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ABHAY S OKA, UJJAL BHUYAN
Delhi Development Authority – Appellant
Versus
S. G. G. Towers (P) Ltd. – Respondent
JUDGMENT :
ABHAY S. OKA, J.
FACTUAL ASPECTS
1. The appellant, Delhi Development Authority (formerly known as the Delhi Improvement Trust), executed an agreement of lease (for short, “the lease agreement”) dated 17th July 1957 in respect of plot no.3 (for short “the said Plot”), measuring 2044.4 sq. yards, situated in Industrial Area Scheme, Najafgarh Road, New Delhi in favour of M/s Mehta Constructions and Industrial Corporation Private Limited (for short, “M/s Mehta Constructions”). On 25th November 1972, M/s Mehta Constructions entered into an agreement to sell with M/s Pure Drinks Private Limited, the second respondent. A registered sale deed cum Assignment dated 15th February 1985 was executed by M/s Mehta Constructions in favour of the second respondent. In Execution Proceedings, i.e. Co Ex 8 of 1981, the Company Judge of the Delhi High Court passed an order on 4th February 1985. Pursuant to the said order, the Registrar of the High Court lodged the sale deed for registration in the office of the Sub-Registrar, Delhi.
2. Even the second respondent went into liquidation, and the plot was sold to the first respondent in the auction on 24th August 2000 in liquidation proceedings befo
Agreement to Sell – Unless lease is executed, agreement will not create any right, title or interest in respect of plot in favour of purchaser.
A binding contract arises once a bid is accepted, requiring adherence to principles of natural justice before cancellation, especially when objections are pending.
The court clarified that an involuntary sale by the Official Liquidator does not violate lease restrictions requiring consent for voluntary sales.
Consent orders are binding and can only be reviewed for fraud or similar grounds; parties cannot resile from consents without just cause.
Competency of a local authority to transfer land rights and execute lease deeds under relevant state acts.
Claims for land lease rights can be barred by delay, especially when previous agreements are accepted without protest.
The distinction between sale and lease under the Transfer of Property Act was crucial, as the respondent's leasehold rights limited its ability to execute a sale deed.
DDA is entitled to recover a portion of unearned increase in value of plots in case of transfer of plots by lessee.
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