Stressed Assets Stabilization Fund vs West Bengal Small Ind. Development ...

The Supreme Court upheld the Calcutta High Court's decision affirming the application under Section 535 of the Companies Act, 1956, allowing the West Bengal State Industrial Development Corporation (WBSIDC) to reclaim possession of leased properties from the Official Liquidator. The Court established that a lessor is entitled to possession when the lessee ceases to carry out the intended manufacturing activities, as per the lease conditions. The judgment reinforced the legal principle that lease agreements can be terminated based on non-compliance with operational stipulations.