Friday, 08, May, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

Govind S/O. Sureshkumar Agrawal ... vs Nagpur Improvement Trust, Thr. ...
2023 Latest Caselaw 5624 Bom

Citation : 2023 Latest Caselaw 5624 Bom
Judgement Date : 15 June, 2023

Bombay High Court
Govind S/O. Sureshkumar Agrawal ... vs Nagpur Improvement Trust, Thr. ... on 15 June, 2023
Bench: A.S. Chandurkar, Vrushali V. Joshi
                 WP-527-23 with WP-689-23(J).odt                                                    1/19


                                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                           NAGPUR BENCH, NAGPUR.

                                             WRIT PETITION NO. 527 of 2023
                                                          with
                                             WRIT PETITION NO.689 of 2023
                                                        ----------
                                             WRIT PETITION NO.527 OF 2023

                 1.     Govind s/o Sureshkumar Agrawal,
                        Aged about 42 years, Occupation: Business,
                        R/o. 63, Wardhaman Nagar, Nagpur.

                 2.     Mayur s/o Manoharlal Agrawal,
                        Aged about 32 years, Occupation: Business,
                        R/o. 32, Wardhaman Nagar, Nagpur.
                                                                     ..... PETITIONERS
                                 ...V E R S U S...

                 1.     Nagpur Improvement Trust,
                        through its Chairman,
                        Office at Kingsway Road, Sadar,
                        Nagpur.

                 2.     The Divisional Officer(East),
                        Nagpur Improvement Trust,
                        Surya Nagar, Nagpur.
Amended as per
orders dated     3.     The State of Maharashtra,
18.04.2023 and
27.04.2023
                        through Secretary, Urban Development Department,
Sd/- C. F.              Mantralaya, Mumbai-32.
Petitioners

                                                                       ....... RESPONDENTS
                                                          with
                                              WRIT PETITION NO.689 OF 2023

                        Punjab National Bank
                        A Body Corporate constituted under the
                        Banking Companies (Acquisition & Transfer of Undertakings Act)
                        having its head office Plot No.4, Sector-10,
                        Dwarka, New Delhi-110 075 and
                        Branch Office amongst other places at
                        Gandhibagh, Nagpur, being represented
                        through Mr. Radhakanta s/o Bhimsen Pradhan,

                      ::: Uploaded on - 15/06/2023                  ::: Downloaded on - 16/06/2023 23:50:04 :::
 WP-527-23 with WP-689-23(J).odt                                                   2/19


       aged 35 years, Occupation-Service,
       Authorised Officer-Punjab National Bank,
       Asset Recovery Management Branch,
       having office at PNB House, Kingsway,
       Nagpur-440 001(MS).                          ..PETITIONER
                                    Versus
1.     Nagpur Improvement Trust,
       Nagpur, through its Chairman,
       having office at Civil Lines, Nagpur-440 001.

2.     City Survey Officer No.2,
       having office at 5th Floor, Administrative Building No.1.
       Civil Lines, Nagpur-440 001.

3.     Kamlesh s/o Shantilal Shah,
       Proprietor of M/s Kamal Pulses,
       Aged-Major, Occupation-Business,
       R/o. Flat No. 302, Tulsi Apartments,
       Near Itwari Telephone Exchange,
       Central Avenue Road, Nagpur.

4.     Vikas s/o Pandurang Thakre,
       Aged Major, Occupation-Trustee,
       Nagpur Improvement Trust, Nagpur.
       Having office at Civil Lines, Nagpur and
       residing at Shastri Layout,
       Near Metro Station, Subhash Nagar Chowk,
       Hingna Road, Nagpur.

5.     Prakash s/o Sitaram Bhoyar,
       Aged-Major, Occupation-Trustee,
       Nagpur Improvement Trust, Nagpur.
       Having office at Civil Lines, Nagpur and
       residing at Near Mahatme Hospital,
       Somalwada, Nagpur.

6.     Sandeep s/o Vasantrao Itkelwar,
       Aged about 50 years, Occupation-Trustee,
       Nagpur Improvement Trust, Nagpur,
       having office at Civil Lines, Nagpur and
       residing at Itkelwar Wada, Gujri Chowk,
       Near Pintu Saoji, Juni Mangalwari,
       Nagpur-440 008.

     ::: Uploaded on - 15/06/2023                 ::: Downloaded on - 16/06/2023 23:50:04 :::
                   WP-527-23 with WP-689-23(J).odt                                                                  3/19



                  7.      Pravinbhai s/o Premjibhai Thakkar,
                          Aged-47 years, Occupation-Business,
                          R/o. Plot No.64, Nandanvan Road,
                          Infront of KDK College, Hanuman Nagar,
                          Nagpur-440 009.

                  8.      Govind s/o Sureshkumar Agrawal,
                          Aged about 44 years, Occupation: Business,
                          R/o. 63, Wardhaman Nagar, Nagpur-440 008.

                  9.      Mayur s/o Manoharlal Agrawal,
                          Aged about 32 years, Occupation: Business,
                          R/o. 32, Wardhaman Nagar, Nagpur-400 008.

Added/            10.      State of Maharashtra,
amended as per
Order dated
                           through Principal Secretary, Urban Development
18.04.2023                 Department, 4th floor, Main Building,
Sd/-
C.F.Petitioner.            Hutatma Rajguru Chowk, Mantralaya,
                           Mumbai-32 (MS)                                             ...RESPONDENTS
                  ---------------------------------------------------------------------------------------------------------
                  Shri C.S.Kaptan, Senior Advocate with Shri A.A.Mardikar, Advocate for
                  petitioners in Writ Petition No.527 of 2023 and for respondent nos. 8 and 9
                  in Writ Petition No.689 of 2023.
                  Shri S.K.Mishra, Senior Advocate with Shri Nikhil Kirtane and Shri Sudhir
                  Puranik, Advocates for respondent-Nagpur Improvement Trust in both the
                  writ petitions.
                  Ms N. P. Mehta, Assistant Government Pleader for respondent no.3 in Writ
                  Petition No.527 of 2023 and for respondent nos. 2 & 10 in Writ Petition
                  No.689 of 2023.
                  Shri Harish Dangre, Advocate for petitioner in Writ Petition No.689 of 2023.
                  Shri S. V. Bhutada, Advocate for respondent no.3 in Writ Petition No.689 of
                  2023.
                  Shri Sunil Manohar, Senior Advocate with Shri Shantanu Khedkar, Advocate
                  for respondent nos. 4 to 6 in Writ Petition No.689 of 2023.
                  Shri S.A.Mohta, Advocate for respondent no.7 in Writ Petition No.689 of
                  2023.
                  ---------------------------------------------------------------------------------------------------------

                  CORAM :- A.S.CHANDURKAR AND MRS. VRUSHALI V. JOSHI, JJ.
                  ARGUMENTS WERE HEARD ON     : 06.06.2023
                  JUDGMENT IS PRONOUNCED ON : 15.06.2023



                        ::: Uploaded on - 15/06/2023                               ::: Downloaded on - 16/06/2023 23:50:04 :::
 WP-527-23 with WP-689-23(J).odt                                                  4/19



JUDGMENT (Per A.S.CHANDURKAR, J.)

Since challenge has been raised to the decision/resolution of the

Board of Trustees' of the Nagpur Improvement Trust dated 02.03.2022 in

both the writ petitions, they have been heard together and are being decided

by common judgment.

2. Rule. Rule made returnable forthwith and heard the learned

Advocates for the parties.

3. The facts relevant for deciding the writ petitions are that Plot

No.101, Mouza-Chikhli (Deo), Khasra Nos. 61, 63 and 69 vest with the

Nagpur Improvement Trust (for short, the NIT). On 07.04.1998 the NIT was

pleased to auction leasehold rights of the aforesaid property in favour of one

Shri Kamlesh Shantilal Shah for industrial use. Pursuant thereto, on

24.08.1998 the NIT executed a lease deed of the aforesaid property in his

favour subject to terms and conditions mentioned therein. As per Clause

1(m-1) the said plot was allotted on concessional premium and the

conditions prescribed under Rule 24 of the Nagpur Improvement Trust Land

Disposal Rules, 1983 (for short, the Rules of 1983) as well as the conditions

that could be imposed by the Chairman were made applicable. The aforesaid

lessee mortgaged the aforesaid land for obtaining financial assistance. Since

the lessee failed to repay the amount borrowed by him, the Bank proceeded

WP-527-23 with WP-689-23(J).odt 5/19

to auction the aforesaid property on 18.08.2018. The said property was

purchased by the respondent no.7 in Writ Petition No.689 of 2023 . The said

auction purchaser thereafter on 23.10.2019 sold the aforesaid property to

the petitioners in Writ Petition No.527 of 2023 who are also arrayed as

respondent nos. 8 and 9 in Writ Petition No.689 of 2023 (for short, the

Purchasers). Based on a complaint made by the original lessee with the NIT,

its Trustees' in a meeting held on 02.03.2022 resolved to lodge a First

Information Report (FIR) against the petitioner in Writ Petition No.689 of

2023-Punjab National Bank (for short, the Bank) on the ground that it had

auctioned the said leasehold property without obtaining permission of the

NIT. It was also resolved to resume possession of the aforesaid property and

intervene in the pending proceedings initiated by the Bank before the Debts

Recovery Tribunal. Acting on this resolution, a notice came to be issued to

the Purchasers on 16.01.2023 requiring them to hand over possession of the

leasehold property within a period of seven days. The Purchasers thus being

aggrieved have challenged the resolution passed by the Board of Trustees' of

the NIT dated 02.03.2022 as well as the notice issued to them by the NIT on

16.01.2023 by filing Writ Petition No.527 of 2023.

4. In Writ Petition No.689 of 2023, the Bank has challenged the said

resolution dated 02.03.2022, copy of which was received by it on

06.01.2023. During pendency of the writ petition, the State Government

WP-527-23 with WP-689-23(J).odt 6/19

through its Urban Development Department issued a communication to the

Chairman of the NIT on 20.03.2023 stating therein that part of resolution

dated 02.03.2022 by which it was proposed to lodge a First Information

Report (for short, the FIR) against the Bank was concerned, the same was

rescinded. Rest of the resolution proposing to take over possession of Plot

No.101 in terms of resolution dated 02.03.2022 came to be confirmed and

the NIT was directed to take necessary steps in that regard.

5. Shri C.S.Kaptan, learned Senior Advocate appearing for the

Purchasers submitted that the NIT was not justified in issuing notice to the

Purchasers on 16.01.2023 in exercise of the power of re-entry. The only

ground on which the right of re-entry was being exercised was that the no

objection certificate of the NIT had not been obtained before the sale deed

came to be executed in favour of the Purchasers on 23.10.2019. In fact,

there was no necessity of seeking any no objection certificate in that regard.

The learned Senior Advocate referred to the information supplied under

provisions of the Right to Information Act, 2005 on 13.09.2012 by the NIT

itself. In clear terms, it was stated that there was no requirement of

obtaining no objection certificate while entering into such transaction. He

also referred to the resolution dated 03.09.2016 passed by the Board of

Trustees of the NIT in which it was observed that since the provisions of

Section 22 A of the Registration Act, 1908 (for short, the Act of 1908) had

WP-527-23 with WP-689-23(J).odt 7/19

been quashed, there was no requirement of obtaining such no objection

certificate. Attention was also invited to the communication dated

06.09.2016 issued by the NIT to the Bank of India reiterating this position. It

was thus clear from the aforesaid documents that the right of re-entry by the

NIT stood waived since obtaining of the no objection certificate had been

dispensed with.

As regards challenge raised to the resolution dated 02.03.2022,

it was submitted that there was no justifiable ground stated in the said

resolution while resolving to take back possession of the plot in question

from the Purchasers. The adverse statements made in the said resolution

were denied and the same could not be the basis for issuing the impugned

notice dated 16.01.2023. Moreover, the Purchasers alone had been singled

out by taking action against them. They were not given any notice of the

proceedings conducted on 13.10.2021 and the NIT had acted highhandedly

against the Purchasers. Such conduct resulted in breach of the provisions of

Article 14 of the Constitution of India and was thus liable to be set aside.

Reliance was placed in that regard on the decisions in Ramana Dayaram

Shetty Vs. International Airport Authority of India and others [(1979) 3 SCC

489] and M. P. Power Management Company Limited, Jabalpur vs. SKY

Power South-East Solar India Private Limited and others [(2023) 2 SCC

703]. As regards the communication dated 20.03.2023 issued by the State

Government was concerned, it was submitted that there were no reasons

WP-527-23 with WP-689-23(J).odt 8/19

stated therein for maintaining the latter part of the resolution dated

02.03.2022 passed by the NIT. On these counts, it was submitted that the

impugned resolution dated 02.03.2022 as well as the notice dated

16.01.2023 would liable to be set aside and the Purchasers were entitled for

the reliefs as prayed for in the writ petition.

6. Shri H. D. Dangre, learned counsel appearing for the petitioner-

Bank in Writ Petition No.689 of 2023, in addition to the aforesaid, submitted

that the NIT was precluded from contending that the no objection certificate

was required to be obtained by the Bank before conducting the auction.

According to him, the NIT was a party to the recovery proceedings initiated

by the Bank before the Debts Recovery Tribunal but the stand that there was

absence of no objection certificate by the Bank had never been raised by the

NIT in the said proceedings. In any event, it was submitted that absence of

no objection certificate could not be treated to be an illegality affecting the

transaction but it was merely an irregularity that could be cured by obtaining

post-facto sanction. The learned Advocate further submitted that the right of

re-entry sought to be exercised by the NIT was available only on breach of

conditions of the lease deed. This would include the default in making

payment of lease amount or rent. With the provisions of Section 22 A of the

Act of 1908 ceasing to operate, there was no legal basis for the NIT to insist

upon obtaining the no objection certificate.

WP-527-23 with WP-689-23(J).odt 9/19

As regards the resolution dated 02.03.2022 was concerned, it

was submitted that even the NIT had no objection whatsoever for rescinding

the said resolution. The State Government by its communication dated

20.03.2023 partly rescinded the said resolution insofar as it was resolved to

lodge a FIR against the Bank. However, there was no justification in

maintaining the latter part of the said resolution, that too without assigning

any cogent reason therein. It was thus submitted that there was no legal

right whatsoever with the NIT to take back possession of the leasehold plot.

The relief sought by the Bank ought to be granted.

7. Shri S.K.Mishra, learned Senior Advocate appearing for the NIT

opposed both the writ petitions. According to him, the plot in question was a

leasehold plot and pursuant to the allotment dated 07.04.1998 the lease

deed came to be executed on 24.08.1998. The conditions mentioned in the

lease deed were binding upon the present lessees-Purchasers. Inviting

attention to Clause 12 of the letter of allotment dated 07.04.1998 it was

pointed out that transfer of leasehold interest in the said land without

obtaining prior permission of the NIT was not permissible. Similarly, in the

lease deed dated 24.08.1998 vide Clause 1(m-1) it was stated that the plot

had been allotted on concessional premium and hence the conditions

prescribed by Rule 24 of the Rules of 1983 as well as the conditions imposed

by the Chairman of the NIT were applicable. Referring to Rule 24 of the

WP-527-23 with WP-689-23(J).odt 10/19

Rules of 1983, it was submitted that transfer of interest in concessional grant

of land could not be done without the prior sanction of the Chairman. It was

an admitted position that such prior sanction had not been obtained by the

Bank. It was on this basis that the NIT was exercising the right of re-entry.

The leasehold rights if any would continue to operate. Since the terms of the

allotment letter as well as the lease deed were accepted by the original

lessee, it was not permissible for them to now urge that there was no need of

obtaining the no objection certificate.

As regards the conduct of the Bank was concerned, it was

submitted that on 11.05.2013 the Bank had sought permission of the NIT to

sell the aforesaid land for recovering its dues. In response thereto, the NIT

had on 18.07.2013 replied that the Bank had created mortgaged without

following the terms and conditions of the lease deed and hence the relevant

entry with regard to said mortgage had been cancelled. The Bank had

preferred an appeal under Section 108A of the Nagpur Improvement Trust

Act, 1936 (for short, the Act of 1936) challenging the communication dated

18.07.2013. The said appeal came to be dismissed on 06.08.2015 and that

adjudication had attained finality. It was thus clear that despite aforesaid

the Bank was insisting that the requirement of obtaining the no objection

certificate had been dispensed with. It was further submitted that the

resolution dated 02.03.2022 would now operate only in respect of the latter

portion thereof since the resolution insofar as filing of the FIR was concerned

WP-527-23 with WP-689-23(J).odt 11/19

had been set aside. The fact that the latter portion of the resolution had

been maintained itself indicated that the action taken by the NIT was legal

and proper and the State Government did not find it necessary to interfere

with the same under Section 24-E of the Act of 1936. It was thus submitted

that there was no case made out to interfere in writ jurisdiction.

8. Shri Sunil Manohar, learned Senior Advocate for the respondent

nos. 4 to 6 in Writ Petition No.689 of 2023-Trustees also opposed the writ

petitions and urged that though the said respondents had been arrayed in

Writ Petition No.689 of 2023 there were no allegations of malafides made

against them. As ex-officio members of the Board of Trustees the said

respondents had merely considered the matter as any other matter and on

the basis of material available, the resolution dated 02.03.2022 came to be

passed. The learned Senior Advocate invited attention to the observations in

paragraph 48 of the decision in State of Uttar Pradesh and others United

Bank of India and others [(2016) 2 SCC 757] and urged that the mortgage

created by the Bank without obtaining prior permission of the NIT was void

ab-initio.

Ms N. P. Mehta, learned Assistant Government Pleader appearing

for the respondent no.3 in Writ Petition No.527 of 2023 and for respondent

nos. 2 and 10 in Writ Petition No.689 of 2023 also opposed the writ petitions

and supported that the stand taken by the NIT.

WP-527-23 with WP-689-23(J).odt 12/19

Shri C.S.Kaptan, learned Senior Advocate for the Purchasers in

reply submitted that while exercising power under Section 24-E of the Act of

1936 the Authority ought to have given reasons for not rescinding latter part

of resolution dated 02.03.2022. Merely on the basis of the note submitted

by the Chairman of the NIT, the communication dated 16.01.2023 came to

be issued. The order passed under Section 108A of the Act of 1936 made a

reference to the no objection certificate and not prior sanction as contended.

Since reference in the various communications issued by NIT was to the

absence of no objection certificate and not prior sanction, the same could not

be relied upon for the present purpose. The conditions in the lease deed

requiring prior sanction had stood waived. The right of re-entry sought to be

now exercised was not at all justified.

Shri H.D.Dangre, learned counsel for the Bank added that there

was no reference made to the provisions of Rule 15 of the Rules of 1983 in

any of the impugned communications. Even notice dated 16.01.2023 was

not in accordance with the said Rule. He also invited attention to the

averments in para 5 of the reply filed on behalf of the NIT in the said writ

petition in that regard.

9. We have heard the learned counsel for the parties and with their

assistance we have perused the documents placed on record. For

WP-527-23 with WP-689-23(J).odt 13/19

appreciating the rival submissions, it would be necessary to first refer to the

undisputed documentary material on record. On 07.04.1998 the NIT issued

an allotment letter in favour of Shri Kamlesh Shantilal Shah in respect of

land in question. Clause-12 of the allotment letter stipulates that the

aforesaid land was not liable to be transferred without obtaining prior

permission of the NIT. Thereafter lease deed dated 24.08.1998 came to be

executed by the NIT in favour of the aforesaid lessee. Clause 1(m-1) states

that the allotment of the plot was on concessional premium and hence the

conditions prescribed under Rule 24 of the Rules 1983 as well as the

conditions that could be imposed by the Chairman of the NIT would be

applicable. Since reference in the lease deed has been made to Rule 24 of

the Rules 1983, it would be necessary to refer to the same. As per the said

Rule while making a concessional grant of land, the condition of restriction

on transfer except with the previous sanction of the Chairman of the NIT had

been stated. Under Rule 15 of the Rules of 1983 the right of forfeiture of the

lease and power of re-entry of the lessor-NIT has been prescribed. This

includes breach of the Rules of 1983 or any condition of the lease.

Thus from the aforesaid, it becomes clear that there was a

concessional grant of the land in question in favour of the lessee -

Shri Kamlesh Shantilal Shah and under Rule 24 the condition of obtaining

prior sanction of the Chairman of the NIT prior to effecting any transfer had

been stipulated.

WP-527-23 with WP-689-23(J).odt 14/19

10. The aforesaid land came to be mortgaged by the original lessee

initially with the Akola Janta Commercial Co-operative Bank and thereafter

with the Bank herein. Since the original lessee defaulted in paying his dues,

the Bank initiated action under the provisions of the Securitisation and

Reconstruction of Financial Assets and Security Interest Act, 2002. It held an

auction on 25.10.2018 in which the land in question was purchased by the

respondent no.7 in Writ Petition No.689 of 2023. The said respondent

thereafter on 23.10.2019 sold the aforesaid land to the Purchasers. The said

Purchasers have acquired interest in the said leasehold land in the aforesaid

manner.

11. At this stage, it is necessary to refer to the action taken by the

Bank while seeking to recover its dues. On 11.05.2013 the Bank issued a

communication to the Chairman of the NIT seeking permission to sell the

present land since it had been mortgaged with the Bank and the account of

the borrower - Shri Kamlesh Shantilal Shah had been classified as the Non-

Performing Asset. The NIT by its communication dated 18.07.2013 informed

the Bank that since the Bank did not seek prior permission of the NIT before

creating the mortgage, the entry in that regard had been cancelled on

08.11.2012 by the Bank. Hence, there was no question of granting any

permission to the Bank to sell the said land. The Bank was aggrieved by the

aforesaid stand taken by the NIT and challenged the communication

WP-527-23 with WP-689-23(J).odt 15/19

dated 18.07.2013 by filing an appeal under Section 108A of the Act of 1936.

The Chairman of the NIT while deciding the appeal held that the NIT had

not granted any no objection certificate for mortgaging the aforesaid land

and therefore the Bank had no right in the said property. For the said reason,

the refusal by the Recovery Officer of the NIT to grant no objection certificate

was just and proper. The appeal came to be dismissed on 06.08.2015. It is

the specific stand of the NIT that this order has attained finality and the Bank

has not controverted the aforesaid. It is thus clear that the Bank has suffered

the order dated 06.08.2015 which confirms the stand taken by the NIT that

the aforesaid land came to be mortgaged with the Bank without obtaining

prior permission/no objection certificate from the NIT. In these facts,

therefore it would not be open now for the Bank to contend that it was not

necessary for it to have obtained such no objection from the NIT before

conducting auction of the said land. It thus follows that notwithstanding the

order dated 06.08.2015 the Bank proceeded to conduct the said auction in

which the respondent no.7 purchased leasehold rights. These very rights

came to be transferred in favour of the Purchasers on 23.10.2019.

12. The rights obtained by the Purchasers would be the same rights

that flow from the allotment letter dated 07.04.1998 and lease deed dated

24.08.1998. As stated above, the NIT had made a concessional grant of the

aforesaid land in favour of the original lessee. With the absence of leasehold

WP-527-23 with WP-689-23(J).odt 16/19

rights in favour of the Bank which thereafter auctioned those rights in favour

of the respondent no.7 in Writ Petition No.689 of 2023 coupled with the

subsequent purchase of those very leasehold rights by the Purchasers, it is

clear that the Purchasers cannot claim any higher right than what was

originally leased out to the lessee. It goes without saying that all terms and

conditions attached to the initial grant of lease were binding on the parties

who subsequently got interest in the said land.

13. Coming to the Resolution dated 02.03.2022 passed by the NIT it

can be seen that the same has been passed due to the failure to obtain prior

sanction of the NIT in terms of Rule 24 of the Rules of 1983 prior to creating

interest in the said land. The Resolution notes that the conditions of the

lease had been breached by the Bank by creating a mortgage which came to

be subsequently cancelled on 08.11.2012 followed by refusal of permission

to sell the leasehold rights in the said land. The Resolution records that the

Trustees were not satisfied in the matter and hence after hearing the

concerned parties, the said resolution came to be passed. It is also a fact that

insofar as it was resolved to lodge a First Information Report against the

Bank that part of the resolution has been rescinded by the State Government

on 20.03.2023 while exercising powers under Section 24-E of the Act of

1936. We are not in a position to accept the contention raised by the learned

counsel for the Purchasers that the State Government ought to have given

WP-527-23 with WP-689-23(J).odt 17/19

reasons for not rescinding the entire resolution. Since the State Government

was satisfied that the first part of the resolution dated 02.03.2022 was liable

to be rescinded, it did so and that direction is not under challenge at the

instance of the NIT. It has to be taken that the State Government was

satisfied with the latter part of the resolution by which it was resolved to

take back possession of the plot in question and hence it issued a direction in

that regard. As such, no fault could be found with the communication dated

20.03.2023 issued by the State Government.

14. Once it is found that the Purchasers were the beneficiaries of a

transaction that was entered into without seeking prior sanction of the NIT

under Rule 24 of the Rules of 1983, there would be no basis for the Court to

hold that the Purchasers had been singled out for being proceeded against

thus vitiating the said action under Article 14 of the Constitution of India.

In absence of any legal right having accrued in favour of the Purchasers, it

cannot be said that they had been singled out for taking action. For the said

reason, the decisions relied upon by the learned Senior Advocate for the

Purchasers do not come to the rescue of the Purchasers. Rule 15 of the

Rules of 1983 clothe the NIT with the power of re-entry and that power is

sought to be exercised by issuing the impugned communication dated

16.01.2023. Such power being available with the NIT, absence of express

reference to such provision in the impugned notice would not vitiate the

WP-527-23 with WP-689-23(J).odt 18/19

same. We therefore find that the exercise of such power of re-entry is in

accordance with the Rules of 1983, letter of allotment dated 07.04.1998 as

well as the express terms of the lease deed dated 24.08.1998. Though we

find that the Bank is estopped from contending that it was not necessary for

it to have obtained prior sanction/no objection from the NIT before selling

the leasehold rights in the aforesaid land in view of the earlier proceedings,

we have nevertheless examined its challenge to the resolution dated

02.03.2022, the communication dated 20.03.2023 as well as the notice

dated 16.01.2023. We are also not in a position to accept the contention

raised by the learned counsel for the Purchasers that the requirement of

obtaining no objection of the NIT had been dispensed with. We find that the

action of re-entry has been undertaken in exercise of such right conferred by

Rule 24 read with Rule 15 of the Rules of 1983 as well as the allotment letter

dated 07.04.1998 and lease deed dated 24.08.1998. The information

supplied under the Right to Information Act, 2005 by the NIT cannot be

treated to have dispensed with the requirement of obtaining prior sanction of

the Chairman of the NIT before transferring the leasehold interest especially

when the documents on the basis of which the Purchasers claim right

specifically stipulate the requirement of obtaining such prior sanction.

15. For aforesaid reasons, we do not find any case made out to

exercise jurisdiction under Article 226 of the Constitution of India.

 WP-527-23 with WP-689-23(J).odt                                                     19/19


                Both the writ petitions thus fail.           They are accordingly

dismissed. Rule stands discharged with no order as to costs.

Pending civil application, if any, stands disposed of.

       (MRS. VRUSHALI V. JOSHI, J.)                    (A.S.CHANDURKAR, J.)


Andurkar.




At this stage the learned counsel for the Purchasers prays that

the possession of the Purchasers be protected to enable them to challenge

the judgment pronounced by this Court in appeal.

This prayer is opposed by the learned counsel for the NIT.

Since there was no interim order protecting the possession of

the Purchasers, the request cannot be entertained. It is thus rejected.

       (MRS. VRUSHALI V. JOSHI, J.)                       (A.S.CHANDURKAR, J.)


Andurkar.





 

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IJJ

 

LatestLaws Partner Event : Smt. Nirmala Devi Bam Memorial International Moot Court Competition

 
 
Latestlaws Newsletter