PANACEA BIOTEC LTD Vs. D D A

JUDGEMENT

(1.) THE petitioner-M/s. Panacea Biotech Limited has filed the present Writ petition for restoration of the Sub-lease Deed dated 17th April, 1978 relating to property no. B-1 Extension, A-27, Mohan Cooperative Industrial Estate, New delhi (hereinafter referred to as 'property', for short) and for quashing of notice/order dated 19th October, 2000 issued by Delhi Development Authority (hereinafter referred to as DDA, for short) cancelling the Sub-lease Deed. Another prayer made in the Writ Petition is for issue of Writ of Mandamus directing the respondent-DDA to convert "leasehold rights" in the 'property' into freehold rights.

(2.) THE ''property'' was originally allotted to one, Mr. Ram Prakash under a perpetual Sub-Lease Deed dated 17th April, 1978. The petitioner, which is a company incorporated under the Companies Act, 1956 is a subsequent purchaser who bought the property in July 1995. The question relating to transfer of the ''property'' without permission of DDA and contrary to the terms of the sub-lease is today of academic interest in view of the conversion scheme launched by dda in 2003, under which leasehold right in a property can be converted into freehold right on payment of conversion charges and penalty. Averments to this effect have been made in paragraph 8 of the Writ Petition to which there is no specific denial in the counter affidavit filed by the DDA. Learned counsel for the petitioner in this regard had also drawn my attention to decision of this court in J. K. Bhartiya (Mr.) and others versus Union of India and another reported in 2006 (I) AD (Delhi) 408, wherein it has been held that conversion is permitted even in the case of re-entered properties on the ground that there was transfer of property without prior permission and contrary to the sub-lease.

(3.) THE substantive issue involved and raised in the present case relates to the question whether there is violation of Clause II Sub-Clause 14 of the Sub-lease deed. The said Sub-Clause reads as under:-"the sub lessee shall not without the written consent of the lessor use or permit to be used the industrial plot or any building thereon for residence or for carrying on any trade or business whatsoever or use the same or permit the same to be used for any purpose other than that of carrying on the manufacturing process or running the industry of or such other manufacturing process or running the industry of as per master plan for Delhi except the Industries emitting excessive smoke, fame nuisance, cold storage, refrigerator, fruit canning and preservation or such other manufacturing process or industry as may be approved from time to time by the Chief Commissioner or do or suffer to be done therein any act or thing whatsoever which in the opinion of the Lessor may be a nuisance, annoyance or disturbance to the Lessor, lessee and other sub-lessees and persons in the neighbourhood. "