AGRIMMCOR PVT LTD Vs. UNION OF INDIA
LAWS(APH)-1992-4-35
HIGH COURT OF ANDHRA PRADESH
Decided on April 30,1992

AGRIMMCOR PVT.LTD. Appellant
VERSUS
UNION OF INDIA Respondents


Referred Judgements :-

MUSTAFA HUSSAIN VS. UNION OF INDIA UOI [REFERRED TO]



Cited Judgements :-

HINDUSTAN PETROLEUM CORPN LTD VS. TOTARAM MURALILAL and SONS [LAWS(APH)-1995-9-20] [REFERRED TO]


JUDGEMENT

B.Subhashan Reddy, J. - (1.)This Writ Petition questions the vires of Sections 5(2) and 7(3) of the ESSO (Acquisition of Undertaking in India) Act, 1974, as being arbitrary and unconstitutional and to set aside the consequential letter of the 2nd respondent-Corporation dated 17-3-1987 seeking option of extension of lease for a further period of 10 years with effect from 1-4-1987.
(2.)The petitioner is the owner of the site on which the petrol and diesel bunks were installed by the lessee i.e. Esso Estern Inc, a limited company incorporated in U.S.A. The lease period was 10 years with effect from 1-4-1967 subject to the condition of a renewal for a period of 10 years. According to the terms of lease, the initial rent for the first 5 years was Rs.400/- per month which was increased to Rs.450/- per month for the second five years. The renewal clause contained that it was subject to increase in rents Rs.500/- per month, in case, option was exercised. Before the expiry of the lease period, the above Act came into force. Under Section 5(1) of the above Act, an option asexercised by the original lessee was exercised and the second option is exercised perforce in view of Section 5(2) of the Act.
(3.)Two contentions are raised on behalf of the petitioner; firstly, that the provisions contained under Section 5(2) and 7(3) of the Act are unconstitutional as they are not in furtherance of Directive Principles of State Policy and as such, the protection under Article 31-C of Constitution is not available and secondly, even assuming that the said provisions are intra vires the Constitution, the authority should exercise the powers in conformity with fair-play.
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