DELHI DEVELOPMENT AUTHORITY versus SKIPPER CONSTRUCTION AND ANR.

DELHI DEVELOPMENT AUTHORITY versus SKIPPER CONSTRUCTION AND ANR.

Report of Justice Bahri Commission on diversion of funds and cooked-up accounts at Skipper Towers is accepted over objections based on hypothetical and manipulated figures. The substantive justice requires refund of all depositors, judicial scrutiny, and attachment/sale of properties acquired by diverted funds.

Parties
Applicant: Delhi Development Authority; Respondent: Skipper Construction; Respondent: Skipper Construction and Anr.
Jurisdiction
India
Judgment Date
07 April 2005
Procedural Posture
Special Leave Petition (civil) / Final Order With Directions / Post Appeal
Outcome
Report of Commission accepted; Objections dismissed; Refunds and judicial scrutiny ordered; Additional directions issued.
Legal Topics
Substantive Justice, Fraud, Diversion of Funds, Company Accounts Manipulation, Refund of Depositors, Judicial Supervision of Claims, Attachment and Sale of Assets
Constitutional Law Property Law Companies Law Civil Procedure Substantive Justice Fraud Diversion of Funds Company Accounts Manipulation +3 more

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Parties

Delhi Development Authority

Applicant

Skipper Construction

Respondent

Skipper Construction and Anr.

Respondent

Procedural Posture

Special Leave Petition (civil) / Final Order With Directions / Post Appeal

Legal Issues

  1. 1 Whether the accounts of Skipper towers relating to 22, Barakhamba Road were authentic or manipulated
  2. 2 Whether diversion of funds occurred
  3. 3 What is the true expenditure and liability for construction/claims

Ratio Decidendi

Report of Justice Bahri Commission on diversion of funds and cooked-up accounts at Skipper Towers is accepted over objections based on hypothetical and manipulated figures. The substantive justice requires refund of all depositors, judicial scrutiny, and attachment/sale of properties acquired by diverted funds.

Court Disposition

Report of Commission accepted; Objections dismissed; Refunds and judicial scrutiny ordered; Additional directions issued.

Orders

  • Transferee company to file undertaking to refund all 590 allottees with 8% interest from date of deposit till payment.
  • Construction permitted as per sanctioned plan, no sale of properties until full payment to claimants.