Allahabad High Court has held that Cancellation of lease without adhering to principle of natural justice cannot be sustained.
A bench of Justice Shamshery and Justice Gupta has passed the order in the case titled as the Indian Section the Theosophical Society vs State of UP on 03.09.2019.
The petitioner – society was granted a lease of nazul plot in Arazi Chavni, Tappa and Pargana Haveli, Tehsil Sadar, Gorakhpur, area 1.35 acres with boundaries described in the lease agreement dated 31.12.1943 under the Government Grants Act, 1895. The term of said lease was for thirty years on the payment of the certain yearly rent with the condition of renewal by every 30 years with the restriction of the term not exceeding the aggregate for the period of 90 years. 4. As per the case of the petitioner, society applied for the renewal firstly in the year 1973 i.e. after expiry of 30 years and secondly in the year 2003 i.e. after expiry of further 30 years. However, no decision was taken and both the application for renewal were kept pending.
Lateron, the society applied for freehold and therefore proceeding thereon was going on. In the meantime however the Collector, Gorakhpur, vide impugned order dated 23.1.2019 after considering the inspection report communicated by the A.D.M., Gorakhpur came to the conclusion that petitioner – society has violated many conditions mentioned in lease agreement, therefore, the Collector, Gorakhpur not only rejected the application for freehold but also cancelled the lease and directed to remove the illegal occupants and to take over the possession of the lease land. In pursuance of the said order, possession of the lease land was taken over by the State after making inventory of the material lying on the lease land and presently, the possession of the land is with the State Government.
The society challenged the decision before the High Court. Shri Sripat, learned Senior Counsel has submitted that the entire exercise of cancellation of lease as well as taking possession of the lease land is without any authority as well as without granting any opportunity to the petitioner – society and the impugned orders are passed in violation of principles of natural justice. Learned Senior Counsel further submitted that the impugned order is illegal, unjust and arbitrary and has been passed in colorable exercise of powers. The order of cancellation of lease while rejecting the application of freehold is patently illegal as order of cancellation of lease ought have to be passed in separate proceedings. The order of cancellation of lease could not be passed without giving opportunity of hearing to the petitioner – society to rebut the allegation of alleged violation of conditions of lease agreement. Learned Senior Counsel has also denied the alleged violations of the conditions of the lease.
High Court quashed the decision observing "We find substance in the submissions of learned Senior Counsel for the petitioner – society that in the present case, there is violation of principles of natural justice. Accordingly, we allow the present writ petition to the extent that the impugned order dated 23.1.2019 shall be kept in abeyance for a period of four months from today. Meanwhile, the respondents will take a fresh decision regarding the cancellation of lease after issuing notice to the petitioner and after granting an opportunity of hearing to the petitioner – society within the stipulated period mentioned hereinabove".
Read the Order here:
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