PAULMECH INFRASTRUCTURE PRIVATE LIMITED Vs. STATE OF ODISHA

JUDGEMENT

(1.) The appellant is before this Court assailing the order dated 09.03.2017 passed by the High Court of Orissa at Cuttack, in W.P.(C) No.23103/2013. By the said order the High Court was of the opinion that the disputed questions of fact involved in the petition cannot be gone into in the writ jurisdiction. Accordingly, the prayer made in the petition was not entertained and the appellant was relegated to approach the appropriate forum available for redressal of its grievance. The appellant, therefore being aggrieved is before this Court.

(2.) The respondent No.1­State of Odisha had granted the lease of the property in question in favour of the respondent No.5­Utkal Ashok Hotel Corporation Limited (for short 'UAHCL ') for 99 years under the document dated 24.01.1989. UAHCL was, in that view, running an establishment in the name and style 'Hotel Nilachal Ashok ' in the said premises at Puri. The same being unviable was closed down with the approval of Board of Directors in the year 2004. Thereafter, UAHCL decided to lease out the same for a period of 40 years. Tender was floated in the year 2009. The appellant was one among the tenderers who participated in the process and being the highest bidder was considered. Accordingly, the Letter of Intent (for short 'LOI ') dated 19.01.2010 was issued in favour of the appellant delineating the terms to be complied pursuant to which the lease agreement was to be signed.

(3.) Among the other conditions which were to form part of the lease agreement, even before executing the lease agreement the requirement was for the appellant to pay a sum of Rs.9.34 crores to UAHCL within 30 days, of which Rs.8.82 crores was towards nonrefundable amount which was to be paid upfront; the security deposit of Rs.26 lakhs and the advance minimum guaranteed annual lease premium for the first year of Rs.26 lakhs was also to be paid.