VISHAL BUILDERS P LTD Vs. D D A

JUDGEMENT

(1.) NAZUL land measuring 743.22 sq.m. bearing No.95 District Centre, Nehru Place, was auctioned by Delhi Development Authority (DDA) for conveying a perpetual leasehold title and appellant being declared the highest bidder at the bid held on November 28, 1972 was given possession of the plot on March 05, 1973 after he paid the premium in sum of `16,06,000/- and undertook to pay a percentage of the premium towards yearly lease rent. Obtaining sanction/permission from Delhi Development Authority, appellant constructed a building on the plot and put it to use, but refuses to pay the yearly lease rent on the ground that the appellant has acquired absolute title to the suit property due to prescription and for which right, the appellant urges that since DDA did not have the right to auction the plot, the alleged transfer of the perpetual lease-hold right by DDA in favour of appellant is a nullity and claims that a person who acquires possession under an invalid transaction acquires absolute title by prescription.

(2.) SUIT filed by the appellant seeking permanent injunction against DDA and its officers not to interfere with appellant?s possession; declaration being granted that DDA was not competent to auction the plot and that no lease rent is payable by the appellant has been dismissed in limine, without summons issued to DDA.

(3.) FOR the purposes of a planned development of Delhi, the Delhi Development Act 1957 was promulgated & the Delhi Development Authority was created to ensure planned development of Delhi. Initially, the said authority was empowered to acquire land and deal with the same as owner thereof for the purposed of planned development of Delhi, but with the promulgation of Act No.56 of 1963, Sections 16 to 20 of the Delhi Development Act 1957 being repealed and Section 15 being retained, it was only the Central Government which could acquire land for purposes of planned development of Delhi and by virtue of a notification issued under Section 22 of the Act, could place the land at the disposal of the Authority, to be used for the planned development of Delhi, in accordance with the rules made and directions issued by the Central Government.