FEROZ BELAL Vs. BENGAL PROPERTIES PVT LTD

JUDGEMENT

(1.) The petitioner has filed a suit against the respondent No.1, inter alia, for a decree for recovery of peaceful and vacant possession of Premises No.54/2, Rafi Ahmed Kidwai Road, Calcutta-700 016, and a money decree for a sum of Rs.3.50 crores towards rates and taxes to be paid to the respondent No.2 and for other reliefs. The circumstances leading to the filing of the said suit are as follows : (i) The suit property is a wakf property. The original plaintiff was the mutawalli of the said property. The petitioners are now the mutawalli in place and stead of the original plaintiff. (ii) Pursuant to a sanction given by this Court a lease for 51 years was granted in respect of the suit property in favour of the respondent No.1. The said lease was for a period of 51 years commencing from 5th of April, 1967. (iii) Under the said lease the respondent No.1 was to pay a premium of Rs.2,30,000/- and a monthly lease rent of Rs.3,000/-. (iv) It is alleged by the petitioner that the obligation to pay the monthly lease rent was without any abatement and/or deduction on any ground whatsoever. It is further alleged that in terms of the said lease deed the respondent No.1 as a lessee was required to pay both the owners and occupiers share of corporation rates and taxes and other outgoing and charges payable to the Kolkata Municipal Corporation or the Government in respect of the 2/3rd portion of the said suit premises and all buildings and constructions made or to be made thereon. (v) Due to non-payment of municipal rates and taxes the Municipal Authorities on or about March, 1997 sought to attach the suit premises alleging that sum exceeding Rs.3.5 crores were outstanding to the Kolkata Municipal Corporation on account of rates and taxes. (vi) On the alleged failure of the respondent No. 1 to pay the municipal rates and taxes which amounted to a breach of covenant, the petitioners terminated the lease by a notice dated 11th of April, 1997 and asked the respondent No.1 to quit and vacate and to deliver peaceful possession of the suit premises. (vii) In the said suit the petitioners filed an application whereupon by an order dated 19th of July, 2000, the petitioners were directed to pay a sum of Rs.5,00,000/- to the Kolkata Municipal Corporation towards arrears of municipal taxes and upon deposit of the said sum the Municipal Authorities were restrained from further realization of municipal taxes for a period of 12 weeks from the date of the said order. It is an admitted position that 2/3rd portion of the vacant land in the premises in question were demised in favour of the respondent No. 1 with a right to construct a building thereon and along with the right to grant sub-lease.

(2.) On behalf of the petitioners it is submitted that it is the contractual obligation of the respondent No. 1 to pay the municipal rates and taxes. Due to the prolonged non-payment of municipal taxes huge amount of taxes have fallen due. According to the petitioners, the dues would now exceed Rs.5 crores (approximately).

(3.) It is submitted that after the expiry of the lease the property is to revert back to the lessor and in that event, the lessor would be saddled with huge amount of liability towards unpaid rates and taxes. It is, therefore, prayed that an appropriate order should be passed for attachment of the rents received by the respondent No.1 from the tenants for the purpose of liquidating the dues of the Kolkata Municipal Corporation.