Supreme Court Pulls Up SJDA For Conducting Auction In Violation Of Terms Fixed By Court, Imposes ₹10 Lakh Cost
|The Bench took serious note of these deviations and held that the Deed of Lease presented by SJDA was in complete variance with the order dated February 4, 2025.
In a sharp rebuke to the Siliguri Jalpaiguri Development Authority (SJDA), the Supreme Court on Thursday directed it to deposit Rs.10,00,000/- with the Registry of the Court for proposing a Deed of Lease as a part of auction,that stood in complete variance with the terms previously fixed by the Court.
The penalty was imposed in a batch of matters, including one filed by M/s. Terai Tea Company Ltd.
The Bench of Chief Justice of India (CJI) Sanjiv Khanna and Justice Sanjay Kumar noted that the Deed of Lease, drawn up by SJDA, included conditions such as imposition of market rent and a clause allowing cancellation of the lease at any time without compensation if the property was required for public purpose.
These stipulations, the Bench observed, were completely inconsistent with the directions laid down by the Court in its earlier order dated February 4, 2025.
"Our attention is drawn to the Deed of Lease, drawn up by the Siliguri Jalpaiguri Development Authority,1 to submit that there is variation between the lease clauses and the terms which were fixed by this Court, vide order dated 04.02.2025. It is pointed out that the terms of the lease, as propounded, makes it impossible for any bidder to give a suitable bid as there are stipulations with regard to payment of market rent, cancellation of lease at any time without payment of compensation in case the property is required for a public purpose, etc," the Bench noted.
The matter was brought to the attention of the Bench after it was submitted that no bidders had turned up for the auction due to the onerous and arbitrary lease conditions.
Senior Advocate Garima Parshad, who was requested to remain present during the auction, confirmed the lack of participation in the auction.
Taking a strong view of SJDA's conduct, the Court ordered the authority to deposit Rs. 10,00,000/- in this Court within three weeks, towards the expenses incurred and as costs for proposing a lease that defied the Court's instructions. It further directed that the amount be transferred to the High Court at Calcutta.
"₹10,00,000/- (Rupees ten lakhs only) to be deposited by the SJDA will be transferred to the High Court at Calcutta." the Court said.
Terai Tea Company Ltd., represented by Senior Advocate C.A. Sundaram, sought permission to withdraw its Special Leave Petition (SLP(C) No. 28119/2024). The petition was accordingly dismissed as withdrawn.
The company had earlier deposited Rs. 50 crores in the Supreme Court as part of the ongoing litigation.
Accepting its application (I.A. No. 60724/2025), the Court directed the Registry to release the entire Rs. 50 crores along with any accrued interest to M/s. Terai Tea Company Ltd. The said application was allowed.
Further, the Court scheduled the listing of SLP(C) Diary No. 46595/2024 in the week commencing May 13, 2025, and granted liberty to SJDA to file an affidavit enclosing revised and fresh terms of the Deed of Lease in compliance with the Court’s directions.
Additionally, SJDA was directed to pay Rs. 2,00,000/- to Senior Advocate Garima Parshad towards professional fees and also cover her lodging and boarding expenses within a period of three weeks.
"The SJDA will ensure payment of ₹2,00,000/- (Rupees Two Lakhs Only) to Ms. Garima Parshad, learned Senior Advocate along with lodging and boarding expenses, within three weeks from today," the Bench said in its order dated April 8.
Cause Title: Terai Tea Company Ltd. v. Siliguri Jalpaiguri Development Authority & Ors. [Special Leave to Appeal (C) No. 28119/2024]
Appearance:-
Petitioner: Senior Advocate C.A. Sundaram, Advocates Pankaj Jain, Ashok Kumar Jain, Meenakshi Jain, Bijoy Kumar Jain (AOR), Senior Advocate Rakesh Dwivedi, Advocates Madhumita Bhattacharjee (AOR), Debarati Sadhu
Respondent: Advocates Bijoy Kumar Jain (AOR), Siddharth Batra (AOR), Chinmay Dubey, Shivani Chawla, Priyanshu Upadhyay (AOR), Anujit Mookherji, Abhinav Sharma, Nishant Singh, Senior Advocates Rakesh Dwivedi, Malvika Trivedi, Advocates Madhumita Bhattacharjee (AOR), Nipun Katyal, Surya Pratap Singh Rana, Manan Sharma, Shailendra, Shilpa Singh (AOR)
Click here to read/download the Order