Collector Dist.Gwalior & Anr vs Cine Exhibitors P.Ltd.& Anr

3. The succinct expose' of facts are that the GDA issued an advertisement for allotment of plot No. 1 admeasuring 40160 sq. feet situated in the locality known as Mayur Market for the purpose of construction of a cinema house and, in the public auction, the respondent-

company, the first respondent herein, became the highest bidder and accordingly, a lease agreement was executed on 27.5.1978 between the GDA and the respondent company.

The said lease agreement was for a period of thirty years with the stipulation of a right of renewal subject to certain 3 conditions. It was asserted in the writ petition that after execution of the lease deed, the respondent company constructed a cinema hall and commenced the business.

section (2) shall belong to and be demand to be the assets and liabilities of the Town and Country Development Authority established in place of such local authority;

(ii) all records and papers belonging to the local authority referred to in clause (i) shall vest in and be transferred to the Town and Country Development Authority established in its place.

87. Repeal, Savings and construction of references. (1) As from the date of, -

(C) the establishment of the Town and Country Development Authority for any area the following consequences shall ensue in relation to that, area, namely -

(i) the Madhya Pradesh Town Improvement Trust Act, 1960 (No. 14 of 1961), shall stand repealed in its application to the said area,

iii-a) grants and contributions payable to the Town Improvement Trust shall continue to be payable to the Town and Country Development Authority established in place of such Town Improvement Trust under Section 38;

Provided that the terms and conditions of service of such employees shall be the same until altered by the Town and Country Development Authority with the previous sanction of the State Government :

(a) all cases relating to compensation in respect of acquisition and vesting of land in the Town Improvement Trust under Section 71 of the repealed Act and pending before the Town Improvement Trust or the Tribunal or the Court of the District Judge or the High Court immediately before the date of such repeal shall be dealt with and disposed of by -

18. It is apt to note that the lands belonging to the State Government are dealt with in the Revenue Book Circular and nazul lands are specifically adverted to in Part IV of the said Circular. It deals with management and disposal of nazul lands within the limits of Municipal Corporation, municipal towns and notified areas. Under the heading `What is Nazul', it has been stated thus: -

Clause 13 deals with the manner in which permanent leases are granted and Clause 14 deals with reservation of special plots. For the sake of completeness, both the Clauses are reproduced below: -

All land within a radius of 100 yards of a railway station and all land within 40 yards of a railway station boundary should be reserved.

Nothing has been brought on record that it had ever been notified for transfer in favour of the GDA. Thus analysed, the GDA never became the owner of the land or had the authority to deal with the land and, therefore, it could not have put the land to auction for any purpose whatsoever.

Needless to say, any grant has to have legal sanctity and legitimacy.

23. For the reasons aforementioned, the appeals are allowed and the orders passed in the writ appeal and the application for review, being unsustainable, are set aside. The State Government and its functionaries are at liberty to proceed against the first respondent for its eviction. It is open to the first respondent to take recourse to the arbitration clause against the GDA for any other relief as advised in law. There shall be no order as to costs.

January 11, 2012.