IMPORTANT POINT
Even where no period of limitation is indicated, the statutory Authority is required to act within a reasonable Time.

JUDGMENT

Altamas Kabir, J. —

1. The Delhi Development Authority, hereinafter, referred to as “DDA” is the petitioner in this Special Leave Petition, which is directed against the judgment and order dated 2.5.2008 passed by the Delhi High Court in L.P.A. No.22 of 2008.

2. The respondent herein, along with his mother and wife, purchased a property in No.7, Community Center, East of Kailash, New Delhi, in an open auction conducted by the DDA on 10.8.1969. Possession of the plot was made over to the purchasers on 5th March, 1972, and a lease deed in respect of the said plot was executed on 5th April, 1972. In terms of the Lease Deed, the auction purchasers were required to construct the building upon the demised plot within two years from the date of delivery of possession.

3. It appears that on a routine inspection by the petitioner’s staff on 8th August, 1983, it was noticed that the respondent was using the basement of the building for office purposes which was in contravention of the prescribed usage. A Show-Cause Notice was issued on the same day calling upon the respondent to Show-Cause within 10 days as to why action for cancellation of lease should not be taken for violation of clause II(13) of the Lease Deed. The respondent replied to the said Show-Cause Notice on 10th August, 1983, denying misuse of the property. No further action was taken on the said Show-Cause Notice till seven years later when on 28th June, 1990, another Show-Cause Notice was issued stating as to why the lease should not be determined for violation of clause II(13) of the Lease Deed on the ground that the basement of the building was being misused as an office for Frooti/Atash Industry, instead of storage, and the mezzanine floor was being used for the office of M/s Ferrow Alloys Forging & M/s Green Land, instead of storage.

4. In response to the second Show-Cause Notice the respondent replied stating that the portion in question had been leased to the above-named companies for storage purposes and their failure to abide by the terms of the lease has been brought to the notice of the tenants for taking appropriate steps.

5. Since the reply was not found to be satisfactory, further Show-Cause Notices were issued to the respondent on 3.9.1990 and 11.12.1990 in relation to the violation of the provisions of the Lease Deed and to remove the breaches which had been pointed out, in default whereof the lease would be determined. The respondents replied to the Show-Cause Notice dated 3.9.1990 on 5.11.1990 stating that the tenant was using the basement for storage of Frooti juices and was not operating any office therefrom. It was also mentioned that the tenant in the mezzanine floor had not yet replied to the notice which had been issued to him.

6. However, on the basis of another inspection of the premises conducted in December, 1990, where it was noticed that both the floors were still being misused, notices were issued for joint inspection which was fixed for 18.2.1991, 12.3.1991 and 22.4.1991. However, the respondents did not join the inspection and ultimately an inspection was carried out on 24.4.1991 and another Show-Cause Notice was issued to the respondents on 8.5.1991. In response to the said Show-Cause Notice the respondents wrote back on 21.5.1991 that they have no control over the tenants, except to inform them of their violations. Ultimately, the respondents in its letter dated 9.7.1991 stated that the mezzanine floor was being used as offices. In reply to the said letter written on behalf of the respondent the petitioner informed the respondent that as per architectural design the mezzanine floor could be used only for storage and unless the misuse was stopped the lease would have to be determined. In response on 13.11.1991 the respondent once again asserted that the mezzanine floor in the Community Centre was not being misused.

7. Thereafter, there was a series of correspondence exchanged on the same subject. In the meanwhile, Smt. Kamla Ah