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2015 Supreme(SC) 242

SUPREME COURT OF INDIA
V. Gopala Gowda, R. Banumathi, JJ.
DELHI DEVELOPMENT AUTHORITY - Appellant
Versus
GAURAV KUKREJA - Respondent
CIVIL APPEAL NO. 3124 OF 2015 (Arising out of SLP (Civil) No.9305/2011)
Decided on: 24-03-2015

IMPORTANT POINT
Application for conversion of leasehold property to freehold can be filed only by the owner or his power of attorney holder.

Headnote:(a) Specific Relief Act 1963 – Section 15(a) – Suit for specific performance – Suit filed by persons not parties to contract – DDA, the necessary party not impleaded – Suit was collusive one to avoid stamp duty, registration charges and unearned increase payable to DDA – High Court direction for execution of sale deed and paying stamp duty, registration charges not complied with (Para 10, 11)

       (b) Property law – Conversion of leasehold to freehold – Application filed by not the owner but a person merely residing in the premises – He was not even a power of attorney holder – DDA rightly rejecting the application – High erred in upholding entitlement of respondent to apply for conversion. (Para 12, 13, 18)

       (2009) 7 SCC 363; (2012)1 SCC 656 – Relied upon

       Facts of the case:

       The property which is sought to be 1 converted is comprised in Plot No.N-73, Panchsheel Cooperative House Building Society Ltd, New Delhi.

       DDA executed perpetual sub-lease deed in respect of the suit property in favour of one Sh. Jan Talwar.

       Jan Talwar by an agreement to sell, agreed to sell the suit property to Mrs. Raymen Kukreja for a sale consideration of Rs.20,50,000/-.

       Jan Talwar, in respect of the same suit property, also executed a General Power of Attorney dated 10.06.1986 in favour of Lekh Raj Kukreja-husband of vendee i.e. Mrs. Raymen Kukreja. However, Jan Talwar refused to execute the sale deed, even after receiving the complete sale consideration.

       This led to the filing of civil suit for a decree of specific performance of the aforesaid agreement to sell. The suit was decreed by Single Judge in terms of a compromise arrived at between the parties therein.

       Based on the compromise decree in the original suit, Gaurav Kukreja applied to DDA for the conversion of suit property from leasehold to freehold. However, the DDA refused the conversion on the ground that as per the scheme, Gaurav Kukreja did not possess a good title.

       Respondent-Gaurav Kukreja filed writ petition seeking the conversion of suit property from leasehold to freehold, on the strength of a policy decision taken by DDA and based on the compromise decree in the civil suit.

       Single Judge of High Court of Delhi allowed the writ petition.

       Letters Patent Appeal filed by the DDA also came to be dismissed.

       Finding of the Court:

       High Court was not right in holding that the respondent is entitled to apply for conversion of the property.

       Result: Appeal allowed.

       

Judgment

R. BANUMATHI, J.

Leave granted.

2. This appeal arises out of the order dated 15.07.2010 passed by a Division Bench of the High Court of Delhi, dismissing the Letters Patent Appeal No.466 of 2010, holding that respondent is entitled to be taken as a Power of Attorney holder and is thereby entitled to get the suit property converted from leasehold to freehold.

3. Brief facts of the case which led to the filing of this appeal are as follows:-The property which is sought to be 1 converted is comprised in Plot No.N-73, Panchsheel Cooperative House Building Society Ltd, New Delhi. DDA executed perpetual sub-lease deed dated 16.08.1967 in respect of the suit property in favour of one Sh. Jan Talwar (Defendant No.1 in the original suit). Jan Talwar by an agreement to sell dated 10.6.1986, agreed to sell the suit property to Mrs. Raymen Kukreja for a sale consideration of Rs.20,50,000/-. Jan Talwar, in respect of the same suit property, also executed a General Power of Attorney dated 10.06.1986 in favour of Lekh Raj Kukreja-husband of vendee i.e. Mrs. Raymen Kukreja. The cause of action arose in the year 1989, when Jan Talwar refused to execute the sale deed, even after receiving the complete sale consideration. This led to the filing of civil suit being CS (OS) No.2777/1989 for a decree of specific performance of the aforesaid agreement to sell. Though the agreement to sell was made in favour of Raymen Kukreja, the suit for specific performance was filed by the respondent-Gaurav Kukreja and Lekh Raj Kukreja (father of Gaurav Kukreja) against Jan Talwar and Raymen Kukreja (mother of Gaurav Kukreja). The civil suit was filed on the premise that both, the GPA holder (father of Gaurav Kukreja) and vendee (mother of Gaurav Kukreja) had surrendered their rights in favour of Gaurav Kukreja and that they had no objection if the property is transferred in the name of respondent. Jan Talwar having remained ex parte, the suit was decreed by Single Judge in terms of a compromise arrived at between the parties therein. Learned Single Judge of the High Court while deciding the CS (OS) No.2777/1989 held the entire transaction to be valid and observed that respondent and his father and mother were ready and willing to complete the sale transaction dated 10.06.1986 but Jan Talwar failed to perform his part of obligation. In the civil suit, Jan Talwar though entered appearance subsequently remained exparte. Based on the compromise decree in the original suit, Gaurav Kukreja applied to DDA for the conversion of suit property from leasehold to freehold. However, the DDA refused the conversion on the ground that as per the scheme, Gaurav Kukreja did not possess a good title.

4. Aggrieved, respondent-Gaurav Kukreja filed W.P.(C) No.7608/2009 before the High Court of Delhi, seeking the conversion of suit property from leasehold to freehold, on the strength of a policy decision taken by DDA and based on the compromise decree in the civil suit. Respondent contended that DDA wrongfully denied him the benefit of Conversion Scheme even when respondent has complied with the conditions therein. Respondent is stated to have deposited an amount of Rs.18,55,347/-with DDA towards conversion charges.

5. Learned Single Judge of High Court of Delhi, after considering material on record allowed the writ petition by holding that the decree passed in the civil suit stands on a higher footing than any General Power of Attorney as per Clause 13(a) of the Conversion Policy. The possession of suit property by the respondent has been substantiated by the correspondence between the respondent and DDA which have been exchanged at the same address as that of suit property in respect of which conversion has been sought. Learned Single Judge observed that respondent is a son of an agreement holder and as well as holder of general Power of Attorney and therefore the respondent is not a stranger to the transaction and that the condition of Clause 13 of the Conversion Scheme stands s































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