Case Note & Summary
The dispute arose from the cancellation of a lease deed executed by the State of U.P. in favor of Azim Ahmad Kazmi and others for a plot of land in Allahabad. The lease was initially granted in 1868 and renewed in 1996 for a period of 30 years. The State Government cancelled the lease on 15th December 2000, citing public purpose for the extension of the Allahabad High Court. The appellants challenged this cancellation through a writ petition, which was dismissed by the High Court. The appellants contended that the State should have followed the Land Acquisition Act, 1894, for acquiring the land and that the public purpose was not valid at the time of lease renewal. The State argued that the public purpose existed prior to the lease renewal and that the lease deed allowed for resumption of land for public use. The Supreme Court analyzed the provisions of the Government Grants Act, 1895, and upheld the State's actions, stating that the lease deed provided the necessary authority for the State to cancel the lease and take possession. The court dismissed the appellants' appeal and allowed the State to take possession, providing the appellants three months to vacate the premises. If the appellants failed to comply, the State was permitted to take forcible possession.
Headnote
A) Government Grants - Lease Cancellation - Legal Validity - Government Grants Act, 1895, Section 3 - The State Government's order for cancellation of lease and resumption of possession was upheld as it followed the procedure laid down in the lease deed for public purpose. The court held that the State had the right to resume possession as per the terms of the lease, and the appellants were given time to vacate (Paras 20-21).
Issue of Consideration
Whether the order passed by the State Government for cancellation of lease and resumption of possession is legally valid and whether the State Government can dispossess the lessee without resorting to other procedures established by law.
Final Decision
The Supreme Court upheld the State's order for cancellation of the lease and resumption of possession, allowing the State to take possession after three months if the appellants failed to vacate.
Law Points
- Government Grants Act
- 1895
- Land Acquisition Act
- 1894
- lease cancellation
- public purpose
- forcible possession
- legal validity of government actions



