NATIONAL INSURANCE COMPANY LIMITED Vs. SHRI ANUPAM SHARMA

JUDGEMENT

(1.) This appeal is directed against the judgment and order dated 6th January, 2016 in W.P. No.4928 (W) of 2015. It has been preferred by the Kolkata Municipal Corporation and its Commissioner (hereinafter referred to as "KMC"). The Respondent Nos.1 and 2 are Fabworth Promoters Pvt. Ltd. (hereinafter referred to as "Fabworth") and its director, respectively. Respondent No.3 is the Kolkata Metropolitan Development Authority (hereinafter referred to as "KMDA"). Respondent No.4 is the Hearing Officer whose order was challenged before the learned Single Judge by Fabworth.

(2.) A plot of land measuring about 5.61 acres at the junction of Dhapa Road and Eastern Metropolitan Bypass is owned by the KMDA. A notice was published on 20th February, 2006 by the KMDA inviting tenders for leasing this land for constructing a 5/7 Star Hotel thereon. Fabworth being interested, offered a lease premium of Rs. 189,67,41,000/-, which was the highest bid received by the KMDA. The bid was accepted and a Lease Deed was executed between the KMDA and Fabworth on 20th September, 2007. The lease was for a period of 99 years and was renewable for a further period of 99 years. Several restrictions were placed on the lessee in the Lease Deed with the right of reversion being maintained by the lessor. As mentioned earlier the lease premium was Rs. 189,67,41,000/- and the annual rent was Rs. 1/- per cottah.

(3.) Fabworth applied for mutation its name as a lessee of the premises on 4th October, 2007. KMC informed it that the annual valuation in respect of the said premises with effect from 3rd quarter of 2008 was determined at Rs. 13,27,71,870/-. While applying for the mutation, the form filled in by Fabworth indicated that the existing recorded owner was "unassessed". The mutation in the name of Fabworth as lessee was effected on 11th October, 2007 and a building permit was granted by the KMC in favour of the Fabworth subsequently. This building permit refers to KMDA as the lessor while Fabworth has been recorded as the lessee. On receipt of the calculation for the annual valuation of the premises, Fabworth objected to the same. However, its objections were overruled by an order dated 30th December 2008. That order was challenged by Fabworth by preferring WP 9372(W) of 2012. On 25th July, 2013 the learned Single Judge of this Court disposed of the said writ petition. The KMC was directed to consider all documents produced by Fabworth and to make an assessment in accordance with law. The KMC was expected to pass a reasoned order within three months, after affording an opportunity of hearing to all the interested parties.