Decided on October 09,1996

Phoenix Neuro Relaxation Service Ltd. And Another Appellant
Estate Officer And Another Respondents


Ruma Pal, J. - (1.)The petitioner has challenged proceedings initiated by the India Tourism Development Corporation Ltd. (ITDC) before the Estate Officer for realisation of arrears of licence fee and other charges. The petitioner No. 1 which is a company entered into an agreement on 22 June, 1992, with ITDC by which portions of the Hotel Airport Ashoka were given on licence to the company subject to diverse terms and conditions contained in the agreement.
(2.)Disputes arose between the parties with regard to the performance of the respective obligations under the agreement. The company instituted a title suit against ITDC for, inter alia, a declaration that two cheques given by the company to ITDC for Rs. 2,40,000 and Rs. 2,00,000 had not matured and for cancellation of three cheques dated 31.8.93, 30.11.93 and 28.2.94 Rs. 2 lakhs each, for damages and for a declaration of the company's right to continue in possession of the licensed premises and for an injunction restraining 1TDC from disturbing the company's possession in respect of the licensed premises. A revisional application was filed by ITDC before the High Court from such interim order. The revision application was disposed of by consent of the parties on 20 May, 1994. Under the consent order the company agreed to surrender its rights in respect of the licensed premises and hand over possession of the same to ITDC on 31 May, 1994. The order was passed without prejudice to the rights and contentions of the parties in respect of the premises.
(3.)In Aug., 1995,ITDC initiated the impugned proceedings against the company. A notice dated 5 Sept., 1995, to show cause under section 7 of the Public Premises (Unauthorised Occupants) Act, 1971, was served on the company by the Estate Officer. The matter was taken up from time to time by the Estate Officer. An objection was filed on 20 Sept., 1995, by the company in the proceedings. On 16 March, 1996, an order was passed rejecting the company's initial plea that the proceeding before the Estate Officer was not maintainable by reason of the pendency of the civil suit. The matter was thereafter fixed for hearing on 22 June, 1996.

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.