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2023 (2) TMI 487 - HC - Insolvency and BankruptcyTermination of lease agreement under Section 5(1) of the Gujarat Public Premises (Eviction of Unauthorized Occupants) Act, 1972 - non-compliance of the conditions of allotment letter - violation of principles of natural justice - whether the issues raised in this petition can be considered by the NCLT in the application filed by the GIDC with a prayer that no option be undertaken of the property in question and leave be granted of the Tribunal for taking action consequent to the termination of the agreement dated 20.01.2007? HELD THAT:- What is evident from the facts is that the petitioner was allotted the subject land vide allotment letter dated 09.01.2007. The letter of allotment indicates that the plot was allotted for the purpose of development of a product specific SEZ where the petitioner was an anchor tenant . It was incumbent upon the petitioner to submit a time bound program / development schedule for utilization of the land within three years from the date of allotment. In light of this allotment letter, a license agreement was entered into on 20.01.2007. This license agreement under the relevant clauses also indicated a time bound schedule. The lease deed accordingly was executed on 12.11.2008. It was for a period of 99 years with a relevant date as per the letter of allotment dated 09.01.2007. Clauses 15, 17 and 18 of the lease deed indicate that in the event of non-payment of rent, action will be taken under the GPP Act - the allotment letter, the license agreement and the lease agreement are contracts which have to be read coterminous with each other, in continuation and conjunction. Since the lease agreement is not executed after a certificate of completion of the conditions as stipulated in the license agreement, the contention of learned Senior Advocate Mr.Thakore that the conditions of the lease deed will supersede the license agreement and once the lease agreement is executed, the license agreement stood extinguished is misconceived. Reading the relevant paragraphs in Tata Consultancy Services Limited [2021 (11) TMI 798 - SUPREME COURT] as cited by the respondent, the NCLT can intervene when, it is even the case of the petitioner that there is an embargo under the IBC. In the application filed by the respondent which is pending before the NCLT, it is open for the petitioner to take all the contentions raised in this petition. The residuary jurisdiction of the Tribunal therefore to decide this issue had already been invoked by the respondent and the petition therefore, at the hands of the petitioner company which seeks the protective umbrella under the IBC itself can oppose the prayers made in that application. Petition dismissed.
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