KRISHAN KUMAR Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) The challenge in this writ petition is to the notice dated 27th February. 1990 issued by the respondents imposing penalty/composition fee of Rs. 1,56,788.15.

(2.) Briefly stated the facts are that perpetual lease in respect of plot of land measuring over 800 sq. yards was executed by the respondents in favour of the petitioner on 5th June, 1981 for constructing a factory. This land was situate at A-60, Okhia Industrial Area, Phase-11, New Delhi. According to the terms of the lease the petitioner was required to construct a factory within a stipulated period. The factory was not constructed but the petitioner got the building plans sanctioned and applied for extension of time for completing the construction. The respondents, from time to time, did extend the period within which the petitioner could raise the construction and according to the last extension , the petitioner was required to construct the factory by 31st December, 1987.

(3.) According to the terms of the lease, the petitioner could not mortgage or create encumbrance on the land without the prior permission in writing from the lessor, namely, the respondent. On 2nd April, 1987 the petitioner wrote a letter to the respondent, inter alia, staling that the said plot was under construction and permission may be granted to mortgage the same so as to raise loan for completing the construction. No reply was received to this letter and on 28th December, 1987 another representation was made asking for permission to mortgage the plot and also seeking extension of time for completing the construction by the period of one year i.e. till 31st December, 1988.