PRAGATI CONSTRUCTION COMPANY Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) The Appellant was the highest bidder in an auction conducted by the Delhi Development Authority (DDA) in 1972 in respect of plots No.47 and 48, Nehru Place, New Delhi. The bid given by the Appellant was thereafter confirmed and possession of the two plots was handed over to it some time in 1973.

(2.) One of the auction conditions related to payment of ground rent. This condition reads as follows:- GROUND RENT:

(3.) The Appellant constructed a multistorey building on the plots and parted with possession in respect of various portions thereof to several sub- lessees/tenants/occupants. It appears that there was an agreement between the Appellant and the sub-lessees/occupants that they would pay a proportionate amount of ground rent to the Appellant, who would in turn pay it to the DDA. The DDA was not a party to this arrangement.