DELHI DEVELOPMENT AUTHORITY versus SKIPPER CONSTRUCTION AND ANR.

DELHI DEVELOPMENT AUTHORITY versus SKIPPER CONSTRUCTION AND ANR.

Skipper Construction Co. (P) Ltd. repeatedly abused the process of court by calculated attempts to circumvent judicial orders, especially by creating third-party rights and continuing construction in violation of orders. DDA erred in handing over possession before full payment and in their passive conduct. All monies paid by Skipper were rightly forfeited, and the property vested in DDA free from all encumbrances. DDA was entitled to accept the highest market tender and Skipper to be dealt with for abuse of process.

Parties
Petitioner: Delhi Development Authority; Respondent: Skipper Construction Co. (P) Ltd.; Third Party: New Bank of India
Jurisdiction
India
Judgment Date
25 January 1995
Procedural Posture
Special Leave Petition (civil) / Final Disposal With Orders
Outcome
Appeal disposed. Skipper's payments forfeited; DDA's actions upheld.
Legal Topics
Abuse of Process of Court, Delhi Development Authority Act S.41, Bank Guarantee, Creation of Third Party Rights During Litigation, Res Judicata
Abuse of Judicial Process Property Law Auction Law Abuse of Process of Court Delhi Development Authority Act S.41 Bank Guarantee Creation of Third Party Rights During Litigation Res Judicata

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Parties

Delhi Development Authority

Petitioner

Skipper Construction Co. (P) Ltd.

Respondent

New Bank of India

Third Party

Procedural Posture

Special Leave Petition (civil) / Final Disposal With Orders

Legal Issues

  1. 1 Whether Skipper Construction Co. (P) Ltd. abused the process of court by creating third-party rights during litigation
  2. 2 Whether DDA officials' conduct and handling of the auction and payments constituted passive or questionable actions
  3. 3 Whether DDA and New Bank of India’s actions in granting indulgence and liberality in banking amounted to 'something rotten'

Ratio Decidendi

Skipper Construction Co. (P) Ltd. repeatedly abused the process of court by calculated attempts to circumvent judicial orders, especially by creating third-party rights and continuing construction in violation of orders. DDA erred in handing over possession before full payment and in their passive conduct. All monies paid by Skipper were rightly forfeited, and the property vested in DDA free from all encumbrances. DDA was entitled to accept the highest market tender and Skipper to be dealt with for abuse of process.

Court Disposition

Appeal disposed. Skipper's payments forfeited; DDA's actions upheld.

Orders

  • Skipper found in abuse of process of court; monies paid forfeited; property vests in DDA free from encumbrances.
  • DDA entitled to proceed with auction/tender and accept the highest bid.