High Court Of Delhi
SKIPPER CONSTRUCTION COMPANY PRIVATE LIMITED - Appellant
Versus
DELHI DEVELOPMENT AUTHORITY - Respondent
Civil Writ 2371 of 1989
Decided On : 01/14/1991
HELD:
Since we have held that the letters of the Lt. Governor dated 4.10.1988 and 16.2.1990 have 110 legal force, the question as to whether the petitioners were responsible for the delay in the sanction of the Plan or whether the D.D.A. was responsible has no effect or relevance on the question of the petitioners liability to make the payment of the outsanding dues. We are not, thereforee, required to pronounce on the submission of the counsel for the D.D.A. that the question of the responsibility for the delay in the sanction of the Plan raised disputed questions of fact and cannot be gone into in a writ petition. Once we come to the conclusion that liability to pay outstanding amount was not dependent on the sanction of the Plan, the question of the delay in the sanctioning of the Flan becomes irrelevant and a non-issue.
We, thereforee, reject all submissions made on behalf of the petitioners and hold that the D.D.A. is entitled to recover the entire amount of Rs. 8,12,68,789/- as on 1.7.1990 in lumpsum in cash or through bank draft. The decision of the Supreme Court in Dunlop (supra), entitles the D.D.A. to insist up to cash payment and to reject the bank guarantee. Since there is a deliberate breach of the obligations under the license Deed and the Agreement dated 11.8.1987 by the petitioners legal consequences, as mentioned in term 15 of the license Deed, spring into action.
The writ petition is dismissed with costs. We reiterate the operative order already pronounced by us on December 21, 1990. The D.D.A. is entitled to take over the plot Along with the buildings thereon free from all encumbrances and also forfeit the entire amount paid by the petitioners so far in terms of Clause 15 of the license Deed dated 11.8,1987, in case petitioners fail to make the payment as stated in our order dated 21.12.1990.
As regards the interest due from 1.7.90 till the date order the D.D.A. should furnish the particulars to the petitioners within one month from today. The petitioners shall make the payment of the Said interest within two works thereafter.
( 1 ) WE had pronounced the operative order in this writ petition on 21. 12. 1990. The detailed reasons are as follows.
( 2 ) M/s, Skipper Construction Co. (P) Ltd. , the petitioners, are well known builders of Delhi. A land ad-measuring 2540 sq. meters was allotted to them by auction by (he D. D. A. on 810. 1980. The auction was of a commercial plot in Jhandewalan block known as the Commercial Tower Plot. Petitioners bid for Rs. 9. 82 crores was accepted and the petitioners paid a sum of Rs- 2. 45,75,000. 00 being 25 per cent of the bid amount that very day. Even after repeated opportunities by the D. D. A. and the Court only part of the amount has been paid and as on 31st July, 1990, a sum of Rs. 8,12,68,798. 00 is still unpaid by the petitioner. This amount includes part of the principal and interest for delayed payment. Through the interim orders of this Court the petitioners have got their plans approved and got the no-objection certificate for the construction. The complex will have about 870 commercial shops. The building upto the First Floor is completed. The petitioners prayer is to permit them to continue with the construction and give a bank guarantee (and not the actual payment) for the sum of over Rs. 8. 0 crores due against them. The D. D. A. is vehemently against further delay in the payment (which ought to have been completed 10 years back according to the terms of the auction), and does not accept the bank guarantee.
( 3 ) MR. KAPIL Sibal, Sr. Advocate, appearing for the D. D. A. submits that the Supreme Court has more than once deprecated the practice of granting interim orders on furnishing back guarantee in collecting government dues. The position is correct In Assistant Collector of Central Excise v. Dunlop India Limited (1985 V. 154) ITR Page 172, the Supreme Court has summarised the previous decisions and held ;
"governments are not run on mere bank guarantees. Very often some Courts act as if furnishing a bank guarantee would meet the ends of Justice. No governmtal business or for that matter no business of any kind can be run on mere bank guarantees. Liquid cash is necessary for the running of a government as indeed any, other enterprise. "
"where matters of public revenue are concerned, it is of the utmost importance to realise that interim orders ought not to be granted merely because a prima facie case has been shown. More is required. The balance of convenience must be clearly in favour of the making of an interim order and there should cot be the slightest indication of a likelihood of a prejudice to the public interest. "
"we can take judicial notice of the fact that the vast majority of petitions under Article 226 of the Constitution are field solely for the purpose of obtaining interim orders and thereafter prolonging the proceedings by one device or other. The practise certainly needs to be strongly discouraged. "
"we deprecate the practice of granting interim orders which practically give the principal relief sought in the petition for no better reason than that a prima facie case has been made out. without b. . ing concerned about the balance of convenience, the public interest and a host of other relevant considerations. "
( 4 ) THE petitioners filed the present writ petition on 2. 8 1989, praying for a writ of mandamus directing respondent D. DA. to sanction the building plan forthwith, or in the alternative to grant permission to start construction at the cost and risk of the petitioners.
( 5 ) MR. KAPIL Sibal, counsel for the DD. A. , by taking us through the various orders passed by the D B. (Kirpal and Chaudhry JJ.) has submitted that the principal reliefs of sarction of plan and permission for construction was done through the interim orders, but the quesition of the payment of outstanding amount of over the Rs 8. 0 crores was deferred from time to time. Finally, by the order dated 19th March. 1990 the D. B. ordered that the quantum of money and the mode of payment will be de
SupremeToday
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.