METAL FORGING PVT. LTD. Vs. DDA

JUDGEMENT

(1.) A plot bearing No.1/1, WHS, Kirti Nagar, New Delhi ad -measuring 2039.56 square yards was purchased by the appellant at an auction conducted by the then Delhi Administration under its scheme for augmenting Warehouses in Delhi. The possession of the plot was taken over by the appellant and a perpetual lease -deed dated March 02, 1976 was executed by the Land and Housing Department, Delhi Administration in its favour. As per clause II (3) of the perpetual lease -deed the lessee i.e. the appellant was required to construct an industrial building on the plot to the satisfaction of such Municipal or other Authorities after obtaining sanction within a period of 2 years. The appellant could not do so.

(2.) A show cause notice dated June 12, 1979 was issued by the lessor exercising power under clause II (3) of the lease -deed, calling upon the appellant to construct a building on the plot under pain of re -entry.

(3.) VIDE reply dated September 17, 1979 the appellant responded to the show cause notice and represented that the property was to be used as an open godown which did not warrant any construction as per clause II (3).