Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Judicial Process-Abuse of process of Court |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Case Type | Special Leave Petition |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Judicial Process-Abuse of process of Court-Auction of Commercial Tower Plot-Highest bidder Skipper Construction Ltd. deposited 25% of bid amount-Defaults in making balance of payment-Calculated attempts made to circumvent orders of Court-Advertisement issued for confirmed booking of commercial flats-Creation of rights in favour of third parties during pendency of court proceedings-DDA adopted a passive attitude-Bank's liberality in advancement of loans and bank guarantees to Skipper Construction-case of abuse of process of court. Delhi Development Authority Act-S.41-Exercise of powers under Conduct of D.DA. officials in respect of Skipper Constructions-Questionable-Probe suggested. In an auction held by the Delhi Development Authority of a Commercial Tower Plot, the first respondent was the highest bidder. As per the condition of the auction, the respondent deposited 25% of the bid amount. The bid was confirmed by DDA and Skipper was called upon to make the balance payment of 75% of the bid amount within 90 days as per the conditions of the auction. The Government of India issued directions to DDA to reschedule the recovery of 75% of the bid amount with interest from Skipper. Skipper entered into fresh licence agreement, paid 50% of the original bid and secure payment of the balance 50% of the bid of submitting bank guarantees. Thereafter, the first respondent did not pay in terms of the agreement. Subsequently, the Lt. Governor issued a direction at the request of Skipper, deferring recovery of 2nd instalment till one month after the sanctioning of the building plans. Then the respondent filed writ petition seeking relief relating to sanctioning of building plans and permission for construction. The DDA granted conditional and provisional sanction to plans of the building subject to the payment of monies due to the DDA. An interim order was passed by the High Court permitting Skipper to commence construction without first depositing the dues of the DDA.On appeal, the Division Bench directed the payment of a token sum. This order was not complies with. Skipper approached the court for extension of time to make payment. The Court extended the time affording liberty to the DDA to encash the bank guarantees. However ,the bank guarantee could not be encashed because it was conditional. The DDA filed appeals against the interim orders passed by the High Court. The Supreme Court stayed further construction and made it conditional upon payment of a specified amount.Skipper filed a Civil suit for a direction that the DDA ought not to insist upon payment by cash or draft and ought to be directed to encash bank guarantee. Orders were issued directing the DDA to invoke the bank guarantee. However, the suit was ultimately dismissed. The writ petition filed by Skipper was also dismissed with direction to Skipper pay to DDA by cash or demand draft a sum and to stop construction till payment was made. In the event of non payment, DDA was made entitled to enter upon D the property and forfeit the monies already received. Skipper filed SLP against the dismissal of the writ petition. The Supreme Court passed an interim order directing Skipper to deposit money. Skipper was permitted to resume the construction only after making the first deposit.In violation of the interim order of the Supreme Court, Skipper issued advertisement seeking to create third party rights. The SLP was dismissed and DDA re-entered and took physical possession of the property. Skipper filed another suit in the High Court. DDA issued notices for auction of the property. The Allahabad High Court in a writ petition stayed the notice of auction. DDA published notice inviting tenders. Application was filed to accord permission to confirm the bid for the grant of lease hold rights in favour of the highest acceptable tender. The petitioner argued that Skipper indulged in abuse of process of law more than once. The sale of space to various flat owners was in violation of law and judicial directions in view of the categorical direction of the Delhi High Court that the flat shall vest in DDA free from all encumbrances. The alleged creation of third party rights was also vitiated by fraud. The petitioner submitted that because of the attempt of the flat owners to disrupt the auction DDA had no other option than to invite tenders and the highest tender bid accepted was in keeping with the market rate. Hence it was prayed that the offer might be accepted and Skipper be dealt with for abuse of process of court.Skipper pleaded that as a last chance if time could be granted it will pay off the entire dues. |
Judge | N/A |
Neutral Citation | 1995 INSC 75 |
Petitioner | Delhi Development Authority |
Respondent | Skipper Construction And Anr. |
SCR | [1995] 1 S.C.R. 555 |
Judgement Date | 1995-01-25 |
Case Number | 21000 |
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