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DELHI DEVELOPMENT AUTHORITY versus DELHI CLOTH MILLS LTD. AND ORS.

Citation: [1991] 2 S.C.R. 590 · Decided: 01-05-1991 · Supreme Court of India · Bench: RANGANATH MISRA · Disposal: Disposed off

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Judgment (excerpt)

A 
DELHI DEVELOPMENT AUTHORITY 
v. 
DELHI CLOTH MILLS LTD. AND ORS. 
MAY l, 1991 
B 
[RANGANATH MISRA, CJ, M.M. PUNCHHI AND 
S.C. AGRAWAL, JJ.] 
Delhi Cloth Mills-Scheme for redevelopment of the mills area-
Supreme Court's direction to the Delhi Development Authority to grant 
conditional approval to the scheme subject to removal of objections 
C 
raised by the Municipal Corporation of Delhi and the Delhi Develop-
ment Authority-Objections by DDA-Validity of-Directions given 
by Supreme Court. 
By an order dated 13.3.1990 the Supreme Court directed the 
Delhi Development Authority (D.D.A.) to grant conditional approval to 
D 
the respondent-Company's (D.C.M.) scheme pertaining to the develop-
ment of mills land measuring 63 acres for construction of flatted 
factories and residential complex subject to removal of objections raised 
by Municipal Corporation of Delhi and Delhi Development Authority. 
The matter could not be t"malised by the parties since the DDA took 
certain objections to the scheme: (a) that the Delhi Cloth Mills should 
E 
file a modified plan so as to conform to the Master Plan of the year 
2001; (h) the legal proceedings before the High Court and the Supreme 
Court proceeded on the wrong assumption that the entire 63 acres of 
land was owned by the Delhi Cloth Mills whereas the DCM owns only 
52 acres of land while the balance II acres was owned by the DDA 
which is partly on lease and partly in trespass with the Delhi Cloth 
F 
Mills; and (c) the grant of permission by the DDA vide its resolution No. 
26 dated 1-2.83 does not ipso facto mean that it had given up its rights 
or title to the lease hold lands or that it had regularised the possession of 
the trespassed upon land with the Delhi Cloth Mills. The respondent-
Company filed applications for direction in this court. 
G 
Disposing the applications, this Court, 
HELD: 1- The D-D.A- stands directed by this Court to grant to 
the D.C-M- approval, even though conditional, and the D.C.M. stands 
impliedly directed and is duty bound to remove the objections raised by 
the D-D-A. This Court had endorsed by means of this .directive the 
H already known views of the Delhi High Court towards restoring resolu-
590 
._._ 
..... 
D.D.A. v. D.C.M. 
591 
tion of the D.D.A. dated February 1, 1983, whereby the scheme as given 
by the Delhi Cloth Mills was approved in tenns thereof. The approval 
came from the D.D.A. at a time when the Master Plan of the year 1962 
was operative and the one of the year 2001 was notexistant, and if at all 
existant in an embryonic stage. The law governing the subject and the 
rules and regulations then in vogue and applicable were deemingly kept 
in view and applied by the D.D.A. in the approval of the scheme. To 
whittle down the effect of that resolution on the emergence of the new 
Master Plan of the year 2001, made applicable after the orders of this 
Court would, at the present stage, if insisted npon be spelled out-as a 
step to undermine the orders of this Court. Such an objection by the 
D.D.A. when raised before March 13, 1990, the day when the Supreme 
Court passed its judgment, was untenable in law and the D.D.A. should 
have known it before putting such an objection to use. Therefore, the 
first objection of the D.D.A. is repelled and it is directed to stick to the 
position as per Master Plan as existing on February l. 1983. [ 594D-G] 
2. The objection of the D.D.A. with regard to the wrong impres-
sion of the ownership of the land is valid substantially. It is the admitted 
case of tbe parties that the scheme pertains to 63 acres of land which the 
Delhi Cloth Mills while applying for sanction claimed to own and one of 
the considerations in passing the resolution dated February 1, 1983 ex 
facie was the D.D.A. being impressed by a private enterpreneur coming 
forward with a scheme with such a large chunk of land. The D.D.A. 
when engaged in examining and sanctioning the proposal was justified 
on proceeding on the supposition of facts given by the Delhi Cloth Mills 
as true, and in processing the sanie cannot be said to have surrendered 
its ownership rights qua land measuring 11 acres. It cannot be assumed 
that by upholding the resolution dated February 1, 1983, the Delhi High 
Court, or Supreme Court, had acknowledged Delhi Cloth Mills as the 
owner of 63 acres of land involved iu the scheme or that the right of 
ownership of the D.D.A. over about 11 acres ofland stood extinguished 
by such exercise. Theref

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