SC Orders IOC to Vacate Kolkata Property as Owners Agree to Forgo Rent and Mesne Profit

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Synopsis

Court also ordered the owners to return any cheque lying with them to IOC while clarifying that with this, both parties will not have any right pending against each other

The Supreme Court recently directed the Indian Oil Corporation (IOC) to hand over the vacant physical possession of a property in Kolkata's South Dum Dum municipality as the owners agreed to forego the right to recover the lease rent and mesne profit for the past and future.

A bench of J K Maheshwari and Rajesh Bindal also ordered petitioners Shikha Ghosh and others to return all cheques or any negotiable instruments in their possession to IOC in view of the consensus that they will not have any right to get those encashed.

The court also fixed March 31, 2025, as the deadline for handing over possession of the property in question.

The issue in a special Leave petition was with reference to the eviction of the respondents from the property in their possession situated at holding No 57, 58, Premises No 281, Ward No.20, South Dum Dum Municipality, Kolkata –700 089 an area of 6 Cottach and 43 sq ft (approximately).

A writ petition was filed by the petitioners/writ petitioners in the high court seeking direction to IOC to vacate and hand over vacant possession of the property. That writ petition was allowed by a single judge bench of the high court by an order on August 16, 2022. 

Aggrieved against the same, Indian Oil Corporation Ltd- respondents filed an intra court appeal, which was allowed by a judgment on August 14, 2023, holding that the case involved disputed questions of fact, which could not be resolved in writ jurisdiction and the writ petitioners were relegated to invoke jurisdiction of appropriate forum. 

Challenging the division bench order, the present special leave petition was filed by the writ petitioners before the apex court.

During the hearing of that matter, a broad consensus was arrived at between the parties in terms of which IOC was to hand over the vacant physical possession of the property in their possession to the petitioners on or before 31.03.2025 and the petitioners were to forego their rights with reference to arrears of rent and mesne profit. 

Even the amounts lying deposited in the court will be refunded to the respondents and the cheques, if any, issued by the respondents in favour of the petitioner shall also be returned back, the bench noted.

Court disposed of the matter on account of the consensus of the parties without having examined the issue of maintainability of the writ petition.

In case of failure to comply with the direction, the court said that the petitioners would be entitled to initiate contempt proceedings in addition to any other remedy that may be available to them.

Among other conditions, the bench said, "Any amount lying deposit in court shall be refundable to the respondents by transfer in the appropriate bank account, particulars of which may be furnished by the respondents to the officer concerned."

The court also ordered the petitioners to return any cheque lying with them to IOC, while clarifying that with this, both the parties will not have any right pending against each other.

Case Title: Shikha Ghosh & Others Vs India Oil Corporation Ltd & Ors