DELHI DEVELOPMENT AUTHORITY ETC. versus AMBITIOUS ENTERPRISES AND ANR. ETC.

DELHI DEVELOPMENT AUTHORITY ETC. versus AMBITIOUS ENTERPRISES AND ANR. ETC.

The Supreme Court held that the condition imposed by DDA requiring applicants for allotment of industrial plots to possess valid municipal licence under Section 416 of the Delhi Municipal Corporation Act on the date of application is neither arbitrary, unreasonable nor irrational. Such condition is valid under statutory Nazul Rules, and applicants who did not possess licences at the requisite date are not entitled to allotment, even if licences were later granted with retrospective effect under ad hoc policy. Retrospective licences are insufficient where the applicant filed an indemnity bond expressly waiving claim to sites or compensation.

Parties
Appellant: Delhi Development Authority; Respondent: Ambitious Enterprises; Respondent: Other respondents (industrial units)
Jurisdiction
India
Judgment Date
09 July 1997
Procedural Posture
Civil Appeal / Supreme Court Decision
Outcome
Appeals partly allowed, partly dismissed.
Legal Topics
Allotment of Alternative Industrial Plots, Municipal Licensing Requirements, Delhi Development Authority Policy, Nazul Land Rules Application
Town Planning Municipal Law Administrative Law Allotment of Alternative Industrial Plots Municipal Licensing Requirements Delhi Development Authority Policy Nazul Land Rules Application

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Parties

Delhi Development Authority

Appellant

Ambitious Enterprises

Respondent

Other respondents (industrial units)

Respondent

Procedural Posture

Civil Appeal / Supreme Court Decision

Legal Issues

  1. 1 Whether the requirement of a valid municipal licence under Section 416 of the Delhi Municipal Corporation Act for allotment of alternative industrial plots by DDA is valid.
  2. 2 Whether Rule 6(v) of the Nazul Rules, 1981 requires allotment only to applicants possessing municipal licences.
  3. 3 Whether applicants granted ad hoc municipal licences with retrospective effect are eligible for allotment.

Ratio Decidendi

The Supreme Court held that the condition imposed by DDA requiring applicants for allotment of industrial plots to possess valid municipal licence under Section 416 of the Delhi Municipal Corporation Act on the date of application is neither arbitrary, unreasonable nor irrational. Such condition is valid under statutory Nazul Rules, and applicants who did not possess licences at the requisite date are not entitled to allotment, even if licences were later granted with retrospective effect under ad hoc policy. Retrospective licences are insufficient where the applicant filed an indemnity bond expressly waiving claim to sites or compensation.

Court Disposition

Appeals partly allowed, partly dismissed.

Orders

  • Appeals of DDA in the case of M/s. Vijay Steel Products SLP(C) No. 9028/95, Kimat Baldev Chhiber SLP(C) No. 9123/95 and M/s. Chawla Sons (Regd.) SLP(C) No. 9098/95 are dismissed. Orders of the High Court affirmed.
  • Appeals of DDA in cases of M/s. Ambitious Enterprises SLP(C) 8351/91, M/s. Chopra Dying Industries SLP(C) No. 10819/95, M/s. Basant Parkash Electric & Co. SLP(C) No. 9031/95, Raj Brothers SLP(C) No. 9567/95, R.K. Chanderbhan Multani SLP(C) No. 18870/95, Joytosma Export SLP(C) No. 9370/95, M/s. Dolly Toys...