This is a suit for recovery of Rs 61,42,790/-. The plaintiff, which is a society registered under the Delhi Co-operative Society Act, 1973, was allotted 5 acres of land by defendant-DDA, in the year 1982 at 60, Patparganj, Delhi-110092. This land, according to the plaintiff, was sufficient for construction of only 300 flats, whereas the membership of the plaintiff-society, being 462, the defendant was required to allot land measuring 7.66 acres to it. Later, the defendant relaxed the ceiling of 5 acres and offered additional land to the plaintiff for the remaining 160 members and asked it to deposit Rs 11,87,119.80/- towards cost of the additional land. The plaintiff made payment of Rs 6,82,689.65/- vide its letter dated 01.12.1990 and asked the defendant to allot the additional land to it. The defendant, however, did not allot additional land for the remaining 160 members of the plaintiff-society which resulted in increased in the cost of construction of the flats and construction of 300 flats at Patparganj could not be completed within time.

The defendant vide its letter dated 21st April, 1997 directed the plaintiff to deposit Rs 39,88,824.38/- for granting extension of time for construction of flats. The aforesaid amount was deposited by the plaintiff under protest, on 25th April, 1997. It is further alleged that despite legal notices dated 03rd January, 1997 and 03rd July, 1998, calling upon it to hand over possession of additional land and refund the aforesaid amount of Rs 39,88,824.38/-, the defendant failed to refund the said amount. The plaintiff, therefore, has claimed the aforesaid amount of Rs 39,88,824.38/- alongwith interest therein at the rate of 18% per annum from the date of deposit till filing of the suit which comes to Rs 21,53,964.62/-, thus making a total claim of Rs 61,42,790/-.

2. The defendant has contested the suit and has taken a preliminary objection that the suit is not maintainable for want of notice under Section 53-B Delhi Development Act. It is also alleged that the suit is barred by limitation since it ought to have been instituted within six months from the date on which the cause of action arose. It has taken another preliminary objection that since there is an arbitration clause contained in Perpetual Lease Deed, executed in favour of the plaintiff-society, the suit is not maintainable and the matter is required to be referred for arbitration. On merits, it is alleged that in the application dated 31st August, 1981, submitted by one Dr. K. Kumar, the plaintiff had claimed membership of 460 persons, whereas in the subsequent application submitted through Shri Govind G. Mishra, the plaintiff claimed membership of 220 persons. Taking into consideration, the membership strength as 220, the plaintiff-society was offered land measuring 3.666 acres vide letter dated 02nd February, 1982 and asked to pay Rs 4,80,072.50/- as 25% premium of land. The plaintiff-society, however, represented that it had 460 members and requested for allotment of land measuring 7.666 acres and also deposited Rs 8,53,800/- on 03rd March, 1982. After considering the matter, the plaintiff–society was informed that only 5 acres of land was available in Patparganj. On receipt of further representation from the plaintiff-society, it was decided to allot land measuring 7.666 acres instead of 5 acres, subject to payment of Rs 11,87,119.80/- towards cost of additional land, but, the society failed to deposit the cost of additional land. Since the society had paid Rs 25,28,300/- towards premium, it was decided to allot land measuring 5 acres to it, possession of that land was handed over to it on 02nd June, 1983 and the lease deed was executed on 20th November, 1986.

3. As regards the additional land, it is alleged in the written statement that the plaintiff-society paid Rs 3,00,000/- on 11th March, 1983, Rs 3,68,250/- on 30th April, 1983 and Rs 11,87,119/- on 21st June, 1983 and interest, amounting to Rs 6,82,689.68 on