If Original Allottee Does Not Execute Lease Deed During Lifetime, Agreement Automatically Terminates On His Death: Calcutta HC

The Calcutta High Court has observed that if an original allottee did not take any steps to execute the lease deed during her lifetime, the agreement for lease automatically gets terminated on her death.

A Single Bench of Justice Bibek Chaudhuri held, “The impugned order passed by the Estate Manager, Kalyani Urban Development Department, Government of West Bengal dated 24th August, 2015 clearly states that the original allottee during her life time did not take possession over the leasehold property. Lease deed has not yet been executed. Thus, till date the property belongs to the Government of West Bengal. As the original allottee did not take any step to execute the lease deed, during her life time, the agreement for lease automatically terminated on the death of the original allottee.”

The Bench took note of the fact that it is an executor contract just like a contract to sale, an agreement to lease creates only personal obligation which may be enforced and accompanied by delivery of possession.

Advocates Rajdip Ray and Sandip Ray represented the petitioner in this matter.

Factual Background -

It was the case of the petitioner that pursuant to an advertisement and/or public notification issued by the Government of West Bengal for allotment of a plot of land at Kalyani in the district of Nadia subject to payment of premium and/or salami on lease for a period of 999 years, one Gouri Dutta (original allottee) made an application for allotment of a plot of in 1963. The Government of West Bengal agreed to allow her a plot of land on receipt of the payment of the consideration price and accordingly, an agreement for a lease was executed between the state government and the original allottee.

On the date of execution of the agreement, the said allottee disputed a sum of Rs. 460 being 10% of the premium and salami. During the last days of her life, she desired to bequeath her leasehold right and interest in the said plot of land in favour of the petitioner and accordingly, she executed a will in favour of the petitioner in 2003. As per the grievance of the petitioner, despite receipt of all representations, the respondent did not pay any heed and sat tight over the matter and thus failed to record her name as lessee in respect of the said plot. The petitioner, therefore, prayed for the issuance of a writ in the nature of certiorari and other consequential reliefs before the High Court.

The High Court in the above regard noted, “It is needless to say that the original allottee did not take any step during his life time to execute the lease deed. The property was allotted in the year 1963 and it is lying vacant for about 60 years without assigning any reason by the allottee. Therefore, the State Government cancelled the agreement for lease by an order dated 26th May, 2015.”

The Court said that no right over the said property is transferred upon the petitioner on the strength of the will executed by the original allottee since deceased even after the grant of probate by it.

Accordingly, the High Court dismissed the plea.

Cause Title- Chabi Chowdhury v. State of West Bengal & Ors.

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