MADHU CHAWLA Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) By this writ petition under article 226 of the Constitution, the petitioners seek a direction to the Delhi Development Authority (for short the DDA) to issue a no objection certificate/sale permission in respect of the industrial plot No.X-10, Okhla Industrial Area Phase-II, New Delhi, which was sold on 17th April, 1993, by auction under the order of the Court, after charging the un-earned increase at the approved rates.

(2.) To appreciate the controversy involved, some material facts may be noticed.

(3.) In an open auction of the said plot on 19th February, 1974, by the DDA, the bid of one M/s. Wirk Enterprises Private Limited, in the sum of Rs. 78,500.00 was accepted and a lease deed was executed in their favour on 17th February, 1977. After obtaining in permission from the DDA, the plot was mortgaged by the said company with Punjab & Sind Bank for raising loan. The project having failed, the Bank filed a suit (No. 470/80) in this Court for recovery of its dues. During the pendency of the suit, the Court ordered sale of the said plot by public auction. The reserve price was fixed at Rs. 28 lakhs inclusive of un-earned increase. Pursuant to the said direction, the plot was put to open public auction on 17th April, 1993. The petitioner's bid for Rs. 19.50 lakhs exclusive of un-earned increase payable to the DDA, being the highest, was accepted by the auctioneer and the initial amount of Rs. 5 lakhs was deposited by the petitioners. The balance amount of Rs. 14.50 lakhs was deposited by the petitioners on 29th April, 1993.