9911796707
TMI Blog2014 (4) TMI 1272X X X X Extracts X X X X X X X X Extracts X X X X ..... why action be not taken to determine the perpetual lease-deed executed in favour of Jindal Strips Limited. 2. The appellant No.1 was originally known as Jindal Strips Limited. Its name was changed on April 29,2005 to Nalwa Sons Investment Limited. It is the lessee of plot No.12, Bhikaji Cama Place, New Delhi vide perpetual lease-deed dated September 28,1993 executed by DDA. 3. Appellant No.2 is now known as Jindal Stainless Limited. 4. In order to streamline its operations appellant No.1 decided to have a demerger scheme under which the stainless steel business at Hissar devolved upon appellant No.2. A Company Petition No.135/2003 was filed before the High Court of Punjab and Haryana which was disposed of on May 30,2003. Under the demer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gle Judge has dismissed the writ petition holding that in terms of the scheme of arrangement and demerger the assets of the first appellant stand transferred to the second appellant attracting Clause 2(d) of Instructions for charging unearned increase issued by DDA. The impugned order has also relied upon Clause 6(a) of the perpetual lease which stipulates that sale/transfer/ assignment or parting with possession of the commercial plot would attract 50% unearned increase to be paid to DDA. The learned Single Judge has also placed reliance on a judgment of a Division Bench of this Court reported as 2002 (61) DRJ 304, Indian Shaving Products Limited vs. Delhi Development Authority. 10. Learned senior counsel appearing for the appellants has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Clause shows that DDA, when giving consent for sale, transfer, assignment or otherwise parting with possession of the commercial plot, may (emphasis supplied) impose such terms and conditions as it thinks fit and shall be entitled to claim and recover a portion of the unearned increase. The object of the said Clause is to protect DDA and to permit it to recover a part of the unearned increase which the lessee obtains on sale of the property. 14. In other words, the intent is to recover a part of the profit made by the lessee. 15. In the present facts it is obvious that no consideration whatsoever has passed. It is a case of reorganisation of business. 16. The impugned order relies on Clause 2(d) of the Policy for charge of unearned inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reorganisation of the business. The Policy specifically provides for no unearned increase to be charged in such a situation. 20. We may clarify that it is not every case of demerger that the unearned increase will not apply. There may be cases where an element of sale is involved. In such a situation the issue would be different. 21. Hence, in our view, the respondent is not entitled to charge any unearned increase in the facts and circumstances of the present case keeping in mind a meaningful reading of Clause 6(a) of the perpetual lease and the policy for unearned increase. Even in equity no such amount can be claimed by DDA. 22. Regarding the judgment of the Division Bench of this Court in Indian Shaving Products Limited vs. DDA (sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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