Calcutta trusts win case

When the Supreme Court dismissed a special leave petition (SLP) moved by The Assam Company Limited against two Parsi trusts in Calcutta on October 9, members of the community in that metropolis had reason to cheer, reported The Times of India (TOI) on October 10, 2009. The case will now be heard by the Calcutta High Court which will decide whether the company should vacate an office adjacent to the Olpadvala Memorial Hall on 52, Chowringhee Road, and compensate the trusts for staying on after their lease expired.

To encapsulate the matter, the premises were reportedly leased out by the Calcutta Zoroastrian Community’s Religious and Charity Fund and the Olpadvala Memorial Trust to The Assam Company Limited through a deed dated April 17, 1984 with effect from February 1, 1980. The trusts let out portions of their property to raise funds with which they provide financial support to poor Parsis in the city. Terms and conditions of the 21-year lease stated that the lessee would have to vacate the premises and hand over possession of the property on its expiry. When the lease ended in 2001, the company allegedly continued to operate from the premises, the TOI report reveals.

Calcutta’s Olpadvala Memorial Hall

On December 4, 2006 the trusts issued a notice to the company, giving it 15 days’ time to vacate. The notice was received on December 7. After the notice period expired on December 23, the trusts moved the High Court, claiming compensation of Rs 30,000 per day from December 24 onward for alleged "wrongful use and occupation,” TOI reports. The trusts’ lawyers contended that the company should pay taxes and other municipal charges amounting to Rs 17,17,424. Since the Company allegedly did not do so, the trusts had to pay the sum and asked the court to direct the Company to recompense them.

The Company reportedly contended that the matter was not under the jurisdiction of the High Court and Justice Nadira Patherya directed the trusts to move the City Civil Court. Instead, the trusts appealed before a division bench of Justice Pinaki Chandra Ghosh and Justice I. P. Mukherji who struck down the earlier order and admitted the matter. The Assam Company then moved the SLP which was eventually dismissed, as per TOI.

Representing the trusts in the Supreme Court were counsels Soli Sorabjee and Phiroze Edulji.