VidhiSangh

Supreme Court of India · 06/12/2022

NAGPUR METRO RAIL CORPORATION LIMITED versus ORBIT MOTELS AND INNS PRIVATE LIMITED, NAGPUR & ORS.

[2022] 16 S.C.R. 650 · 2022 INSC 1256

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Summary

Government land in Sitabuldi, Nagpur had been sub-leased in 1995 to a hotel company. That lease was terminated in 2002, and the company's civil suit challenging the termination was still pending, with no interim relief. In 2015 the Collector allotted the land to Nagpur Metro for a station, expressly subject to the outcome of the suit, and advance possession was handed over. The Bombay High Court held Metro's entry high-handed and ordered possession restored to the company. The Supreme Court set that aside. The allotment order had never been challenged, so Metro, in possession under it for a public project, was not in illegal possession. The writ petition should not have been entertained, given the cloud over the company's title and the disputed questions of possession. Its remedy lies in the pending suit, including compensation if it succeeds.

Issues

  1. Whether a sub-lessee whose lease had been terminated, and whose suit against the termination was pending without interim relief, could obtain restoration of possession under Article 226 against a Metro corporation in possession under an unchallenged allotment order.

Provisions considered

Held

Result

Civil Appeal No. 8582 of 2022 allowed; the Bombay High Court (Nagpur Bench) judgment dated 16.09.2016 in Writ Petition No. 6581 of 2015 set aside and the writ petition dismissed; Civil Suit No. 413 of 2002 to be decided on its own merits; no costs.

Judgment PDF: Supreme Court of India, [2022] 16 S.C.R. 650.