1982 (5) TMI 193 - HC - Indian Laws

Summary

Issues Involved:
1. Terms for conversion of land use from residential to commercial.
2. Rejection of building plans by NDMC.
3. Alleged discrimination by NDMC in sanctioning building plans.
4. Interest charges on additional premium.

Issue-wise Detailed Analysis:

1. Terms for Conversion of Land Use from Residential to Commercial:

The petitioners, lessees of 9 Tolstoy Marg, sought permission to convert their property from residential to commercial use as per the 1961 Master Plan. They first applied for this conversion in 1963 but were told their request could only be considered after the finalization of the zonal plan. Despite a follow-up, they did not submit the required plans until 1970. The government treated the 1970 application as the first valid request and quoted a conversion rate of Rs. 1500 per sq. yard, based on 1972 rates. The petitioners argued for the 1963 rate of Rs. 300 per sq. yard. The court ruled that the crucial date for calculating charges should be 30th December 1970, with the applicable rate being Rs. 600 per sq. yard, rejecting the government's demand for 1972 rates.

2. Rejection of Building Plans by NDMC:

The petitioners submitted plans for a multi-storeyed building to NDMC in 1971, which were rejected due to the lack of the Lesser's consent as required under Section 193(2) of the Punjab Municipal Act. The court upheld the NDMC's decision, stating that the land vested in the government and the lease required the Lesser's consent for any new construction or change of use. The court found no merit in the petitioners' argument that the lease itself amounted to consent.

3. Alleged Discrimination by NDMC in Sanctioning Building Plans:

The petitioners claimed discrimination, citing instances where NDMC sanctioned plans for other properties without the government's prior consent. The court found these cases were not comparable as they occurred before a 1971 government ban on multi-storeyed buildings. The court concluded that from 1971 to 1976, NDMC uniformly rejected plans due to the government's directive, and there was no evidence of discrimination.

4. Interest Charges on Additional Premium:

The government demanded interest on the additional premium from 1970 to the present. The court found no justification for this claim, noting that the government did not communicate the terms for conversion until 1982. The court ruled that there was no agreement or statutory provision to support the demand for interest, referencing the case of Bengal Nagpur Railway v. Battanii Ramji.

Conclusion:

The court directed the government to grant permission for the permanent change of purpose at the rate of Rs. 600 per sq. yard, based on 1970 rates, and dismissed the petition against NDMC. The court found no basis for the interest charges and concluded there was no discrimination by NDMC. The parties were ordered to bear their own costs.