SAGAR ENTERPRISES P LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The writ petitioner claims a quashing order to set aside the rejection of its application, for conversion of its property into freehold, by the impugned letter dated 13.5.2002. It also seeks an order to set aside the demand raised by letters dated 7.7.2004, issued by the Respondent Land & Development Office, (hereafter "L& DO").

(2.) The petitioner acquired rights in respect of the suit property, Plot No. 3-D Block No. 88, known as 10 Lady Harding Road in May 1980. The sale deed, pursuant to permission granted by the L&DO was executed on 30.6.1980. The suit property was mutated in favour of the petitioner, on 1.5.1981. It requested for permission to construct a group housing building on the suit property, by a letter dated 20.12.1985. The L&DO, after almost two years demanded an amount of Rs. 18,46,098/- (of which Rs. 3,22,624/- were on account of additional premium) towards damages for unauthorized construction or misuse charges for using the suit property, letting it out to a bank and permitting the premises to be used as a guest house. The petitioner denied its liability to pay the amounts and again requested permission for construction of group housing, on 3.5.1988. The L&DO further persisted with its demand through letter dated 7.10.1988 but this time it granted credit/adjustment for a sum of Rs. 1.85 lakhs, paid by the petitioner as additional premium, in anticipation, to construct group housing structures.

(3.) The L&DO by its letter dated 17.10.1988 stated that the amounts could be cleared in 20 installments. This demand too was resisted by the petitioner through its letter dated 17.11.1988. It cited four other instances where, in the vicinity, or nearby areas, guest houses were permitted. It claimed that the portion of the premises leased to the Canara Bank were yielding only Rs. 3750/- per month and therefore the demand for alleged misuse charges was excessive and also not maintainable.