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TMI Blog2002 (3) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... Eastern Hotel was taken over by the Government. The Government transferred the undertaking of the Company to the Great Eastern Hotel Authority (for short Hotel Authority), which was set up under Section 5 of the Act of 1980 except the lands and the building. On December 12, 1994, according to the direction of the State Government, the Great Eastern Hotel Authority issued a circular to various occupants of the premises of the hotel giving them an opportunity to establish if they had any right to remain in occupation but there was no response. On June 28, 1997, as the occupants failed to deliver possession, the representative of the Government went to the hotel premises and gave oral notice to the occupants to deliver possession. They were also informed that possession if not delivered, would be taken over by force. On June 29, 1997 the State Government removed the occupants from the hotel premises and took possession with the help of police. Some of the occupants of the hotel who were evicted by use of force are respondents in all these appeals. It is the undisputed case of the parties that the respondents were tenants of shops, offices and go-downs in the hotel under the erstwh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the appointed day, the undertaking of the company shall, by virtue of this Act, stand transferred to, and vest absolutely in the State Government. (2) Upon the vesting of the undertaking of the company in the State Government under sub-section (1), the State Government may, for efficient management and administration thereof, provide by notification for the transfer of the undertaking of the company (save the lands and buildings forming part thereof) to, and vesting thereof in, the Hotel Authority with effect from such date as may be specified in the notification. (3) The State Government may allow the lands and buildings mentioned in sub-section (2) to be used by the Hotel authority for the purpose of giving effect to this Act on such terms and conditions as may be provided by notification with effect from the date of issue of the notification under sub-section (2). Section 4 : General effect of vesting : (1) The undertaking of the company which has vested in the State Government under sub-section (1) of Section 3, shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, change, lien and all other encumbrances affecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the State Government and on and from the date specified in the notification under sub-section (2) of section 3, the Hotel Authority. (7) Any person in possession or custody or control of the whole or any part of the undertaking of the company on the date immediately before the appointed day shall, on the appointed day, deliver the possession of such undertaking of the company or part thereof to the State Government or to such person as may be specified by the State Government in this behalf. (8) The State Government may take, or cause to be taken, such steps as it considers necessary for securing the possession of the undertaking of the company which has vested in the State Government under sub-section (1) of Section 3. The High Court rejected the contention that the eviction of the respondents was carried out for a public purpose as the respondents were dispossessed for improvement of the hotel, which was purely a commercial venture and, therefore, there was no element of public interest. The High Court also held that the Act of 1980 does not provide for use of force for eviction of tenants in the hotel premises and this Act is a self contained one. According to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansferred to and vested absolutely in the State Government on the appointed day. From the definition of the undertaking as contained in clause (f) of Section 2 of the Act of 1980, the undertaking of the company also includes lands, buildings, etc. By sub-section (2) of Section 3, the State Government may for reasons stated in the said sub-section transfer the undertaking of the company to the Hotel Authority except the lands and buildings forming part thereof. Clause (a) of sub-section (2) defines appointed day to mean the date on which the Act came into force. Therefore, on the date the notification under sub-section (1) of Section 3 of the Act of 1980 was issued, the undertaking land and buildings vested in the State Government absolutely. Sub-section (1) of Section 4 provides that the undertaking which vested in the State Government shall be freed and discharged from any trust, obligation, mortgage, change, lien and all other encumbrances affecting it. We are not concerned with the second part of the said sub-section which relates to any attachment, injunction or decree or order passed by any court or tribunal. According to sub-section (2) of Section 4 any contract, whether ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion as per sub-section (7) of Section 4 of the Act of 1980 so the State Government by invoking the provision of sub-section (8) of the said Section could take such steps as it considered necessary for securing possession and such steps would include eviction by force. It is not disputed that there was a relationship of landlord and tenants between the erstwhile company and the respondents. The rights and obligation of the landlord and tenant would be governed either by the Transfer of Property Act or by rent law in force and the tenancy of the demised premises could be terminated by taking action under the provisions of either of these two Acts and possession thereof could be recovered in accordance with law. Though under sub-section (1) of Section 4 of the Act of 1980, the undertaking vested in the State Government free from any trust, obligation, mortgage, change, lien and all other encumbrances, we are unable to agree with the learned Additional Solicitor General that under the said sub-section (1) the relationship of landlord and tenant in the case in hand was put to an end inasmuch as the tenancy could not be treated as trust, obligation, mortgage and change, etc. as st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ors. (supra) and Maharaja Dharamander Prasad Singh Ors. (supra) possession can be resumed by the State Government only in a manner known to or recognised by law and it cannot resume possession otherwise than in due course of law. In view of the ratio laid down in the aforementioned case, such legal steps would mean action by the State Government under any relevant law for obtaining possession and not by using police power. We make it clear that we are not expressing any opinion whether such steps may include action under the Act of 1976 or any other law in force in the State of West Bengal. We are of the opinion that the action of the appellants by removing the respondents from the premises in question with the help of police is destructive of the basic principle of rule of law. Mr. Mukul Rohtagi has further tried to defend the action of the appellants on the ground of public interest. We may quote below long title of the Act of 1980 which runs as follows:- Whereas it is expedient to provide for the acquisition of the undertaking of the Great Eastern Hotel Limited for the purpose of ensuring better facilities for board and lodging to the members of the public and for mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... premises without the written order of the prescribed authority,- (a) the prescribed authority, or any officer authorised by it in this behalf, may take such steps and use such force as may be necessary to take possession of the premises and may also enter into the premises for the said purpose; and (b) such person shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. Section 6A can be invoked against any person, who is not a tenant or who remains in occupation of any government premises without written order of the prescribed authority. The respondents were tenants under the erstwhile company and continued to do so as held by us. Therefore, they cannot be evicted by invoking powers conferred on the Authority under Section 6A of the Act of 1976. However, we are not deciding the controversy as to whether this Act would apply only to residential premises, as held by the High Court. For what has been stated above we hold that the action of the State Government cannot be justified in law and accordingly we uphold the impugned judgment of the High Court. In the result appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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