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1995 Supreme(Del) 606

High Court Of Delhi
D.C.M.LIMITED - Appellant
Versus
DELHI DEVELOPMENT AUTHORITY - Respondent
Decided On : 08/08/1995

Section 53b of the Delhi Development Act, 1957, which requires a plaintiff to serve a notice on the defendant before instituting a suit against the Authority or its officers, is mandatory and its compliance is imperative. Failure to comply with this requirement renders the plaint liable to be rejected.

Headnote:

PUBLIC PREMISES (EVICTION OF UNAUTHORISED OCCUPANTS) ACT, 1971 - SECTION 53B - DELHI DEVELOPMENT ACT, 1957 - SECTION 80 - CIVIL PROCEDURE CODE, 1908 - ORDER 7 RULE 11 - REJECTION OF PLAINT - SUIT FOR DECLARATION OF TITLE TO IMMOVABLE PROPERTY - NOTICE UNDER SECTION 53B OF THE DELHI DEVELOPMENT ACT, 1957 - MANDATORY REQUIREMENT - NON-COMPLIANCE - PLAINT LIABLE TO BE REJECTED.

Fact of the Case:

The plaintiff, a public limited company, filed a suit for a declaration of title and consequential relief of injunction pertaining to property in Delhi. The plaintiff claimed that it was allotted the suit land in exchange for land acquired by the Delhi Improvement Trust for a public purpose. The defendant, Delhi Development Authority, sought the rejection of the plaint on various grounds, including the plaintiff's failure to serve a notice under Section 53b of the Delhi Development Act, 1957, prior to the institution of the suit.

Finding of the Court:

The court held that the plaintiff's failure to serve a notice under Section 53b of the Delhi Development Act, 1957, was fatal to the suit. The court found that Section 53b is mandatory and its compliance is imperative. The court also held that the plaintiff's failure to raise the objection in the written statement did not constitute a waiver, as the objection was raised in the application for rejection of the plaint.

Issues: 1. Whether the suit was barred under Section 15 of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971, since proceedings for eviction were pending before the Estate Officer? 2. Whether the non-mentioning in the plaint of the fact that a notice under Section 53b of the Delhi Development Act, 1957 was sent and delivered to the defendant prior to the institution of the suit rendered the suit liable to be rejected? 3. Whether the suit was barred by limitation? 4. Whether the suit was barred under Section 17 of the Registration Act since there was no transfer deed in favor of the plaintiff?

Ratio Decidendi: The court held that the suit was not barred under Section 15 of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971, as the plaintiff was claiming title to the property by adverse possession. The court also held that the suit was not barred by limitation, as the plaintiff had filed the suit within six months from the date on which the cause of action arose. However, the court held that the suit was liable to be rejected under Order 7 Rule 11 of the Civil Procedure Code, as the plaintiff had failed to serve a notice under Section 53b of the Delhi Development Act, 1957, prior to the institution of the suit.

Final Decision: The court allowed the defendant's application and rejected the plaint under Order 7 Rule 11 of the Civil Procedure Code.

Mr. Devinder Gupta, J.

( 1 ) THE defendant in this application has prayed tor rejection of the plaint on a number of grounds.

( 2 ) THE plaintiff is a public limited company incorporated under the Companies Act, 1913 and has filed the suit for grant of decree for declaration with consequential relief of injunction pertaining to property comprised in Khasra Nos-1613/153, 1614/152 and 1615/153, situated in Baghraoji, Delhi. In nutshell plaintiff s case is that in lieu of land comprised in Khasra Nos. 487 and 488 (part), owned by it, which was taken over by the Delhi Improvement Trust for public purposes for re-alignment of the Daryai Nala, plaintiff-company was allotted in exchange the suit land. Actual physical possession of the suit land was given to the plaintiff by the Delhi Improvement Trust on 4th February, 1942 and 15th March, 1943 and eversince the plaintiff-company has been in continuous, exclusive, uninterrupted possession and enjoyment of the suit land in exercise of its right as the owner thereof to the exclusion of all concerned including Delhi Improvement Trust and Delhi Development Authority. After narrating some facts, the plaintiff has challenged the legality and validity of the proceedings initiated against it under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971, alleging that proceedings are without jurisdiction since plaintiff is in occupation of the property as an owner thereof or in any case plaintiff s possession over the suit property has ripened into ownership by adverse possession, due to the plaintiff s remaining in occupation of the same uninterruptedly in assertions of its right openly and peacefully for a period of more than 12 years prior to the commencement of the proceedings, when the defendant for the first time sought to challenge and dispute the plaintiff s ownership. In this background, plaintiff has sought a decree for declaration that it is the absolute owner and in rightful possession of the suit property and defendant has no right, title or interest therein; the plaitiff having been allotted the same in exchange of its land acquired by Delhi Improvement Trust for the re-alignment of Daryai Nala under the Western Extension Scheme. Further declaration prayed for by the plaintiff is that the plaintiff has otherwise become the absolute owner of the property by adverse possession. Consequential relief has been prayed for restraining the defendant from dispossessing the plaintiff or intrerfering in its possession.

( 3 ) DEFENDANT seeks the rejection of the plaint on the ground that : (i) the suit is barred under Section 15 of the Public Premises (Eviction of Unauthorised Occupant) Act, 1971 particularly when proceedings for eviction are pending before the Estate Officer; (ii) the non-mentioning in the plaint of the fact that a notice under Section 53b of the Delhi Development Act, 1957 was sent and delivered to the defendant prior to the institution of the suit; (iii) suit is barred by limitation; and (vi) since there is no transfer deed in favour of the plaintiff, the suit is barrel under Section 17 of the Registration Act.

( 4 ) PARTIES Counsel have been heard at length. The application has been vehemently opposed by the plaintiff.

( 5 ) SO far as the third and fourth ground for rejection of the plaint are concerned, the same at this stage is not tenable. Plaint cannot be rejected at this stage on the ground of there being no deed of transfer or the alleged exchange being not evidenced by a registered instrument. This objection is dependent upon factual aspect for which it will benecessary to take evidence. Clear distinction must aiways be drawn between two aspects, namely, plaint disclosing no cause of action and the plaintiff having no cause of action to sue. In the former case the plaint is liable to be rejected but in the later, the suit might fail on non-proof of the facts by the plaint if fourth ground falls in the later category. Even the third objection at this sta






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