SETH HOTELS PRIVATE LTD Vs. DDA

JUDGEMENT

(1.) THE present writ petition has been filed under Article 226 of the Constitution of India challenging the letter dated 18 th January, 2012 issued by the respondent-DDA determining the allotment of hotel plot No. 17 at District Centre, Laxmi Nagar, Delhi hereinafter referred to as "aforesaid plot".

(2.) THE facts of the present case are that the aforesaid plot was purchased by M/s. Seth Fashion House in an open auction held on 22nd April, 1992 and the entire premium was paid. Subsequently, upon a private limited company being incorporated by the promoters of the partnership firm, DDA executed a lease deed dated 15th October, 1996 in the name of the petitioner company. On 13th May, 2004, another lease deed was executed by virtue of which additional land measuring 156.31 sq. mtrs. was allotted to the petitioner company. In accordance with the lease deeds, the petitioner had to complete the construction of the hotel within two years. However, upon payment of composition fee, the time for completing the construction was extended upto 30th June, 2007.

(3.) ON 24th December, 2008, an alleged director of the petitioner company wrote a letter to DDA stating that due to the pendency of certain litigation, the petitioner was not in a position to commence construction. It is pertinent to mention that upon a petition being filed under Sections 397 and 398 of the Companies Act by Mr. M.K. Seth, one of the shareholders of the petitioner company before the Company Law Board ('CLB'), it passed a status quo order dated 19th September, 2006 with regard to petitioner's shareholding and fixed assets - which order is still in substance.