STATE OF MADHYA PRADESH Vs. BINOD MILLS CO PVT LTD THROUGH OFFICIAL LIQUIDATOR & ANR
LAWS(SC)-2019-2-391
SUPREME COURT OF INDIA
Decided on February 27,2019

STATE OF MADHYA PRADESH Appellant
VERSUS
Binod Mills Co Pvt Ltd Through Official Liquidator And Anr Respondents

JUDGEMENT

- (1.) In the present case, the erstwhile Raja of Gwalior, by a deed dated 22.10.1912, granted permission to M/s.Binodiram Balchand to open a spinning and weaving mill at Ujjain. Clause (1) of the said communication states that around 75- 80 bighas will be given to the Firm on an annual rental calculated at the current assessment rates for so long as the mill is in existence. A lease deed, being styled as "Lease-Acceptance", was then entered into by the sons of Balchand with the Raja of Gwalior, in which clauses (1), (2) and (4) are material and are set out hereinbelow: "1. The name of the Mills shall be "the Binod Mills Co. Ltd." and the Mills shall work under this name. 2. A plot of land measuring about 80 (eighty) Bighas and to the East side of the town of Ujjain is solicited to be granted. The said plot of land under this condition shall remain in our possession as long as the Mills stand. The said plot shall be granted after due measurement, and a certain amount of annual rent shall be fixed by Govt. & shall regularly be paid by us in the Treasury fixed by the Govt. 4. The rent fixed on the said plot of land thus granted shall regularly be paid into the govt. Treasury as long as the mills shall stand on the said plot. If under any circumstances, we shift or re-move the Machinery of the Mills or shall clear away the ground & make as clear as it was before and hand it over to the Govt. and pay up the rent upto the date of clearance."
(2.) By an order dated 05.02.1960 passed by the Collector, Ujjain, it was certified that 86 bighas and 4 biswas had, in fact, been given to establish the Binod Mills Co. Ltd. This land will remain in their possession till the Binod Mill continues, that is, the Government to not take possession till the Mill is in existence subject, however, to the periodical reassessment of land revenue.
(3.) In 1979, on 22.06.1979, a show cause notice was issued under section 182 of the M.P. Land Revenue Code, 1959, stating that the terms and conditions of the Grant had been contravened and that, therefore, the Government seeks to re- enter the land. It may be stated, however, that nothing was done in pursuance of this notice.;


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