Oswal Fats And Oils Ltd vs Addl.Commnr.,Bareilly Division & Ors

2. The appellant is a company incorporated under Section 149(3) of the Companies Act, 1956. In 1991, the appellant decided to set up agro based paper projects in the State of U.P. By resolution dated 14.10.1991, the Board of Directors of the appellant authorised Shri Kamal Oswal (Director), Shri T.R. Sharma (General Manager) and Shri Jai Prakash Kaushal (Authorised Signatory) to negotiate and finalise purchase of land in the State of Uttar Pradesh and/or other States and Union Territories, to sign sale deeds etc. for effective acquisition/transfer of land. Paragraphs (e) and (f) of that resolution read as under:

4. However without waiting for response of the concerned authority, the appellant purchased 40.45 acres land in Shahi and Khamaria Pul villages, Pargana Jahanabad, Tehsil and District Pilibhit through different sale deeds executed between January and April, 1992.

5. The State of Uttar Pradesh challenged transfer of various parcels of land in favour of the appellant by filing identical suits under Sections 154, 167, 168A and 194 of the Act. The transferors, who were impleaded as parties in all the suits did not contest the same. However, the appellant filed identical written statements in all the cases. In first paragraph of the written statement filed in Suit No.133 of 1993, the appellant admitted all the paragraphs of the suit. In the additional statement, the appellant virtually conceded that the land was purchased in contravention of the Act and stated that it may be allowed to retain 12.5 acres out of the disputed land. This is evinced from English translation of paragraphs 2 to 4 of the written statement which are reproduced below:

10. At this stage, we may mention that during the pendency of the suits filed by the State Government before the Collector, the appellant instituted Suit No.25/1992-93 under Section 143 of the Act, which was disposed of by Pargana Adhikari, Pilibhit vide her order dated 12.7.1993 by declaring that 7.97 acres land purchased by the appellant in Tehsil and District Pilibhit was non-agricultural land.

(a) the subject-matter of transfer shall with effect from the date of transfer, be deemed to have vested in the State Government free from all encumbrances;

(b) the trees, crops and wells existing on the land on the date of transfer shall, with effect from the said date, be deemed to have vested in the State Government free from all encumbrances;

`person' shall include any company or association or body of individuals, whether incorporated or not".

(i) a natural human being;

(ii) any legal entity which is capable of possessing rights and duties, including any company or association of persons or body of individuals (whether incorporated or not); and

(iii) a Hindu Undivided Family or any other group or unit of persons, the members of which by custom or usage, are joint in estate and residence."

33. The appellant's grievance against the direction given by the learned Single Judge to the Chief Secretary to ensure that possession of excess land is taken without delay does not merit consideration because as mentioned in the earlier part of this judgment, the State Government had already granted lease of excess land to the appellant.

35. In the result, the appeal is dismissed. Since the appellant has not approached the quasi judicial and judicial forums i.e., the Additional Commissioner, the High Court and this Court with clean hands and succeeded in securing interim orders, it is ordained to pay costs, which is quantified at Rs.2 lacs. With a view to ensure that functionaries of the State 39 Government may not connive with the appellant and compound the wrong already done, we direct the Government of Uttar Pradesh not to renew the lease of the appellant at the end of 30 years period and deal with excess land in accordance with the provisions of the Act.