SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(SC) 828

SUPREME COURT OF INDIA
A.S. BOPANNA, PRASHANT KUMAR MISHRA, JJ.
Lal Bahadur Shastri Educational Society and Another – Appellants
Versus
Delhi Development Authority and Others – Respondents
Civil Appeal No. 5647 of 2023, Civil Appeal No. 5648 of 2023, SLP (C) No. 31548 of 2014, SLP (C) No. 2009 of 2015
Decided On : 05-09-2023

Advocates appeared:
For the Petitioner(s): Ms. Meenakshi Arora, Sr. Adv. Mr. Mohit D. Ram, AOR Mr. Ankit Jain, Adv. Ms. Monisha Handa, Adv. Mr. Bhagirath N.patel, Adv. Mr. Anubhav Sharma, Adv. Mr. Kamal Gupta, Adv. Mr. Harshvardhan Jha, Adv. Mrs. Yugandhara Pawar Jha, Adv. Mr. Abhishek Chaudhary, AOR Mr. Sparsh Aggarwal, Adv. Mr. Aman Pathak, Adv.
For the Respondent(s): Mr. Nitin Mishra, AOR Mr. Ishaan Sharma, Adv. Ms. Mitali Gupta, Adv. Ms. Niharika Ahluwalia, AOR Mr. Apurv Prasad, Adv. Ms. Megha Mishra, Adv. Ms. Binu Tamta, AOR Mr. Ashutosh Kumar, Adv. Mr. Manish Kumar Choudhary, Adv. Ms. Srishti Choudhary, Adv. Ms. Namita Choudhary, AOR

Headnote:Interest - Refund of Additional FAR Charges - Delhi Development Act, 1957, Section 57 - The court considered the claim for payment of interest on the refund of the amount deposited by charitable institutions with the Delhi Development Authority to avail the benefit of construction based on additional Floor Area Ratio (FAR). The court analyzed various notifications and subsequent amendments issued by the respondent regarding additional FAR charges. It also examined legal principles related to interest and compensation, emphasizing that no one should suffer by an act of the court.

Fact of the Case:

Charitable institutions deposited amounts with the Delhi Development Authority to avail construction benefits based on additional FAR. Subsequent amendments exempted certain categories from these charges.

Finding of the Court:

The court found that since there was no adjudication or determination that the amount was illegally demanded and retained, there was no basis for payment of interest or compensation during the pendency of litigation.

Issues:

Claim for payment of interest on refund of deposited amount.

Ratio Decidendi:

The court held that in the absence of a declaration that the amount was illegally demanded and retained, there was no basis for payment of interest or compensation during the pendency of litigation.

Final Decision:

The appeals were disposed without any order as to costs.

JUDGMENT :

A.S. BOPANNA, J.

Delay condoned.

I.A. No. 159570/2019 is allowed.

1. Leave granted in both matters.

2. The common issue arising for consideration in these appeals is with regard to the claim for payment of interest on refund of the amount which had been deposited by the appellants with the respondent-Delhi Development Authority to avail the benefit of the construction based on additional FAR. The appellants in both these appeals are charitable institutions. The respondent through the notification dated 10.10.2008 issued in exercise of the powers conferred by Section 57 of the Delhi Development Act, 1957 had notified the fixation of rates to be applied for use conversion, mixed land use and other charges for enhanced FAR arising out of MPD 2021. In respect of the institutional plots also, the additional FAR charges were provided therein.

3. The appellant in the Civil Appeal arising out of SLP (C) No. 31548 of 2014 had assailed the said notification insofar as an imposition of the additional FAR charges, in W.P. (C) No. 3099 of 2010 before the High Court. The appellant in Civil Appeal arising out of SLP (C) No. 2009 of 2015 had assailed the same, in W.P. (C) No. 2823 of 2010 before the High Court of Delhi. In the said writ petitions, application seeking interim orders had been moved. Towards consideration of the said application for grant of interim relief to permit sanction of Revised Plan so as to enable construction and completion, the appellants offered to deposit the disputed amount being the amount demanded towards additional FAR charges which had been assailed in the writ petition. The High Court having accepted the suggestion permitted the appellant to pay the said amount and avail the benefit. The appellants having deposited, availed the benefit and proceeded with the construction.

4. During the pendency of the writ petition, the respondent issued a notification dated 17.07.2012 whereby an amendment was made in Para 6(g) to the notification dated 10.10.2008 and 23.12.2008 which were assailed before the High Court. By such amendment, it was provided that no additional FAR charges would be recovered from Educational Societies/Health Care and Social Welfare Societies having Income Tax Exemption. The said benefit became available to the appellants herein and as such the writ petitions pending before the High Court did not warrant an adjudication on the disputed questions. Therefore, the High Court in all the writ petitions which were pending before it had taken note of the change made through the subsequent notification and had accordingly disposed of the analogous matters in W.P. (C) No. 8572 of 2009 and other petitions through the order dated 20.07.2012. In the said proceedings the deposit which had been made either before the High Court or by way of bank guarantees were permitted to be withdrawn.

5. In that background the writ petitions filed by the appellants herein before the High Court were also disposed of. We take note of the order dated 31.10.2013 in the case of the appellant in first of the appeals herein, whereby the High Court having extracted the earlier order had disposed of the writ petition. Insofar as the amount deposited with the respondent, it was directed that the refund be made within the period of eight weeks but the prayer for payment of interest was declined. It is in that light the appellant is before this Court.

6. At this juncture it is relevant to note that in the case relating to appellant in the second of the appeals herein, the writ petition in W.P. (C) No. 2823 of 2010 had been disposed of in similar terms through the order dated 27.08.2012 and the deposited amount was directed to be released. In that view, an application was taken out by the said appellant herein on the aspect relating to interest and had sought refund of the amount with the interest at 15% per annum. The High Court having considered the matter was of the opinion that since the writ petitions were not ultimately adjudicate

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top