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Supreme Court of India

AZIM AHMAD KAZMI AND ORS.versusSTATE OF U.P. & ANR.

Citation
2012 INSC 286
Decided
16 July 2012
Disposal
Disposed off

Holding

The State may cancel the lease and resume possession under the Government Grants Act, 1895 by adhering to the specific re‑entry clause in the lease deed, without needing any other statutory procedure.

Summary

The Supreme Court examined a dispute where the Uttar Pradesh Government, under a lease deed dated 19 March 1996, cancelled the lease of a plot in Allahabad and resumed possession for public purposes such as extending the High Court building. The lessees challenged the cancellation, alleging violation of Article 14 and claiming that the State should have used the Land Acquisition Act, 1894, with adequate compensation. The Court held that the lease deed’s Clause 3(C) gave the State absolute power to re‑enter the premises for any public purpose upon giving one month's notice, and that this power is exercised under the Government Grants Act, 1895. It further ruled that no other statutory procedure was required because the lease deed itself provided a special procedure for resumption. Consequently, the cancellation and possession orders were upheld, the lessees’ appeal dismissed, and the State’s appeal disposed.

Issues considered

  • Whether the State's order cancelling the lease and resuming possession was legally valid under the Government Grants Act, 1895.
  • Whether the State could dispossess the lessee solely under the Government Grants Act, 1895 without resorting to any other law such as the Land Acquisition Act, 1894.

Legislation cited

Subjects

leasegovernment grants actcancellation of leasere‑entry clausepublic purposepossessionprocedural lawland acquisitionArticle 14compensation

Judgment

                        [2012] 6 S.C.R. 960


A                AZIM AHMAD KAZMI AND ORS.
                                  v.
                       STATE OF U.P. & ANR.
                (Civil Appeal No. 2006 of 2003 etc.)
                           JULY 16, 2012
B
             [G.S. SINGHVI AND SUDHANSU JYOTI
                     MUKHOPADHAYA, JJ.]

        Government Grants Act, 1895 - ss. 2 and 3 - Grant of
C lease by Government , Cancellation of before expiry of the
  lease period - Dispossession of lessee - Writ petition
  challenging cancellation and dispossession - Dismissed by
  High Court but observing that State shall not dispossess
  except in accordance with the procedure established by Jaw -
o On appeal, held: Since the State has absolute power under
  the terms of the grant of lease to resume the leased property
  for itself or for any public purpose, the order canceling the
  lease is valid and legal - The State followed the special
  procedure as laid down under Clause 3(c) of the lease deed
E to dispossess the lessee, it was not required to follow any other
  procedure or law - Lease.

      A lease-deed of the premises in question was
  executed by the State in favour of the appellants (in Civil
  Appeal No. 2006 of 2003) on 19.3.1996. The State
F cancelled the deed before expiry of the lease period and
  proceeded to resume the premises by order dated
  15.12.2000. District Magistrate sent a notice dated
  11.1.2001 to the lessees informing about the same. The
  objection raised by the lessees was rejected by order
G dated 24.8.2001 but with the observation that the lessor-
  State was not entitled to take forcible possession, and
  could take possession only in accordance with the
  procedure established by law. The lessees challenged

H                                960
AZIM AHMAD KAZMI AND ORS. v. STATE OF U.P. & 961
                   ANR.

the orders dated 15.12.2000 and 24.8.2001 and the notice        A
dated 11.1.2001 by filing a writ petition. The writ petition
was dismissed by High Court affirming the cancellation
of the lease deed. Lessees filed appeal to this court
aggrieved by the dismissal of the petition. Lessor-State
also filed appeal to this court aggrieved against the part      B
of the order whereby it was held that the State was not
entitled to take forcible possession but for in accordance
with the procedure established by law.

     The questions for consideration before this Court
were (i) whether the order of the State for cancellation of     C
the lease and resumption of possession was legally valid;
and (ii) whether the State could dispossess the lessee in
accordance with the Government Grants Act, 1895,
without resorting to other procedure established by any
other law.                                                      D

     Dismissing the appeal of the lessee and disposing
of the appeal of the lessor-State, the Court

     HELD: 1.1 As the State Government is resuming the
                                                                E
leased property for itself or for any public purpose, which
under the terms of the grant it has absolute power to do,
the order passed by it on 15th December, 2000 is perfectly
valid and does not suffer from any illegality. Clause 3(C)
of the lease deed clearly confers power upon the lessor
State that if the plot in question is required by the State
                                                                F
Government for its own purpose or for any public
purpose, it shall have the right to give one month's notice
in writing to the lessees to remove any building standing
on the plot and to take possession thereof on the expiry
of the two months' from the date of service of notice.          G
There is a further condition in the clause that if the lessor
is willing to purchase the building standing on the plot,
the lessee shall be paid such amount as may be
determined by the Secretary to the State Government in
the Nagar Awas Department. The clause of re-entry was           H
    962      SUPREME COURT REPORTS              [2012] 6 S.C.R.


A not introduced for the first time in the deed executed in
  1996. [Paras 13 and 14] [970-B-D, E, G-H]

       1.2. The plea of the lessee that it was for the first time
  in their case that a lease had been cancelled and the plot
  has been resumed by the State Government under the
8
  terms of the deed, is not correct as a similar course of
  action has been taken in the past also. Therefore, the
  violation of Article 14 cannot be alleged in the present
  case. [Para 15] [971-E-F]

C     2. For taking possession, the State Government is
  required to follow the law, if any, prescribed. In the
  absence of any specific law, the State Government may
  take possession by filing a suit. In the case in hand the
  procedure as laid down under clause 3 (c) of the lease
D deed procedure was followed. Therefore, there is no other
  procedure or law required to be followed, as a special
  procedure for resumption of land has been laid down
  under the lease deed. As a special procedure for
  resumption of land is prescribed under the lease deed,
E the High Court was not correct in holding that the State
  Government cannot dispossess the appellants but can
  take possession according to the procedure adopted by
  any other law. The State Government is allowed ·to t~ke
  possession of the demised premises for extension of
F High Court building etc., as decided. [Paras 17 and 20)
  [971-G-H; 973-E-G; 974-B]

       The State of U.P. vs. Zahoor Ahmad and Anr. AIR 1973
    SC 2520:   1974 (1) SCR 344 - relied on.

G                       Case Law Reference:
          1974 (1) SCR 344         Relied on           Para 18
        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    2006 of 2003.        ·
H
AZIM AHMAD KAZMI AND ORS. v. STATE OF U.P. & 963
                   ANR.

    From the Judgment & Order dated 7.12.2001 of the High           A
Court of Judicature at AllaMabad in Civil Misc. Writ Petition No.
32344 of 2001.

                             WITH

C.A. No. 2007 of 2003.                                              8

    Amrendra Sharan, P.N. Mishra, Shail Kr. Dwivedi, AAG,
Javed Mahmud Rao, Anis Suhrawardy, Awadhesh Kumar
Singh, Tabrej Ahmad, T.N. Singh, Rajeev K. Dubey, Kamlendra
Mishra for the appearing parties.                                   c
     The Judgment of the Court was delivered by

     SUDHANSU JYOTI MUKHOPADHAYA, J. 1. These
appeals have been preferred against the judgment dated
7..12.2001 passed by the Division Bench of the High Court of        D
Judicature at Allahabad whereby the writ petition preferred by
lessee - Azim Ahmad Kazmi and Ors. (hereinafter referred to
as "the appellants") was dismissed with certain observations.

     2. A lease-deed of the demised premises was executed           E
by the respondent- State in favour of the appellants on 19th
March, 1996 followed by a renewal of lease dated 17th July,
1998. The State Government vide order dated 15th December,
2000 cancelled the lease deed and proceeded to resume the
demised premises which livas informed to the appellants by the
                                                                    F
District Magistrate, Allahabad on 11th January, 2001. The
objection preferred by the appellants was rejected on 24th
August, 2001. The appellants preferred a writ petition against
the order dated 15th December, 2000 passed by the State
Government, the notice dated 11th January, 2001 and the order
dated 24th August, 2001 passed by the District Magistrate,          G
Allahabad which was dismissed but with the observation that
the State Government is not entitled to take forcible possession
though it may take possession of the demised premises in
accordance with the procedure established by law. The
appellants are aggrieved against the dismissal of the writ          H
    964      SUPREME COURT REPORTS                  [2012] 6 S.C.R.


A petition whereby the order of cancellation of lease deed was
  affirmed, whereas the State Government is aggrieved against
  the last portion of the order whereunder it was mentioned that
  the State Government is not entitled to take forcible possession
  though it may take possession in accordance with the procedure
B established by law.

         3. The dispute relates to Plot No. 59, Civil Station,
    Allahabad having an area of 1 acre and 4272 sq. yards (9112
    sq. yards or 7618 sq. meters). Initially, a lease of aforesaid plot
    was granted in favour of one Thomas Crowby for a period of
C   50 years on 11th January, 1868 by the then Secretary of State
    for India in Council and it was signed by the Commissioner of
    Allahabad Division. A fresh lease was executed in favour of his
    successor for another period of 50 years on 12.4.1923 which
    was to operate from 1.1.1918. With the permission of the
D   Collector, Allahabad, the successors of the lessee transferred
    their lease hold rights in favour of one Purshottam Das in the .
    year 1945. According to appellants on 31st October, 1958, the
    legal representative of said Purshottam Das transferred the
    lease-hold rights in favour of appellant no. 7-Smt. Shakira
E   Khatoon Kazmi, appellant no. 6- Smt. Sabira Khatoon Kazmi
    and their mother-Smt. Maimoona Khatoon Kazmi. The appellant
    no. 1- Azim Ahmad Kazmi, appellant no. 5- Omar Ahmad
    Kazmi, appellant no. 2- Shamim Ahmad Kazmi, appellant no.
    3- Alim Ahmad Kazmi and appellant no. 4- Maaz Ahmad Kazmi
F   are heirs of late Smt. Maimoona Khatoon Kazmi. The lease,
    which had been granted on 12th April, 1923 expired on 31st
    December, 1967 but the same was not renewed for a long
    period. Subsequently, a fresh lease deed was executed on
    behalf of Governor of Uttar Pradesh in favour of some of the
G   appellants and their ancestors on 19th March, 1996 for a period
    of 30 years which was to operate with effect from 1.1.1996.
    This deed contained a clause that the lease deed may be
    renewed for two successive terms of 30 years each but the total
    period shall not exceed 90 years including the original term. The
H   period of this deed expired on 31st December, 1997 and on
AZIM AHMAD KAZMI AND ORS. v. STATE OF U.P. & 965
  ANR. [SUDHANSU JYOTI MUKHOPADHAYA, J.]

17th July, 1998 which was renewed for a further period of 30 A
years w.e.f. 1st January, 1998. Subsequently the State
Government passed an order on 15th December, 2000 for
cancelling the lease deed and resuming the possession of the
plot in question. The District Magistrate, Allahabad, thereafter
gave a notice dated 11th January, 2001 to the appellants B
intimating them that the State Government had passed an order
dated 15th December, 2000 cancelling the lease and resuming
possession of the plot in question as the same was required
for a pubic purpose. The notice further mentioned that the
appellants should remove the structure standing on the plot c
failing which possession will be taken in accordance with clause
3(c) of the lease deed. The appellants filed an objection against
the notice before the District Magistrate on 2.2.2001. They
further claimed to have sent an objection to the Chief Minister
of Uttar Pradesh on 31.1.2001 praying for revocation of the
order of the State Government dated 15.12.2000. The District D
Magistrate considered the objection and rejected the same by
an order dated 24.8.2001. A copy of the aforesaid order along
with cheques representing the compensation for the building
standing over the plot (cheques for total amount of Rs.10 lakhs) E
were served upon the appellants. The respondent-State tried
to dispossess the lease on 1.9.2001 and their stand was that
the possession of open land was taken. It was at that stage
when the writ petition was filed and a stay order was passed
by High Court on 2nd September, 2001 staying the
dispossession of the appellants. The writ petition was F
subsequently dismissed on merit.

     4. Learned counsel appearing for the lessees submitted
that the State Govern.ment initially made a proposal for
acquiring disputed plot for the same purpose in accordance        G
with the Provisions of Land Acquisition Act, 1894. The District
Magistrate, Allahabad, wrote a letter to the State Government
on 29th October, 1998 that looking to the area of plot, the
estimated amount of compensation, including 30% solatium,
12% additional amount and interest, etc. could come to rupees     H
    966      SUPREME COURT REPORTS                 [2012] 6 S.C.R.


A   two crores and sixty two lakhs. The said proposal was not
    accepted by the State Government and was rejected by order
    dated 17th July, 2000. The State Government took possession
    of few other Nazul Lands in Allahabad under the Land
    Acquisition Act, 1894 wherein a good amount of compensation
B   was paid to the lessees. It was contended that if the State
    Government had taken a recourse of the Provisions of the Land
    Acquisition Act, 1894 for acquiring the plot in question, the
    lessees would have got sufficient compensation and not by
    opting the said mode the lessees have been discriminated
c   against and consequently, the impugned order of the State
    Government dated 15th December, 2000 is liable to be set
    aside. In the past, the State Government had not taken any
    recourse to resume the land in the manner. The State
    Government had taken over the possession of the land much
D   prior to the completion of period of lease. The order passed
    by the State Government on 15th December, 2000 for
    cancellation of lease and a resumption of possession is illegal
    and not in accordance with the Government Grants Act, 1895.

         5. It was next submitted that the public purpose, if any,
E   existed prior to 17th July, 1998 when the lease was renewed
    and by renewal of the lease the State Government is stopped
    from pleading that there is a public purpose. By renewal of
    lease, the lessee legitimately expected that they will remain in
    occupation for 30 years from 1st January. 1998, the date from
F   which the lease was renewed.

        6. Learned counsel appearing on behalf of the respondent-
  State submitted that the existence of public purpose is not a
  new development. It was submitted that by letter dated 29tb
G August, 1998, the District Magistrate informed the Special
  Secretary to the State Government, he had given the estimate
  for acquiring the property under the Provisions of the Land
  Acquisition Act, 1894. In the said letter, the reference of earlier
  letters including letter dated 2nd December, 1997 has been
  referred. Those letters shows that even before the renewal of
H
AZIM AHMAD KAZMI AND ORS. v. STATE OF U.P. & 967
  ANR. [SUDHANSU JYOTI MUKHOPADHAYA, J.] _

the lease deed in favour of the lessees, taking over the            A
possession of property for extension of the Allahabad High
Court and office of the Advocate-General, U.P. was seriously
considered; it is wrong to suggest that the requirement of the
I.and for public purpose was not in existence when the lease
was renewed.                                                        B

      7. It was contended on behalf of the respondent-State that
the lease has been cancelled and an order to resumption of
possession has been passed as the plot in question is required
for extension of the Allahabad High Court as also for extension
of the office of Advocate General, U.P. The plot is situated just   C
in front of the gate of the High Court on the Kanpur Road and,
therefore, most suitable and ideal place for the aforesaid
purpose. Several courts-room and chambers for the judges
 have been constructed in the past but there has been no
addition of office space with the result that there is hardly any   D
place to keep the records. Even pending files are being kept
by having a make shift and temporary arrangement by
enclosing the verandas. Similarly, there is an acute shortage
of space in the office of Advocate-General. There is no place
at all. where the State counsel may sit and do the drafting work    E
or for keeping the files. The grounds for passing of the order,
namely, extension of the High Court and extension of office of
Advocate-General is undoubtedly a public purpose and the
same has rightly not been challenged by the learned counsel
for the lessees.                                                    F

     8. It was further contended that the State Government
having conferred power under Clause 3 (C) of the lease deed,
as the plot in question was required for public purpose, it was
open to the State Government to take possession of the land         G
in question on expiry of the one month notice.

    9. The questions which requires consideration are (i)
whether the order passed by the State Government on 15th
December, 2000 for cancellation of lease and resumption of
possession is legally valid and (i) whether the State Government    H
    968       SUPREME COURT REPORTS                  [2012) 6 S.C.R.


A can dispossess the lessee in accordance with the Government
  Grants Act, 1895 without resorting to other procedure
  established by any other law.

      10. There is clear recital in the lease deed executed in
B favour of the appellants by the Government of U.P. on 19th
  March, 1996 that the same is being done under the Government
  Grants Act, 1895. Clause 3 (C) of the deed reads as follows:

          "3(C) That if the demised premises are at any time
          required by the lessor for his or for any public purpose he
c         shall have the right to give one month's clear notice in
          writing to the lessees to remove any building standing at
          the time of the demised premises and within two months
          of the receipt of the notice to take possession thereof on
          the expiry of that period subject however to the condition
D         that if the lessor is willing to purchase the building on the
          demised premises, the lessees shall be paid for such
          building such amount as may be determined by the
          Secretary to Government of U.P. in the Nagar Awas
          Department."
E
        11. Sections 2 and 3 of the Government Grants Act, 1895,
    have been AMENDED BY U.P. ACT 13 OF 1960 WITH A
    RETROSPECTIVE EFFECT AND THE SUBSTITUTED
    SECTIONS READS AS FOLLOWS:

F         "2. (1) Transfer of Property Act, 1882, not to apply to
          Government Grants. - Nothing contained in the Transfer
          of Property Act, 1882, shall apply or be deemed ever to
          have applied to any grant or other transfer of land or of any
          interest therein, heretofore made or thereafter to be made,
G         by or on behalf of the Government to or in favour of any
          person whomsoever; and every such grant and transfer
          shall be construed and take effect as if the said Act had
          not been passed.

          (2) U.P. Tenancy Act, 1939 and Agra Tenancy Act, 1926
H
AZIM AHMAD KAZMI AND ORS. v. STATE OF U.P. & 969
  ANR. [SUDHANSU JYOTI MUKHOPADHAYA, J.]

   not to affect certain leases made by or on behalf of the        A
   Government. - Nothing contained in the U.P. Tenancy Act,
   1939, or the Agra Tenancy Act, 1926, shall affect or be
   deemed to have ever affected any rights, created,
   conferred or granted, whether before or after the date of
   the passing of the Government Grants (U.P. Amendment),          B
   Act, 1960, by leases of land by, or on behalf of, the
   Government in favour of any person, and every such
   creation, conferment or; grant shall be construed and take
   effect, notwithstanding anything to the contrary contained
   in the U.P. Tenancy Act, 1939 or the Agra Tenancy Act,          c
   1926.

   (3) Certain leases made by or on behalf of the Government
   to take effect according to their tenor. - All provisions,
   restrictions, conditions and limitations contained in any
   such creation, conferment or grant referred to in Section       D
   2, shall be valid and take effect according to their tenor;
   any decree or direction of a Court of law or any rule of law,
   statute or enactments of the Legislature, to the contrary
   notwithstanding:
                                                                   E
         Provided that nothing in this Section shall prevent,
   or be deemed ever to have prevented the effect of any
   enactment relating to the acquisition of property, land
   reforms or the imposition of ceiling on agricultural lands."

    12. THIS COURT IN THE CASE OF THE STATE OF U.P.
                                                                   F
VS. ZAHOOR AHMAD AND ANOTHER, REPORTED IN AIR
1973 SC 2520 HELD AS FOLLOWS:-

   " Section 3 of the Government Grants Act declares the
   unfettered discretion of the Government to impose such          G
   conditions and limitations as it thinks fit, no matter what
   the general law of the land be. The meaning of Section 2
   and 3 of the Government Grants Act is that the scope of
   that Act is not limited to affecting the provisions of the
   Transfer of Property Act only. The Government has               H
    970       SUPREME COURT REPORTS                 [2012] 6 S.C.R.


A         unfettered discretion to impose any conditions, limitations,
          or restrictions in its grants, and the right, privileges and
          obligations of the grantee would be regulated according
          to the terms of the grant, notwithstanding any provisions
          of any statutory or common law."
B
       13. Clause 3(C) of the lease deed clearly confers power
  upon the lessor.State of U.P. that if the plot in question is
  required by the State Government for its own purpose or for
  any public purpose, it shall have the right to give one month's
C notice in writing to the lessees to remove any building standing
  on the plot and to take possession thereof on the expiry of the
  two months' from the date of service of notice. There is a further
  condition in the clause that if the lessor is willing to purchase
  the building standing on the plot, the lessee shall be paid such
  amount as may be determined by the Secretary to Government
D of U.P. in the Nagar Awas Department.

        14. The deed of renewal executed at 17th July, 1998 is a
  very short one and recites that the renewal is being done on
  the same terms and conditions including the clause for re-entry
E as is continued in the original lease deed dated 19th March,
  1996 and the terms and conditions of the aforesaid deed would
  be binding upon the parties. The clause of re-entry was not
  introduced for the first time in the deed executed in 1996 but
  also contained as one of the clause in lease deed dated 12th
F April, 1923 wherein it was stipulated that if the Government shall
  at any time require to re-enter on the demised plot it can do
  so, on paying the cost of the building that may be on the site
  and that the lessee shall have no further claim of any sort
  against the Government. In fact, in the deed executed on 19th 1
G March, 1996, the right of re-entry has been fettered by the
  condition "required by the lessor for his or for any public
  purpose". As the State Government is resuming the leased
  property for his or for any public purpose, which under the terms
  of the grant it has absolute power to do, the order passed by it
  on 15th December, 2000 is perfectly valid and does not suffer
H
  AZIM AHMAD KAZMI AND ORS. v. STATE OF U.P. & 971
    ANR. (SUDHANSU JYOTI MUKHOPADHAYA, J.]

 from any illegality.                                                 A
        15. The Division Bench noticed the fact that in paragraph
  7 of the Supplementary counter affidavit filed in reply to the
  amendment application, it is averred that the properties,
  reference of which has been made in para 23 of the writ·
  petition were in fact acquired at the instance of the Allahabad     B
  Development Authority for building of residential and
  commerdal complex and for development of the area and the
  proceeding for acquisition had commenced on the basis of the
  proposals received from Allahabad Development Authority. In
  para 8 of the Supplementary counter affidavit, it is averred that   C
  when Nazul plot No. 13, Civil Station, Allahabad, which is
  situated in Civil Lines Area, was resumed by the State
  Government for the purpose of construction of a bus station,
  the same was done in exercise of power vested with it in a
  similar clause of the lease deed and no proceedings under the       D
  Land Acquisition Act had been initiated. The resumption by the
  State Government in the said case was challenged before the
  Division Bench of the Allahabad High Court which was
  dismissed on 16th December, 1999 and the Special Leave
  Petition No. 4329 of 2000 preferred against the judgment of         E
  the High Court was summarily dismissed by this Court on 7th
  September, 2001. Therefore, the contention of the lessee that
  it was for the first time in their case that a lease had been
  cancelled and the plot has been resumed by the State
  Government under the terms of the deed is, therefore, not           F
: correct and a similar course of action has been taken in the
  past-also. Therefore, the violation of Article 14 cannot be
  alleged in the present case.

     16. The first question is thereby answered in negative,
 against the appellants and in favour of the respondents.             G

        17. For taking possession, the State Government is
  required to follow the law, if any, prescribed. In the absence of
, any specific law, the State Government may take possession
' by filing a suit. Under the Provisions of the Land Acquisition      H
    972      SUPREME COURT REPORTS                [2012] 6 S.C.R.


A Act, 1894, if the State Government decides to acquire the
  property in accordance with the provisions of the said Act, no
  separate proceedings have to be taken for getting possession
  of the land. It may even invoke the urgency provisions contained
  in Section 17 of the said Act and the Collector may take
8 possession of the land immediately after the publication of the
  notice under Section 9. In such a case, the person in
  possession of the land acquired would be dispossessed
  forthwith. However, if the Government proceeds under the terms
  of the Government Grants Act, 1895 then what procedure is to
C be followed. Section 3 of Government Grants Act, 1895,
  stipulates that the lease made by or on behalf of the Government
  to take effect according to their tenor - All provisions,
  restrictions, conditions and limitations contained in any such
  creation, conferment or grant referred to any Section 2, shall
  be valid and take effect according to their tenor; any decree or
D direction of a Court of Law or any rule of law, statute or
  enactments of the Legislature, to the contrary.

        18, In the case of The State of UP. vs. Zahoor Ahmad
  and Another (supra), this Court held that the Section 3 of the
E Act declares the unfettered discretion of the Government to
  impose such conditions and limitation as it thinks fit, no matter
  what the general law of land be. From Clause 3(C) of the deed,
  it is clear that the State of U.P. while granting lease made it
  clear that if the demised premises are at any time required by
F the lessor for his or for any public purpose, he shall have the
  right to give one month's clear notice to the lessee to remove
  any building standing at the time of the demised property and
  within two months' of the receipt of the notice to take possession
  thereof on the expiry of that period subject to the condition that
G the lessor is willing to purchase the property on the demised
  premises, the lessee shall be paid for such amount as may be
  determine<:! by the Secretary to the Government of U.P. in the
  Nagar Awas Department.

      19. In the case in hand, the District Magistrate, Allahabad
H High Court issued a notice on 11th January, 2001 to the
AZIM AHMAD KAZMI AND ORS. v. STATE OF U.P. & 973
  ANR. [SUDHANSU JYOTI MUKHOPADHAYA, J.]

appellants intimating that the State Government had passed          A
order on 15th December, 2000 cancelling lease deed and
resuming possession of the disputed property as the same was
required for public purpose. The appellants sent an application
but instead of filing objections before the State Government
represented before the Chief Minister of U.P. on 31st January,      B
2001 praying for revocation of order dated 15th December,
2000. Objection was filed before the District Magistrate,
Allahabad who after consideration of the objection rejected the
same by order dated 24th August, 2001 enclosing therein a
cheque for rupees ten lakhs towards compensation for the            c
building standing over the plot. The appellants refused to
accept the cheques. The respondents thereafter dispossessed
the appellants from the part of the land on 1st September, 2001.

      20. Under Clause 3(C) of the lease deed, the respondent-
State was permitted resumption of the land which required for D
its own use or for public purpose and after giving one month's
clear notice in writing is entitled to remove any building standing
at the time on the demised premises and within two months of
the receipt of the notice to take possession thereof subject to
the condition that if the lessor is willing to purchase the building E
ofthe demised premises required to pay the lessee the amount
for such building as may be determined by the Secretary to
Government of U.P. in the Awas Department. In the case in
hand such procedure was followed. Therefore, we are of the
view that there is no other procedure or law required to be F
followed, as a special procedure for resumption of land has
been laid down under the lease deed. As a special procedure
for resumption of land is prescribed under the lease deed, the
High Court was not correct in holding that the State Government
cannot dispossess the appellants but can take possession G
according to the procedure adopted by any other law. The .
finding of the High Court to such extent is set aside but the rest
portion of the judgment affirming the order of the State
Government dated 15th December, 2000, the notice dated 11th
January, 2001 and an order passed by the District Magistrate H
    974     SUPREME COURT REPORTS                 [2012) 6 S.C.R.


A dated 24th August, 2001 is. upheld. The appeal preferred by
  appellants Azim Ahmad Kazmi & Ors. is dismissed and the
  appeal preferred by the State of U.P. and Anr. stands disposed
  of with aforesaid observations. The interim order of stay is
  vacated. The State Government is allowed to take possession
B of the demised premises for extension of High Court building
  etc., as decided. However, the appellants are given three
  months time to hand over the possession of the land and
  building to the State and, if so necessary, the State Goverrlment
  will issue a fresh cheque for rupees ten lakhs in favour of the
c appellants, if earlier cheque has expired and not encashed. If
  the appellants fail to handover the possession of demised
  premises or create any third party interest in such case the State
  Government and the District Magistrate, Allahabad in particular
  will take forcible possession of the demised premises.

D K.K.T.                                    Appeals disposed of.


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