Supreme Court Settles IOCL Eviction Case, Directs Waiver Of Mense Profits And Arrears Of Rent Since 1995- Vacation Of Retail Outlet Premise On Consensus
LIVELAW NEWS NETWORK
8 Oct 2024 12:43 PM IST
Image for representational purposes
The Supreme Court vide Judgment dated 09.09.2024 has disposed of a Special Leave Petition filed by a landlord for eviction of Indian Oil Corporation Limited (“IOCL”) from a leased property located at Kolkata wherein IOCL was running a petrol Pump. Challenge under SLP was order dated 14.08.2023 of the Calcutta High Court, which had reaffirmed the settled position of law, amongst others that though the Writ Courts have substantial power to issue appropriate writs under Article 226 of the Indian Constitution, however, in cases with serious factual disputes requiring consideration of elaborate evidence, the power of a Writ Court is curtailed.
Apparently, the entire property in which petrol Pump is being run by IOCL belonged to two sisters in law who had jointly leased the same to IOCL. However, in time, the land was partitioned amongst themselves without any 'metes and bounds' and on account of family settlement, one of the sisters had relinquished her right in the petrol pump business in favor of the other. Upon nearing completion of the lease period, IOCL expressed its option to purchase the leased property in terms of its lease deed, wherein while one the lessors rejected the offer and filed a suit for eviction, the other (whose successors are the Petitioners), expressed her intent to sell her portion.
IOCL ultimately faced eviction from a portion of the leased premises in 1998 which was subsequently stayed by the Calcutta High Court in course of 2nd Appeal. The other owner of the leased premises (whose successors are the Petitioners), although made party to the eviction suit, submitted that she did not want IOCL evicted and rather tried to pursue IOCL to purchase her portion of the land. Such proposition of purchase not being acceptable to IOCL, after considerable time, in 2021, a writ application was filed by her successors praying for writ of mandamus directing IOCL to quit and vacate from their portion of the premises.
The Calcutta High court held that no Writ Petition could have been entertained in the peculiar circumstances. This (Impugned order dated 14.08.2023), was under challenge before the Supreme Court. During pendency of the SLP, upon consensus between the parties, the Supreme Court has directed IOCL to vacate the premises on or before 31.03.2025 with the Petitioner to forgoe, right to claim mense profits and arrears of rent since 1995.
Supreme court however clarified that the issue of maintainability of the Writ Petition was not examined, thereby, in effect the order dated 14.08.2023 passed by the Calcutta High Court still standing good in law.
Case Title:SIKHA GHOSH & OTHERS V. INDIAN OIL CORPORATION LTD. & ORS.
Counsel For Petitioner: Senior Advocate Meenakshi Arora and assisted by Swarnendu Chatarjee and team
Counsel Respondent: Solicitor General, Tushar Mehta and assisted by Meharia and Company and team.
