The Britannia factory at Taratala. (Pradip Sanyal)

Calcutta, Oct. 21: Britannia Industries has been asked to vacate the Taratala premises it has been occupying since the year of Independence.

The Calcutta Port Trust (CPT), which owns the plot, issued the notice last week following a rent dispute. The CPT has given the confectionery giant 15 days from October 15 to give up the leased property or face forcible eviction.

Nine days remain for the deadline to kick in, unless both parties reach a settlement or Britannia goes to court and secure a stay.

The notice served by the CPT estate officer says: “In the event of refusal or failure to comply with this order within the period specified, the said M/S. Britannia Industries Ltd of 15 Taratala Road, Kolkata — 700 088 and all other persons concerned are liable to be evicted from the said premises, if needed be, by the use of such force as may be necessary.”

Default on rent dues has been cited as the reason in the notice that was also placed at the main gate of the Britannia factory a few days ago but disappeared today.

“You have defaulted on making payment of rental dues… at the time of issuance of a notice dated 23.12.1999,” according to the notice, a copy of which is with The Telegraph.

The alleged dues, dating back to 1989, have been put at Rs 12 crore, including penalty, by the CPT. But Britannia has agreed to pay only Rs 3.4 crore, which does not take the penalty into account, a source said.

Britannia had taken the land on lease — measuring around 45,000sqm in one belt and 35,000sqm in another — in 1947 with a renewal clause. According to the agreement, the company was expected to pay either 25 per cent more rent every 10 years or the prevalent scheduled rent, whichever was higher.

In line with the agreement, the rent was raised at 10-year intervals from 1957 to 1987.

In 1992, Britannia and the CPT signed a revised lease agreement, which was made effective from 1967 at a monthly rent of Rs 18,861.16 with the 25 per cent increase in every decade.

Differences cropped up when the CPT sought to revise the rent in 1997, counting the 10-year interval from 1967.

But Britannia felt that since the revised deal was reached in 1992, the rent could be raised only after 10 years in 2002. Since common ground could not be found, Britannia moved Calcutta High Court in 1999 against the rent increase.

But the petition was dismissed on July 22, 2009. “The conduct of the appellant as discussed above, in our view, does not deserve any sympathy. The appeal, thus, fails and is, hereby, dismissed,” according to a copy of the court order.

Asked about the notice to vacate the premises, Britannia officials declined comment. CPT officials could not be reached.

A company source said a few directors of Britannia were scheduled to meet workers tomorrow at the factory at Taratala. But the source refused to disclose the agenda for the meeting.

An employee at the factory said: “We are aware of the notice but don’t know what is going to happen. There is no official communiqué from the Britannia management.”

The factory employs around 4,000 people, including 200 management cadre officers and 300 employees.

According to a corporate lawyer, the CPT can evict the occupants on its own and do not need another court order.