K P JAIN Vs. D D A

JUDGEMENT

(1.) The appellants, namely Mr. K.P. Jain and Mrs. Sushila Jain have impugned judgment dated 5th December, 2005 and Order dated 8th February, 2006 to the extent that they have been denied interest on Rs.18,35,646/-, which was deposited with the respondent-Delhi Development Authority (hereinafter referred to as DDA, for short).

(2.) The facts are virtually undisputed. The appellants purchased property no. D-5, Maharani bagh, New Delhi from the erstwhile owners. The aforesaid property was a leasehold property on which DDA as superior lessor was entitled to claim 50% unearned increase in the value of the land in case of transfer. The appellants on 30th June, 1989 deposited Rs.18,35,646/- towards unearned increase with DDA. However, the said application remained pending and neither mutation nor any document was executed in favour of the appellants.

(3.) DDA also came up with a Scheme for conversion of leasehold properties into freehold. On 10th June, 1999, the appellants moved an application before DDA stating that their earlier request dated 30th June, 1989 for mutation and execution of documents of transfer in their favour should be treated as withdrawn and Rs.18,35,646/- be refunded. On 24th August, 1999, the appellants filed an application for conversion of the leasehold property into freehold and regularising the transfer claiming themselves to be the first transferees and accordingly paid the first installment. In other words the Scheme itself had provision for payment of transfer charges or unearned increase at reduced rates and conversion charges for conversion of leasehold rights into freehold. The entire aforesaid charges in terms of the Scheme formulated by DDA were paid on 16th February, 2001.