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ABHAY S. OKA, PANKAJ MITHAL
Jaiprakash Industries Ltd. (Presently known as M/s. Jaiprakash Associates Ltd. ) – Appellant
Versus
Delhi Development Authority – Respondent
JUDGMENT :
ABHAY S. OKA, J.
FACTUAL ASPECTS
1. The Hon’ble President of India executed four separate perpetual lease deeds on 12th August 1983 in favour of M/s. Jaiprakash Associates Pvt Ltd in respect of the plots more particularly described in Schedule-I to the lease deeds (for short, ‘the said plots’). In July 1986, a joint application was made by M/s. Jaiprakash Associates Pvt Ltd and M/s. Jaypee Rewa Cement Ltd before the High Court of Judicature at Allahabad, praying for amalgamation of M/s. Jaiprakash Associates Pvt Ltd with M/s. Jaypee Rewa Cement Ltd. By the order dated 30th July 1986, the High Court sanctioned the scheme of amalgamation. The said plots were included in the Schedule of the properties to the scheme of amalgamation. While passing the order dated 30th July 1986 approving amalgamation, the High Court directed that the properties in Parts I, II and III of Schedule II to the said order shall stand vested in the transferee company (M/s. Jaypee Rewa Cement Ltd). After the amalgamation, in September 1986, the name of M/s. Jaypee Rewa Cement Ltd was changed to M/s. Jaiprakash Industries Ltd. Subsequently, the name was changed to M/s. Jaiprakash Associates Ltd, which is
DDA is entitled to recover a portion of unearned increase in value of plots in case of transfer of plots by lessee.
The scheme of amalgamation does not erase the concept of transfer of immovable property, and each incident of transfer attracts transfer fees. Uniformity in decision-making by the administrative auth....
Changes in shareholding do not constitute a transfer of property under a perpetual lease, and unearned increase cannot be charged based solely on share transfers.
The main legal point established in the judgment is that the Nagpur Municipal Corporation was not permitted to incorporate additional terms and conditions in the lease-deed while renewing it, and the....
Transfer fees cannot be levied without clear justification based on concrete policy application; a proper record examination is crucial in judicial decisions.
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