In Brief
Ajar Enterprises acquired leasehold rights to a large tract of land (43,407 sq m) from a liquidated public sector company and sought renewal and conversion to freehold. The High Court cancelled these transactions, finding that the land development authority had breached public trust by renewing the lease and converting it to freehold without competitive bidding, contrary to public interest. The Supreme Court affirmed the High Court's decision, holding that although the original lease contained a renewal clause, the authority retained discretion to refuse renewal based on public interest considerations. The land was originally allotted for a public purpose (residential colony for employees), not commercial development. The Court confirmed the High Court's directions to recover the land and reauction it, while protecting registered plot purchasers with deeds executed before judgment and requiring refunds with 9% interest for others.
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