Case: State of Punjab Vs. Sardar Sewa Singh Gill &amp; Others

Sardar Sewa Singh Gill (respondent no. 1) wanted to promote a company for the manufacture of Banaspati and for that purpose he -approached the Maharaja of Patiala for, certain concessions and grant of land at Doraha. Subsequently by an order of the ijlis-i-khas dated October 29, 1946 it was decided to give to Sardar Sewa Singh Gill a plot of land measuring about 96, 700 sq. yds. at Doraha. This plot of land wag to be made over to him on payment of the costs of the land. Certain undertakings were given by the respondent no. 1. Possession of the land was handed over to respondent no. 1 on November 17, 1946 vide Ex. P.W. 1/1, report no. 96. On February 4, 1947 an agreement Ex. C.W. 13 was entered into between Sewa Santokh Brothers (P) Ltd., arid the Patiala State for grant of certain concessions for the establishment of the ghee factory. The ghee factory that was to be established was styled as the Patiala Banaspati and Allied Products Co. Ltd., (hereinafter referred to as the Company). Clause 6 of the agreement states:

Reasoning:
In our opinion the argument put forward on behalf of the appellant is well founded and must be accepted as correct. In the first place it is obvious that the title to the land has already vested in the State Government under the third proviso to cl. 6(a) of the Agreement because of the order of winding up of the Company made by the High Court. There is nothing in the agreement to suggest that the Company was entitled to be in possession of the property even after its title had vested in the State Government. The 4th proviso only states that if the Company does not deliver possession within reasonable time and if any machinery, plant, buildings or structures remain on the land the title to these also will vest in the State Government if the Company does not remove the structures or the machinery within 24 months from date of the notice. In the circumstances of the case we are of opinion that the respondents were given sufficient notice by the letter of the Director of Industries dated August 14, 1952. That notice satisfies the requirements of the fourth proviso of cl. 6(a) of the Agreement and the State is entitled to take possession of the land and other properties located therein within two years from date of that notice. It is necessary to state that according to P.W. 4 Jaswant Singh the buildings on the site are in an area of one bigha, the structure was pucca but temporary. It is the admitted case that the machinery has been sold by auction more than seven years back and only grass grows on the land. The evidence of Tarachand R. W. 1 also shows that a greater part of the land is barren and the machinery and other valuable properties had already been removed