PRAGATI CONSTRUCTION CO. Vs. D.D.A.

JUDGEMENT

(1.) THE Appellant was successful in its bid at a public auction by the Delhi Development Authority (DDA) for plot No.6, Nehru Place, New Delhi. The Appellant's bid was confirmed on 21-8-1980.

(2.) ONE of the auction conditions related to payment of ground rent; its terms were that for the first two years, such rent was Re.1.00 per annum and subsequently, it was to be at 2.5% of the premium amount. The Appellant approached this Court in 1989 (WP 1412/89) complaining that the term obliging to payment of ground rent was arbitrary, alleging that the respondent had decided that for the first five years, the ground rent payable was Re 1.00 and not only for the first two years of the lease term. That writ petition was rejected on 21.11.1989.

(3.) THE appellant then approached the Collector (Nazul), questioning the demand made by the Assistant Collector. It also urged ­ before the Collector, that it could not be held responsible for the default of the owner/allottees to whom it (the Appellant) had sold the flats, after developing the lands. The Collector, by order dated 21-09-1992, even while rejecting the appeal, directed that the recovery certificate issued (against the appellant) be enforced subject to its furnishing a list of defaulters within 10 days, and further certifying that no ground rent had been paid by such defaulters, in which event the said flat owners could be proceeded with directly. In the other eventuality (of the appellant not furnishing the certificate) the amounts could be recovered from it. The appellant then approached the Financial Commissioner, in a further appeal. The Financial Commissioner by his order reduced the demand, by reducing the rate of interest (on the unpaid amounts) from 10% p.a. to 6 % p.a. and also holding that the appellant was liable to pay ground rent at increased rate (2.5% of the lease premium, per annum) only after the five year term. The DDA challenged the order of the Financial Commissioner in WP 1410/1993. The Petitioner filed WP 7854/2001, questioning a demand letter dated 18th December 2001 demanding arrears of ground rent.