Orissa Olympic Associtation vs State of Orissa

This Court on 19.01.2015 had framed seven questions. They read as under :

"(i) Whether the lessee of the present character, that is, the Orissa Olympic Association, could have filed a suit for right, title and interest against the State, that is, the superior landlord?

(ii) Whether the plea of adverse possession can be set forth by the "Association" against the State, if the suit property is beyond the area granted under the lease deed?

(iii) Assuming the area in question is a part of the lease deed, whether the lessee can put forth a plea of adverse possession?

(iv) Assuming the suit land/property is situate within the lease hold area, whether the grantor, that is, the State Government, cannot take steps to resume the land for violation of the terms and conditions of the lease deed?

(v) Whether the income that is received by use of the suit property should not be taken into account and why should it not be the legal obligation of the petitioner-Association to satisfy the Court that the accounts have been audited and the amount derived has been properly accounted for?

(vi) If the accounts have not been audited, as required in law, whether the individuals that look after the affairs of the Association in respect of the suit property, would be criminally liable or not?

(vii) Whether the persons in management of the property could not be criminally proceeded, if it is found that they have mismanaged and utilised the income for their individual benefit?

As we find, the High Court has appointed the Collector, the respondent No.1, as the receiver. The said part of the order reads as follows:

"The appellant No. 1 - State of Orissa, represented by the Collector, Cuttack is directed to take over possession of the property, where after, the Collector shall open an interest bearing Bank Account and deposit tin the said Account the rent collected from the tenants including the rent received from the Kalyan Mandap by M/s. INCON associates. M/s. INCON Associates is also directed to deposit the advance money received from the prospective occupants from today with the Collector and the balance amount shall be collected by the Collector and deposited in the Bank account during the pendency of the suit. The Collector, Cuttack is also directed to secure the property and the income thereof in due promptitude and to take necessary steps for preventing the same from any damage or danger and report compliance to this Court through the trial court."

Mr. Gopal Subramaniam, learned senior counsel appearing for the petitioner-Association has very fairly conceded that as far as question No.(iii) is concerned, the petitioner was wrongly advised to put forth such a plea, for it is a well established principle of law that a lessee cannot set forth a plea of adverse possession. In view of the aforesaid, issue no. (iii) stands closed.

Presently, we shall advert to issue no.(v). On a query being made, learned senior counsel, submitted that the suit was instituted in the year 1991 in respect of 0.705 acres claiming right, title and interest and other reliefs and the income received from the property situated on that area is regularly audited by a statutory auditor. In our considered opinion, there has to be audit for the purpose of verification so that we can eventually be satisfied. Considering the facts and circumstances in entirety, we direct that the accounts in respect of "Kalyan Mandap" and 23 shops standing on the disputed area" (suit area 0,705 acres) be made by the Accountant General of Orissa at Bhubaneswar. The said exercise shall be completed within a period of six weeks. The report of the Accountant General shall be placed before this Court. The Registrar (Judicial) shall send a copy of the order passed today to the Accountant General of Orissa at Bhubaneswar by fax/e-mail and regular post forthwith so that he can take steps in promptitude.

As advised at present, we shall delve upon the issue whether the necessary arrangement pertaining to management of the aforesaid property is required to be made. Without expressing any opinion finally, as we cannot today as the special leave petition is pending, we think that there should be a Committee of Management which shall take over possession of the "Kalyan Mandap" and the 23 shops standing on the area for the purpose of management. The committee shall consist of the Collector, Cuttack and two Additional District Magistrates to be nominated by the Collector. The Committee shall be liable to be supervised by the Secretary, Revenue and Disaster Management. We hasten to clarify, if there is any contract which has been executed by the Association through M/s. INCON Associates for the purpose of holding any marriage that should be allowed to continue. But all correspondence and discussion on every aspect shall be done with the Committee. The Collector may nominate one of the Committee members for this purpose but the final decision shall be taken by the Committee. We have so directed, as we do not want that the allocation of the marriage hall for the purpose of marriages be cancelled. However, after today, M/s. INCON Associates shall not enter into any fresh contract. The Committee shall take over the management by 25.01.2015 positively. Mr. Subramaniam, learned senior counsel submitted that no one shall raise any obstruction in taking over the management. The Collector is at liberty to requisition the police assistance, if he has to take care of any obstruction regard being had to the situation.

All the twenty-three shop keepers shall pay the rent to the Committee and the income shall be collected by the authorised agent of the Committee. If anyone would deviate in doing so, he would be liable for contempt of this Court. It will be the duty of the Managing Committee to see that the buildings are properly maintained. We have modified the order of Stay to the aforesaid extent.

The income derived from the date of taking over possession and any income that is derived earlier thereto shall be kept in an interest earning account in the State Bank of India, Main branch, near the Collectorate, Cuttack.

The documents that has been exhibited before the trial court are permitted to be filed by either of the parties.

This is an interim arrangement subject to final adjudication of the special leave petition.

Let the petition be listed for further hearing on 24.03.2015.