BPP WINS EVICTION SUIT AGAINST HINDUSTAN PETROLEUM CORPORATION LTD. PETROL PUMP AT KHAREGHAT COLONY

As the community is aware, the land on which the Petrol Pump stands next to Aderbad building at Khareghat Colony, Hughes Road was originally leased to R.S.Vatcha and Co. by Trustees of BPP from 1-1-1962 for a period of 30 years at a measly lease rent of a few thousand.

The land bearing C. S. No. 1/434 of Malabar Hill Division admeasuring 971.27 sq. yds. was taken over by Caltex (India) Ltd. and thereafter by virtue of Caltex Acquisition Act all the assets, shares, rights, liabilities, etc vested in HPCL.

The Lease of R.S.Vatcha came to an end on 31-12-1991 and in spite of BPP refusing to renew the Lease in favor of HPCL, they exercised their Statutory Option for a further period of 30 years with effect from 1-1-1992.

BPP refused to accept the lease rent but negotiations for further renewal on long term lease and/or purchase of site went on for a long time without any payment of lease rent from 1-1-1992 onwards. Ultimately Eviction Suit No. 73/97 was filed in 2000. HPCL deliberately kept on delaying the matter on ground of negotiation for settlement and ULTIMATELY JUDGMENT WAS DELIVERED IN FAVOR OF THE TRUSTEES THIS WEEK.

HPCL has sought a meeting to settle the matter and will also most likely go in appeal to the Division Bench of the Small Causes Court to prolong the litigation. Since the second Statutory Option of further 30 years has also expired on 31-12-2021, HPCL will have to pay market rent by way of mesne profit if it wants to file appeal which would be in the region of a few lakhs every month. Further lease rent arrears from 1-1-1992 to 31-12-2021 will also have to be paid to BPP.

In view of the grave financial crisis of BPP at present this is a God sent gift to BPP. The land admeasuring 8741 sq.ft. would be worth over Rs. 30 crores which is the minimum that HPCL should be made to Pay along with Lease Rent arrears from 1-1-1992.

this land is taken over by BPP for its own development then about 20,000 sq.ft. of buildability is available. Assuming this was to be sold to Parsis only on Ownership basis then a rate of Rs. 50,000/ per sq.ft. would be fair and decent whose total value would be around Rs. 100 crore. Deducting cost of construction and BMC payments of Rs. 10 crore, BPP would still earn around Rs. 90 crore but this will accrue only after a few years. It is now for the Trustees to decide whether to negotiate with HPCL and try and get an optimum sale price from them or face the rigor of their appeal right upto Supreme Court of India in the hope of earning Rs. 90 crore after a decade or more.

Whilst there will be pros and cons on either option, the newly elected Trustees will have to bite the bullet one way or the other. A high level committee be formed to advise the Trustees on which Option is favorable and then proceed forward, especially as the Trustees will be taking on the Govt. of India upto the Supreme Court and if some new legislation is formulated in the mean time we may lose everything.

Source: Parsi Junction