High Court Of Delhi
RAVINDER NATH SAHNI - Appellant
Versus
DELHI DEVELOPMENT AUTHORITY - Respondent
Civil 3095 of 1990
Decided On : 07/22/1991
Income Tax Clearance Certificate - Urban Land (Ceiling and Regulation) Act - Court directs petitioner to pay balance amount due to DDA and furnish bank guarantee for interest claim
Fact of the Case:
The petitioner was required to deposit a sum of Rs. 8,65,000.00 as per the order dated 11/10/1990. The DDA's demand was for a sum of Rs. 22,31,453.00, consisting of unearned increase and interest. The petitioner was already in possession of the house.
Finding of the Court:
The court found that the petitioner had to be put to terms and directed the petitioner to pay the balance amount due to the DDA, along with interest, and furnish a bank guarantee to secure the interest claim.
Issues: The issues revolved around the calculation of unearned increase, the requirement for Income Tax Clearance Certificate, and the petitioner's possession of the house without paying the amount due.
Ratio Decidendi: The court considered the date of completion of the application, the requirement for the Urban Land (Ceiling and Regulation) Act clearance, and the value of the land as on the completion date in working out the unearned increase.
Final Decision: The court directed the petitioner to pay the balance amount due to the DDA and furnish a bank guarantee for the interest claim within two months.
( 1 ) RULE. CMS 4649 and 4872/90
( 2 ) VIDE order dated 11/10/1990, the petitioner was requiredto deposit a sum of Rs. 8,65,000. 00 and the demand of the DDA was to remainstayed. We find that the demand of the DDA is for a sum of Rs. 22,31,453. 00. According to the DDA, its demand consists of Rs. 18,91,062 on account of50% un-earned increase and Rs. 3. 40. 391. 00 being the interest @ 18% perannum. According to the DDA, the seller did not file a complete applicationfor permission to sell because No Objection Certificate under the Urban Land (Ceiling and Regulation) Act, 1976 was not attached. This certificate was filedonly on 3/04/1987 and it is thereupon that the application becamecomplete. Because the Income-Tax clearance certificate was filed in 1988, thatis why the DDA is seeking to charge interest of Rs. 3,40,391. 00. The 50% unearned increase of Rs. 18,91,062. 00has been worked out on the basis of theprice of land as on 3/04/1987, the date the application was completed.
( 3 ) AS the petitioner is already in possession of the house, in ouropinion, the petitioner has to be put to terms because he cannot be allowed tocontinue enjoying the fruits of the transaction without paying, what we, primafade, feel is payable.
( 4 ) THERE was no requirement to file the Income Tax Clearancecertificate obtained under Section 230-A because this requirement was notspelled out in the application form itself. Nevertheless the application formdid require the attaching of the clearance obtained under the Urban Land (Ceiling and Regulation) Act. This was done only on 3/04/1987. Therefore, prima facie, the value of the land as on 3rd April, 1987 had to be takeninto consideration in working out the un-earned increase. Taking these factorsinto consideration, the un-earned increase would come to Rs. 18,91,062. 00. The petitioner has already deposited in Court Rs. 8,65,000. 00. The balanceamount due to the DDA. apart from interest claimed by it is Rs. 10,26,062. As a condition of stay, we direct the petitioner to pay within two months fromtoday to the DDA, a sum of Rs. 10,26,062. The total amount so depositedshall come to Rs. 18,91,062.
( 5 ) IN addition to the above, in order to secure the interests of therespondent completely, the petitioner should also furnish a bank guaranteein the sum of Rs. 3,40,391 being the claim of the DDA towards interest.
( 6 ) INDIAN Administrative Service stand disposed of in the aforesaid terms.
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