SYNDICATE BANK Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) A perpetual lease was executed on 14.5.1980 in favour of M/s En Cee and Associates Private Limited, respondent No.3, by respondent No.1 DDA in respect of plot No. B-3, G.T. Karnal Road Industrial Area, Azadpur. The prescribed user as per lease was running an industry of auto spring leaves or such other manufacturing process or industry as may be approved from time to time by the Lt. Governor.

(2.) Respondent No.3 and petitioner No.1, which is a nationalized bank, entered into an arrangement for opening of a branch of petitioner No.1 bank in the premises and in view thereof a written request was made by the petitioner bank to respondent DDA for permission to open the bank on 2.4.1984. The respondent DDA vide letter dated 17.5.1984 informed the petitioner bank that the proposal of running a bank can be considered under a special appeal for temporary period for one year up to 15.5.1985 subject to the petitioner bank paying to the respondent DDA a composition fee at the rate of 40% of the total rent for a year up to 15.5.1985. This was on account of non-conforming use of the premises in question and was labeled as grant of temporary permission under special appeal provisions. An unconditional written consent from the landlord was also required to be furnished as also an undertaking by the petitioner bank that the non-conforming use will be terminated after the aforesaid period.

(3.) The petitioner bank and the respondent No.3 landlord did the needful and the branch of the bank was opened. The request for further non-conforming user was renewed from time to time subject to payment of composition fee. It may be stated that respondent No.3 landlord continued to receive the rent as per the lease agreement and the payment made by the petitioner bank as a percentage of the rent to respondent DDA was not deducted from the amount payable to the landlord. This was in accordance with the terms and conditions of the lease agreement between the petitioner bank and respondent No.3 landlord.