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2004 Supreme(Del) 779

High Court Of Delhi
K.K.BIRLA ACADEMY - Appellant
Versus
D.D.A. - Respondent
W.P. 2646 of 2004
Decided On : 09/18/2004

Advocates Appeared:
A.M.SANGHVI, A.T.PATRA, NIPUN MALHOTRA, R.S.ENDLWA

Once land is allotted and premium is paid, an indefeasible right is created in favor of the allottee, and a statutory authority can review its decision only if there are facts showing fraud, misrepresentation, concealment, or mistake.

Headnote:

societies registration act - Land Allotment - Delhi Development Act, 1957, Rules 1981 - [SOCIETIES REGISTRATION ACT] - [Land Allotment] - [Delhi Development Act, 1957, Rules 1981]

Fact of the Case:

The Birla Academy applied for land allotment to set up an institute, paid the demanded sum, and sought possession. The Delhi Development Authority (DDA) delayed possession and demanded a fresh project report, leading to the petition for mandamus.

Finding of the Court:

The court found that the Birla Academy was entitled to possession as it had paid the full premium demanded, and DDA's demand for a fresh project report was unjustified.

Issues: The issues were whether DDA could review the allotment after receiving full premium and whether a vested right had accrued to the petitioner.

Ratio Decidendi: The court held that once land is allotted and premium is paid, an indefeasible right is created in favor of the allottee, and a statutory authority can review its decision only if there are facts showing fraud, misrepresentation, concealment, or mistake.

Final Decision: Mandamus was issued to DDA to hand over possession of the allotted land to the petitioner and to execute the perpetual lease-deed.

PRADEEP NANDRAJOG, J.

( 1 ) BIRLA ACADEMY A SOCIETY REGISTERED UNDER THE societies REGISTRATION ACT, 1860 INTENDED TO SET UP AN institute ON THE LINES OF THE BRITISH MUSEUM LONDON WITH the OBJECT OF HIGHLIGHTING FACETS OF HISTORY, CULTURE AND scientific DEVELOPMENT IN INDIA. ON 28. 2. 1985 IT submitted AN APPLICATION TO DELHI DEVELOPMENT AUTHORITY seeking ALLOTMENT OF 15 TO 20 ACRES OF LAND IN SOUTH delhi. ALONG WITH THE APPLICATION, THE ACADEMY submitted A STATEMENT OF CASE TO DDA.

( 2 ) IN THE STATEMENT OF CASE SUBMITTED, THE ACADEMY outlined THE OBJECT FOR WHICH IT INTENDED TO SET UP THE institute. FACILITIES TO BE MADE AVAILABLE WERE highlighted. EXTENT OF AND NATURE OF BUILDINGS REQUIRED were STATED. EXTENT OF LAND REQUIREMENT WAS JUSTIFIED.

( 3 ) CONSIDERING THE APPLICATION SUBMITTED BY THE academy, DDA AFTER APPRAISAL OF THE STATEMENT OF CASE submitted BY THE ACADEMY, INFORMED THE ACADEMY THAT IN principle, DDA HAD DECIDED TO ALLOT ABOUT 10 ACRES OF land TO IT. THE ACADEMY WAS ASKED TO DEPOSIT RS. 10 LACS per ACRE SUBJECT TO ADJUSTMENT. THUS, A SUM OF RS. 1 CRORE was REQUIRED TO BE DEPOSITED BY THE ACADEMY.

( 4 ) ACADEMY DEPOSITED A SUM OF RS. 50 LACS UNDER cover OF ITS LETTER DATED 1. 7. 1985. IT WAS RECORDED IN the LETTER THAT HALF THE SUM DEMANDED WAS BEING PAID ON the BASIS OF A VERBAL AGREEMENT WITH SHRI PREM KUMAR, vice CHAIRMAN, DDA.

( 5 ) DDA RECEIVED THE CHEQUE AND ENCASHED THE SAME.

( 6 ) IN RESPONSE TO A QUERY FROM THE ACADEMY AS TO where LAND WOULD BE ALLOTTED TO IT, VIDE LETTER DATED 11. 9. 1985 DDA INFORMED THAT A COMPREHENSIVE SCHEME FOR river FRONT DEVELOPMENT HAS BEEN PREPARED AND WAS UNDER finalisation. DEMARCATION OF THE PLOT COULD BE DONE ONLY after THE SCHEME WAS APPROVED.

( 7 ) THERE WAS A LULL THEREAFTER. AS LULL AS BECAME a BIT TOO LONG, AND DDA DID NOT FINALIZE THE LOCATION OF the LAND TO BE ALLOTTED TO THE ACADEMY, THE ACADEMY addressed A COMMUNICATION TO THE LT. GOVERNOR DELHI, WHO, responded VIDE LETTER DATED 18. 6. 1992 INFORMING THAT IT would BE HEARING SOON FROM DDA.

( 8 ) IT TOOK ANOTHER 3 YEARS BEFORE DDA COULD CENTRE on THE LAND. ON 23. 1. 1985, OFFICER ON SPECIAL DUTY TO the LT. GOVERNOR, DELHI INTIMATED THE ACADEMY AS UNDER:-

"dear SH. AGGARWAL, KINDLY REFER TO HIS LETTER DTD. 22. 7. 94 addressed TO P. S. TO L. G. REGARDING LAND FOR K. K. BIRLA academy. IN THIS CASE, I AM DESIRED TO SAY THAT A PLOT measuring APPROXIMATELY 7 ACRES IN VASANT KUND, PH-II, has BEEN IDENTIFIED. THE CASE IS BEING SUBMITTED TO THE ministry OF URBAN DEVELOPMENT FOR INVITING OBJECTIONS AND final NOTIFICATION. THE ALLOTMENT OF LAND TO BIRLA ACADEMY CAN BE processed AFTER THE ABOVE ACTION IS COMPLETED. "

( 9 ) ALLOTMENT FINALLY MATURED ON 14. 12. 1995. ON said DATE DDA ISSUED A DEMAND CUM ALLOTMENT LETTER TO THE academy.

( 10 ) AS PER THE DEMAND CUM ALLOTMENT LETTER, 3. 17 hectares AT VASANT KUNJ, PHASE-II WAS ALLOTTED TO THE academy, AT A PREMIUM OF RS. 80 LACS PER ACRE WITH ANNUAL ground RENT @ 2. 5% P. A. OF THE TOTAL PREMIUM. TOTAL premium CAME TO RS. 6,26,56,000/ -. ONE YEAR GROUND RENT came TO RS. 15,66,400/ -. TOTAL DEMAND CAME TO rs. 6,42,22,400/-, GIVING BENEFIT OF INTEREST AT THE RATE of RS. 7% P. A. ON THE SUM OF RS. 50 LACS DEPOSITED BY THE society, SUM DEMANDED WAS RS. 5,55,70,094/ -. THIS WAS TO be PAID WITHIN 90 DAYS.

( 11 ) IT WAS INDICATED IN THE ALLOTMENT LETTER THAT the PREMIUM WAS PROVISIONAL AND THE ALLOTTEE WOULD GIVE an UNDERTAKING THAT IT WILL PAY THE BALANCE PREMIUM AS demanded BY DDA ON RATES BEING FINALLY DETERMINED BY central GOVERNMENT.

( 12 ) CONDITION NO. 4 WHICH WAS PUT IN THE LETTER OF allotment REQUIRED THE ACADEMY TO GIVE AN UNDERTAKING TO the EFFECT THAT IT WOULD NOT CLAIM ANY INTEREST FROM DDA for THE PERIOD INTERVENING BETWEEN THE ISSUE OF DEMAND cum ALLOTMENT LETTER AND ACTUAL POSSESSION OF THE PLOT after DEVELOPMENT.

( 13 ) ON 9. 2. 1996 THE ACADEMY PAID THE SUM OF rs. 5,55,70,094/- AS DEMANDED.

( 14 ) NAME OF BIRLA ACADEMY WAS CHANGED TO K. K. BIRLA academy AND CERTIFICATE
























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