- (1.) This Civilby special leave is at the instance of a builder who had entered into a contract with the Board of governors of the La Martiniere School at Calcutta in respect of certain immovable property of the School to be taken by the builder on permanent lease.
(2.) Christopher Martin Desgranges Martin left behind a will which stipulated the setting up of a school for the benefit of the city of Calcutta and upon his death the will was probated and the executors set up the School. The Board of governors of the School (hereinafter 'board') among others has the reverend Bishop of the City of Calcutta as its Chairman and a retired Major-General of the Indian Army as a Member. The old Martinians Association (hereinafter 'association') being a body of the old students of the School resisted the request of the School before the High court when it applied for acceptance of the agreement of lease of 1981. A learned Single Judge while agreeing on principle to accord sanction asked for further details. The division bench made certain directions in an appeal taken to it by the builder and the interim directions form the basis of subject matter of this appeal.
(3.) During the pendency of the appeal in this court the builder and the School entered into a fresh agreement on 12/09/1986 towhich the Association is also a party. Under the agreement more favourable terms for the School were stipulated, such as - (1 annual payment of ground rent of Rs. 22,000. 00 during the period of lease; (2 as against a one-time payment of Rs. 31 lakhs in the 1981 agreement, a recurring annual payment of about Rs. 50 lakhs; and (3 built-in area of 60,000. 00 square feet to enable expansion of the School and earning of rental income. Apart from these, it is stated that under the 1981 agreement the School had entered into arrangements with prospective lessees and had received a substantial sum of money by way of advance from them in respect of approximately 53,000. 00 square feet to be constructed. The builder under 1986 agreement took the responsibility of dealing with the prospective lessees either by refunding the money or providing leasehold area from out of its share.;