OFFICIAL TRUSTEE OF WEST BENGAL versus STEPHEN COURT LTD.

Citation: [2006] SUPP. 10 S.C.R. 996 · Decided: 14-12-2006 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Dismissed
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Judgment (excerpt)

A 
OFFICIAL TRUSTEE OF WEST BENGAL 
v. 
STEPHEN COURT LTD. 
DECEMBER 14, 2006 
B 
[S.B. SINHA AND MARKANDEY KAT JU, JJ.] 
Succession Act, J 925-Section 302-0fficial Trustees Act, 1913 -Section 
26-0fficial Trustee appointed as Executor and Trustee under a Will executed 
C by owner of immovable property-lease of that property-On being asked 
by to extend lease period. Official Trustee telling lessee to approach High 
.Court-Application by lessee to High Court for direction under Section 302 
of Act of 1925 read with Section 26 of Act of 1913 for extension of lease 
period-Jn response thereto, Official Trustee asking for increase in rent and 
same allowed by High Court-Maintainability of application-Held-
D Application of lessee to High Court was maintainable-Official Trustee could 
have extended period of lease or entered into a new arra11ge111ent 'With lessee, 
and dealt with property in any manner it thought fit. subject to direction 
which could be issued by High Court-It being a statutOIJ' authority, was 
pres11111ed lo be aware and understand provisions of Act of 1913-/nstead of 
E 
F 
dealing with matter itself it asked lessee to file an appropriate application 
and in response thereto, without questioning 111aintainability thereof. it asked 
enhance111ent in quantum of rent-It was more so as it allowed order of High 
Court enhancing rent to attain finality and took benefit thereof 
Calcutta High Court Original Side Rules-Chapter X//1-0riginating 
Summons-Maintainability and scope of-Held-High Court in exercise of 
said jurisdiction cannot adjudicate as to whether an earlier order passed by 
it was null and void and was, thus, liable to be set aside. 
Estoppel, wail'er, acquiescence and res judicata-Application of-
Increase in rem ordered by Court acted upon by lessor by accepting it-Over 
G a decade therec1fter. lessor taking out Originating Summons he/ore High 
Court for determination of their relation with lessee and other issues-
Correctness of-Held-This was not per111issible-lessor questioned not only 
the earlier order of Court blll also its own act which had attained finality, 
raising contentions which had not been raised in the earlier proceeding-
H 
996 
-
J' 
OFFICIAL TRUSTEE OF WEST BENGAL 1·. STEPHEN COURT LTD. 
997 
lessor could not alter its position and prevaricate its stand from time to A 
time-They were estopped and precluded from doing so-In Originating 
Summons they could not say that in earlier proceeding, they had raised other 
contentions which were not considered by Court as their remedy was to move 
the said court itself for appropriate directions-Principles of res judicata 
and constructive res judicata were applicable in aforementioned fact B 
situation-Chapter XIII of Calcutta High Court Original side Rules. 
Transfer of property-Lease-Owner of immovable property executing 
registered lease deed inf avour of L for 99 years and also executing a Will 
appointing Official Trustee as Executor and Trustee in respect of said 
property-I executing registered deed of assignment in favour AS, Managing C 
Director of a company-He and thereafter the company acquired leasehold 
rights of said premises for balance unexpired period, whereupon registered 
Debenture Trust Deed executed by AS, company and Trustees referred to 
therein-Company continuing to pay rent to Official Trustee who issued rent 
receipts in respect thereof-Relationship between Official Trustee and 
Company-Determination of-Held-Defect in agreement of sale between AS D 
and company was cured by registered Debenture Trust Deed-As Official 
Trustee had all aiong received monthly rent from Company, and also allowed 
it to raise a huge structure, it acknowledged Company to be lessee in respect 
of leasehold- Company for all intent and purport became a lessee under 
Official Trustee and it was entitled to protect its possession either as an E 
assignee of leasehold or as a monthly tenant-Section 53-A of Transfer of 
Property Act. 
Order-Reasons in support thereof not assigned-Setting aside of 
order-Held-It could be set aside only by an appellate court-However, 
when an order had attained finality, it cannot be set aside on the premise p 
that no reason had therefor been assigned. 
Words and phrases-"Beneficiary under a trust" and ''person beneficially 
interested in any trust property"-ln context of Official Trustees Act, 1913. 
One PP, owning an immovable property, executed a registered deed of G 
lease in respect thereof in favour
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