STATE OF WEST BENGAL AND ORS V. SCENE SCREEN LTD., AND ANR INSC 503

Facts:

In 1947 and 1952, Sasthidas Malik's father leased two plots of land to Scene Screen Ltd. for 30 years, enabling the construction of a cinema house and shop rooms. Upon his father's passing, Malik inherited these properties. Following the enactment of the West Bengal Estates' Acquisition Act, 1953, Malik submitted a return to retain the lands as an intermediary under Section 6 of the Act. However, Scene Screen Ltd. contended that rent should be paid to the State rather than to Malik due to the Act's provisions. This dispute led to legal proceedings determining whether Malik could retain the lands under the Act's provisions.

Issues:

1. Whether Malik could retain the lands leased to Scene Screen Ltd. for constructing a cinema house and shop rooms under Section 6 of the Act.

2. Whether the term "khas possession" was a necessary condition for an intermediary to retain such lands under the Act.

3. Whether the State was entitled to collect rent from the lessee, Scene Screen Ltd., or if Malik retained the right to receive rent as the lessor.

Rules:

1. Intermediary's Right to Retain Land: An intermediary is entitled to retain land that comprises or is associated with buildings or structures owned by them, even if such land is leased to others.

2. Actual Possession Not Required: The intermediary does not need to be in actual possession of the land to retain it under Section 6. The absence of a specific requirement for actual possession in this section indicates that intermediaries can retain such land regardless of its occupancy status.

3. State's Entitlement to Rent: The State is not entitled to collect rent from the lessee in cases where the intermediary retains the land under Section 6. The lessor's interest does not vest in the State under this provision, allowing the intermediary to continue receiving rent from the lessee.

Analysis:

In the case of State of West Bengal & Ors. v. Scene Screen Ltd. & Anr., the Supreme Court of India addressed the interpretation of Section 6 of the West Bengal Estates' Acquisition Act, 1953. The Court clarified that intermediaries are entitled to retain lands comprising or appertaining to buildings or structures owned by them, even if such lands are leased to others. Importantly, the Court emphasised that actual possession by the intermediary is not a prerequisite for retaining these lands under Section 6. This interpretation underscores the legislative intent to allow intermediaries to retain ownership rights over lands with their structures, irrespective of the occupancy status, thereby ensuring that the lessor's interests do not automatically vest in the State under the Act.

Conclusion:

In the case of State of West Bengal & Ors. v. Scene Screen Ltd. & Anr., the Supreme Court of India upheld the Division Bench's decision, affirming that Sasthidas Malik was entitled to retain the lands leased to Scene Screen Ltd. under Section 6 of the West Bengal Estates' Acquisition Act, 1953. The Court clarified that actual possession by the intermediary was not a prerequisite for retaining such lands. Consequently, the State and its officers were directed not to collect rent from the lessee, as the lessor's interest in the land did not vest in the State under the Act.

This decision underscores intermediaries' rights to retain lands associated with buildings or structures they own, even if leased to others, without the necessity of actual possession. It also establishes that the State is not entitled to collect rent from lessees in such circumstances, thereby protecting the proprietary interests of intermediaries under the West Bengal Estates' Acquisition Act, 1953.

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