- (1.) U.P. State Handloom Corporation and its Regional Manager have filed this petition for quashing the order dated 16th March, 2012 passed by the Additional District Magistrate (City), Allahabad by which a direction, with the approval of the District Magistrate, Allahabad, has been issued to the petitioners to remove their goods, documents and structures from the shop bearing No. 5-A at Sardar Patel Marg. Allahabad and give vacant possession of the shop to respondent No. 5-Ashok Kumar Khanna. A direction has also been issued to Ashok Kumar Khanna to assist the petitioners in this work and not to claim commission as an agent from the petitioners. It transpires from the records that Chintamani Ghosh Trust is the owner/landlord of the aforesaid shop which was allotted to respondent No. 5-Ashok Kumar Khanna by the order dated 23rd September, 1968 passed by the Rent Control and Eviction Officer, Allahabad under the provisions of the Rent Control Act. An Agency Agreement was executed between the petitioners U.P. Handloom Corporation (Principal-Ist Party) and respondent No. 5-Ashok Kumar Khanna (Agent-IInd Party) on 10th December, 1981 for a period from 15th December, 1981 to 14th December, 1986 and the relevant portion of the agreement is as follows : And whereas the second party has offered to carry on the agency business in his show room No. 5A, Sardar Patel Marg, Civil Lines, Allahabad having total covered area of 1170 sq. ft. including mazien floor out of which 400 sq. ft. is furnished for display and sales of products of the first party and the first party has approved the show room. Whereas the second party has approached the first party for agency of the handloom products for Allahabad and the first party has agreed to give the same. And, whereas it becomes expedient to reduce the terms and conditions of this Agency Agreement in writing. NOW THIS AGREEMENT WITNESSES AS FOLLOWS : 1. That the Principal shall at its cost furnish the show-room with furniture, light etc. according to the requirement of the said agency business. 2. That the Agency shall commence from 15.12.1981 (15th December, 1981). 3. That the Principal shall pay minimum commission Rs. 4,500/- per month or 1% on retail sales whichever is more. 4. That the principal has paid to the Agent interest free advance equivalent to 18 months commission to be adjusted in 42 installments by the principal. 5. That the Agent shall use his best endeavours to sell and dispose of all the Handloom goods of the principal to the best advantage and at prices as may from time to time be fixed by the principal. The Agent shall also fully co-operate with the Principal as may be necessary, for furthering the sale and marketing of the handloom goods of the principal. 6. That the Principal shall appoint its own staff and salary and emoluments shall be borne by the Principal. The staff as appointed shall act under the guidance of agent as well. 7. That the principal shall arrange for necessary furnishing and fixtures for proper display of its products as per suggestion of the Agent. 8. That the Agent shall not give credit for any goods of products of the principal to any person without the express written consent of the principal. 9. That the agent shall not without the consent in writing of the principal pledge any goods or products. 10. That the agent shall throughout the subsistence of agency agreement give all possible co-operation to the principal as may be necessary for furthering the business and shall work diligently and faithfully in his endeavours for sale promotion and marketing of the handloom goods of the principal. 11. That the electricity charges, telephone charges, sales tax, maintenance, insurance charges and water charges shall be borne by the Principal. 12. That the rent of the show-room, Municipal and water taxes as be levied on the Show room from time to time and shall be payable by the Agent. 13. That this agreement is from 15th December, 1981 to 14th December, 1986 and may be renewed with mutual consent. 14. That the agent shall at all times during the continuance of Agency, obey and observed all reasonable directions and instructions, which may be given to him by the principal, concerning the sale and disposal of the products of principal or otherwise relating to the business of Agency. 15. That on the termination of Agency by efflux of time the Agent shall deliver to the Principal, all or such of the products of the Principal, and all books of accounts and documents relating to the Agency which may be in his possession, control or superintendence. 16. That on termination of Agency, the Principal shall be entitled to remove their fixtures etc. installed by him. 17. That in case of any suit filed by the landlord, the cost of the suit in respect of the Corporation who are the principal has to be borne by the Agent. 18. That if any dispute regarding the interpretation meaning or effect of any clause of the agreement or any claims or right or liabilities of the party under the agreement shall arise at any time between the Principal and the Agent the same shall be referred to the Arbitration of Managing Director, U.P. State Handloom Corporation Ltd., Kanpur whose award shall be conclusive and binding on both the parties.
(2.) This Agency Agreement was subsequently extended on 25th August, 1986 with effect from 15th December, 1986 for a period up to 14th December, 1996. It was further extended by the Agency Agreement dated 13th May, 1999 from 15th December, 1996 to 14th December, 2002 and then by the Agency Agreement dated 29th January, 2004 from 15th December, 2002 to 14th December, 2007. It is further stated that respondent No. 5-Ashok Kumar Khanna sent a letter dated 11th November, 2010 to the petitioner that he was no longer interested in extending the Agency Agreement and so the petitioner should remove the stock from the shop and vacate it. With this letter, a copy of the letter dated 22nd May, 2010 said to have been sent by the petitioners in which it was stated that if Ashok Kumar Khanna was ready to forgo the arrears of rent of the shop, the petitioners may take a decision for vacating the shop was also enclosed. It is further asserted that respondent No. 5 started creating hindrances in the running of the shop and a letter dated 24th November, 2011 was also sent by the Special Secretary, State of Uttar Pradesh to the District Magistrate, Allahabad in connection with the aforesaid shop to take a decision at his level and inform the Government. The District Magistrate entrusted the matter to the Additional District Magistrate (City), Allahabad and during the course of the proceedings before the Additional District Magistrate, respondent No. 4-Chintamani Ghosh Trust informed the Additional District Magistrate (City) that the shop had been allotted to Ashok Kumar Khanna by the order dated 23rd September, 1968 passed by the Rent Control and Eviction Officer and Ashok Kumar Khanna was paying rent of Rs. 200/- per month to it but the Trust had no idea of any dispute between the petitioners and Ashok Kumar Khanna. Ashok Kumar Khanna also wrote a letter dated 14th December, 2011 to the District Magistrate that he was the tenant of the shop and an Agency Agreement was executed with the petitioners on 10th December, 1981 which was subsequently renewed from time to time. He also stated that by his letters dated 7th December, 2007 and 29th November, 2010, he had informed the petitioners that he was no longer interested in continuing with the Agency and so the petitioners should remove their materials as the period of the Agreement had expired. He, therefore, requested the District Magistrate to issue necessary directions to the petitioners to remove their materials from the shop and handover vacant possession.
(3.) The Additional District Magistrate has mentioned in the impugned order that on examination of the factual position it transpired that the owner of the shop was Chintamani Ghosh Trust and by the order dated 23rd September, 1968 the shop was let out by the Rent Control and Eviction Officer to Ashok Kumar Khanna who initially was carrying on an independent business from the shop but later on executed an Agreement with the petitioners for running the show-room and after the expiry of the period mentioned in the Agreement, Ashok Kumar Khanna was not interested in renewing the agreement and wanted vacant possession of the shop. The order further mentions that the petitioners had expressed a desire that in case Ashok Kumar Khanna did not make any claim for payment of Rs. 7 lacs, they would vacate the shop but the petitioners did not vacate the shop. The Additional District Magistrate (City), Allahabad, in view of the directions issued by the State Government and the approval given by the District Magistrate, directed the petitioners to remove the materials from the shop by 22nd March, 2012 and handover the vacant possession to respondent No. 5-Ashok Kumar Khanna as the petitioners had no claim over the shop.;