MD SERAJUDDIN Vs. STATE OF ORISSA

JUDGEMENT

(1.) THIS Is a defendant's appeal against the judgment and decree passed by the additional Subordinate Judge, Cuttack in T. S. No. 55 of 1964 decreeing the plaintiff's suit for evicting the defendant from the suit mines, directing him to deliver possession of the same to the plaintiff, and restraining the defendant by a permanent injunction from operating the suit mines in any manner.

(2.) THE plaintiff who is the State of Orissa filed the suit on the following facts.

(3.) THE suit mines belonging to the plaintiff having a rich deposit of Chromite ore were leased out to the defendant by Government orders dated 10-10-1958 (lease executed on 26-3-1959), on his application dated 9-4-1953 representing that he would set up a plant for the manufacture of Ferro Chrome and Ferro Silicon, and that he had obtained necesary licence for import of machineries, furnace and other equipments for setting up such a Plant. The aforesaid mining lease was granted In favour of the defendant after prolonged correspondence, deliberation and discussion between the two parties regarding the terms of the lease, and on obtaining prior approval of the Central Government as required under the Mines and Minerals Act, 1957. The Government of India while conveying their approval to the grant of the said lease in favour of the defendant (Ext. 18), with a view to ensure supply of mineral to the Ferro Chrome Plant, stated therein that a condition be incorporated in the lease deed to the effect that if M/s. Sarajuddin and Co. , of which the defendant was the Managing Partner, failed to set up the Plant, the state Government would be entitled to cancel the mining lease without any compensation. On receiving the approval of the Central Government with the above stipulation, the plaintiff intimated the defendant by their letter Ext. 17 dated 30-9-1958 and order Ext 16 and letter Ext. 15 both dated 10-10-1958 that the plaintiff had proposed/ordered to grant the mining lease to the defendant in respect of the suit mines subject to the acceptance by the defendant of all the usual conditions in mining lease, and the conditions already agreed upon, and also the further condition as laid down by the Central Government that the defendant should set up a Ferro Chrome Plant within five years from the date of order dated 10-10-1958, and that if the defendant failed to erect the Plant within that period the plaintiff would have the option to cancel the lease without compensation. The defendant was asked (by Ext. 15) to intimate his acceptance of the above terms in writing through the Collector, Cuttack. The defendant by his letter (Ext. 12) dated 16-1-1959 intimated his unqualified acceptance of the above terms and conditions.