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Itc Limited vs State Of U.P. & Ors on 5 July, 2011

From the contentions advanced by the learned advocate for the respondent, it is apparent that the case of the respondent is that the impugned notice has been issued in exercise of powers under section 106 read with section 111(h) of the Transfer of Property Act. The Supreme Court, in the case of ITC Ltd. v. State of U. P. (supra) has held that a lease governed exclusively by the provisions of the Transfer of Property Act, 1882, can be cancelled only by filing a civil suit for its cancellation or for a declaration that it is illegal, null and void and for the consequential relief of delivery back of possession. Unless and until a court of competent jurisdiction grants such a decree, the lease will continue to be effective and binding. Unilateral cancellation of a registered lease deed by the lessor will neither terminate the lease nor entitle a lessor to seek possession. This is the position under private law. But where the grant of lease is governed by a statute or statutory regulations, and if such statute expressly reserves the power of cancellation or revocation to the lessor, it will be permissible for an authority, as the lessor, to cancel a duly executed and registered lease deed, even if possession has been delivered, on the specific grounds of cancellation provided in the statute. In the facts of the present case, though the grant of lease is governed by statute, the cancellation of lease deed is not sought on the specific grounds for cancellation provided in the statute. Under the circumstances, the second part of the said decision would not be applicable in the facts of the present case. Therefore, when the lease is sought to be cancelled by resorting to the provisions of the Transfer of Property Act, it is not permissible for the respondent to unilaterally cancel the lease deed or to terminate the lease. For the purpose of cancellation of the lease, the respondent would be required to institute a civil suit in that regard.
Supreme Court of India Cites 41 - Cited by 77 - R V Raveendran - Full Document

Hitkarini Sabha, Jabalpur vs The Corporation Of The City Of Jabalpur & ... on 3 May, 1972

have been fraudulently introduced in the lease deed without the approval of the Central Government. Reliance was placed upon the provisions of section 34 of the Major Port Trusts Act for the purpose of contending that since the Central Government had granted approval for grant of lease for the purpose of construction of godown, the lease itself is bad on the count of not being in consonance with the approval granted by the Central Government and as such, is not binding on the Board. It may be noted that it is not the case of the respondent that the lease deed has been executed by a person who was not authorized to execute the lease. Thus, the officer duly authorized to execute the lease deed has executed the lease deed in favour of the predecessor in title of the petitioners containing the aforesaid covenant. Under the circumstances, reliance placed upon the decision of the Supreme Court in the case of Hitkarini State v. Corporation of the City of Jabalpur (supra) would be of no assistance to the respondent, inasmuch as, in the facts of the said case, the officer who had executed the lease deed had no power to lease out the property in question and as such, grant of the lease was ab-initio null and void. In the facts of the present case, prima facie, grant of lease is not wholly null and void inasmuch as, the same has been executed by the officer duly empowered to do so. The only contention is that the covenant which has been introduced is contrary to the approval of the Central Government. In the aforesaid premises, this court is of the prima facie view that if it is the case of the respondent-KPT that the lease deed is void for the reason that the same is not in consonance with the approval of the Central Government, it is for the KPT to approach the appropriate forum for cancellation of the lease deed.
Supreme Court of India Cites 4 - Cited by 23 - A N Grover - Full Document

Inderjit Singh Grewal vs State Of Punjab & Anr on 23 August, 2011

It was submitted that even if it is the case of the respondent KPT that the lease deed is void as having been tainted by fraud, it is settled legal position as held by the apex court in the case of Inderjit Singh Grewal v. State of Punjab, (2011) 12 SCC 588, that where a person gets an order by making misrepresentation or playing fraud upon the competent authority, such order cannot be sustained in the eye of the law as fraud unravels everything. However, for setting aside such an order, even if void, the party has to approach the appropriate forum. Thus, even if a decree is void ab initio, declaration to that effect has to be obtained by the person aggrieved from the competent court. It was submitted that under the circumstances, the respondent KPT is required to approach the appropriate forum for a declaration that the lease deed is void on account of fraud. However, the respondent does not have any power to adjudicate on its own the question as to whether the lease deed is void on account of fraud.
Supreme Court of India Cites 32 - Cited by 227 - B S Chauhan - Full Document
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