JAIPRAKASH INDUSTRIES LTD Vs. D D A

JUDGEMENT

(1.) This appeal is directed against the order dated 30th January, 2003 passed by the learned Single Judge whereby the writ petition filed by the appellant was dismissed by following the decision of a Division Bench of this Court in Indian Shaving Products Limited versus DDA and Another, reported in 2002 I AD (Delhi) 675. In the said decision, the Division Bench was of the view that amalgamation of two companies as per law cannot alter the terms of perpetual lease, which gives right to DDA to recover unearned increase. Accordingly, if lease hold property is transferred as per scheme of amalgamation and vests with the transferee company, unearned increase is payable.

(2.) The appellant herein was aggrieved by the decision of the respondent-DDA to claim unearned increase as a consequence of transfer of property in question from M/s Jaiprakash Associates Private Limited to the petitioner viz. M/s Jaiprakash Industries Limited. There is no dispute that M/s Jaiprakash Associates Private Limited merged in M/s Jaypee Rewa Cement Limited, pursuant to a scheme of amalgamation, which was approved by the Allahabad High court under order dated 30th July, 1986. By virtue of the said amalgamation, the transferor company, who was the owner of the lease hold property, ceased to be the owner of the said property.

(3.) It was submitted before the learned Single Judge by the appellant herein that the effect of the scheme of amalgamation is that M/s Jaiprakash Associates Private Limited ceased to exist as an entity and is taken over by the appellant, and thus there was no transfer in the eye of law and within the meaning of the Transfer of Property Act, 1882. Learned Single Judge, however, did not accept the aforesaid submission as the aforesaid issue is covered by decision of a Division Bench of this Court in the case of Indian Shaving Products Limited (supra).