{"id":82526,"date":"2006-05-08T00:00:00","date_gmt":"2006-05-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/board-of-the-trustees-port-of-vs-efclon-tie-up-pvt-ltd-ors-on-8-may-2006"},"modified":"2017-05-10T07:48:44","modified_gmt":"2017-05-10T02:18:44","slug":"board-of-the-trustees-port-of-vs-efclon-tie-up-pvt-ltd-ors-on-8-may-2006","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/board-of-the-trustees-port-of-vs-efclon-tie-up-pvt-ltd-ors-on-8-may-2006","title":{"rendered":"Board Of The Trustees, Port Of &#8230; vs Efclon Tie-Up Pvt. Ltd. &amp; Ors on 8 May, 2006"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Board Of The Trustees, Port Of &#8230; vs Efclon Tie-Up Pvt. Ltd. &amp; Ors on 8 May, 2006<\/div>\n<div class=\"doc_author\">Author: . A Lakshmanan<\/div>\n<div class=\"doc_bench\">Bench: H.K. Sema, Dr. Ar. Lakshmanan<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  2528 of 2006\n\nPETITIONER:\nBoard of the Trustees, Port of Kolkata\n\nRESPONDENT:\nEfclon Tie-up Pvt. Ltd. &amp; Ors.\n\nDATE OF JUDGMENT: 08\/05\/2006\n\nBENCH:\nH.K. Sema &amp; Dr. AR. Lakshmanan\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<br \/>\n(Arising out of S.L.P. (Civil) No. 571\/2005)<\/p>\n<p>Dr. AR. Lakshmanan, J.\n<\/p>\n<p>\tLeave granted.\n<\/p>\n<p>This appeal was directed against the final judgment and<br \/>\nOrder dated 01.12.2004 passed by the Division Bench of the<br \/>\nHigh Court at Calcutta in ACO No. 87 of 2003 in APOT No. 318 of<br \/>\n1998 whereby the High Court allowed the claim of the<br \/>\nrespondents herein.\n<\/p>\n<p>The brief facts of the case are as follows:-\n<\/p>\n<p>An indenture of lease was entered into by Das<br \/>\nReprographics (in short &#8216;the Company&#8217;) and the Kolkata Port<br \/>\nTrust (in short &#8216;Port Trust&#8217;) in respect of premises at P-10,<br \/>\nTaratola Road, Kolkata. The lease deed stipulated that, the lease<br \/>\nis for a period of 29 years, 1 month and 25 days, w.e.f November<br \/>\n28, 1962 on a monthly rental basis of Rs. 1,049.12. It was stated<br \/>\nin the deed that, the lessee may have the option of a fresh lease<br \/>\nfor a further term of 30 years provided a notice stating the same<br \/>\nwas given to the Port Trust at least six months before expiration<br \/>\nof subsisting lease. According to the deed, the Municipal Taxes in<br \/>\nrespect of the land was to be paid by the Company.  The Port<br \/>\nTrust had the option of renewing the lease for such further<br \/>\nperiod, provided the covenant conditions are duly performed and<br \/>\nthe increase in rent is upto 25%, but not exceeding the rent as<br \/>\nper the &#8216;Schedule of Rates&#8217;.\n<\/p>\n<p>It was also clearly stipulated in the Lease deed that, if the<br \/>\ncompany goes into liquidation or is wound up compulsorily or<br \/>\nvoluntarily, the Port Trust would re-enter possession and the<br \/>\nlease would be brought to an end.\n<\/p>\n<p>On 01.08.1991, a letter was written by the Company to the<br \/>\nPort Trust requesting the appellant for considering the renewal of<br \/>\nthe lease executed in their favour in 1962 for another term of 30<br \/>\nyears.  It was also stated in the letter that, the company has<br \/>\nrental dues and municipal taxes to be paid which they will clear<br \/>\nbefore the expiry of the lease which was subsisting. The Port<br \/>\nTrust however, did not respond to this letter. Later on<br \/>\n26.11.1991, another letter was sent by the company to the Port<br \/>\nTrust requesting for the extension of the lease of the land. The<br \/>\nlease deed expired on 22.01.1992 by efflux of time. The company<br \/>\nhad not even then, paid of their outstanding dues, thereby was<br \/>\nstill in breach of the stipulations in the lease deed.\n<\/p>\n<p>On 07.03.1992, the Port Trust informed the company that a<br \/>\ntotal sum of Rs.66,312\/- was outstanding towards rent and taxes<br \/>\nincluding 15% interest and this should be cleared before any<br \/>\nextension of lease could be considered. However, by taking into<br \/>\nconsideration the fact of a large number of workmen working in<br \/>\nthe company, the Port Trust asked the company to correct its<br \/>\nbreaches so that the extension of lease could be considered.\n<\/p>\n<p>On 21.12.1994, by an order in Company Petition<br \/>\nNo.151\/1986, the High Court of Calcutta, directed to take<br \/>\npossession of the assets of the company forthwith. By an order<br \/>\ndated 27.08.1997, invitation for offers for purchasing the assets<br \/>\nof the liquidated company was made. Various advertisements<br \/>\nwere issued as per the order of the High Court after which many<br \/>\noffers were made by different parties.\n<\/p>\n<p>The High Court accepted the offer made by the present<br \/>\nrespondent No. 1(Efclon) by an Order dated 16.01.1998, for Rs.<br \/>\n50 lakhs and also on an agreement made by the respondent with<br \/>\nthe workmen of the liquidated company to re-employ them.\n<\/p>\n<p>Aggrieved by this order of the High Court, United Bank of<br \/>\nIndia filed an appeal in the High Court on the ground that the<br \/>\nsale of assets of the company was conducted with undue haste<br \/>\nand without trying to ensure that the maximum price was<br \/>\nfetched for the assets of the company.  The Division Bench held<br \/>\non 09.04.2003, that, the finding of the learned single Judge was<br \/>\ncorrect and thereby confirmed the sale of all the assets of the<br \/>\ncompany at, P-10, Taratolla Road, Kolkata. The Division Bench<br \/>\nalso observed that the lease over the land had expired and since<br \/>\nthe purchaser, Efclon, does not intend to destroy the character of<br \/>\nthe factory, it would be desirable that the Port Trust should grant<br \/>\na fresh lease of the Taratola land which has expired in favour of<br \/>\nrespondent No.1 (Efclon). On 11.08.2003, an application was<br \/>\nmade by the respondents in the High Court, for the modification<br \/>\nof the order of the Division Bench dated 09.04.2003, stating that,<br \/>\nthe option of renewal has been found to be validly exercised by<br \/>\nthe liquidated company and therefore, the Port Trust had no<br \/>\noption but to renew the lease in terms of the indenture of lease<br \/>\nwhich existed between the liquidated company and the Port<br \/>\nTrust.\n<\/p>\n<p>The High Court while deciding on this matter on<br \/>\n01.12.2004, allowed the claim of the respondents and thereby<br \/>\nordered the Port Trust that, upon the respondent clearing all the<br \/>\noutstanding rental dues and taxes, the Port Trust shall grant<br \/>\nfresh lease in consonance with the lease indenture that existed<br \/>\nbetween the Port Trust and Das Reprographics.\n<\/p>\n<p>The present appeal before this Court is preferred against<br \/>\nthis order dated 01.12.2002 of the High Court.\n<\/p>\n<p>We heard Mr. T.R. Andhyarujina, learned Senior Counsel,<br \/>\nappearing for the appellants and Mr. U.U.Lalit, learned Senior<br \/>\nCounsel, appearing for the respondents and Mr. Vijay Hansaria,<br \/>\nlearned Senior Counsel appearing for the workmen.\n<\/p>\n<p>Learned Senior Counsel appearing for the appellant<br \/>\nsubmitted that, the question of renewal of lease deed could not<br \/>\narise owing to the fact that the option to renew the lease was not<br \/>\nvalidly exercised by the Company in liquidation as the Company<br \/>\nwas in breach of various terms and conditions of the indenture of<br \/>\nlease by having outstanding rental dues and municipal taxes.\n<\/p>\n<p>Also the lease deed provided that, if the company (Das<br \/>\nReprographics) was either voluntarily or compulsorily wound up,<br \/>\nthe lease deed would be brought to an end. Here since the<br \/>\ncompany has been wound up, the lease is presumed to have<br \/>\ncome to an end and therefore, the question of granting extension<br \/>\nof lease would not arise.\n<\/p>\n<p>The appellant further submitted that respondent No.1<br \/>\n(Efclon) is only the owner of the assets of the Liquidated<br \/>\nCompany which includes fixtures and furnitures.  Therefore, they<br \/>\ncould exercise their rights only over the assets of the company<br \/>\nand not on the land which is the property of the Port Trust. Also<br \/>\nsince the lease had come to an end, the company has absolutely<br \/>\nno right over the property in question.\n<\/p>\n<p>Mr. Andhyarujina, submitted that the Port Trust after the<br \/>\norder of the High Court has agreed to grant a fresh lease to the<br \/>\ncompany, as per the prevailing rates in Schedule of rates of the<br \/>\nPort Trust which are based not on profiteering, but on<br \/>\ninflationary tendencies. But the High Court granted fresh lease at<br \/>\nthe rates prescribed under the lease deed which was drawn in<br \/>\n1962 which is not fair.\n<\/p>\n<p>Mr. U.U.Lalit, learned senior advocate for the respondents<br \/>\nsubmitted referring to the letters written by the company and the<br \/>\nPort Trust that the correspondence would indicate that the<br \/>\ncompany did exercise their option to renew the lease in the<br \/>\nprocedure mentioned in the lease and also the letter by the Port<br \/>\nTrust reveals that, it was not the intention of the Kolkata Port<br \/>\nTrust to terminate the lease but to grant a fresh lease to the<br \/>\nlessee upon payment of the balance dues.\n<\/p>\n<p>Mr.U.U.Lalit submitted that, the respondent after acquiring<br \/>\nthe assets of the company entered into a contract with the<br \/>\nemployees of the liquidated company for re-employing them,<br \/>\nclearly shows that the sole object of the respondent was to revive<br \/>\nand rehabilitate its units and to reemploy its workmen.\n<\/p>\n<p>It was further contented by the respondents that renewal of<br \/>\nthe lease must be from the date of expiry of the original lease,<br \/>\nand also that the amount should be in accordance to what was<br \/>\nprescribed in the original lease deed between the Port Trust and<br \/>\nDas Reprographics.\n<\/p>\n<p>Another submission made by the respondent was that, if<br \/>\nDas Reprographics had not gone into liquidation, while renewing<br \/>\nthe lease, the company would have only had to pay 25% over and<br \/>\nabove the last rent paid under the original lease for the period of<br \/>\nrenewal of the same. The Kolkata Port Trust is now demanding<br \/>\nrent at its scheduled rates for a fresh grant of lease which is<br \/>\nthree times than the last rent, which will make it impossible for<br \/>\nthe respondents to reopen the closed units of the company or to<br \/>\nreemploy its workmen.\n<\/p>\n<p>Mr. Vijay Hansaria, learned Senior Counsel, appearing for<br \/>\nthe workmen submitted that the Port Trust has no right to refuse<br \/>\nformal renewal of the lease, particularly with the knowledge that<br \/>\nthe livelihood of a large number of people are dependant on it.<br \/>\nAlso that the Port Trust, by allowing the erstwhile lessee to<br \/>\ncontinue to occupy the property even after the expiry of the<br \/>\noriginal terms of the lease and thereby renewed the lease by<br \/>\nconduct.\n<\/p>\n<p>We heard all the parties extensively and also went through<br \/>\nthe documents placed before us.  The issues in this case that<br \/>\ndeserve discussion according to us is whether:<br \/>\n?\tThe respondent No.1 (Efclon) due to the fact of them having<br \/>\nbought over the assets of the company that was liquidated<br \/>\ncould exercise right over the property (land) which the Port<br \/>\nTrust had by an indenture of lease, leased to the liquidated<br \/>\ncompany (Das Reprographics)?\n<\/p>\n<p>?\tWhether the high Court was correct in granting a fresh<br \/>\nlease to the respondent No.1 (Efclon) on the terms specified<br \/>\nin the original indenture of lease between the Port Trust and<br \/>\nthe liquidated company (Das Reprographics)?<br \/>\nIn other words, the question we are really concerned<br \/>\nwith now is whether a fresh lease should be granted on the<br \/>\nbasis of the rates as subsisting according to the schedule to<br \/>\nthe major Port Trust or whether a fresh lease or whether a<br \/>\nfresh lease could be allowed to be executed on the terms<br \/>\nand conditions as were existing in the earlier lease.\n<\/p>\n<p>The lease could not be granted to respondent No.1  Efclon Tie-<br \/>\nup Private Limited for the following reasons:-\n<\/p>\n<p>1.\tThe option to renew the lease was not validly exercised by<br \/>\nthe Company in liquidation.  The Company was in breach<br \/>\nof various terms and conditions of the indenture of the<br \/>\nlease, inter alia, relating to non-payment of rent,<br \/>\nmunicipal taxes, unauthorized construction of land in<br \/>\nquestion etc.;\n<\/p>\n<p>2.\tM\/s Efclon Tie-up Private Limited were the auction<br \/>\npurchasers of only the assets of the company (fixtures<br \/>\nand furnitures) lying, inter alia, in the premises in<br \/>\nquestion.  It was incorrect to assume that a further right<br \/>\nto renew the lease deed vested in M\/s Efclon Tie-up<br \/>\nPrivate Limited;\n<\/p>\n<p>3.\tM\/s Efclon Tie-up Private Limited were not the<br \/>\nsuccessors in interest of the Company in liquidation qua<br \/>\nthe right to renew the lease deed;\n<\/p>\n<p>4.\tIt was the admitted position that the lease deed came to<br \/>\nan end in 1992 and no renewal was granted thereon,<br \/>\nparticularly, since the right to grant renewal was in the<br \/>\ndiscretion of the Port Trust, such discretion existed even<br \/>\nif the terms and conditions of the indenture of the lease<br \/>\nhad not been breached by the Company in liquidation;\n<\/p>\n<p>5.\tIn all fairness the Port Trust had agreed to the grant of a<br \/>\nfresh lease to M\/s Efclon Tie-up Private Limited as per<br \/>\nthe prevailing rates in the schedule of rates in the Port<br \/>\nTrust which was unacceptable to the said Company<br \/>\nwhich wanted renewal at the rates prescribed in the lease<br \/>\ndeed.\n<\/p>\n<p>The High Court ought to have seen that the schedule of rent<br \/>\nchanges on the basis of the economic condition that is prevailing<br \/>\nat a given point of time in every economy. Therefore, the rent that<br \/>\nis demanded by the Port Trust from Efclon now is absolutely fair<br \/>\nand reasonable and the schedule of rent changes has been<br \/>\ndeclared valid by the Calcutta High Court.\n<\/p>\n<p>The High Court should have seen that, in any case, the<br \/>\nindenture of lease clearly provided that if the Company in<br \/>\nliquidation M.L. Das Reprographics was either voluntarily or<br \/>\ncompulsorily wound up, then the lease deed would be brought to<br \/>\nan end.  In that case, of course, no question of granting<br \/>\nextension of the lease deed would arise.  Even if it is assumed<br \/>\nthat the extension of lease was to be granted from 1992 onwards<br \/>\nthe lease deed itself would automatically have come to an end by<br \/>\noperation of the express terms of the indenture of lease.\n<\/p>\n<p>The lease granted in 1964 did not provide renewal as a<br \/>\nmatter of right and, in fact, the lease ended by efflux of time on<br \/>\n22.01.1992 whereupon no extension was given.  The option for<br \/>\nrenewal of lease was not given to the respondent No.3 Company<br \/>\nbut was given to the Port Trust.  The Port Trust had agreed in<br \/>\nfairness to execute a fresh lease deed with respondent No.1.  The<br \/>\nrent would not be the market rent and, in fact, would be in<br \/>\nconsonance with the schedule of rates framed under the Major<br \/>\nPort Trust Act, which have the prior approval of the Central<br \/>\nGovernment.\n<\/p>\n<p>It is also relevant to note that respondent No.1 had<br \/>\npurchased the assets of the Company in liquidation excluding<br \/>\nthe land belonging to the Port Trust.\n<\/p>\n<p>We are of the opinion that:\n<\/p>\n<p>1.\tThere is no right over the property of the Port Trust<br \/>\nexisting with the respondent No.1 (Efclon) as claimed by<br \/>\nthem. In the present case only the assets of the company<br \/>\nwhich was liquidated has been bought by the respondents,<br \/>\nthe land belonged to the Port Trust. Even according to the<br \/>\noriginal indenture of lease between the Port Trust and the<br \/>\nliquidated company, there were clauses which very clearly<br \/>\nstated that, the Port Trust had the option of renewing the<br \/>\nlease for such further period, provided the covenant<br \/>\nconditions are duly performed. It was also clearly<br \/>\nstipulated in the Lease deed that, if the company goes into<br \/>\nliquidation or is wound up compulsorily or voluntarily, the<br \/>\nPort Trust would re-enter possession and the lease would<br \/>\nbe brought to an end. In the present fact situation, the<br \/>\ncompany in liquidation was clearly in breach of the<br \/>\ncovenant conditions by having outstanding rental dues<br \/>\nand tax liability with interest. Also the company did go into<br \/>\nliquidation and therefore as the lease indenture says, the<br \/>\noriginal lease has come to an end and the Port Trust is<br \/>\npresumed to have automatically come into possession of<br \/>\nthe land in question.\n<\/p>\n<p>     Therefore we hold that, there is no lease that is subsisting<br \/>\nbetween the Port Trust and the liquidated company and<br \/>\nhence the respondent No.1 (Efclon) claim that the original<br \/>\nlease deed is subsisting thereby giving them an automatic<br \/>\nright to the land in question is untenable and has no<br \/>\nmerit.\n<\/p>\n<p>2.\tTo the question as to whether the High Court was correct<br \/>\nin granting a fresh lease to the respondent No.1 (Efclon) in<br \/>\naccordance with the clause stipulated in the original lease<br \/>\nagreement, we are of the opinion that the High Court is<br \/>\ncorrect as far as the grant of fresh lease is concerned.<br \/>\nComing to the second part of the question as to whether<br \/>\nthe rental amount should be based on the stipulation<br \/>\nmentioned in original lease deed is concerned; we believe<br \/>\nthat the rates that are present in the current Schedule of<br \/>\nthe Port Trust Act in Kolkata should apply. We are of the<br \/>\nview that, the claim of the respondent that they should be<br \/>\nallowed to pay the rates in accordance to the clause in the<br \/>\noriginal lease indenture of 1962 is not fair on the Port<br \/>\nTrust. Also we are satisfied that the prices that are<br \/>\nprevalent in the schedules of the Port Trust Act are not<br \/>\nbased on profiteering, but on inflationary tendencies.\n<\/p>\n<p>3.\tWith regard to the respondent No.1&#8217;s (Efclon) claim of, if<br \/>\nDas Reprographics had not gone into liquidation, while<br \/>\nrenewing the lease, the company would have only had to<br \/>\npay 25% over and above the last rent paid under the<br \/>\noriginal lease for the period of renewal of the same, does<br \/>\nnot hold good in our view, as such a renewal need not be<br \/>\ncontemplated at this point, as the company itself is not in<br \/>\nexistence and also the clause in the original lease<br \/>\nindenture will come in the way which specifically mentions<br \/>\nthat if the company goes into liquidation or is wound up<br \/>\ncompulsorily or voluntarily, the Port Trust would re-enter<br \/>\npossession and the lease would be brought to an end.<br \/>\nThe larger interest of the workmen was canvassed by Mr.<br \/>\nVijay Hansaria and also by respondent No.1 for its own<br \/>\ncommercial purposes.  The interest of workmen can be met by<br \/>\nthe Port Trust&#8217;s willingness to grant a fresh lease of the premises<br \/>\nnot at the market rate but at the rate prescribed in the schedule<br \/>\nframed under the major Port Trust Act.\n<\/p>\n<p>It has now brought to our notice that respondent No.1 who<br \/>\nare continuing in possession are now inducting the third parties<br \/>\nand seeking to alienate the property to them.  In these<br \/>\ncircumstances, I.A. No.3 of 2006 was filed by the Port Trust to<br \/>\ndirect respondent No.1 to handover possession of the property to<br \/>\nthe Port Trust.  In these circumstances, a contention was also<br \/>\nraised by the Port Trust that they were not required to execute<br \/>\nthe lease deed in favour of respondent No.1.\n<\/p>\n<p>The fact remains that respondent No.1 Company remained<br \/>\nin possession of the property.  It has now come to the knowledge<br \/>\nof the Port Trust that despite the fact that no right over the<br \/>\nproperty existed in favour of respondent No.1.  They are not only<br \/>\ncarrying out unauthorized constructions in the premises but<br \/>\nhave also parted with the possession to various individuals and<br \/>\ncompanies not connected with their own business and are<br \/>\ncreating third party rights.  Such construction and part of the<br \/>\npossession is not only impermissible in view of the order of stay<br \/>\ngranted by this Court but in any event was not even permitted<br \/>\nunder the lease of 1964.\n<\/p>\n<p>We cannot also, at the same time, close our eyes to the<br \/>\nrealities.  We have, therefore, to safeguard the interest of the Port<br \/>\nTrust, the interest of the first respondent and the workmen by<br \/>\none stroke of pen.  The trade unions has applied for intervention<br \/>\nand is represented by Mr. Vijay Hansaria, learned senior counsel<br \/>\nwhich has a large number of membership of workers working in<br \/>\nDas Reprographics Ltd. (in liquidation).  Much water has flown<br \/>\nafter the order of liquidation of respondent No.3 Company.  Any<br \/>\nadverse orders passed by this Court, at this stage, would affect<br \/>\nthe right and interest of the members of the union.  The<br \/>\nCompany was directed to be wound up and the Official<br \/>\nLiquidator was directed to take charge of the assets and<br \/>\nproperties.  The assets and properties thereof were put up for<br \/>\nsale in terms of a sale notice made and published on 05.09.1997.<br \/>\nIn these circumstances, in an attempt to protect the livelihood of<br \/>\nits members, the union entered into an agreement with<br \/>\nrespondent No.1 providing, inter alia, that respondent No.1<br \/>\nwould take necessary steps in Court to purchase the assets and<br \/>\nproperties of the Company and also would assure employment to<br \/>\nall the eligible workers of the Company in phase-wise manner.<br \/>\nThere are other conditions with which we are not now concerned.<br \/>\nIn terms of the commitment made, respondent No.1 participated<br \/>\nin the sale of the assets and properties of the Company and was<br \/>\ndeclared the successful purchaser in respect thereof by an order<br \/>\ndated 16.01.1989.  Several other proceedings were taken by both<br \/>\nthe parties with which also we are not concerned.  It is stated<br \/>\nthat in terms of the order, respondent No.1 has made payment of<br \/>\nthe entire consideration to the Official Liquidator.  The intention<br \/>\nof the High Court while passing the orders dated 16.01.1998 and<br \/>\n09.04.2003 is manifest from the fact that while confirming the<br \/>\norder dated 16.01.1998 for sale of the assets and properties of<br \/>\nthe Company, the High Court made the same free from<br \/>\nencumbrances and without any liabilities on account of any<br \/>\nother dues.  With the revival and rehabilitation of the Company<br \/>\nin mind, the High Court directed that the properties where the<br \/>\nfactories of the Company are situate be provided to respondent<br \/>\nNo.1.  The High Court also directed that a fresh lease in respect<br \/>\nthereof be granted to Respondent No.1 presently in possession of<br \/>\nthe factory premises.  Respondent No.1 is also in possession of<br \/>\nthe assets and properties located therein.  It is also not in<br \/>\ndispute that respondent No.1 is not operating the factory for<br \/>\nwant of former renewal of the lease.  As a result, the right of the<br \/>\nmembers of the workers of the union has been put in jeopardy.<br \/>\nThe Port Trust itself allowed the erstwhile lessee to continue to<br \/>\noccupy the property even after the expiry of the original terms of<br \/>\nthe lease.\n<\/p>\n<p>In our view, the workmen of the Company have a right to<br \/>\nearn their livelihood.  The workmen are as such vitally interested<br \/>\nin the renewal of the lease in respect of the property in question.<br \/>\nThe Port Trust, by its conduct, accepted the right of the Company<br \/>\nto obtain renewal of the lease.  The Port Trust has never called<br \/>\nupon the Company or the official liquidator to vacate the<br \/>\nproperty. The act of the Port Trust in allowing the respondent to<br \/>\ncontinue is only a benevolent act of the Port Trust keeping in<br \/>\nview the consequences that can arise if this was not allowed for<br \/>\nthe large number of workmen of the company.  As such, the lease<br \/>\nof the property has been renewed or must be deemed to have<br \/>\nbeen renewed as the workmen being interested in the renewal of<br \/>\nthe lease of the property.  They were also heard through their<br \/>\nsenior counsel.\n<\/p>\n<p>Social justice demands that the lease in respect of the factory<br \/>\npremises be renewed by the Port Trust in favour of respondent<br \/>\nNo.1 so that the operation of the factory thereof can be<br \/>\ncommenced.  However, the lease can be renewed only subject to<br \/>\nthe payment of all the arrears and dues together with interest.<br \/>\nWe are, therefore, inclined in the larger interest of the industry<br \/>\nas also the workmen and of the Port Trust to direct the Port<br \/>\nTrust to grant a fresh lease to respondent No.1 herein subject to<br \/>\nthe respondent No.1 complying with the terms relating to the<br \/>\npayment of the arrears\/dues together with interest at the rate of<br \/>\n15% p.a. as suggested by the Kolkata Port Trust in its letters<br \/>\ndated 07.03.1992 and 13.04.1995.  The Port Trust shall also<br \/>\ngrant a fresh lease in favour of respondent No.1 on the basis of<br \/>\nthe scheduled rate from the date of possession i.e. 04.08.2003.\n<\/p>\n<p>In conclusion, we order a fresh lease indenture to be drawn<br \/>\nfrom the date the company came into possession of the land<br \/>\n(i.e.04.08.2003) between the Port Trust and the Respondent No.1<br \/>\n(Efclon) with regard to the premises situated at P-10, Taratola<br \/>\nRoad, Kolkata at the rental rates contained in the present<br \/>\nSchedule of the Kolkata Port Trust Act as soon as the dues of the<br \/>\nliquidated company are discharged with by the respondents.\n<\/p>\n<p>We are, therefore, directing the Port Trust to inform the<br \/>\nEfclon Tie-up Private Limited; respondent No.1 herein of the<br \/>\nrental arrears together with interest as suggested by the Port<br \/>\nTrust in its letters dated 07.03.1992 and 13.04.1995 within four<br \/>\nweeks from the date of this order.  In other words, the Port Trust<br \/>\nshall inform the first respondent herein of the rental arrears from<br \/>\nthe date of expiry of the earlier lease (21.01.1992) till the date of<br \/>\nthe execution of the fresh lease at the old rate together with<br \/>\ninterest at the rate of 15% p.a. within 4 weeks from the date and<br \/>\nupon such intimation the said dues are to be cleared by the first<br \/>\nrespondent within 2 weeks thereafter and upon such dues being<br \/>\ncleared, the Port Trust shall grant a fresh lease from 04.08.2003<br \/>\ni.e. the date on which the first respondent was to be in<br \/>\npossession of the property by the official liquidator on the basis<br \/>\nof the scheduled rate as now prevalent.  The rate fixed by the<br \/>\nKolkata Port Trust as per the scheduled rate will be effective from<br \/>\n04.08.2003.  We are inclined to grant the lease in favour of the<br \/>\nrespondent No.1 who sought renewal of the lease with the sole<br \/>\nobject of reviving and rehabilitating its units and to re-employ its<br \/>\nworkmen thereof.\n<\/p>\n<p>In the result, the civil appeal stands allowed.  However, there<br \/>\nshall be no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Board Of The Trustees, Port Of &#8230; vs Efclon Tie-Up Pvt. Ltd. &amp; Ors on 8 May, 2006 Author: . A Lakshmanan Bench: H.K. Sema, Dr. Ar. Lakshmanan CASE NO.: Appeal (civil) 2528 of 2006 PETITIONER: Board of the Trustees, Port of Kolkata RESPONDENT: Efclon Tie-up Pvt. Ltd. &amp; Ors. DATE [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-82526","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Board Of The Trustees, Port Of ... vs Efclon Tie-Up Pvt. 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