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TMI Blog2025 (3) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of the High Court had observed that the auction would not amount to sale of the said plot. The impugned judgment leaves the remedy of the appellant open to proceed against the concerned parties. These findings have been accepted by the first respondent.
As regards the unearned income, the Division Bench was right in not passing any order on that behalf. We cannot direct the funds available in liquidation proceedings for payment of the unearned income as large number of claims have been submitted.
Conclusion - The first respondent cannot claim to be a lessee as the lease in terms of the lease agreement was never executed. At the same time, if according to the case of the appellant, M/s Mehta Constructions had committed breach of the lease agreement, notwithstanding the impugned orders, it will be always open for the appellant to adopt appropriate remedy for recovery of possession and/or recovery of unearned income against the first respondent.
Appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... which clearly provided that unless the lease is executed, the agreement will not create any right, title or interest in respect of the said plot in favour of M/s Mehta Constructions. 5. The learned senior counsel submitted that the plot is Nazul land, which belongs to the Union of India and is in the care and custody of the appellant. He submitted that a Nazul land can be sold only in accordance with Section 22 of the Delhi Development Act, 1957 (for short, "the said Act") and the Delhi Development Authority (Disposal of Developed Nazul Land) Rules, 1981 (for short, 'the 1981 Rules'). The learned counsel submitted that though no right, title or interest was created in favour of M/s Mehta Constructions, it purported to execute an agreement for sale in favour of the second respondent. It appears that in Company Application pending before the learned Single Judge, M/s Mehta Constructions was represented by one Shri R.P. Dutt, its Managing Director who stated that an absolute irrevocable authority has been conferred upon Shri S.Daljit Singh and Shri S.Charanjit Singh of the second respondent to take steps to get the title of M/s Mehta Constructions perfected. An order was passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid piece of land hereby agreed to be demised or any part thereof so as to give the said intended lessee any right, title or interest therein other than as may be conferred by these presents until the said lease shall have been executed and registered." 8. Admittedly, a lease in terms of the lease agreement was never executed. On 25th November 1972, M/s Mehta Constructions executed an agreement for sale in favour of the second respondent for a consideration of Rs.3,06,700/-. It appears that on 15th February 1985, M/s Mehta Constructions executed a sale deed in favour of the second respondent in respect of the said plot. As per the order dated 4th February 1985 passed by the learned Single Judge of the High Court, the High Court Registrar presented the sale deed for registration before the sub-Registrar of Assurances at Delhi. On 9th June 2000, a notice for Proclamation of Sale was published by the High Court of Punjab and Haryana of the said plot. Accordingly, in the auction sale, the highest bid of the first respondent was accepted by the High Court. The auction sale was confirmed by the learned Single Judge. The order of the learned Single Judge had been confirmed by the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yana High Court, out of the amount deposited by the first respondent towards confirmation of sale, amounts of Rs.70,49,036/- and Rs.14,00,579/- have been invested in fixed deposits. The Registrar General pointed out that the maturity value of the fixed deposits was Rs.2,14,06,677/- and Rs.51,43,324/-, respectively. It is true that the aforesaid amounts which are invested in fixed deposits are available. However, the liquidation proceedings are still pending. In the report, the liquidator stated that a number of parties had made claims against the second respondent, including the Income Tax Department. The total claims are of Rs.60.66 crores or more. The total amount available is approximately Rs.10 crores. The amount available will be governed by the orders passed by the Company Court. When the High Court is seized of liquidation proceedings, and as there are other creditors of the second respondent, it will not be appropriate to direct that a part of the amount paid towards consideration by the first respondent should be appropriated towards unearned income payable to the appellant. 11. It is an accepted position that the lease was never executed by the appellant in favour of M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement, provided the rights can be claimed at this stage. In fact, in the impugned judgment, the Division Bench of the High Court had observed that the auction would not amount to sale of the said plot. The impugned judgment leaves the remedy of the appellant open to proceed against the concerned parties. These findings have been accepted by the first respondent. 13. As regards the unearned income, the Division Bench was right in not passing any order on that behalf. We cannot direct the funds available in liquidation proceedings for payment of the unearned income as large number of claims have been submitted. 14. Thus, the scenario which emerges is that the first respondent is not entitled to either ownership or leasehold rights in respect of the said plot. The first respondent cannot claim to be a lessee as the lease in terms of the lease agreement was never executed. At the same time, if according to the case of the appellant, M/s Mehta Constructions had committed breach of the lease agreement, notwithstanding the impugned orders, it will be always open for the appellant to adopt appropriate remedy for recovery of possession and/or recovery of unearned income against the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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