand the procedure as laid down under clause 3 (c) of the lease D deed procedure was followed. Therefore, there is no other procedure or law required to be f
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