Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | in favour of a Company for a period of 50 years __: The company mutated as lessee in Nazul property register - Government Grants Act 1895 - ss. 2 and 3 - Transfer of Government land - Property in question leased out by State of Uttar Pradesh |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Government Grants Act, 1895 — ss. 2 and 3 — Transfer of Government land — Property in question leased out by State of Uttar Pradesh, in favour of a Company for a period of 50 years — The company mutated as lessee in Nazul property register — The lessee-company mortgaged the property in question to the appellant-Bank against credit facilities - On company’s failure to pay outstanding dues, suit by appellant-Bank before Calcutta High Court — Mortgage decree passed by the High Court on the basis of setilement arrived at between the parties - Show cause notice to the company by the State authority for termination of its leasehold rights on the property in question — Notice was challenged by appellant-Bank by filing writ petition — The Bank made application for getting conversion of leasehold land into freehold status which was rejected by the competent authority — On non-compliance of terms of the mortgage decree, debt recovery proceedings initiated — On the basis of settlement between the parties Debts Recovery Tribunal (DRT) directed to dispose of the mortgaged property — Property in question auction-sold pursuant to order of DRT — The prospective auction-purchaser asked the appellant-Bank to get the property converted into freehold — The Bank issued show cause notice against the auction- purchaser — Writ petition filed by auction-purchaser challenging the show cause notice — High Court allowed the writ petitions filed by the Bank and the auction-purchaser — On appeal, held: The land in dispute was a Government property (Nazul land) maintained by State authorities in accordance with Nazul Rules — The lessee is not authorised to transfer or sublet the demised premises without previous sanction of the lessor — There is nothing on record to show that the lessee in the present case had obtained any written sanction from the lessor before mortgaging its leasehold interest in the property and-hence the mortgage is bad in law — The appellant-Bank not being lessee of the land, cannot get any right over it - Mortgage decree is also bad in law as the same was passed without issuing notice to the State of U.P. — The High Court erred in giving direction to convert the leasehold as freehold interest in favour of the Bank by applying doctrine of legitimate expectation -The doctrine could not have been applied in cases of invalid expectation — Nazul Rules — rr. 13 and 16 — Doctrine of Legitimate expectation — Transfer of Property. Doctrines/Principles — Doctrine of legitimate expectation — Applicability of - When — Discussed and explained. Words and Phrases — ‘Legitimate expectation’ — Meaning of — Explained. |
Judge | Hon'ble Mr. Justice M.Y. Eqbal |
Neutral Citation | 2015 INSC 867 |
Petitioner | State Of Uttar Pradesh And Others |
Respondent | United Bank Of India And Others |
SCR | [2015] 14 S.C.R. 118 |
Judgement Date | 2015-11-26 |
Case Number | 5254 |
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