DDA Vs. MAHABIR PRASAD

JUDGEMENT

(1.) On 1st April 1975 a partnership firm was constituted to carry on business under the name and style: "M/s.Mahabir Prashad & Sons". Respondent No.2 Satendra Kumar Jain was one of the many partners of the firm. The other partners were Shri Ajit Prasad Jain, Shri Mahendra Prasad Jain, Shri Vijendra Prasad Jain, Shri Narender Kumar Jain, Shri Jitender Prasad Jain, Shri Ravinder Prasad Jain and Shri Arun Jain i.e. the real paternal uncles and first cousins of Satendra Kumar Jain.

(2.) DDA allotted a plot of land in the name of the partnership firm bearing Municipal No.D-54 Okhla Industrial Area, Phase-I, New Delhi and in respect of the allotment executed a perpetual lease deed in favour of the partnership firm on 12.12.1983. Inter-alia, the lease deed stipulates that the firm shall not sell the leasehold rights without the prior permission of DDA and in case permission is applied for and granted, DDA would be entitled to charge 50% unearned increase in the price of the land. It was further stipulated in the lease deed that in case there was a change in the constitution of the partnership firm the unearned increase of 50% proportionate to the share affected of a partner(s) on reconstitution would be charged.

(3.) In other words, the lease deed contemplated that if a partner having 10% share in the profits of the firm was replaced by another partner, the 50% unearned increase would be charged as if 10% interest in the leasehold rights has been transferred.