SPEEDCRAFTS PVT LTD Vs. DIST MAGISTRATE

JUDGEMENT

(1.) In this writ application the petitioner prays for quashing of Annexure 1 as also for issue of a writ of mandamus requiring the respondents to forbear from taking possession of the property of the petitioner in pursuance of the notice Annexure 1. This notice requires the Managing Director of the petitioner Company to hand over possession of the land mentioned in notice within three days of the service thereof. It purports to have been issued in exercise of power under Section 23 (1) of the Defence of India Act, 1971 (hereinafter referred to as the 'Act') read with Rule 3 of the Defence of India (Requisitioning and Acquisition of Immovable Property) Rules, 1971 (hereinafter referred to as the 'Rules').

(2.) Contiguous to the Patna Aerodrome is a block of 30 acres of lands which were originally leased for fifty years, with option of renewal, by the Governor of Bihar to Hindustan Bicycle Manufacturing and Industrial Corporation Limited. This lease though dated 15-9-1950 leased out 30 acres of lands with effect from 30-7-1939. Later the lease of the land was transferred in favour of Hindustan Vehicles Limited. There was an English mortgage by Hindustan Vehicles Ltd. in favour of Bihar State Financial Corporation. The Corporation aforesaid, by virtue of the right claimed by it under Section 69 of the Transfer of Property Act read with Section 29 of the State Financial Corporation Act, 1951, sold the assets of the factory situated on the lease-hold land, along with lease-hold rights together with right of renewal of the said lease in favour of the petitioner Company by a registered sale-deed dated 27-13-1971. This is how the petitioner came in possession of the lease hold interest in land as also the assets of the factory then existing. The right of the petitioner to the aforesaid land as a lessee was affirmed by means of a registered document executed on behalf of the Governor of Bihar on 15-2-1973.

(3.) The case of the petitioner is that at present out of 30 acres of land about 14 acres are occupied by permanent pucca constructions for the Factory, residential quarters of the Directors, godown and about 50 staff quarters. The petitioner is at present carrying on the manufacture of road rollers and bicycles and claims to be the only factory of its kind in the State of Bihar. The total investment claimed by the petitioner is to the extent of rupees one crore. Recently the Company has entered into a contract with the Rajasthan Government for supply of road rollers against the I. D. A, credits on global tender worth about rupees thirty eight lakhs which supply has to be completed by 22-11-1975 according to the contract. 3-A. On 28-9-1975 the notice Annexure 1 being under the Signature of the District Magistrate, Patna, was served on the Managing Director of the Company. The relevant part of notice is as follows :--