The cancellation of a lease due to shareholding changes is unjustified when actual possession of leased land has not been delivered, invalidating claims for rents and penalties.

JUDGMENT :

1. The above two writ petitions between t he same set of parties involve identical facts. The Writ (C) No. 26513 of 2022 has been filed assailing an order dated 27.07.2022 passed by YEIDA canceling the allotment as also the lease deed executed in favour of the petitioner, during the pendency of the Writ (C) No. 23888 of 2021. Both the writ petitions have been connected and thus are being decided together by a common order. The Writ (C) No. 23888 of 2021 is treated as the leading petition and the facts involved therein are being considered to decide the controversy involved.

2. The writ petitioner which is a Special Purpose Company incorporated under the Companies Act, 1956 with the object and business of development of Residential Township, has approached this Court assailing the impugned notice dated 11.11.2020 issued by the Manager (Property), Yamuna Expressway Industrial Development Authority/Respondent No. 4 to the extent it demands interest and penal interest on the premium and lease rent amount during the period physical possession of the leased land has not be given to it. A further prayer in the nature of mandamus commanding the Respondent YEIDA to not impose interest and penal interest on the premium and lease rent during the period physical and actual possession of the leased land is not handed over, and provide exemption from payment of the interest and penal interest on the premium and lease rent, hand over physical and actual possession of the lease land, execute an additional lease deed for the remaining area of the plot reserved and allotted to the petitioner under the reservation letter dated 30.03.2011 and allotment letter dated 22.12.2011 has been prayed for.

3. The facts shorn of unnecessary details leading up to filing of the instant writ petition are that the Respondent No. 2 the Yamuna Expressway Industrial Development Authority hereinafter referred to as YEIDA in the year 2011 invited tender for setting up residential township from interested parties inter-alia for allotment of Plot No. TS-2 in Sector 18, Greater Noida for size approximately 100 acres under Scheme YEA-RT-03/2011. The tender rules permitted a Consortium of Companies to bid against the tender. A Consortium of M/s Amenite Builders and Developers (Pvt.) Ltd. and other Companies i.e. M/s PC Developers (Pvt.) Ltd., M/s Three C Universal Developers Pvt. Ltd, M/s Dashmesh Promoters and Developers Pvt. Ltd, M/s Visitor Constructions Pvt. Ltd and M/s Mereton Infotech (Pvt.) Ltd. applied against the tender invited depositing Rs.10 Lacs as processing fee and earnest money of Rs.10 crores on 20.3.2011. The Consortium offered the highest bid of Rs.4,735/- square meters and consequently a reservation letter dated 30.3.2011 was issued in favour of the Consortium by the respondent no. 2 YEIDA. The total premium payable was Rs.1,91,62,54,500/- for an area of 40,4700 square meters land. The respondent no. 2 required the Consortium to deposit 10% of the total premium as reservation money which worked out to Rs.19,16,25,450/-. Since a sum of Rs.10 crores stood deposited the Consortium deposited a sum of Rs.9,16,25,450/- on 28.4.2011. Thereafter the respondent no. 2 issued the allotment letter dated 22.12.2011 stating therein that as per lease plan, an area of 287645 square meters was being allotted at the rate of Rs.5,023 per square meters. The remaining area of the plot no. TS-2, Sector 18, Greater NOIDA would be allotted as soon as land comes under possession of the Development Authority (YEIDA).

4. As per the term