SUBHASH CHANDRA CHAUDHARI AND ORS.versusRAM MILAN AND ORS.
- Citation
- 1997 INSC 82
- Decided
- 31 January 1997
- Disposal
- Dismissed
Holding
The appeal is dismissed; the lease cannot be reinstated or extended, and the Government must refund the deposit as directed.
Summary
The appellants were granted a one‑year lease on 5 December 1994, which expired on 5 December 1995. The lease was cancelled by the Commissioner on 17 February 1995, but the State Government set aside that cancellation on 23 March 1995. The Government’s subsequent order was stayed by the High Court, which directed that the lease‑hold be auctioned and third parties be inducted to work the sand excavation. The appellants sought a direction to continue working the lease for the residual period, arguing that the lease could not be fully utilised due to the court orders. The Supreme Court held that it could not grant such a direction because the third‑party rights had already been created and those parties were not before the Court. Consequently, the Court dismissed the appeal and upheld the Government’s offer to refund the deposit of Rs 6,30,000 to the appellants.
Issues considered
- Whether the lease cancelled by the Commissioner can be reinstated or extended for the residual period after subsequent orders and the induction of third parties.
- Whether the Court can direct the appellants to work out the lease in the absence of the third parties before it.
- Whether the Government is obligated to refund the deposit paid by the appellants.
Subjects
Judgment
~
........ )
\
A SUBHASH CHANDRA CHAUDHARI AND ORS.
;.;,
0 v.
RAM MILAN AND ORS.
JANUARY 31, 1997
B [K. RAMASWAMY AND G.T. NANAVATI, JJ.]
Lease-Grant of-Cancelled by the Commissioner-<1ovemmellt setting
~-
aside the Commissioner order----But order of Govemment set stayed by High
Court-Pursuant to High Court's directions auction conducted-Third parties
c inducted-Plea of appellants to work out the lease for residual period-Such
direction could /wt be given in the absence of the third parties who are not
before the Court-Respondent Govemment offening to refund the amount
deposited by appella11ts-Directio11 issued for refund.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 694 of
D 1997.
... •
From the Judgment and Order dated 24.5.96 of the Allahabad High
Court in C.M.W.P. No. 8654 of 1995.
Anis Ahmed Khan and W.A. Nomani for the Appellants.
E
Yogeshwar Prasad, R.C. Verma, R.B. Misra and Anil Kr. Gupta-II
for the Respondents .
. The following Order of the Court was delivered :
)
F Leave granted. We have heard learned counsel on both sides. .>
This appeal by special leave arises from the judgment dated May 24,
1996 passed by the High Court of Allahabad in W.P. No. 8654/95.
The admitted position is that though lease was granted lo the appel- ...
G !ants on December 5, 1994 for one year and was executed, as admitted by
the respondents, on the said date, it expired on December 5, 1995. It is
contended that the lease granted to the appellants was cancelled by the ~
Commissioner on February 17, 1995 and on a revision filed by the appel- .4
!ants to the State Government, by order dated March 23, 1995, the order
H of the Commissioner was set aside. But unfortunately the operation of the
748
S.C. CHAUDHARI v. RAM MILAN 749
order of the Goyeniment ~as stayed by the High Court on May 21, 1995 A
and it set aside the order of the Government by the impugned order. It is
not in dispute that pursuant to the direction of the High Court the auctions
were conducted and third parties have been inducted to work out the
excavation of the sand; but they are not before us. Though there is some
force in the argument of the learned counsel for the appellants that since . B
the working of the period of the lease granted to the appellants was not
.allowed to be fully utilised on !lccount of the orders passed by the courts
or the Commissioner, the. time may be extended for the appellants to
execute the .lease and work out the lease for the residue period, as stated
earlier, since the third party rights have already been intervened, in their
absence we cannot give. the direction as sought for. Under these cir- C
cumstances, it is stated in the affidavit itself that the respondent-Govern-
ment have offered refund of the amount deposited by the appellants as
directed by the High Court. The respondents an; directed to refund the
amount of Rs. 6,30,000.
We are constrained to dismiss the appeal. No costs. D
G.N. Appeal dismisse.d.
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