In Brief
Orissa Industrial Infrastructure Development Corporation (IDCO) allotted 2500 acres to Mesco Kalinga Steel Ltd. for a steel plant on condition that a formal lease deed be executed. Though IDCO handed over possession of 1756.29 acres, Mesco failed to execute the required lease deed despite repeated reminders (1996-1997). After over 5 years of inaction, IDCO resumed the land in 2003 and forfeited Mesco's deposit. The High Court set aside the resumption, directing IDCO to lease 825.68 acres to Mesco. The Supreme Court held that no valid lessor-lessee relationship exists without formal lease execution; it is a mandatory condition precedent under law. Since Mesco's own default voided the contract ab initio, the three-month notice requirement did not apply. Forfeiture and resumption were justified. Promissory estoppel and equitable considerations cannot override statutory requirements for statutory bodies. The Court allowed the appeals, set aside the High Court's direction, and dismissed the writ petition.
The lawyer headnote and full judgment text are available to registered users.