CINE EXHIBITORS PVT LTD Vs. GWALIOR DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) APPELLANT has filed this Writ Appeal under Section 2 (1) of the Madhya pradesh Uchcha Nyayalaya (Khand Nyaypeeth Ko Appeal) Adhiniyam, 2005, against the order dated 21-2-2007 passed by the learned Single Judge in W. P. No. 1718/02, whereby dismissed the Writ Petition with certain observations.

(2.) BRIEFLY stated, it is the case of the appellant that the appellant is a company incorporated under the Companies Act, 1956. The respondent No. 1 gwalior Development Authority issued an advertisement for auction of plot for construction of Cinema Theater at Plot No. B-2 in the locality known as Mayur market, Thatipur area. The bid of the company being highest was accepted and on 18-3-1983 a lease agreement was executed between the petitioner-Company and Gwalior Development Authority. Said lease agreement was for a period of 30 years with further right of renewal. Thereafter, petitioner-Company constructed Cinema Hall on the plot and started business of exhibiting cinema. It was submitted the Cinema Hall was constructed and started in 1995. On account of some dispute between the Directors of the petitioner-Company, the managing Director without any resolution and without any consent of other directors, sent a letter to the Collector District Gwalior informing him to cancel the cinema licence. Thereafter the Collector without verifying the contents of the letter cancelled the cinema licence. It was submitted that because the managing Director acted contrary to the interest of the Company, therefore he was removed by passing the resolution in the Board meeting and some other person was appointed as Managing Director and the newly appointed Managing director filed an application to the Collector on 16-8-2002 for renewing the cinema licence, but no order is passed thereon. In the meantime vide letter dated 9-8-2002 (Annexure P-1) cinema licence was cancelled by the Collector. Thereafter respondent G. D. A. vide order dated 9-8-2002 has also cancelled the lease dead dated 18-3-1983 on the same ground, against which the Writ Petition was filed.

(3.) BEFORE the Writ Court, return was filed by the respondent No. 1 gda and it was submitted that the respondents having right to re-enter on the demised premises in case of breach of any condition of the agreement. Collector vide letter dated 1-3-2002 informed that licence of the appellant for exhibition of cinema was cancelled by the District Magistrate on 22-11-2001 on the application of the appellant himself. Therefore the purpose for which the lease was granted has ended with the cancellation of cinema licence. Therefore, show-cause notice to the appellant on 18-3-2002 was issued that why lease deed should not be cancelled. No reply of show cause was filed. Therefore, the order dated 9-8-2002 (Annexure P-1) was issued, which is legal and valid and direction was given to hand over the possession of the leased property. It was further submitted that without obtaining any permission, the appellants have sold part of the land to Ankit Grih Nirman Sahkari Samiti through registered sale deed dated 21-1-1999 and prayed for dismissal of the Writ Petition.