HALDIRAM LTD Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) Haldiram Limited, a company incorporated under the provisions of the Companies Act, 1956, has taken out this writ petition dated February 14th, 2008 seeking the following final reliefs:

(2.) On January 13th, 2003 the second respondent, Kolkata Metropolitan Development Authority (in short "KMDA") published a tender notice offering to lease out a 122-cottah plot of land No.C-5, a prime location in the east Kolkata township, for institutional or commercial or mixed use purpose, and stating that booklets containing the details of the plot and the terms and conditions inviting sealed bids along with the application form, would be available from the office of its executive engineer concerned. Haldirarn participated and emerged as the highest bidder. By a letter dated February 18th, 2003 KMDA accepted Haldirarn's bid and expressed its willingness to offer an allotment of the plot for establishment of a supermarket-cum-food processing unit along with residential facility for company management and staff only compatible with the project, report whereof had been submitted by Haldirarn under cover of its letter dated December 4th, 2002. It was further stated that initially the land would be allotted on licence basis for a period of 99 years, and that the licence deed would be converted into a lease deed in due course. By a letter dated February 20th, 2003 Haldirarn accepted the offer. By a letter dated March 6th, 2003 KMDA allotted the plot to Haldiram for a premium of Rs,8,04,69,511. After approval of the appropriate authority, KMDA prepared memo dated April 29th, 2003 recording the facts of its handing over and Haldiram's taking over possession of the land on April 29th, 2003.

(3.) The requisite deed of licence was executed on May 22nd, 2003. In clause 5(iii) it was stated that at its own costs and within three years from May 22nd, 2003, or within such further time as KMDA might at its option allow in writing on sufficient and reasonable grounds, Haldiram would erect, construct and complete the proposed supermarket-cum-food processing unit along with residential facility for company management and staff with boundary walls, sewers and drains in accordance with plans, sections and specifications that should be approved by the appropriate authorities. In clause 5(iv) it was provided that Haldiram would keep the land clean and free from all sorts of nuisance, and would not allow heavy accumulation of water on it. In clause 5 (viii) it was provided that without previous consent of KMDA, Haldiram would not use or allow to be used the land or any structure erected thereon or any part thereof for any purpose other than the purpose of allotment thereof; and in clause 5(xiii) it was provided that Haldiram would make arrangement for water supply as well as for obtaining electricity connection within the land at its own costs. In cl.7(i) it was provided that on breach of any covenant on Haldiram's part contained in the deed and to be performed or observed by it, it would be lawful for KMDA to re-enter upon the land after determining the licence. In clause 7(iii) it was provided that any relaxation or indulgence granted by KMDA to Haldiram or by Haldiram to KMDA would not in any way prejudice the rights of the parties under the deed of licence.