M/S Residents Welfare ... vs State Of U.P. & Ors on 15 April, 2009
As far as the application of the judgment of the Apex Court in Residents Welfare Association (supra) is concerned, in the said case, there was no dispute or doubt that the demised land was transferred vide lease deed executed by Noida in favour of the cooperative societies and its members. It was admitted position that the lessor namely Noida authorities had entered into the lease agreement with the cooperative societies and their members being lessees and the sub-lessees; respectively. The sub-lessees further entered into the agreement with the assignees (members of the appellant association therein). The deed of assignment in favour of the members of appellant association was termed as assignment of lease hold rights after considering the terms and conditions of the lease deed executed between Noida as lessor and the cooperative society and its members as lessees and sub-lessees. It was then held that as under the lease deed, such a clause was there wherein the NOIDA will have a right over the buildings and the appurtenants on the land at the time of re-entry, in case of any failure of the sub-lessee to follow the terms and conditions of the lease deed. A right of reversion to the land and appurtenants thereto including the building, on the termination or expiry of the lease had been reserved. It was thus held that the document of transfer was the assignment of lease and not an outright sale of the land and its appurtenants. Such is not the condition in the present case, neither the terms of the lease has been mentioned nor the right of reversion to the lessor had been reserved in the deed in question, the ratio of abovenoted judgment would not be available to the benefit of the petitioner herein.