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STATE OF MADHYA PRADESH versus NERBUDDA VALLEY REFRIGERATED PRODUCTS COMPANY PVT. LTD. & ORS.

Citation: [2010] 8 S.C.R. 982 · Decided: 23-07-2010 · Supreme Court of India · Bench: P. SATHASIVAM · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
B 
c 
[2010] 8 S.C.R. 982 
STATE OF MADHYA PRADESH 
v. 
NERBUDDA VALLEY REFRIGERATED 
PRODUCTS COMPANY PVT. LTD & ORS. 
(Civil Appeal NO. 5883 OF 2010 etc.) 
JULY 23, 2010 
[P. SATHASIVAM AND ANIL R. DAVE, JJ.] 
Constitution of India, 1950: 
Article 226 - Exercise of writ jurisdiction in the matters 
falling in the domain of executive - High Court in a writ 
petition setting aside the order of Nazul Officer by which he 
rejected petitioner's application for NOC filed without payment 
D of lease rent - HELD: The Nazul Officer is better equipped 
with to decide the application for grant of NOC - Even if the 
order of Nazul Officer requires interference, the person 
aggrieved could challenge the same before the Collector u/s 
18 of the Revenue Book Circular - It is not such a case which 
E warrants direct interference by High Court in exercise of its 
extra-ordinary jurisdiction under Article 226 - Revenue Book 
Circular (Madhya Pradesh) - s. 18 - Constitutional Law -
Separation of powers. 
F 
Contempt of Court: 
Contempt petition - In a writ petition High Court directing 
Nazul Officer to decide the application for NOC filed by writ 
petitioner and to consider particular documents only - Nazul 
Officer on consideration of the relevant rules and regulations, 
G rejecting the application - High Court directing the Nazul 
Officer to explain his "misconduct" - HELO: When a matter 
is remitted to original authority, it must be allowed to take a 
decision in accordance with the statutory provisions, rules and 
regulations and there cannot be any restriction on such a 
H 
982 
STATE OF M. P. v. NERBUDDA VALLEY REFRIGERATED 983 
PRODUCTS COMPANY 
course - Even if there is an error in the order of the original 
A 
authority, it is for the appellate authority to set it right and the 
High Court is not justified in issuing the direction -
Constitution of India, 1950 - Article 226 - Practice and 
Procedure. 
B 
The appellant-State executed a lease deed in favour 
of respondent no.1-company in respect of certain land on 
14.3.1939 for a term of 30 years for the purpose of 
developing trade in refrigerated food stuffs and 
industries. The lease was being renewed with 30 years 
C 
term and lastly it was renewed for a period of 30 years 
from 14.3.1999 to 13.3.2029. 
By letter dated 16.1.2004 the State Government 
permitted the respondent company to change the use of 
the leased land from industrial purpose to commercial 
D 
and residential purpose on payment of lease rent as 
assessed in terms of the rules and regulations. On 
6.3.2007, the respondent-company made an application 
before the Nazul Officer for grant of NOC for raising 
commercial and residential constructions on the leased 
E 
land without paying the lease rent. The Nazul Officer 
rejected the application by order dated 15.4.2008. The 
order was challenged by the respondent-company in a 
writ petition. An objection was raised by the State 
Government as to maintainability of the writ petition in 
F 
view of the alternative remedy u/s 18 of the Revenue 
Book Circular. However, the High Court, by its order 
dated 26.9.2008, directed the Nazul Officer to decide the 
application of the respondent-company and to consider 
only the Circular dated 14.2.1966 and the arbitration 
G 
award while taking the decision. The Nazul Officer 
considered the relevant rules and regulations, and 
rejected the application by order dated 2.2.2009. The 
respondent-company filed a contempt petition before the 
H 
984 
SUPREME COURT REPORTS 
[2010] 8 S.C.R. 
A High Court which, by its order dated 13.10.2009, directed 
the Nazul Officer to personally present himself before the 
Court and explain his "misconduct". Aggrieved, the State 
Government filed the appeals. 
B 
Allowing the appeals, the Court 
HELD: 1.1 There is broad separation of powers under 
the Constitution of India between three organs of the 
State, i.e., the Legislature, the Executive and the 
Judiciary. It is also well established principle that one 
C organ of the State should not ordinarily encroach into the 
domain of another. Even if the order of the first authority, 
in the case on hand, the Nazul Officer, requires 
interference, it is for the appellate authority to look into it 
and take a decision one way or the other and it is not an 
D extraordinary case which warrants direct interference by 
the High Court in exercise of its extra-ordinary jurisdiction 
under Art. 226 of the Constitution of India, as an appellate 
co

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