Delhi High Court
Mohd. Sualeheen vs M.C.D. & Others on 28 March, 2011
Author: Sanjiv Khanna
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ LPA No. 297/2011
Mohd. Sualeheen ....Appellant
Through Mr. S.P. Sharma, Advocate.
VERSUS
M.C.D. & Others .....Respondents
Through Mr. Mukesh Gupta, Adv. for MCD.
CORAM:
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE SANJIV KHANNA
ORDER
% 28.03.2011
CM No. 6374/11
For reasons stated in the application, the delay in filing of the
appeal is condoned.
LPA No. 297/2011
The prayers made in the present Letters Patent Appeal are in the
nature of prayers which are normally made before the first court.
During the course of arguments, it is contended that the appellant has
challenged the order dated 24th December, 2010, passed by the learned
Single Judge dismissing the writ petition but granting time to the
appellant to deposit the balance sale consideration @ Rs.7000/- per sq.
mtr. along with interest @ 10% per annum. It is submitted that the
subsequent order dated 25th January, 2011 is also challenged.
2. The contention of the appellant is that he has made payment of
Rs.9,60,000/- for allotment of plots in Ghogha Dairy colony @
Rs.2,500/- per sq. mtr. Ultimately, 2 plots have been allotted in terms
of the policy but the respondent Municipal Corporation of Delhi (MCD)
has raised the price of each plot to Rs.7000/- per sq. mtr. It is
submitted that Rs.9,60,000/- was deposited on 5th December, 2005,
and this amount has remained with the respondent MCD for 5 years
and no interest is being paid on the said amount.
3. Learned Single Judge in the impugned order has referred to the
controversy and the issues involved in detail and has rightly observed
that the present case cannot be equated with simple "offer" and
"acceptance" principles of the Contract Act, 1872. In the present case,
as a matter of public interest, the respondent MCD has provided land
in Ghogha Dairy Project, Narela, Delhi for relocation of eligible illegal
dairies operating from urban limits in Delhi. In this process, 1373
applications were received and the said applicants deposited 50%
advance payment @ Rs.1250/- per sq. mtr. Later on, a committee was
formed as it was realized that there were irregularities and directions
were issued by the Delhi High Court in Writ Petition (Civil) No.
3791/2000. On verification, 535 applicants were found to be eligible
and remaining 838 applications were cancelled. Obviously, the
verification required time. Initially the committee had decided that
only one plot should be allotted at the notified rate to applicants whose
unauthorized dairy was found operating from the premises belonging
to them. Subsequently, it was decided that those running unauthorized
dairies on public/government encroached land will also be entitled for
allotment but at the market rate. Thus the respondent MCD has been
adopting and modifying their policy, keeping in mind the interests of
the persons involved. 189 acres of land was transferred to the
respondent MCD for the said project @ Rs.23,00,000/- per acre which
price was revised to Rs.27,00,000/- per acre in 2009. In these
circumstances, the rates offered earlier were required to be re-worked
on the basis of total expenditure on development activities including
installation of tube-wells etc. On this basis, calculations were made
and the market rate was fixed at Rs.36,560/- per sq. mtr.. However, the
respondent MCD vide resolution dated 24th May, 2010 reduced the rate
to Rs.7000/- per sq. mtr., taking into consideration interest of the
applicants. Thus substantial benefit has been given to the applicants.
The entire calculation has been made on „no profit no loss‟ basis and in
fact the respondent is not earning anything by selling the land @
Rs.7000/- per sq. mtr.
4. In view of the aforesaid explanation, we do not see any reason to
interfere with the impugned order. Even if the appellant has deposited
Rs.9,60,000/- with the respondent in 2005, the allotment @
Rs.7,000/- per sq. mtr. is substantially lower than the market price.
The respondent MCD is entitled to charge and ask the applicants to pay
for development activities and recover their expenditure. By no
stretch, Rs.7000/- per sq. mtr. was to be regarded as market price for a
plot of land in Delhi. Allotments have been made at nominal amount
and market price of land in Delhi is at least 5 times higher than the
price offered by the MCD.
5. The question of interest on deposits made has been left open as
is clear from the order dated 25th January, 2011. Liberty has been
granted to the appellant to raise the said question by moving an
application.
Therefore, we do not see any reason to interfere and the appeal is
accordingly dismissed with no order as to costs.
SANJIV KHANNA, J.
CHIEF JUSTICE
March 28, 2011
kkb
