Delhi High Court High Court

Khanna Hosiery Knitting Works vs Delhi Development Authority on 4 November, 2004

Delhi High Court
Khanna Hosiery Knitting Works vs Delhi Development Authority on 4 November, 2004
Author: P Nandrajog
Bench: P Nandrajog


JUDGMENT

Pradeep Nandrajog, J.

1. Claim in the petition is for enforcement of the right to an industrial plot pursuant to application No.7165 dated 15.10.1966.

2. In the year 1966, DDA notified that persons running industrial units from residential areas (non-conforming use) were invited to submit applications for being granted an industrial plot in an approved industrial area.

3. Petitioner submitted the application as per proforma, being application being No.7165. It was stated in the application that the petitioner was running an industrial unit at premises No.44/F, Kamla Nagar, New Delhi. Petitioner deposited the sum of Rs.1,250/- as earnest money as per the requirement of the policy.

4. The terms and conditions of the policy under which the petitioner applied, inter alia, stipulated as under :

a) Specific plot to the eligible applicants would be allocated at a draw of lots.

b) 50% of the premium, after adjustment of the earnest money, would be deposited within the time as may be specified which would, in no case be less than two months.

c) On failure to pay the amount aforesaid, allotment would be cancelled and earnest money would be forfeited.

d) Balance 50% of the premium and other incidental expenses for preparation of lease deed etc. would be payable within two months of demand being raised, which demand would be raised only when electricity and water would be made available in the area.

5. On 6.1.1969, petitioner was issued an offer letter, offering a plot of 400 sq.yards at Wazirpur Industrial Area. However, it was indicated in the letter that offer was subject to the condition that the petitioner was agreeable to pay full premium in one lump sum. It was further indicated in the letter that if petitioner was not willing to accept these conditions, allotment will be made subsequently in Okhla Industrial Estate. Vide para 3 of the letter aforesaid, it was clearly indicated to the petitioner that if the requisite option was not sent within 7 days of receipt of the letter, it would be presumed that the petitioner was not interested in allotment of an industrial plot.

6. Petitioner accepted the offer made to it by DDA. On 13.1.1969, petitioner intimated to DDA the following :-

“The Land Sales Officer,

Delhi Developmentr Authority,

Delhi Vikas Bhawan,

Inderprastha Estate,

New Delhi.

Sub: Allotment of Industrial Plot

Sir,

In compliance with your letter No.F.6(129)68/ 8613 dated 6.1.69 received by me on 10th January,1969. It is respectfully submitted as follows :-

That the offer of the allotment of the industrial plot at Wazirpur mentioned in your honour’s above said letter is fully acepted by me and I am ready to pay its full premium in one lump sum as conditioned in the letter.

Hence, my option in full acceptance of the said plot in terms of the above said letter is sent within time. Hoping that you will kindly allot the said plot to me on above said terms.

Thanking you,

Yours faithfully,

for Khanna Hosiery Mills, Knitting

44F, Kamla Nagar, Kholapur Road

Delhi

sd/-

PARTNER”

7. Since the petitioner accepted the offer made by DDA and agreed to accept an industrial plot at Wazirpur Industrial Area and pay the premium in one lump sum, on 6.6.1969, DDA issued the demand letter as under :-

“From

Land Sales Officer(I)

Delhi Development Authority,

To

M/s Khanna Hosiery knitting Works,

44-F, Kohlapur Road,

Kamla Nagar, Delhi-7.

Sub: Allotment of an industrial plot.

D/Sir,

With reference to your letter dated 13.1.69 for allotment of an industrial plot I am directed to inform you that it has been decided to allot you a plot of 400 sq.yards approximately in Wazirpur Industrial Area Phase-Scheme on perpetual lease hold basis for shifting from the present non-conforming location. The allotment is on the specific condition that you will, within one year from the date of possession of the plot, shift from your present location and will not use or let out or sub-le the so vacated premises or any other purpose in contravention of the Master Plan for Delhi or Zonal Development Plan of the Zone.

You are now advised to deposit within 7 days from the receipt of the letter the amount detailed below by a demand draft in favor of the Delhi Development Authority. The amount can also be deposited in cash with the State Bank of India, Parliament Street, New Delhi to the credit of account of Delhi Development Authority by means of a special challan form which can be obtained from the Authority’s office (Land Sales Branch (Indl.) on any working day between 3.00 and 4.00 P.M.

 a) Total provisional premium of 
   400 sq.yds. at Rs.26/- per                        Rs.10400.00 
   sqa.yard. 
 
b) Less earnest money already 
   paid vide challan No.7165 
   dated 15.X.66                                     Rs. 1250.00 
 
c) Net payable now.                                  Rs. 9150.00 
 
(Rupees None thousand one hundred and fifty only)
 

 The above amount is subject to adjustment, consequent to the requirements of the layout plan, demarcation of site.  
 

It may please be noted that only those cases wherein payment is received before due date will be considered for allotment of a specific plot by draw of lots in Wazirpur Scheme, failing which allotment will be made in Okhla Industrial Area. It may also please be noted that electricity and water facilities mat not be immediately available and that the possession of the specific plot will be handed over only when demarcated at site which may take about six months.

4. Please note that if the payment is not received within the period stipulated above, the allotment of the plot will be treated as cancelled and you would be liable to be ousted from your existing non-conforming location in accordance with the provisions of the Master Plan for Delhi. In case a plot with locational advantage is allotted to you extra premium will be charged for that.

5. In case the premises occupied at present by the unit area government land, a certificate about clearance of Government dues be produced along with payment of premium, failing which the allotment will be cancelled.

6. Balance amount of the total premium to be calculated according to the prescribed formula, will be payable after completion of services.

Yours faithfully,

sd/- for Land Sales Officer

Delhi Development Authority

No.F.6(129)68 LSB(I) New Delhi, the June,69

Copy forwarded to Supdt. Land Sales Accounts Branch for information and necessary action.

sd/- for Land Sales Officer

Delhi Development Authority”

8. As per the letter dated 6.6.1969, petitioner was to deposit the premium demanded within seven days of receipt of the letter. It was clearly indicated to the petitioner that if the deposit was not made, name of the petitioner would not be entered in the draw of lots to be held for specific allotment of a plot in Wazirpur Industrial Area and in such an eventuality, allotment would be made in Okhla Industrial Area.

9. Petitioner did not pay the requisite sum and accordingly lost right to be considered for specific allotment of a plot in Wazirpur Industrial Area.

10. Since as per letter dated 6.6.1969, right of the petitioner remained intact for being allotted a plot in Okhla Industrial Area, on 11.9.1970, DDA intimated the petitioner that a draw of lots would be held on 14.9.1970 at 3 P.M. Petitioner was requested to remain present. At the draw of lots which was held on 14.9.1970, Plot No.99, Block-D, Okhla Industrial Area, Phase-I, New Delhi came to be allotted to the petitioner. On 3.11.1970, DDA issued the demand-cum-allotment letter. As per the demand-cum-allotment letter, premium charged from the petitioner for plot admeasuring 605 sq.yards was Rs.26,448/-. 25% premium was to be paid at the first instance which came to Rs.6,612/-. Adjusting the earnest money already paid in the sum of Rs.1250/-, an amount of Rs.5,362/- was demanded. It was indicated in the letter that another 25% of the premium would have to be paid within one year and balance 50% would payable on demand when electricity and water supply were made available. Vide para 4 of the aforesaid demand-cum-allotment letter, it was specifically indicated to the petitioner as under :-

“4.Please note that if the payment is not received within the period stipulated above, the allotment of the plot will be treated as cancelled and you would be liable to be ousted from your existing non-conforming location in accordance with the provisions of the Master Plan of Delhi.”

11. Petitioner did not pay the sum of Rs.5,362/- demanded by and under the demand-cum-allotment letter dated 3.11.1970. Reason for non depositing the said amount is as pleaded by the petitioner in para 9 of the writ petition. The same reads as under:-

“9.That though the petitioner was offered a plot in Wazirpur Industrial Area and he was also intimated vide letter annexed as Annexure P.4, that he has been found eligible for allotment for a plot measuring 400 sq.yards in Wazirpur, and a demand of Ra.10,400/- was also issued in th name of the petitioner yet in the draw held by the respondent the plot at Okhla Industrial Scheme, Phase-I was allotted to the petitioner. This allotment was totally inequitable as the Okhla Industrial Area was totally undeveloped at that point in time. The petitioner made oral representation to the respondent requesting it that allotment of plot made at Okhla Industrial Area may be withdrawn and his name be considered for allotment of plot at Wazirpur Industrial Area fort which area he has earlier been found eligible. This request of the petitioner was not acceded to and the petitioner who was not interested in taking the plot at Okhla Industrial Scheme, consequently the petitioner did not deposit the amount claimed vide demand letter dated 3.11.1970.”

12. Since the petitioner did not pay the sum demanded vide demand-cum-allotment letter dated 3.11.1970, vide letter dated 26.4.1971, DDA informed the petitioner that since it had initially accepted the offer made to be allotted a plot in Wazirpur Industrial Area and had also agreed to pay the premium in one lump sum evidenced by the petitioner’s letter dated 13.1.1969 accepting the offer made by DDA vide letter dated 6.1.1969, and since petitioner failed to pay the lump sum premium demanded for 400 sq.yards plot in Wazirpur Industrial Area, demanded vide letter dated 30.6.1969, right to allotment at Wazirpur Industrial Area got extinguished. Thereafter, allotment was made at Okhla Industrial Area, Phase-I. Petitioner failed to pay 25% of the premium demanded and, therefore, entitlement of the petitioner to a plot came to an end. Letter dated 26.4.1971 reads as under :-

“From

The Asstt. Land Sales Officer(I)

Delhi Development Authority,

To

M/s Khanna Hosiery knitting Works,

44-F, Kohlapur Road,

Kamla Nagar, Delhi-7.

Sub: Allotment of an industrial plot.

D/Sir,

With reference to your letter No.217/71 dated 27.3.1971 on the subject cited above. I am directed to inform you that since you have failed to pay the sum of Rs.9150/- within seven days of the issue of this office letter of even number dt. 30.6.69 nspite of your written consent for the same vide your letter No.113/69, dt. 13.1.69 and subsequently the offer made to you vide this office letter of even number dt. 3.11.70, the offer of allotment of any plot to you in the industrial area stand cancelled and action to oust you from the existing non-confirming location without any alternative site in a conforming locality, will be initiated and the Directorate of Industries is being requested to cancel your license and take other necessary action against you for running an industry in a non-conforming location by 30.1.71 (illegible) action for recovery of 10% of Ra.26,448/- as per the terms and conditions signed by you will also be initiated.

Yours faithfully,

sd/-

Dharam Singh,

Asstt.Land Sales Officer(I)”

13. On 13.12.1971, petitioner was intimated that in continuation of DDA’s letter dated 26.4.1971, steps would be taken to oust the petitioner from the existing non-conforming location.

14.Petitioner remained silent till 8.2.1972. On said date it sent a demand draft No.01092 dated 21.1.1972 drawn on Bank of India in the sum of Rs.5,362/- to DDA. It may be noted that this amount was the one demanded as per demand-cum-allotment
letter dated 3.11.1970.

15. In view of belated receipt of the sum of Rs.5,362/- (received when allotment had already been cancelled), on 9.2.1972 DDA noted in the file as under :-

“Along with the P.U.C. the unit has sent a draft for Rs.5,362/- towards 25% of premium. The allotment stands cancelled in default of payment. However, if agreed the draft may be accepted provisionally and party be informed that allotment would only be restored if changes for this belated payment is made.

Submitted for orders pl.”

16. Processing the note, interest was calculated. It came to Rs.388.75. On 28.3.1972 following was communicated to the petitioner :

“Dear Sir, With reference to your letter dated 8.2.1972 on the subject noted above, I am directed to request you to please deposit a sum of Rs.388.75 only on account of interest charges @ 7 +% and 12% per annum after 6 months for belated payment immediately, failing which allotment would be cancelled.”

17. It is apparent that petitioner was tendering payment for the plot at Okhla and DDA was prepared to accept the same provided interest for belated payment was paid as indicated in letter dated 28.3.1972. In spite thereof, petitioner wrote a letterdated 4.4.1972 asking for a plot in Wazirpur Industrial Area. On 24.5.1972, DDA informed that this was not possible. Petitioner was directed to pay the interest immediately. It was informed that failing which the cancelled allotment would not be estored.

18. Petitioner persisted. On 25.5.1972 it reiterated its request/demand. Interest was not paid. On 25.7.1972 DDA informed that if interest for belated payment was not paid within 3 days, matter would be closed.

19. Petitioner, for unexplainable reasons, started quibbling over a petty sum of Rs.388.75. It wrote a letter in August,1972 that it had paid said sum in May,1972. nothings on the file show that DDA went about verifying the correction of said a ssertion.

20. Petitioner managed to pull fast one on DDA. A letter dated 30.5.1972 came to find itself in the file. However, said letter shows that letter and draft dated 30.5.1972 in the sum of Rs.388.75 was received on 22.3.1973 vide diary entry No.1558.

21. Notwithstanding the fact that petitioner attempted to submit to DDA an expired demand draft by anti-dating a letter but forgetting that the date of receipt would let the cat out of the bag, DDA proceeded to overlook the illegality sought to
be perpetuated. On 22.3.1973 itself a note was put up that a draft dated 30.5.1972 in the sum of Rs.388.75 was received. It had expired and, therefore, party should be directed to re-validate the draft.

22.The next superior officer of DDA, to whom the file was put up along with the note dated 22.3.1973, probably got mislead by the fact that the letter dated 30.5.1972 was apparently anti-dated being actually received on 22.3.1973, he recorded a note:

“We may regret inconvenience caused to the party for not getting the draft encashed so far with advise to produce fresh draft. Earlier draft may be returned by registered A/D. I would look into the matter later on.”

23. On 26.7.1973, DDA wrote a letter to the petitioner expressing regret that the draft dated 30.5.1972 could not be got encashed. Petitioner was requested to get the draft re-validated.

24. For unexplainable reasons, vide letter dated 9.4.1973 petitioner returned the draft as it is.

25. Facts aforesaid would reveal a strange attitude of the petitioner. Firstly, when plot at Wazirpur Industrial Area was offered to it on 6.1.1969, vide letter dated 13.1.1969, petitioner accepted the offer and agreed to pay the premium in one lump sum. On 6.6.1969, DDA allotted a plot at Wazirpur Industrial Area to the petitioner and demanded balance premium of Rs.9,150/-. It was clarified to the petitioner in the said letter that if premium was not paid, petitioner would be considered for allotment in Okhla Industrial Area. Petitioner admittedly did not pay the premium demanded vide letter dated 6.6.1969. It obviously lost the right to be allotted a plot in Wazirpur Industrial Area. Keeping the right of the petitioner intact for being allotted a plot in Okhla Industrial Area, on 14.9.1970, DDA included the name of the petitioner at a draw of lot where plot No.99, Block-D, Okhla Industrial Area, Phase-I came to be allotted to the petitioner. On 3.11.1970, DDA issued a demand-cum allotment. As per the said letter, 25% of the premium in the sum of Rs.6,612/- had to be paid. After adjusting Rs.1250/- paid by the petitioner at the time of making application, Rs.5632/- was demanded. It was indicated as to when balance premium had to be paid. Petitioner did not pay the sum demanded. Reason is as averred in para 9 of the writ petition. Reason stated in para 9 of the petition is that the petitioner was found eligible to a plot in Wazirpur. Petitioner forgot that a plot was offered to it in Wazirpur but the petitioner did not pay the sum which was demanded. Further, petitioner made belated payment of 25% of the premium demanded for the plot allotted in Okhla Industrial Area. When asked to deposit the inter st, petitioner got prepared a draft on 30.5.1972 but submitted the same on 22.3.1973 under cover of letter dated 30.5.1972. Obviously the petitioner had something up its sleeve when it served letter dated 22.3.1973 by anti-daring the letter as date 30.5.1972. Further, the officer of DDA being mis-lead by the date of petitioner’s letter thought that DDA had not encashed the enclosed bank draft and it had become invalid due to non-encashment within time, required the petitioner to re-valida e the draft, but the petitioner chose not to do so. It is simply not convinceable to this Court as to why the petitioner acted as it has done. It is a case of rank cantankerousness of behavior.

26.That is not the end of the matter. Petitioner claims to have written a letter on 14.3.1972, copy whereof is annexed as Annexure P-10. Along with the said letter, petitioner sent a draft for Rs.6612/- to DDA as second installment. Said letter refers to draft dated 30.5.1972 in the sum of Rs.388.75.

27. Record of DDA reveals that said letter was received by DDA on 5.8.1972.

28.From the said letter, it is to be found that the petitioner had written to DDA that it was enclosing a demand draft No.DBW 98199 drawn on Punjab National Bank, Kamla Nagar Branch dated 5.8.1972 in the sum of Rs.6612/-. Obviously said letter could not have been written on 14.3.1972.

29.Petitioner had admittedly returned the bank draft dated 30.5.1972 in the sum of Rs.388.75 drawn on State Bank of India without revalidation. When officer of DDA went to the unit, he reported that in spite of visiting the premises several times
it was found locked.

30. DDA wrote a letter to the petitioner on 15.5.1974 as under :-

“F6(129)68-LSB(I). 15.51974

Land Sales Officer (I)

D.D.A.

M/s Khanna Hosiery Knitting Works,

E-112, Kamla Nagar,

Delhi.

Sub: Allotment of industrial plots and
cancellation thereof.

D/Sirs,

The inspection of F-44, Kamla Nagar, Delhi-7 has renewed that no industry is running at site.

You are, therefore, asked to show cause why the allotment of industrial plot may not be cancelled since no industrial activity is in progress in the premises in lieu of which alternative allotment was made. In case a satisfactory reply is not received within a week from the date of receipt of this letter the allotment will be cancelled without further reference in the matter.

Yours faithfully,

(ASHOK BAKSHI)

Land Sales Officer(I)”

31. Thereafter, allotment was cancelled. On 21.8.1978, DDA returned the sum of Rs.10,579/- to the petitioner. Petitioner claims to have written a letter to DDA on 12.6.1978 (Annexure P-12). It is not to be found in the record of DDA. A letter dated 26.8.1978 (Annexure P-13) was stated to have been written. This letter was received in the office of DDA on 28.8.1978. Record of DDA shows that this was not responded to because on 21.8.1978 DDA had refunded the sum of Ra.10,579/- treating the allotment to have been cancelled.

32. Present petition has been filed in the year 2003. Documents have been annexed to show that petitioner had been writing to DDA.

33. If the petitioner was not being handed over of a plot which ought to have been handed over to the petitioner as per the case set up by it somewhere in the year 1974-75, petition ought to have been filed within reasonable time. Present petition suffers from delay and laches. This court cannot loose sight of the fact that there has been a sharp increase in value of land in Delhi. There has been a sharp increase in the cost of development. DDA cannot be expected to give possession of a industrial plot in the year 2003 on the rates at which allotment was made in the year 1970.

34. Further, conduct of the petitioner, to say the least, has been cantankerous. Reasons as to why the conduct of the petitioner is cantankerous, have been noted in para 25 above.

35. Plot in Okhla Industrial Area was allotted to the petitioner under cover of demand-cum-allotment letter dated 3.11.1970. Petitioner did not pay the sum of Rs.5,362/- being 25% premium to be paid after adjusting Rs.1250/-. Petitioner insisted for a plot at Wazirpur Industrial Area, a right which it had lost when it did not pay Rs.9150/- demanded when plot at Wazirpur was offered on 6.6.1969. Notwithstanding the fact that petitioner did not deposit Rs.5362/- within time, belated payment was accepted, but petitioner was required to pay interest for belated payment in the sum of Rs.388.75. Petitioner deposit the said sum of Rs.388.75 vide demand draft dated 30.5.1972, but the same was deposited on 22.3.1973. When returned for realidation, petitioner did not get the said draft revalidated.

36. Allotment was accordingly rightly cancelled by DDA on 21.8.1978. I find not merits in the petition. The same is accordingly dismissed.

37. No costs.