Tag: DDA

Commercial vs. Residential Use: Supreme Court Decides on Delhi Market Plot Dispute
Supreme Court

Commercial vs. Residential Use: Supreme Court Decides on Delhi Market Plot Dispute

In a significant order, the Supreme Court clarified the legal framework governing the use of upper floors in designated Local Shopping Centres (LSCs) in Delhi. The Court held that while the ground floor is permitted for commercial use, utilizing upper floors for commercial purposes requires payment of conversion charges and regularization of any unauthorized construction as per the Master Plan for Delhi-2021 and relevant building bylaws. Facts Of The Case: This case concerns an application for the de-sealing of a commercial premise at Plot No. 106 in New Rajinder Nagar Market, New Delhi. The applicant, M.C. Mehta, filed an Interlocutory Application (I.A.) in the long-standing Public Interest Litigation (W.P.(C) No. 4677 of 1985) concerning unauthorized constructions and land misu...
When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance
Supreme Court

When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance

The Supreme Court held that an agreement to sell flats, which was contingent upon construction violating building bye-laws and the master plan, was unlawful and void under Section 23 of the Indian Contract Act. The Court ruled that specific performance cannot be granted for an illegal contract, and courts cannot rewrite or sever its essential, unlawful terms to make it enforceable. Facts Of The Case: In December 1984, Canara Bank entered into an agreement with K.L. Rajgarhia to purchase residential flats to be constructed on his plot in East of Kailash, Delhi, for ₹32,07,500. The bank paid approximately 90% of the consideration upfront. The agreement specified the construction and sale of eight flats and a basement, with completion required within 18 months. When the defendant failed to ...
Supreme Court Rules: Bank’s Illegal Mortgage Voids Multi-Crore Property Auction
Supreme Court

Supreme Court Rules: Bank’s Illegal Mortgage Voids Multi-Crore Property Auction

The Supreme Court quashed the e-auction sale as the proclamation violated Rule 53 of the Income Tax Act's Second Schedule, applicable via the RDDB Act. It failed to disclose material encumbrances, specifically DDA's claim for unearned increase. The Court held the sale was void, applying principles of restitution to refund the auction purchaser with interest. Facts Of The Case: The Delhi Development Authority (DDA) allotted a plot to Sarita Vihar Club on a leasehold basis. The club mortgaged the plot to Corporation Bank without obtaining the mandatory prior written consent from the Lieutenant Governor, as required by the lease deed. When the club defaulted on its loan, the Bank initiated recovery proceedings. The Debt Recovery Tribunal (DRT) ordered the sale of the plot. Despite DDA's obj...
Supreme Court Verdict on Delhi Ridge : DDA Must Pay for Environmental Damage in Delhi Ridge Case
Supreme Court

Supreme Court Verdict on Delhi Ridge : DDA Must Pay for Environmental Damage in Delhi Ridge Case

The Supreme Court held the Delhi Development Authority (DDA) in contempt for wilfully disobeying its 1996 order prohibiting tree felling in the Delhi Ridge and for concealing this action from the court. The Court emphasized that such conduct obstructs the administration of justice and undermines the Rule of Law, necessitating remedial measures to purge the contempt. Facts Of The Case: This contempt petition before the Supreme Court of India stems from the Delhi Development Authority's (DDA) alleged wilful disobedience of the Court's 1996 order in M.C. Mehta v. Union of India, which mandated the preservation of the ecologically sensitive Delhi Ridge. The DDA sought approval for constructing approach roads to the Central Armed Police Forces Institute of Medical Sciences (CAPFIMS), entailin...