USHA BRECCOLTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) Petitioner No. 1 is a Company (Company for short) incorporated under the Indian Companies Act. Petitioner No. 2 is one of its Director and petitioner No. 3 is one of its share holder. They have prayed for quashing Annexure 13, letter written by respondent No. 2, Bihar State Tourism Development Corporation Limited, the (Corporation for short) to the Company on 8-4-1991 by which the Company was informed that as it has failed to pay all outgoing liabilities, which included payment of arrears of electricity dues under Clause 5(a) of the agreement (Annexure 4), the Corporation on 8-4-1991 took possession of the aerial rope way at Rajgir along with connected sheds, buildings and other accessories and for, appropriate order not to interfere with Company's possession.

(2.) During the pendency of the writ petition by letter dated 15-4-1991 the Corporation gave notice under Clause 13(a) of Annexure 4 to the effect that Annexure 4 would stand revoked terminated on the last date of month completing three months notice, i.e., at the end of July, 1991.

(3.) On 9-11-1984 the Company entered into an agreement with the Corporation for operating aerial rope way at Rajgir, which belongs to the Corporation, copy of the agreement is Annexure 1 to the writ petition. It was stipulated in Annexure 1 that the Corporation gave to the Company the work of repair and maintenance and right of operation of the old rope way at Rajgir on annual rental for a period of two years and for installation of new rope way by the Company on self-finance basis on annual rental for a period of thirty years from the expiry of the two years period. The Company was required to install a four passenger cabin type new rope way at the existing site on a self-finance Scheme within a period of two years from the expiry of the two years period. The date of the agreement. One of the covenants of Annexure 1 (the agreement) i.e. Clause 5 (a) stipulated that the Company would bear and discharge all taxes, dues, outgoings burdens whatsoever imposed or charged upon or in respect of the said old or new aerial rope way. Any taxes, dues, outgoings, liabilities payable for a period prior to the agreement would be paid by the Corporation. As the Company could not install a new rope way of four passengers cabin type, the parties entered into a fresh agreement on 17-2-1987, copy whereof is Annnexure 3 to this writ petition. The recital and the covenants in Annexure 3 are same as of Annexure 1, except with regard to the annual rental. In Annexure 1, the Company was required to pay annual of Rs. 2.25 lakhs for using the old rope way. It was increased in Annexure 3 to Rs. 2,475 lakhs. There was also a change in one of the covenants, i.e., Clause 5(a) wherein it was stipulated that any taxes, dues outgoings, liabilities payable for the period prior to this agreement, would be paid by the Company.