W.P.(C) 3332/2012

1. Vide the present petition, the petitioner inter alia has prayed as under:

(a) Issue a writ of certiorari or any other suitable writ (s) / order (s) / direction (s) quashing the letter dated 14.03.2012 addressed by respondent to the petitioner;

(b) Issue a writ of mandamus or any other suitable writ (s) / order(s)/direction (s) directing the Respondent to refund to the Petitioner the following sums: (i) The upfront premium of Rs.26.23 Crores paid by the petitioner, (ii) the sum of Rs.2.06 Crores, which was paid as stamp duty by the petitioner, (iii) the sum of Rs.1.55 Crore which was paid as registration charges by the petitioner, (iv) the sum of Rs.12.92 Lakhs which was paid as consultancy fee by the petitioner and (v) the sum of Rs.33.29 Lakhs which was paid as interest by the petitioner, together with interest at the rate of 18% p.a.;

2. Mr. Sudhir Nandrajog, ld. Sr. Counsel appearing on behalf of the petitioner submitted that the respondent made conscious and grave misrepresentations on the basis of which the petitioner was induced to part with a sum of Rs.30.32 Crores in exchange for commercially developing a plot of land, whose title purportedly belonged to the respondent / Authority. Respondent had invited expressions of interest for the commercial development of a plot of land, which ad-measured 13216.64 Sq. Mtrs., located at Gola Ka Mandir, Gwalior, Madhya Pradesh.

3. Ld. Sr. Counsel further submitted that the petitioner was the successful bidder and subsequently on 12.08.2009, the petitioner and the respondent entered into Development Agreement-cum-Lease Deed, whereby the petitioner paid an upfront premium of Rs.26.23 Crores to the respondent on the basis of the following representations made by the respondent:

(a) That a plot of land, which was being handed over to the petitioner ad-measuring 13216.64 Sq. Mtrs., comprises in Khasra Nos. 1340-1341.

(b) The respondent / Authority had title to the entire plot of land, which was being handed over to the petitioner.

4. Ld. Sr. Counsel submitted that vide the present petition, the petitioner seeks redressal against the arbitrary action of the respondent / authority whereby the petitioner was inducted to part with large sums of money on the basis of certain grave misrepresentations as under:-

(a) The respondent misrepresented to the petitioner in Article 8.1.1 of the lease agreement that “it has good and valid title to the site and has power and authority to grant the lease”, thereby implying that it had good and valid title to 13,216.64 Sq. Mtrs. at the site when in fact it did not have title to the same.

(b) The respondent misrepresented to the petitioner in clause 9 of the RFP document that the total area of the site was 1.36 Hectares, thereby implying that it had the good and valid title to the said area when in fact it did not have such title.

(c) The respondent misrepresented to the petitioner in recital ‘B’ of the development agreement that the total area of the site was 13,216.64 Sq. Mtrs., thereby implying it had good and valid title to the said area when in fact it did not have such title.

(d) The respondent misrepresented to the petitioner in Article 1.1.37 of the development agreement that the total area of the site was 13,216.64 Sq. Mtrs, thereby, implying it had good and valid title to the said area when in fact it did not have such title.

(e) The respondent misrepresented to the petitioner in the ‘Joint handing over note’ dated 12.08.2009 that “Railway is in the possession of title land bearing no. 1340 and 1341 at Gola Ka Mandir, ad-measuring 13,216.64 Sq. Mtrs. of land has been entrusted to the respondent by the Central Government in exercise of its power under Section 4 (D) of the Railways Act, 1989 and Rule 5 of the Rail Land Development Authority, 2006.”

(f) The respondent misrepresented to the petitioner in the said “joint handing over note” that the total area of the site was 13,216.64 Sq. Mtrs. thereby implying that it