The High Court
Case Details
Order No. 05. IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.19822 of 2024 Sanjay Kumar Panda State of Odisha & Anr. -versus- …. Petitioner Represented By Sr. Adv. Mr. Subir Palit Along with associates …. Opposite Parties Represented By ASC Mr. Sonak Mishra CORAM: DR. JUSTICE S.K. PANIGRAHI ORDER 08.05.2025 1. This matter is taken up through hybrid arrangement. 2. The Petitioner has filed this Writ Petition challenging the letter dated 10.10.2023 issued by the Deputy Director of Estates-cum-Joint Secretary, General Administration and Public Grievance Department, Government of Odisha. He further seeks a direction from this Court to the Opposite Parties to classify the property as residential and charge the appropriate conversion fees. 3. Heard. Page 1 of 6 // 2 // 4. Learned counsel for the Petitioner submits that the Bhubaneswar Development Authority has rendered its view regarding the use of leasehold land wherein, it has been stated that the lessee (Petitioner) has used a part of the plot bearing No.431 measuring 60’x 75’ for residential purpose and remaining portion has been licensed to Tata Steel Ltd. vide an agreement for Residential purpose only. 5. Per contra, learned counsel for the State submits that since the Petitioner has licensed his property to Tata Steel by virtue of an agreement, in turn, the Tata steel is utilizing it as a Transit house. 6. Since the Petitioner has not leased out it for any business purpose rather it has leased out to Tata company like any other standard lease/license agreement, hence, the notion of commercial use cannot be accepted. The Rule xxvii of the Odisha Development Authorities (Planning and Building Stardards) Rules, 2020 is extracted hereinbelow:- “(xxvii) “commercial building” means a building or part of a building, which is used for transaction of business, keeping of accounts and records or for similar purposes and includes Banks, Commercial Offices, Corporate Offices, mercantile buildings like shops, stores, market display and sale of Page 2 of 6 // 3 // merchandise either in wholesale or retail, or offices, storage or services facilities incidental to the sale of merchandise, Cinema Halls, Petrol Pumps, Hotels, Restaurants, Lodge-cum-guest houses and Dharma Kantas, etc.” 7. Learned counsel for the Petitioner submits that the conversion fees should be 5% of the prevailing rate of premium in respect of the plots on which building have been constructed as per approved plan, 10% in case of vacant plots and 20% where the lessee has used the land for institutional or commercial purpose will be charged for such conversion as per the Resolution dated 18th July, 2003 issued by the General Administration Department, Government of Odisha 8. At this stage, learned counsel for the State further submits that on field verification of the case land by the Revenue Inspector, it is seen that the leasehold Plot corresponds to Revenue Plot No.875 under Khata No.1032/435 in Mz. Sahid Nagar. A double storied building exists over the allotted plot deviating the approved building plan over the leasehold plot. Further one part of the said building is used for residential purpose and rest part is used by Tata Steel Ltd. for the purpose of Guest House which is considered as commercial use. Hence, the Petitioner Page 3 of 6 // 4 // has violated the lease condition No.2(XIV) which read as follows:- “2(XIV) that he shall not without the consent in writing of the lessor use or permit the use of the said land for any purpose other than that for which it is leased or transfer the same without such consent. Provided that no such consent to transfer the lease hold by way of sale or gift shall be given by the lessor unless the lessee pays such amount as may be decided by the Government from time to time as consent fee.”
Legal Reasoning
9. Learned counsel for the State further submits that as the Petitioner was using the leashold land other than the purpose for which it was leased out, a notice was issued for filing reply in the form of an affidavit vide the Department letter No.29716 dated 10.10,.2023. In his reply dated 14.10.2023, the Petitioner said that he has rented one part of the building to Tata Steel Ltd. for residential purpose only and also intimated that he has made an agreement with Tata Steel Ltd., for using the same for residential purpose only. Further, instead of residential purpose, Tata Steel Ltd. is operating a guest house in the said premises which bring it under the ambit of commercial use mentioned under the Page 4 of 6 // 5 // Odisha Development Authorities (Planning and Building Stardards) Rules, 2020. 10. This Court has considered the rival submissions and the documents on record. The central issue is whether the use of a portion of the leasehold property by Tata Steel Ltd. as a guest house amounts to commercial use under the Odisha Development Authorities (Planning and Building Standards) Rules, 2020. 11. The Petitioner’s agreement with Tata Steel Ltd. specifies residential use. While the State asserts that the premises function as a guest house, no material has been placed to show that it operates commercially. Mere occupation by a corporate entity for its employees does not necessarily translate to commercial activity. 12. Rule xxvii does include guest houses within commercial buildings, but context matters. A transit house used internally by a company does not fall squarely within the definition unless it involves business-like operations. The State’s reliance on a field report without substantive evidence is insufficient to establish commercial use. Further, Clause 2(XIV) of the Page 5 of 6 // 6 // lease restricts usage without consent. However, the property was neither transferred nor used for profit. The Petitioner disclosed the arrangement and expressed readiness to pay residential conversion charges, indicating bona fides. 13. Accordingly, this Court finds that the use in question does not amount to commercial use. The land shall be treated as residential, and the conversion fee shall be levied accordingly.
Decision
11. Accordingly, the Writ Petition is disposed of. Sumitra Judge (Dr. S.K. Panigrahi) Signature Not Verified Digitally Signed Signed by: SUMITRA NAYAK Reason: Authentication Location: High Court of Orissa, Cuttack Date: 28-May-2025 12:41:07 Page 6 of 6