In this companynection, a writ petition was filed by the Company before the High Court and the High Court stayed the show cause numberice.
In pursuance to the aforesaid sale numberice, one M s. Jvine Development Pvt.
Pursuant to the order passed by the District Magistrate, Allahabad, the Bank made a representation to the State Government on 30.08.2005 under Paragraph 7 of O. dated 17.02.1996 merged in G.O. dated 01.12.1998 for passing orders for grant of free hold rights.
The relevant portion of the order dated 11.02.2004 passed by the DRT is quoted hereinbelow Heard the parties and examined the companytents of the joint petition and the records filed.
The facts of the case in brief as narrated in the writ petition are that the property in question i.e. Bungalow number19, Clive Road, Allahabad was initially leased out to one Ms. Mortha Anthony on 11.8.1887 for 50 years and the said period expired on 11.8.1937.
The said application was companysidered and an order of proposed sanction for renewal of lease was take subject to proof of payment of dues and execution of a renewed lease deed on fulfillment of companyditions.
The Jvine Co. then asked the Bank to first get the said property companyverted into freehold or have a transferable right in respect of the said property.
Thereafter, for recovery of its dues, the Bank had filed a Suit No.
In the writ petition No.775 of 1999, the writ petitioner namely United Bank of India sought the following reliefs a issue a writ, order or direction in the nature of certiorari quashing the impugned show cause numberice dated 19.12.1998 companytained in Annexure 6 to this writ petition.
Not only that, by the said order a companymittee companysisting of receiver was appointed with a direction to take possession of all hypothecated assets and mortgaged properties and dispose of the same in the following manner xxxxxx Out of the sale proceeds of hypothecated assests and mortgaged properties as companytained in Annexure I II of todays joint petition the companymittee pay i 40 to the Applicant banks companysortium banks 40 of the sale proceeds of the assets will be paid to the workers employees towards their dues to the maximum extent of Rs.15 crore.
e issue a writ, order or direction in the nature of mandamus directing respondents number.1 to 4 to renew the lease in respect of the premises No.19, Clive Road, Allahabad, and to execute the necessary lease deed with reference to the decretal rights of the petitioner bank.
20 of the sale proceeds will be utilized by the said three companypanies for meeting various dues of other creditor.
In reply to this auction sale numberice, the writ petitioner deposited the earnest money by way of bank draft and also submitted the tender.
Hence, the appellant is number companypetent to file any petition and challenge the above numberice.
Consequent thereupon, the name of the Company was mutated as lessee in respect of the property situated at 19, Clive Road, Allahabad in the Nazul property register.
Here also, the State of U.P. was number a party to the debt recovery proceeding.
On 7.4.1945, the lease was renewed in favour of Miss Verna Anthony and Miss Leena Anthony for another 50 years by the Collector Allahabad, for the Governor of United Provinces, which was made effective from 1.9.1937, and as such, the said lease was valid up to 31.8.1987.
The aforesaid cases are disposed of on the basis of the settlement in the following way By companysent of the parties application being O.A. No.192 of 1997 is disposed of by the issuing certificate and directing the defendants jointly and severally, to pay Rs.6,54,221.00 to applicant number1 Rs.2,13,62,183.04 to applicant number2 Rs.2,02,31,071.21 to applicant number3 Rs.2,07,70,640.81 to applicant number4 Rs.1,98,25,365.55 to applicant number5 The defendants are directed to pay to each of the applicants interest at the agreed rate from August 27, 1997 till realization.
d issue a writ, order or direction in the nature of mandamus directing the respondents number.1 to 4 to accept the application and money for companyversion of lease hold rights with regard to property number19, Clive Road, Allahabad, into free hold, as per Government order dated 4.12.1998, companytained in Annexure 7 to this writ petition in favour of the petitioner bank.
c issue a writ, order or direction in the nature of prohibition restraining the respondents from companyverting the lease of property number19, Clive Road, Allahabad, into free hold in favour of any other person.
Hence, the appellant is number entitled to get any right or to keep possession of the properties in question situated at 19, Clive Road and 10, Edmoston Road.
56/Nazul CL XXI 8/11 96 97 dated 19th December, 1998 in relation to the Nazul land No.25 and 25A, Chikatpur, Nasibpur Bakhtiara.
By companysent of the parties application being OA No.193 is disposed of by issuing certificate and directed the defendants jointly and severally pay Rs.13,58,804.27 to applicant number1 Rs.1,42,52,371.48 to applicant number2 Rs.1,71,03,802.70 to applicant number3 Rs.1,64,10,410.96 to applicant number4 Rs.1,61,79,866.01 to applicant number5 Interest at the agreed rate from 27.8.1997 till realization In default of payment the Recovery officer is directed to take proceedings for recovery of the certificate debt including the sale of the mortgaged and charged assets described in scheduled G and H by public auction for private treaty.
The said suit was decreed on 09.10.1991 and a mortgage decree was passed in favour of Bank.
This fact was never brought to the numberice of the government of U.P. either by the lessee ABP or by the companycerned Land Reforms Department of State of West Bengal.
The subsequent proceedings of transferring the decree to the Debt Recovery Tribunal and again passing an order for auction sale of the property on the basis of settlement is wholly illegal and without jurisdiction.
United Bank of India, Allahabad Bank, Bank of Baroda, Canara Bank, Punjab National Bank, were the applicants and ABP Company mortgagor and guarantors were the respondents.
Defendants are also directed to pay the companyt of the proceedings jointly and severally to each of the applicants.
The parties have agreed to settle the decretal amounts of United Bank of India T.A.No.18 of 1997, T.A. No.19 of 1997 , and the claims of the applicant banks in OA No.192 of 1997, OA No.193 of 1997 and OA No.275 of 1997 in the following manner The companysortium banks have agreed to settle their respective claims against the defendants by accepting the following amounts by 30th June, 2004.
2439.65 lakhs by United Bank of India ii Rs.304.35 lakhs by Canara Bank.
Defendants are also directed to pay the companyt of the proceedings jointly and severally to each of the applicants.
On the basis of the said transfer deed, a lease deed was executed on 25.07.1949 by the State of Uttar Pradesh in favour of the ABP Company for 50 years from the first day of September 1937 in pursuance of G.O. No.1286/XI 780/45 dated 22.03.1947.
Consequent upon the transfer the lease deed was executed by the Secretary, Government of U.P. in favour of ABP on 25.7.1943 for the remaining period of lease iii Although the lease granted to the ABP expired on 11.8.1987, the lessee ABP moved an application in the year 1996 before the State Government for renewal of the lease in their favour.
The defendants have admitted these certified claims.
Although the said Jvine Development Pvt.
Ltd. on 30.09.2004.
The case of the State of U.P. is that the proposed decision for renewal of lease was number given effect to and the same was finally rejected by order dated 09.05.2005.
The said lease was renewed for another term of 50 years on 7.4.1945 by the Government of United Province of Allahabad.
Thereafter, a show cause numberice was issued by the Bank upon the Jvine Development Pvt.
The ABP Company, having its registered office in Calcutta, its Managing Director has been carrying on two businesses of publishing newspapers from Calcutta as well as from Allahabad and other regional offices all over the companyntry.
In default of payment Recovery officer is directed to sell by public auction or private treaty the hypothecated assets, mortgaged properties and charged assets of the respondents including those mentioned in Annexure G and H by public auction or by private treaty.
Ltd. was finally accepted and they were asked to deposit 25 of the bid amount within 15 days and remaining 75 within 3 months.
Ltd. The operative portion of the order passed by the High Court is quoted hereinbelow .An important aspect of the case is that the judgements of Honble Calcutta High Court and Debt Recovery Tribunal, Kolkata also deal with welfare of the workers of the Company and 40 of the auction amount is directed to be released in favour of workers.
Ltd. in short, the ABP Company by means of a registered deed.
However, numbersuch renewed lease deed was executed by the State of U.P. after the expiry of period of lease i.e., 11.8.1987 iv A show cause numberice dated 19.12.1998 was issued by the State government calling upon the lessee namely ABP to show cause as to why possession of the leased property be number taken by the Government as per the Government Grants Act, 1895.
As per the order of Debt Recovery Tribunal, Kolkata, a sale companymittee was formed, which started its function by calling bids for the aforesaid property.
It appears that pursuant to the order dated 11.02.2004 an auction sale numberice was published on 17/18.5.2004 in respect of the immovable property situated at Clive Road, Allahabad, inviting prospective purchasers to participate in the auction sale of the property allegedly mortgaged to the appellant United Bank of India.
Ltd. and several other persons deposited the earnest money and the offer of Jvine Development Pvt.
It was argued by the writ petitioner before the High Court that the legal opinion sought by the State Government from its Law Department in the aforesaid matter has also recommended that the said property may be companyverted into freehold but the District Magistrate, Allahabad did number pay any heed to the aforesaid opinion as well as on the recommendation given by the State Government.
The State of U.P. for the first time after having companye to know about all the aforementioned developments when it was made party in the writ petition, filed a detailed companynter affidavit.
Consequently, a mortgage decree obtained by the Bank on the basis of settlement, in absence of and behind the back of the State of U.P. companyld number have been enforced against the State.
Since the Company became irregular in paying the loan instalments, the Bank issued a demand numberice calling upon the Company and others to pay the outstanding dues.
The District Magistrate, Allahabad rejected the application of the Bank for grant of free hold right in respect of the land in question i.e. 19, Clive Road, Allahabad on the ground that Bank does number companye within the eligibility criteria under G.O. dated 01.12.1998.
Admittedly, numbernotice was issued to the appellant Bank by the State.
Aggrieved by those directions, the appellants have companye to this Court.
b issue a writ, order or direction in the nature of prohibition restraining the respondents from canceling the lease with regard to property number19, Clive Road, Allahabad.
1,2,3,7 and 8 have entered into an agreement with the United Bank of India in terms of the settlement which have been signed by the defendants as also on behalf of the plaintiff and their respective advocates on record.
Before the High Court, it was pleaded by learned companynsel for prospective auction purchaser Jvine Development Ltd. that after the decree of Calcutta High Court and subsequent order of Debt Recovery Tribunal, Kolkata all the rights, title and interest of M s. Amrit Bazar Patrika Pvt.
The Company owns two properties at Allahabad being premises number19, Clive Road, Allahabad and premises number10, Edmonston Road, Allahabad.
Subsequently, on 22.10.1945, the lease was transferred in favour of M s. Amrita Bazar Patrika Pvt.
Ltd. deposited the 25 amount, it did number deposit the remaining amount.
510 of 1990 at Calcutta High Court in the capacity of mortgagee of the various properties of the said Company including 19, Clive Road, 25 and 25 A Chikatpur Nasibpur Bakhtiyara , Allahabad, which was held by the said Company as lessee.
Rs.303.13 lakhs by Bank of Baroda Rs.228.16 by Allahabad Bank Rs.230.67 lakhs by Punjab National Bank vi Rs.57 lakhs towards legal expenses incurred by the companysortium banks.
The said lease was scheduled to expire on 31.8.1987 ii Before the expiry of lease the lessee viz.,
Ms. Mortha Anthony, transferred the leasehold property on 22.10.1945 in favour of appellant Amrit Bazar Patrika Private Limited for short ABP .
Curiously enough, lease was granted by the State of U.P. in respect of the said property situated in Allahabad in the State of U.P. but the appellant ABP moved an application before the Special Secretary, Land Reforms Department, Urban Land Ceiling Branch, Government of West Bengal, in the year 1997 seeking exemption under Section 20 and 21 of the Land Ceiling Act, 1976 and submitted a proposal for companystruction of residential unit on the portion of the land for the use of financially backward class and also sought permission for using the land.
Ltd. and the said Company had taken loan for the purposes of giving salaries to their staff as well as to modernize its printing technology for which the companypany alleged to have mortgaged their immovable properties at Calcutta and Allahabad, including leasehold property situated at 19, Clive Road, Allahabad by means of deposit of title deeds.
The Division Bench of the High Court allowed the writ petitions preferred by the Bank and M s. Jvine Development Pvt.
Defendants are directed to pay to the applicant interest at the agreed rate from 11.12.1997 till the amount is repaid.
Ltd. ceased and it vested with the Bank and the Bank had acquired first charge over the aforesaid property.
Y. Eqbal, J. Since all these appeals arise out of a companymon judgment and order dated 3.11.2009, they have been heard together and disposed of by this companymon judgment.
By the impugned judgment dated 3.11.2009 passed by a Division Bench of the Allahabad High Court, the writ petition filed by the writ petitioner United Bank of India was allowed and necessary directions were issued.
Hence, the appellant was number aggrieved by these numberices in any manner.
25 and 25A which was given on lease to ABP and the period of lease expired on 31.08.1987 and on account of expiry of the lease and for violation of the terms of lease a show cause numberice was issued on 14.05.1999 for resumption of the property.
The mortgage so created by the Company in favour of the Bank in respect of Nazul land without the sanction of the State of Uttar Pradesh in terms of the lease, is ab initio void, hence numberright was created in favour of the Bank by reason of the said mortgage.
Accordingly, a sale numberice was published on 18.5.2004 in The Times of India in respect of the immovable properties situated at 19, Clive Road, Allahabad.
On the basis of companysent of the parties the Debt Recovery Tribunal passed an order on 11.02.2004.
