Hindustan Peroleum Corporation LTD. vs. Mr. Quader Hussain And Another

Facts

This appeal arose from a City Civil Court judgment and decree. The property in dispute was leased to Hindustan Petroleum Corporation Ltd. (appellant) for a petroleum retail outlet. The lease, initially granted in 1965, expired in 1985 and was renewed. A notice of termination was issued in 1994, leading to litigation. The matter was initially filed before the City Civil Court, then transferred to the Waqf Tribunal, and subsequently remanded back to the City Civil Court. The trial court passed a judgment and decree against the appellant. During the pendency of this appeal before the High Court, the parties reached an amicable settlement. The settlement terms were presented to the Court for disposal of the appeal.

Held

The Court noted that during the pendency of the appeal, the parties had amicably resolved their dispute. The terms of the compromise, drafted on 19.11.2022, were presented to the Court. As per these terms, the appellant agreed to pay Rs. 1,80,000/- per month as lease rent, commencing from November 2022. The lease period would be extended for a further period of 10 years from the date of entering into the agreement, which was to be finalized within six months. The lease rent would be enhanced by 15% every three years on the preceding month's rent. The appellant also agreed to pay advance rent for twelve months and registration charges. Respondent No. 2 (Waqf Board) had no objection to the direct payment of rents to Respondent No. 1, provided Respondent No. 1 complied with the Waqf Deed, specifically contributing 7% of the Waqf Fund on 50% of the rental income to the Waqf Board. The Court expressed happiness that the dispute, dating back to 1991, was resolved. Consequently, the City Civil Court Appeal was disposed of in terms of the compromise. It was also noted that respondent No. 1 could approach the Waqf Board to receive any money already deposited with them. Miscellaneous petitions, if any, were closed.

Key Issues

1. Whether the appeal should be disposed of based on the compromise arrived at between the parties, considering the terms of the drafted compromise agreement dated 19.11.2022. Petitioner/Appellant's Arguments: The appellant, represented by Sri B. Mayur Reddy, contended that the parties have amicably resolved their long-standing dispute and have agreed to the terms of compromise. They sought disposal of the appeal based on these terms. Respondent No. 1's Arguments: Respondent No. 1, represented by Sri P. Raja Sripathi Rao, was present in court and agreed to the disposal of the appeal based on the compromise. The terms of the compromise indicate that respondent No. 1, as the Muttawalli, is extending the lease period and receiving lease rents directly from the appellant. Respondent No. 2's Arguments: Respondent No. 2 (Andhra Pradesh State Wakf Board), represented by Sri Abu Akram, had no objection to the payment of rents directly to Respondent No. 1, provided Respondent No. 1 complies with the terms of the Waqf Deed regarding contributions to the Waqf Board.