REGENCY AMUSEMENTS PRIVATE LTD Vs. STATE OF J&K

JUDGEMENT

(1.) This Letters Patent Appeal is directed against the judgment and order dated 21.08.2019 delivered by the learned Single Judge in OWP No.1840/2016, whereby the learned Single Judge while dismissing the writ petition has held that once the authority is not consenting for extension of the period of lease, the Court cannot compel for the same.

(2.) We have gone through the appeal as well as the writ record, considered the rival contentions of learned counsel appearing for the parties and also perused the original record produced by learned counsel for JDA. We have also called file of OWP No.1108/2007 from the record decided on 03.10.2016, which was earlier filed by the appellant herein.

(3.) Admittedly, the period of lease, as provided in the letter of intent was 20 years and the period of lease was extendable with mutual consent of the parties. Actually, the Letter of Intent for setting up of amusement park was issued in favour of M/s. International Amusement Limited on 10.03.1995 being the highest bidder by the Vice Chairman, Jammu Development Authority, whereby M/s. International Amusement Limited was requested to convey its acceptance and deposit the premium of Rs.3.00 lacs. However, as per Letter of Intent, the amusement park was to be set up by M/s. International Amusement Limited, Charminar Bazar, New Delhi in collaboration with its local associate, i.e., M/s Regency Amusement Ltd., appellant herein. Since the amusement park was being run by Regency Amusement Pvt. Ltd. and when it failed to pay the outstanding amount of Rs.13,04,658/-, a show cause notice dated 17.12.2007 was issued to it as to why the agreement/contract be not cancelled and land be not retrieved back.