ASIAN HOTELS LIMITED Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) The plaintiff has filed the suit for recovery of sum of Rs.11,97,100.00 with interest thereon. Before I refer to the pleadings, I feel it necessary to notice the facts culminating in the filing of the suit.

(2.) The Delhi Development Authority had put up the plot of land measuring 20,000 square metres in Bhikaji Cama Place, District Centre, Rama Krishna Puram, New Delhi for auction. The booklet issued by the DDA, mentioning the terms and conditions of the auction, is marked as Ex.D-1. The terms and conditions of the auction in the form of booklet is also filed by the plaintiff and is marked as Ex.P-13. The auction was held on the 9th of September, 1980. Shri C.L.Jhunjhnuwala participated in the auction on behalf of the plaintiff company which was under process of incorporation. On behalf of the plaintiff, the highest bid was made by Mr.C.L.Jhunjhnuwala for Rs.4.36 crores. On the same date, on behalf of the proposed company, a sum of Rs.1.09 crores was paid towards earnest money. The receipt issued by the DDA is marked as Ex.D-3. A bid form was issued by the DDA. That is marked as Ex.D-2. It is mentioned therein that Shri C.L.Jhunjhunuwala was a promoter of the proposed private limited company. The names of the directors are mentioned in the form, for information of the DDA and the names are as under:-

(3.) On the 10th of September, 1980, the DDA issued the letter of acceptance, Ex.P-1 or Ex.D-4, in the following terms:-