ANSAL PROPERTIES & INDUSTRIES (P) LTD. AND ANR. versus DELHI DEVELOPMENT AUTHORITY AND ORS.

ANSAL PROPERTIES & INDUSTRIES (P) LTD. AND ANR. versus DELHI DEVELOPMENT AUTHORITY AND ORS.

The ban imposed by Central Government on high-rise constructions was lawful and in furtherance of planned city development under the statutory framework. Appellants did not satisfy the procedural requirements for deemed sanction and constructed without a valid permit. The D.D.A. is entitled to claim simple interest at 18% per annum on instalments as per the revised agreement but is not entitled to charge compound interest or interest on the compounding fee; compounding fee for unauthorized construction is, however, chargeable.

Parties
Appellant: Ansal Properties & Industries (P) Ltd.; Respondent: Delhi Development Authority; Respondent: Union of India; Intervener: Intervener (not named)
Jurisdiction
India
Judgment Date
28 May 1992
Procedural Posture
Civil Appeal / Appeal by Special Leave From Delhi High Court's Dismissal of Writ Petitions
Outcome
Appeals partly allowed.
Legal Topics
Delhi Development Act – Master Plan and Governmental Directions, Building Regulations and Bye Laws – Deemed Sanction, Compounding Fee and Liability for Unauthorized Construction, Interest Charges Under Contractual Revisions
Administrative Law Property Law Planning Law Contract Law Delhi Development Act – Master Plan and Governmental Directions Building Regulations and Bye Laws – Deemed Sanction Compounding Fee and Liability for Unauthorized Construction Interest Charges Under Contractual Revisions

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Parties

Ansal Properties & Industries (P) Ltd.

Appellant

Delhi Development Authority

Respondent

Union of India

Respondent

Intervener (not named)

Intervener

Procedural Posture

Civil Appeal / Appeal by Special Leave From Delhi High Court's Dismissal of Writ Petitions

Legal Issues

  1. 1 Legality of Central Government's ban on high rise constructions pending master plan approval under the Delhi Development Act, 1957
  2. 2 Entitlement to deemed sanction under Building Bye-Law 6.7.4
  3. 3 Entitlement to charge compounding fee and interest on compounding fee for unauthorized construction without permit

Ratio Decidendi

The ban imposed by Central Government on high-rise constructions was lawful and in furtherance of planned city development under the statutory framework. Appellants did not satisfy the procedural requirements for deemed sanction and constructed without a valid permit. The D.D.A. is entitled to claim simple interest at 18% per annum on instalments as per the revised agreement but is not entitled to charge compound interest or interest on the compounding fee; compounding fee for unauthorized construction is, however, chargeable.

Court Disposition

Appeals partly allowed.

Orders

  • High Court order upheld except for modification that D.D.A. is not entitled to charge any interest on the compounding fee.
  • Directions of the High Court to be carried out from the date of the Supreme Court judgment instead of High Court judgment.