Supreme Court directs Indian Oil Corporation to handover possession of disputed property to landowner on or before 31-03-2025

Supreme Court: In a special leave petition in reference to eviction of the Indian Oil Corporation Limited (‘Oil Corporation’) from the property in their possession, the division bench of J.K. Maheshwari and Rajesh Bindal, JJ. directed Oil Corporation to hand over the vacant physical possession of the property in question to the petitioners on or before 31-03-2025. Further, the Court said that the petitioners have foregone the right to recover the lease rent/mesne profit for the past and future till 31-03-2025 or till handing over possession of the property in question to the petitioners, whichever is earlier.

Background:

A writ petition was filed by the petitioners in the Calcutta High Court seeking direction to the Oil Corporation to vacate and hand over vacant possession of the aforesaid property. The same was allowed by the Single Judge vide order dated 16-08-2022. Aggrieved against the same, Oil Corporation filed an intra court appeal. The same was allowed vide judgment dated 14-08-2023 holding that the case involved disputed questions of fact, which could not be resolved in writ jurisdiction and the petitioners were relegated to invoke jurisdiction of appropriate forum. Challenging the aforesaid order, the present Special Leave Petition was filed by the petitioners.

The issue was whether writ proceedings are maintainable against oil companies for eviction and compensation in view of National Co. v. Bharat Petroleum Corpn. Ltd., (2021) 13 SCC 121.

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Court’s Order:

The Court clarified that the issue of maintainability of the writ petition was not examined, as the matter is being disposed of on account of consensus of the parties.

The Court directed Oil Corporation to hand over the vacant physical possession of the property in question to the petitioners on or before 31-03-2025.

The Court ordered that the petitioners have foregone the right to recover the lease rent/mesne profit for the past and future till 31-03-2025 or till handing over possession of the property in question to the petitioners, whichever is earlier.

The Court permitted the petitioners to initiate contempt proceedings in addition to any other remedy which may be available to him, in case of failure to comply with the above given direction.

The Court directed that any amount lying deposit in court to be refunded to Oil Corporation by transfer in the appropriate bank account, particulars of which may be furnished by Oil Corporation to the officer concerned.

The Court also directed the petitioners to return all cheques or any negotiable instruments in their possession to the Oil Corporation as in view of the above consensus they will not have any right to get those encashed.