JUDGMENT

Jyoti Singh, J. - Co.Appl. 133/2020 (Seeking review of order dt 16.09.2019)

1. Present application has been filed by the Applicant/New Okhla Industrial Development Authority (hereinafter referred to as the 'Authority') seeking review of the order dated 16.09.2019 as well as a direction to M/s. Gwalior Transmissions Systems Ltd. to pay a total amount of Rs. 6,07,45,312/- towards the balance installments and the interest thereon as agreed between the parties. The said order was challenged by the Authority before the Division Bench in Co. Appeal No. 05/2020 and the Appeal was disposed of by the Division Bench vide order dated 19.02.2020, granting liberty to the Authority to move an application seeking review of the order dated 16.09.2019 before this Court.

2. It needs to be noted that on 16.09.2019, counsel appearing on behalf of the Authority, on instructions from the Accounts Officer, had submitted that in terms of their valuation, in the event prior rental was discharged simultaneously with rental for an equal period towards future rent, the Authority would not charge any interest thereon. Insofar as the installments towards total consideration of the subject plot is concerned, it was submitted that the Authority shall abide by the directions of this Court, including determination of rate of interest which they are entitled to receive, in the event the ownership of the Company in liquidation, qua the subject plot, is restored. Based on the submission made, by a consent order, the application was disposed of directing the counsel for the Authority to indicate to the Applicant therein, who was the auction purchaser, the exact amount that was payable, including water, electricity charges etc. and the interest, which the Court had determined @ 5% simple interest. Upon the Applicant therein paying the outstanding amount, 'No Dues Certificate' was to be issued by the Authority.

3. In order to understand the controversy involved in the present review petition, a brief background of facts would be necessary. A Lease Deed dated 06.03.1993 was executed by and between M/s. Gwalior Transmissions Systems Ltd. (hereinafter referred to as the 'Company') and the Authority with respect to Plot No. A-6, Phase-II, Noida, Uttar Pradesh. As per the Authority, the relevant clauses of the Lease Deed provided that the lease rent may be enhanced every 10 years from the date of execution, by an amount not exceeding 50% of the annual lease rent payable. At the time of enhancement, in case of default in payment of lease rent, interest @ 24% per annum compounded half yearly was chargeable for the delayed period. This was in terms of Clause 1(b), relevant part of which is as follows:

"1 (b) ........ The lease rent may be enhanced after every 10 years, from the date of execution of the deed by an amount not exceeding 50% of the annual lease rent payable. At the time such enhancement, in case of default in payment of lease rent, interest @:24% p.a. compounded every half yearly would be chargeable for the delayed period".

4. By virtue of Clause II(a), Company was required to pay Rs.7,14,000/- in ten/half yearly installments along with interest @16.5% per annum towards premium from the date of issue of allotment letter. Out of a total premium of Rs. 10,20,000/-, an amount of Rs.3,60,000/- stood paid. It was further provided that if the installments together with the interest accruing thereon are not paid by or on the date due, interest @ 24% compounded sixmonthly shall be charged for delayed payment for delayed period. It was provided further that if any installment or interest accruing thereon was not paid on the due date, compound interest @ 24% per annum shall be chargeable with six-monthly rests on the premium due.

5. According to the Authority, Company has not paid the installments since 1994 and only the first installment dated 30.06.1993 was paid. The