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3) Appellant No. 1 is a Cricket Association of Himachal Pradesh which was initially registered as a Society under the Societies Registration Act, 1860 vide Registration Certificate dated June 08, 1990. On September 15, 2001, appellant No. 1 made an application for allotment of land to develop and construct the world class cricket stadium and consequently, the Commissioner-cum-Secretary (Education) granted permission for transfer of land to the Himachal Pradesh Youth Services and Sports Department with certain conditions. A lease deed dated July 29, 2002 was executed between appellant No.1 and respondent No. 1 through Director, Himachal Pradesh Youth Services and Sports Department for the said land at Village Mouja and Tehsil Dharamshala, District Kangra for construction of an international cricket stadium which was duly constructed. On July 14, 2005, a not for profit company in the name of Himalayan Players Cricket Association was incorporated under Section 25 of the Companies Act, 1956. Name of this company was changed to Himachal Pradesh Cricket Association on August 31, 2005.

Appellant No. 1 realized that if the use of the same was restricted only to usage during match days for use of teams and their officials, the same would not be commercially viable. As the terms of the lease may not be technically wide enough to cover this allied infrastructure being developed for the game of cricket, vide its letter dated December 24, 2011, appellant No. 1 wrote to the respondent to request it to permit commercial activity on the said land on even non match days and amend the lease terms accordingly. The above letter was forwarded by the District Magistrate to the Principal Secretary (Revenue), Government of Himachal Pradesh and the Principal Secretary (Revenue), Government of Himachal Pradesh issued no objection for execution of a supplementary lease enabling commercial activity on the additional land at Kandi provided that the lease money was charged in accordance with the Lease Rules, 2011. A supplementary lease deed was executed between the appellant No.1 and the State of Himachal Pradesh enabling use of the additional land commercially. Necessary permissions for development on the said land were obtained including for commercial hotel. The hotel constructed under the name and style of “The Pavilion” obtained registration with the Tourism Department of the State and Tariffs, etc. were also fixed by the said Department on September 26, 2012. In the meantime, on September 22, 2012 resolution was passed by the appellant No. 1 company to take over the assets and liabilities of the society. Agreement dated October 01, 2012 was also executed between the Himachal Pradesh Cricket Association (the society) and Himachal Pradesh Cricket Association (the Company) to enable the Society to convert itself into a Company. Accordingly, the Society was converted into a Company and the Himachal Pradesh Cricket Association stood converted from a society to a not for profit company registered under the Companies Act, 1956 and the Registrar of Companies was informed of the same in due course.

33) After the allotment of the land to appellant No. 1, it constructed cricket stadium thereupon. Appellant was desirous of making a world-class cricket stadium which could host international cricket matches as well. For this purpose, it submitted proposal to the ICC. The ICC got the stadium and playground inspected through Mr. Alan Hurst, it's match referee. He inspected the stadium and submitted his report dated September 20, 2007. The venue was not approved, at that stage, for hosting international matches. A perusal of the report submitted by the said referee would disclose that there were no adequate hotel facilities in the area and, therefore, 'tour support was lacking'. Two hotels were shown to Mr. Hurst and it was found by him that each of them were at substantial distance from the ground. Moreover, the facilities in the said hotels were also not adequate. Notwithstanding the same, insofar as the cricket ground is concerned, the match referee had lauded it for its quality and settings. It can be seen from the general comments/recommendations/conclusions in his report and the relevant portion whereof reads as under:

37) From the aforesaid events, following aspects can be culled out:

Appellant No.1 has been given lease of land on which cricket stadium was constructed and thereafter lease for additional land meant for club house and also supplementary lease for commercial activity i.e. the hotel. It is only in respect of the land which is meant for cricket stadium that rental of Re.1/- per month was agreed to be charged by invoking proviso to Rule 8. Thus, it is not contrary to law. State of Himachal did not have any cricket ground, much less State of art cricket ground. It is, for this reason, that the land was given on lease for the purpose of constructing the cricket ground, which may become pride of Himachal Pradesh, at nominal rental. Insofar as lease in respect of club house and supplementary lease for commercial activity (i.e. hotel) is concerned, the lease money has been fixed in accordance with Lease Rules, 2011, namely, at commercial rates. There can hardly be any element of criminality in the afofresaid allotments inasmuch as six very senior officers in the State Government (four of them of IAS Cadre and one belongs to Himachal Pradesh Administrative Service) who had examined the matter and only after their approval, the allotments were made. There is no culpability attributed to them, which is a very crucial factor.