(1) THE facts leading to this interlocutory application are as under.

(2) ON 8/10/1980, an auction was held by the Delhi Development Authority (hereinafter referred to as the DDA) of the Commercial Tower Plot, Jhandewalan, Block E, New Delhi admeasuring about 2540 sq. mtrs. The first respondent, M/s Skipper Construction Co, (P) Ltd. (hereinafter referred to as the Skipper) was the highest bidder, its bid being Rs. 9.82 crores. As per the conditions of the auction. Skipper deposited 25% of the bid amount. The saidbid was confirmed by the DDA on 14/10/1980. Skipper was called upon to make the balance of payment of 75% of the bid amount within 90 days as per the conditions of the auction.

(3) THE government of India issued directions to the DDA accepting the request of Skipper and granting an indulgence to it by directing the DDA to reschedule the recovery of 75% of the bid amount with interest from Skipper. Consequent to this, DDA called upon Skipper to enter into fresh agreement, licence agreement and furnish bank guarantees in compliance with the directions of the central government.

(4) ON 1 1/8/1987, Skipper entered into a licence agreement, paid 50% of the original bid and secured payment of the balance 50% of the bid and interest at the rate of 18% per annum thereon by submitting bank guarantees for Rs. 9.82 crores, in terms of which a sum of approximately 1.944 crores was required to be paid as each instalment. A total of 5 instalments was payable every six months, the first being due on 15/9/1987 and the last on or about 15/9/1989.

(5) AGAINST the first instalment of Rs. 1.944 crores falling due on 15/9/1987, DDA recovered about Rs. 88.76 lakhs by encashment of the bank guarantee on 7/12/1987. Thereafter the first respondent did not pay in terms of the agreement.

(6) ON 4/10/1988, the Lt. governor issued a direction at the request of Skipper, deferring recovery from Skipper of the 2nd instalment as per the agreement dated 1 1/8/1987 till one month after the sanctioning of the building plans.

(7) IN August 1989, the first respondent filed writ petition in the High court of Delhi, being CWP No. 2371 of 1989. The principal relief sought in the writ petition related to sanctioning of building plans and permission for construction, An interim order was passed directing Skipper to furnish fresh bank guarantee since the bank guarantee furnished earlier had lapsed. The DDA did not encash the fresh bank guarantee which was defective. Time and again the DDA represented to the court that the monies were outstanding from Skipper and no indulgence ought to be shown to them till the payments were made. The question of payment of the outstanding amount of over Rs. 3 crores under the principal sum itself was deferred from time to time.

(8) ON 16/2/1990, the Lt. governor revoked the order dated 4/10/1988 deferring the payment of instalments. As a result the entire sum became payable in one lump sum. However, this order of the Lt. governor was stayed by the court. Thus, it became necessary for the DDA to grant conditional and provisional sanction to plans of the building subject to the payment of monies due to the DDA.

(9) ON 19-3-1990, an interim order was passed by the Delhi High court by which Skipper was permitted to commence construction without first depositing the dues of the DDA. Against this order an appeal was preferred. The division bench directed the payment of a token sum of Rs. 5 lakhs which was offered by Skipper as a gesture of goodwill within two days; a sum of Rs. 15 lakhs within 15 days and Rs. 1.944 crores within one month to the DDA. It was further directed that the quantum of monies and the mode of payment will be decided at the time of final disposal of the writ petition.

(10) EVEN this order was not complied with. Notwithstanding this, Skipper approached the court once again for extension of time to make payment and for direction to construct. T