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Jharkhand High Court · body

2008 DIGILAW 648 (JHR)

Heavy Engineering Corporation limited, Dhurwa, Ranchi v. Board for Industrial & Financial Reconstruction

2008-06-27

R.K.MERATHIA

body2008
Order l. A. No.986 of 2007 This interlocutory application has been filed on behalf of Heavy Engineering Corporation Limited (for short 'H.E.C.") with a prayer to direct the Government of Jharkhand to pay the up-to-date amount on account of rent payable by the Government of Jharkhand to H.E.C., against occupation of the buildings of H.E.C .. 2. Mr. Rajiv Ranjan, appearing for the H.E.C. submitted that the calculation up to December, 2007 was given in this intcr-Iocutory application but thereafter also the rent has fallen due. 3. Mr. S.B. Gadodia, learned Advocate General, appearing for the State of Jharkhand, submitted that the amount claimed is based on the enhanced rate of 25% and thus it is disputed; and secondly when the rehabilitation package is pending, the State Government is not liable to pay the rent. 4. After hearing the parties at length, the following position emerges. The relevant portion of order dated 3.2.2005 passed in this case reads as under:- "I.A. No. 106 of 2005: I.A. No. 106 of 2004 has been preferred by the Company, the Heavy Engineering Corporation Limited (H.E.C.), for direction upon the State of Jharkhand to settle the issues regarding the rent payable to the H.E.C. for the buildings taken on rent by the State Government for its officers and employees. On behalf of the State of Jharkhand, it is informed that the State of Jharkhand has decided to pay the following rent in favour of the Company:- "(a) Rent payable for office space (pucca structure with RCC roof) .... Rs. 4.00 per sq. ft. (b) Rent payable for office space (pucca structure with asbestos! tile roof) ... Rs.2.00 per sq. fit. (c) Rent payable for residential space (pucca structure with RCC roof) ... Rs.2.00 per sq. ft. (d) Rent should be calculated on total carpet area of a building. (e) Rent payable by the State Government may be revised after five years by an additional sum of 25% on the base rental. It is stated that the above rental will be payable for occupation of the buildings and the rates shall be applicable from the date of taking over possession from the H.E.C. by the Building Construction Department. (e) Rent payable by the State Government may be revised after five years by an additional sum of 25% on the base rental. It is stated that the above rental will be payable for occupation of the buildings and the rates shall be applicable from the date of taking over possession from the H.E.C. by the Building Construction Department. However, according to the learned counsel for the Company (H.E.C.), rent should be paid from the date the building/quarters have be3n taken possession of by the Building Construction Department or the officers of any department or any authority of the State or any person on behalf of the State 5. Accordingly, the notification no. 497 (Bha) dated 26.2.2005 was issued by the Building Department, Government of Jharkhand. As per clause 5, enhancement of 25% could be made on the base rent after five years. As per clause 7, the base rent was to be effective from 15.11.2000 and the period of five years, for enhancement of rent, was to be calculated from the date of Issuance of the said notification. However, by notification no. 777 (B/w) dated 24.3.2005 the said notification dated 26.2.2005 was corrected/ modified to the extent that the calculation of five years will be made not from the date of said notification dated 26.2.2005, but from the date of taking over possession of the buildings. 6. It may also be noted that H.E.C. has charged enhanced rent after completion of five years from the respective dates of taking over possession of the buildings which has been paid by the State Government without any objection. Incidentally, it may also be noted that the service tax is also being charged and paid by the State Government 7. In these circumstances, the objection of Mr. Gadodia that the enhanced rate cannot be charged after completion of five years of taking over possession of the buildings. cannot be accepted. 8. The other objection of Mr. Gadodia that during the pendency of the revival package, the State Government is not liable to pay rent, also cannot be accepted. In these circumstances, the objection of Mr. Gadodia that the enhanced rate cannot be charged after completion of five years of taking over possession of the buildings. cannot be accepted. 8. The other objection of Mr. Gadodia that during the pendency of the revival package, the State Government is not liable to pay rent, also cannot be accepted. It appears from the revival package of the State Government contained in Memo No. 2683/Ranchi dated 26.12.2007, that the Government has proposed to include the value of the buildings in the amount to be given to t-1.E.C. under the revival package, but there is nothing to show that the arrear or future rent, is also included in the amount offered by the State Government under the revival package. Admittedly no final decision has been taken on the the revival package. In my opinion, till a final decision is taken on the revival package, the State Government is liable to pay the rent to H.E.C. 9. The Secretary of the Building Department and Chief of Township, H.E.C. are directed to sit together to check and verify the calculation made by the H.E.C. in the light of this order within four weeks from today. The amount so calculated will be paid by the State Government within four weeks thereafter. 10. On the basis of such calculation, the State Government will continue to pay the rent monthly to the H.E.C. till further orders. With these observations, findings and directions this interlocutory application is disposed of. Let a copy of this order be handed over to Mr. Gadodia, learned Advocate General and Mr. Rajiv Ranjan.