R V RANADE Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) RULE. LEARNED Counsel for the respondents waive service. By consent taken up for hearing and final disposal.

(2.) SEVERAL decades ago, the Vidarbha Sahitya Sangh ("vss") was allotted a land in what is now essentially the heart of the city of Nagpur. By an Indenture dated 21 st April, 1951, the Governor of Madhya Pradesh agreed to grant free of premium, on a nomtnal ground rent of Re. 1 /-, a piece of Nazul Land containing 1. 12 acres out of Khasra No. 88/1- 89/5- 89/6. The terms of the grant provided that the allottee had agreed to accept the allotment for the construction of buildings for cultural and educational purposes and for purposes appurtenant thereto. The land was liable to be resumed inter alia if the land was not used for the specific purpose for which it was granted or if it was not used to the satisfaction of Government. By another lease dated 19th June, 1957, the Governor of the then State of Bombay similarly granted and allotted a plot on Nazul land admeasuring 10,902 sq. ft. or 0. 26 acres forming part of Khasra No. 88/1, 89/5 and 89/6. The terms of the aforesaid grant will fall for consideration in greater detail subsequently but at this stage it would be material to note that the land was granted on the payment of a nominal assessment of Rs. 4/- per annum for the purpose of constructing and maintaining on the land a building for cultural and educational purposes and for purposes ancillary thereto.

(3.) IN 1958 an auditorium was constructed by VSS on the land. Some time in 1974-75 a proposal was moved by the then President of VSS, who was a prominent literary figure, to construct a new theatre along with a commercial complex on the land. The proposal was moved since the acoustics in the existing auditorium were defective and a need was felt to construct a modern theatre. Culture is not always commercially profitable. VSS is stated to have been in financial distress at the relevant time and it was proposed that the construction of commercial complex with theatres would provide a source of revenue. The Managing Body passed a resolution in 1974 for the construction of a new theatre together with a commercial complex by demolishing the existing auditorium. On 27th July, 1991 the Trustees passed a resolution approving the project and appointing the ninth respondent as a Developer to implement the Scheme. The Executive Committee and the General Body of the Trust ratified this resolution and on 23rd October, 1992, an agreement was entered into by VSS with the 9th respondent.