In Brief
A statutory development authority (UDA) leased 43,407 square meters to a steel company (IISCO) for residential development in 1985. When IISCO went into liquidation, its assets were sold to a purchaser who nominated Ajar as the transferee of the leasehold rights. UDA initially cancelled the lease but was overruled by the Calcutta High Court. Years later, UDA renewed the lease to Ajar for 30 years and converted it to freehold. A public interest petition challenged this, arguing UDA disregarded public interest. The Supreme Court held that although renewal clauses exist in leases, they are not absolute rights; UDA must consider public interest, land value, and original purpose when deciding renewal. The renewal to Ajar was flawed and the conversion invalid. However, the Court protected third-party plot purchasers with registered sale deeds executed before judgment.
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