Chowringhee: Two Calcutta-headquartered companies with tea at the heart of their businesses are at daggers drawn over the rear annexe to a sprawling Chowringhee landmark steeped in heritage and valued as real estate gold.
The first round of what could turn out to be a long tussle in the courts for one of the five structures that comprise Kanak Buildings has gone to the landlord, Kanak Projects Ltd.
Owned by planter Sudhir Prakash and his family, whose other famous asset is Glenburn Tea Estate in Darjeeling, Kanak Projects has won a verdict from Calcutta High Court to evict its tenant, the Andrew Yule-owned Hooghly Printing Co Ltd.
Hooghly Printing has already appealed the verdict in a division bench of the high court.
"I was ready to negotiate with them (Hooghly Printing and Andrew Yule) but it appears they want me to pay the market price for a property that I own. As if I am the tenant and they are the landlord," Prakash, whose family has roots in Allahabad, said.
The disputed portion of Kanak Buildings overlooks what is currently the priciest residential project in the city, The 42, and stands on a 13-cottah plot at the corner of Russel Street and Middleton Street. The market value of the property is estimated to be upwards of Rs 50 crore.
Kanak Projects accused Hooghly Printing of violating the conditions of the lease with additional construction within the building to install a new printing machine.
The judgment pronounced by Justice Sahidullah Munshi on February 14 states: ...the petition is disposed of by passing a judgment upon admission against the defendant for the recovery of possession of the demised premises by evicting defendant therefrom.."
Prakash said he had no intention of paying his tenant anything to evict, mentioning that the longer Hooghly Printing stayed put, he would earn "mesne profit". The term denotes the money paid for occupation of land to a person with right of immediate occupation after permission has been denied for occupation.
R.C. Sen, the director (finance) of Andrew Yule, said his company was in it for the long haul. "This matter will go to the Supreme Court. It went on for 10 years and it will go for another 10 years, if not more."
Andrew Yule had taken the two-storey structure that stands behind the main building, overlooking Chowringhee, on lease for a period of 30 years starting 1998. The company pays around Rs 5.19 a square foot as rent for the 9,500sq ft property. A city-based conglomerate pays more than Rs 100 a square foot in a new block on the same premises.
Sources said Andrew Yule had first asked for Rs 50 crore to renounce the lease. The company scaled it down to Rs 10 crore after "verbal negotiations", of which there is no record.
Kanak Projects has now asked for Rs 7.74 crore as mesne profit. The top floor had been vacated by Dey's Medical four years ago after receiving Rs 32 lakh.
The disputed portion is a decrepit one in contrast to the main building that still catches the eye during a drive down Chowringhee. It used to house the Army & Navy Stores Ltd, inaugurated in 1901 to supply consumer goods to British armed forces and civil servants in India, apart from providing services ranging from travel to insurance.
Post-Independence, the 126-cottah (more than two acres) premises were acquired by the Ranas of Nepal. Prakash and a partner bought Kanak Buildings in the mid-80s. The modern block facing Russel Street was built a few years ago.
