Modi Organisors PVT. LTD. vs. Union Of INDIA

Facts

Modi Organisors Pvt. Ltd. (petitioner) entered into a lease agreement dated 15.07.2021 with the Union of India (respondent) for office premises for the Central GST Commissioner, Bhavnagar. The lease was for a period of three years, with rent commencing from 01.11.2021, and occupation by the respondent from 01.10.2021. The petitioner informed the respondent that rent would be payable from 01.11.2021 and that the lease period could not be extended further. The respondent, through its 4th authority, sought information regarding fire-fighting equipment and a revised plan with a separate exit, requesting a Fire NOC for the leased premises via a communication dated 29.10.2021. The petitioner responded on 01.11.2021, stating that the building had a Fire NOC, requisite fire safety equipment, and appropriate exit arrangements. Subsequently, on 02.11.2021, the 4th respondent terminated the lease agreement with immediate effect. The petitioner's representation dated 12.11.2021 to revoke the termination was unsuccessful.

Held

The Court noted that the petitioner would be satisfied if their representation dated 12.11.2021 was considered in light of the Fire Safety Certificate dated 23.03.2022, which was issued after the termination. The respondent's counsel submitted that the 2nd respondent would consider the representation and pass appropriate orders expeditiously within four weeks. The Court granted liberty to the petitioners to submit a fresh representation, along with all relevant documents, for consideration by the 2nd respondent. The petition was disposed of with these observations. The Court did not make a finding on the legality or arbitrariness of the termination itself, deferring the decision to the respondent's consideration of the representation.

Key Issues

1. Whether the termination of the lease agreement dated 02.11.2021 by the 4th respondent is arbitrary and illegal, considering the petitioner's readiness to fulfill requirements and subsequent issuance of a Fire Safety Certificate. The petitioner argued that they had demonstrated readiness to fulfill the requirements, including obtaining a separate Fire NOC for the leased premises. They contended that all fire safety requirements were completed, and a separate Fire Safety Certificate for the leased premises was issued by the Divisional Fire Officer, Bhavnagar, Municipal Corporation, for three years, which was not considered by the respondent. The petitioner sought quashing of the termination letter dated 02.11.2021. The respondent (Union of India) did not present any arguments on the merits of the termination in the recorded proceedings. However, their counsel agreed to consider the petitioner's representation.