HINDUSTAN NATIONAL GLASS AND INDUSTRIES LIMITED Vs. GANESH KUMAR AGARWAL
LAWS(CAL)-2010-1-82
HIGH COURT OF CALCUTTA
Decided on January 08,2010

HINDUSTAN NATIONAL GLASS AND INDUSTRIES LIMITED Appellant
VERSUS
GANESH KUMAR AGARWAL Respondents

JUDGEMENT

S. Banerjee, J. - (1.) The first petition in point of time, GA No. 1881 of 2009 is the plaintiff's principal interlocutory petition in this suit for specific performance of an agreement to transfer a mining lease. GA No. 2506 of 2009 is the defendant's vacating application that is now irrelevant as the plaintiff's application has ripened for final hearing. The defendant's application for revocation of leave granted under Clause 12 of the Letters Patent on the ground that this is a suit for land has recently failed.
(2.) The plaintiff refers to a memorandum of understanding of August 4, 2008. The first recital records that the defendant has a mining lease for an area of 466.67 hectare in district Sikar, Rajasthan. There is a reference to an annexure "A" in the first recital. The first Clause of the memorandum of understanding records as follows: 1. The understandings, as expressed in terms of these presents, shall commence from the date hereof and shall remain in force initially for a period of two months. The said understandings may thereafter be renewed for a further period as may be mutually agreed and reduced in writing by the Parties hereto.
(3.) The first limb of the second Clause records that the defendant would obtain the requisite permission from the State Government and others (by "using his contacts or otherwise") for transferring the mining lease in favour of a company incorporated specifically for such purpose or in favour of the plaintiff, "if not barred or prevented due to some extraneous factors which are beyond the control of" the defendant. The second limb of the second Clause (complete with the ubiquitous euphemism of "using his contacts or otherwise") stipulates that the defendant would also obtain the mining lease in respect of 67 hectare of land recently surrendered by the defendant in favour of the proposed company or the plaintiff, unless prevented by extraneous factors beyond the defendant's control. The third Clause provides for the defendant "using his contacts or otherwise" to help the plaintiff set up a large cement plant. The fourth Clause requires the defendant to keep the plaintiff informed of the measures taken by the defendant in terms of the understanding on a fortnightly basis. The fifth Clause is a representation by the defendant as to the quality and quantity of mineral. The sixth Clause relates to the plaintiff undertaking geological prospecting to satisfy itself as to the quality and quantity of mineral available. The second sentence of the sixth Clause is of some significance: 6. ...Once the geological report is obtained (the plaintiff) shall pay advance money as mutually agreed between the Parties hereto.;


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