In a recent legal case, the court delved into the intricacies of land allotment dues and interest calculations, providing a detailed analysis to resolve the dispute. This summary sheds light on the court’s insightful legal perspective on the matter.
Facts
- The appellant is required to pay the total dues including 12% interest on the delay on the Principal/Premium amount + ground rent, along with 10% interest on the ground rent as on 31.5.2022, totaling Rs.78,84,099/-
- The total dues on the ground rent and its interest amount to Rs.36,16,661/- till date
- The plot was allotted at Rs.80 lakhs per acre as premium with 2.5% of it as Annual Ground rent
- The appeal challenges the order dated 23.01.2020 passed by the High Court of Delhi in L.P.A. No.660/2019 and C.M. No.45005/2019
- The respondents did not pay the dues on time, leading to litigation and the order dated 30.08.2001 stated that a sum of Rs.40,99,163/- was due from the appellant to the L & DO
- Division Bench issued notice to Land and Development Officer and Delhi Development Authority regarding deposit of balance amount.
- Rs.10,50,000/- already deposited as per High Court direction.
- Stay of cancellation of land allotment in favor of appellant.
- Direction given for respondent not to cancel land allotment till next date of hearing.
- Court granted leave on 9th August, 2002.
- Parties directed to maintain status quo as interim measure till disposal of appeal.
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Arguments
- The appellant has already paid a sum of Rs. 10,50,000/- to the L & D.O.
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Analysis
- The original computation of dues was calculated as Rs.1,18,17,617/-, including interest on interest.
- The Petitioner department has re-calculated the dues, excluding interest on interest, which amounts to Rs.78,84,099/- as on 31.5.2022.
- The computation of interest on interest occurred while issuing the third demand notice dated 09.11.2017 and not earlier.
Decision
- An amount of Rs.78,84,099/- is frozen till 31.08.2022, to be deposited by the respondents with the appellants.
- If the deposit is made within the stipulated time, possession of the plot shall be handed over to the respondents.
- Interest will be chargeable from 01.06.2022 onwards.
- An additional affidavit has been filed by the appellants, calculating all dues as of 31.05.2022.
- The total principal/premium amount was paid by the Respondent Society on various dates, excluding interest on delay as directed by the Hon’ble Division Bench of the High Court.
- The calculated figure of Rs.78,84,099/- is considered reasonable and in compliance with relevant principles.
- If the amount is not deposited within the stipulated time, the frozen dues will cease.
- This order concludes the civil appeals without any costs, and disposes the pending L.P.A. No.660 of 2019 as per the directions.
- All pending applications, including any contempt petition, are also disposed of.
- Details of premium payments made by the Respondent Society along with interest calculations are provided.
- The Respondent Society is liable to pay annual ground rent and interest on it as per the allotment letter.
- The appellants may consider cancelling the allotment in favor of the respondents if needed for public purposes.
- Possession of the plot is directed to be handed over to the respondents on or before 04.02.2020, subject to the outcome of the appeal.
Case Title: UNION OF INDIA THROUGH SECRETARY Vs. BUDDHA TRI RATNA MISSION (2022 INSC 595)
Case Number: C.A. No.-004162-004163 / 2022