GOVIND Vs. NAGPUR IMPROVEMENT TRUST

JUDGEMENT

(1.) Since challenge has been raised to the decision/resolution of the Board of Trustees' of the Nagpur Improvement Trust dtd. 2/3/2022 in both the writ petitions, they have been heard together and are being decided by common judgment.

(2.) Rule. Rule made returnable forthwith and heard the learned Advocates for the parties.

(3.) The facts relevant for deciding the writ petitions are that Plot No.101, Mouza-Chikhli (Deo), Khasra Nos. 61, 63 and 69 vest with the Nagpur Improvement Trust (for short, the NIT). On 7/4/1998 the NIT was pleased to auction leasehold rights of the aforesaid property in favour of one Shri Kamlesh Shantilal Shah for industrial use. Pursuant thereto, on 24/8/1998 the NIT executed a lease deed of the aforesaid property in his favour subject to terms and conditions mentioned therein. As per Clause 1(m-1) the said plot was allotted on concessional premium and the conditions prescribed under Rule 24 of the Nagpur Improvement Trust Land Disposal Rules, 1983 (for short, the Rules of 1983) as well as the conditions that could be imposed by the Chairman were made applicable. The aforesaid lessee mortgaged the aforesaid land for obtaining financial assistance. Since the lessee failed to repay the amount borrowed by him, the Bank proceeded to auction the aforesaid property on 18/8/2018. The said property was purchased by the respondent no.7 in Writ Petition No.689 of 2023 . The said auction purchaser thereafter on 23/10/2019 sold the aforesaid property to the petitioners in Writ Petition No.527 of 2023 who are also arrayed as respondent nos. 8 and 9 in Writ Petition No.689 of 2023 (for short, the Purchasers). Based on a complaint made by the original lessee with the NIT, its Trustees' in a meeting held on 2/3/2022 resolved to lodge a First Information Report (FIR) against the petitioner in Writ Petition No.689 of 2023-Punjab National Bank (for short, the Bank) on the ground that it had auctioned the said leasehold property without obtaining permission of the NIT. It was also resolved to resume possession of the aforesaid property and intervene in the pending proceedings initiated by the Bank before the Debts Recovery Tribunal. Acting on this resolution, a notice came to be issued to the Purchasers on 16/1/2023 requiring them to hand over possession of the leasehold property within a period of seven days. The Purchasers thus being aggrieved have challenged the resolution passed by the Board of Trustees' of the NIT dtd. 2/3/2022 as well as the notice issued to them by the NIT on 16/1/2023 by filing Writ Petition No.527 of 2023.