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TMI Blog2013 (1) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... rt this small scale unit a meagre amount of rent at the rate of Rs. 500/- per month was fixed for a land comprising of about 10 cottahs at the prime location of the city. The terms of the lease as a whole would depict, it was nothing but an incentive to a small-scale unit given at the behest of the Corporation. That facility could not be used for commercial purpose by assigning the same to any outsider. Admittedly, the company-in-liquidation did not have a valid lease on the date of winding up. It was not the case of the Official Liquidator, there was no rent in arrear as on the date of the winding up. Hence, there was no valid lease. Corporation was entitled to repossess the land in question. The sale that was held by His Lordship was for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Estate belonging to West Bengal Small Industries Development Corporation (WBSIDC). They were occupying a plot of land measuring about 8 cottahs, 2 chittacks and 14 sq.ft being plot Nos. 52 and 53 through a Deed of Lease executed on July 24, 1991 for a period of 75 years commencing from July 24, 1991. The company defaulted in making payment of lease rent to the extent of Rs. 1,73,972.08 apart from electricity charges amounting to Rs. 62,855.63. The Corporation also assisted the company by supplying raw materials valued at Rs. 11,98,046.37 that also became outstanding. Since the company was not clearing their dues the Corporation filed a winding up petition. Another financial institution IDBI filed a recovery proceeding at Debt Recovery Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. Being aggrieved, Corporation preferred the instant appeal that was heard by us on behalf of the above-mentioned date. 3. Initially we asked Mr. Hirak Mitra, learned senior counsel, appearing for the appellant to take steps for service of notice of the appeal on the purchaser, such attempt failed as Mr. Mitra informed us, the unit was closed for a substantial period. We again asked to make further attempt when the Local Security Guards guarding the assets, received the notice as it appears from the affidavit of service. The Corporation also sent notice at the address given at the time of sale of the assets. The undelivered packet came with the remark, "No such company in this address, house not known". Hence, we took up the hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petent to pass order, permitting settlor to revoke and/or alter any clause of the Deed of Lease that was entered into by and between the parties. It was a case under section 34 of the Indian Trust Act. 6. To decide this question, we have to look back to find out the status of the lessee as on the date of winding up of the company. As per the lease, lessee was supposed to pay and discharge all existing and future rates and taxes. They would have to discharge their obligation to pay all necessary charges including service charges required to be paid in maintaining the said demised plot. As per clause 2(j) they were not supposed to assign or transfer the leasehold interest absolutely, except to the Registered small scale unit and to any fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the Corporation. That facility could not be used for commercial purpose by assigning the same to any outsider. Admittedly, the company-in-liquidation did not have a valid lease on the date of winding up. It was not the case of the Official Liquidator, there was no rent in arrear as on the date of the winding up. Hence, there was no valid lease. 8. In our view, Corporation was entitled to repossess the land in question. The sale that was held by His Lordship was for the movable assets and the sheds and structures, if any, belonged to the company-in-liquidation. His Lordship's observation that the company was being sold as a going concern with an undertaking to engage all employees, would mean, the unit was to be run by the new purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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