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High Court Of Delhi
DELHI DEVELOPMENT AUTHORITY - Appellant
Versus
LALA AMAR NATH EDUCATIONAL AND HUMAN SOCIETY - Respondent
L.P.A. 73 of 1989
Decided On : 08/05/1990
D. P. Wadhwa - Land Allotment Dispute - Delhi Development Act, 1957, Section 22 - The judgment discusses the application of the Delhi Development Act, 1957, Section 22, and the Delhi Development Authority (Disposal of Developed Nazul Land) Rules, 1981, in the context of land allotment dispute between educational societies and the Delhi Development Authority. The court's decision is influenced by the principles of promissory estoppel and the statutory conditions for land allotment to public institutions.
Fact of the Case:
The educational societies were allotted land by the Delhi Development Authority (D. D. A.) at provisional rates, but the D. D. A. later demanded an increase in the cost of land based on market value, which was challenged in the writ petitions. The societies argued that the basis for charges should remain 'no profit no loss' as per the initial allotment letters.
Finding of the Court:
The court found that the principles of promissory estoppel were applicable in the case, as the societies had changed their position after making payments and taking possession of the land based on the initial allotment letters. The court also noted that the demand for increased cost of land on the basis of market value was not valid and was in contravention of the statutory conditions for land allotment to public institutions.
Issues: The main issues revolved around the validity of the D. D. A.'s demand for increased cost of land based on market value, the applicability of promissory estoppel, and the adherence to statutory conditions for land allotment to public institutions.
Ratio Decidendi: The court held that the allotment letters were issued within the authority given under the law, and the societies had relied on the initial allotment terms. The court also emphasized that the demand for increased cost of land on the basis of market value was not valid and was in contravention of the statutory conditions for land allotment to public institutions.
Final Decision: The court affirmed the judgment of the learned Single Judge, dismissing all appeals and awarding costs in favor of respondent No. 1.
( 1 ) THIS batch of 35 appeals are against the common judgment of the learned Single Judge (B. N. Kirpal, J.) whereby he allowed the petitions and quashed the demand raised by the Delhi Development Autority (D. D. A.) in excess of increase cost of land at the rate of Rs. 9 50 000. 00 per acre calculated on the basis of "no profit no loss".
( 2 ) ALL these appeals raise same questions of law and can again be disposed of by a common judgment.
( 3 ) THE facts are not in dispute. The petitioners in the writ petitions are now first respondents in all these appeals and are societies registered under the Societies Registration Act, 1860. They run schools. They were allotted land by the D. D. A. at various placed in Delhi for the construction of school buildings. For the purpose of decision of these appeals, it is not necessary to give the details of the land allotted to these societies. These societies were allotted land between the period 1. 4. 1987 to 3. 10. 1988. The allotment letter stipulated that the land was being allotted "for school building at the provisional rate of Rs. 8,00,000. 00 per acre and annual ground rent at the rate of 21^) per annum of the premium" and further that the society "shall pay the difference of cost of land as may be decided by the Government/d. D. A. ". The societies were given possession of the respective lands allotted to them. In seven cases even perpetual lease deeds were executed. In some cases building plans were sanctioned by the D. D. A. and even construction made and in some cases buildings were under construction or even the plans in some cases were at the stage of being sanctioned. Then the D. D. A. addressed letters to all the societies stating "that the cost of institution land has since been raised by the Government of India from Rs. 8,00,000. 00 per acre to Rs. 28. 50 lakhs per acre with effect from 1. 4. 1987. " This was where the land was situated in South Zone. Delhi was divided into four zones and for West Zone the cost of land was raised to Rs. 23. 75 lakhs ; for North Zone to Rs. 19. 00 lakhs and for East Zone to Rs. 14. 25 lakhs per acre. This price increase was effective from 1. 4. 1987 to 31. 3. 1989. For the earlier two years from 1. 4. 1985 to 31. 3. 1987, the price was Rs. 8. 00,000. 00 per acre all over Delhi. This excess demand was challenged in all the writ petitions and the stand of the societies was upheld.
( 4 ) IN seven cases where lease deeds had been executed the following term relating to enhancement of price wrs inserted :
"the Lessee shall pay within such time such addititional sum of sums towards premium as may be decided upon by the Lessor on account of the compensation awarded by the Land Acquisition Collector in respect of the said land or any part there of being enhanced on reference or in appeal or both and the decision of the Lessor in this behalf shall be final and binding on the Lessee. The yearly rent of two and half percent of the premium hereby reserved shall be calculated on the sum received towards premium by the Lessor before the execution of these presents and such additional sum of sums payable towards premium as provided herein from respective dates when possession was handed over to societies. "
( 5 ) D. D. A. is a body corporate and is constituted under the Delhi Development Act, 1957 (for short "the Act" ). Its objects are given in Section 6 of the Act, which are to promote and secure the development of Delhi according to plan and for that purpose D. D. A. has been conferred powers to acquire, hold, manage and dispose of land and other property and to carry out building operations etc. Section 22 of the Act deals with Nazul lands which are lands vested in the Central Government. This Section is as :
"22. (1) The Central Government may, by notification in the Official Gazette and upon such terms and conditions as may be agreed upon between that Government and the Authority place at the disposal of the Authority all or any developed
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