DLF UNIVERSAL LTD. AND ANR. versus DIRECTOR, T & C. PLANNING HARYANA AND ORS.

Citation: [2010] 15 S.C.R. 85 · Decided: 19-11-2010 · Supreme Court of India · Bench: B. SUDERSHAN REDDY, S.S. NIJJAR · Disposal: Appeal(s) allowed

Cited by 4 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

[2010] 15 (ADDL.) S.C.R. 85 
DLF UNIVERSAL LTD. AND ANR. 
v. 
DIRECTOR, T & C. PLANNING HARYANA AND ORS. 
(Civil Appeal No. 550 of 2003) 
NOVEMBER 19, 2010 
[B. SUDERSHAN REDDY AND SURINDER SINGH 
NIJJAR, JJ.] 
Haryana Development and Regulation of Urban Areas 
Act, 1975: 
Scheme of the Act - Held: The Act intends to regulate 
the use of land in order to prevent ill planned and haphazard 
urbanization in or around towns in the State of Haryana -
Urban development. 
ss.2(i), 5; r.118 r.w. r.26(2) of Haryana Development and 
Regulation of Urban Areas Rules, 1976 - Extension fee and 
maintenance fee - Power of Director (Town and Country 
Planning) to prohibit the colonizer/owner of the land to collect 
A 
B 
c 
D 
the extension fee and the maintenance fee from plot/flat 
E 
holders -
Held: There is nothing in the Act, Rules and 
Regulations prohibiting the colonizer/owner of the land to 
collect additional amount on account of non-completion of the 
construction by the purchaser within the period stipulated in 
the agreement - The licence granted by the Director do not 
F 
prohibit incorporation of such a clause in the agreement to 
be entered between the owners and the purchasers - The Act 
also does not suggest that the owner is required to provide 
the maintenance services free of cost - The Director has no 
authority under the Act to issue directions to the owners/ G 
colonizers to incur maintenance expenses, by deeming the 
same to be part of the internal development works covered 
by s.2(i). 
85 
H 
86 
SUPREME COURT REPORTS [2010) 15 (ADDL.) S.C.R. 
A 
Transfer fee - Allottee's right to nominate another person 
as purchaser of property whether can be denied by colonizer 
- Held: There is no provision whatsoever in the Stamp Act or 
Registration Act imposing any restriction on the assignment 
or transfer of rights under a sale/purchase agreement by the 
8 purchaser to a third party, before the execution of any 
conveyance deed in respect of any immovable property- The 
conveyance deed executed by the owner is the one which is 
executed either in favour of the allottee or his nominee as the 
case may be on which a proper stamp duty and registration 
fee is required to be paid - Director (Town and Country 
C Planning) has no power under the Act or the Rules to issue 
direction prohibiting such nomination of another person 
thereby substituting the al/ottee. 
Jurisdiction of the Director (Town and Country Planning) 
D to meddle with the terms of agreements entered into by and 
between the owner and the purchasers of flat/plots - Held: 
E 
There is no provision in the Act or the Rules empowering the 
Director to sit in judgment on the perceived fairness of any 
clauses incorporated in the agreement entered by the parties. 
Sale price of plots/flats - Determination of - Held: The 
sale price charged by the owner from the buyers for the sale 
of the plots/flats is a market driven sale price and is not based 
on any particular figure of cost - The provisions of the Act or 
F the Rules in no manner impose any price control directly or 
indirectly in respect of plots/flats sold by the colonizer/owner 
- The question as to whether the cost of the plot includes the 
maintenance charges has to be decided on a proper 
interpretation of the terms and conditions of the agreement. 
G 
Functions and duties of Director of Town and Country 
H 
Planning -
Held: The Director plays vital role and is 
authorized to issue appropriate directions from time to time 
concerning the execution of layout and development works 
in the colony and every such direction issued is required to 
DLF UNIVERSAL LTD. v. DIRECTOR, T & C. 
87 
PLANNING HARYANA 
be complied with by the licencee - He is is not authorized to 
A 
interfere with agreements voluntarily entered into by and 
between the owner/colonizer and the purchasers of plots/flats 
-
The agreed terms and conditions by and between the 
parties do not require the approval or ratification by the 
Director;, nor is the Director authorized to issue any direction s 
to amend, modify or alter any of the clauses in the agreement 
entered into by and between the parties. 
Profit - Limit of 15% profit - The question as to whether 
the owner made any profit over and above 15% would arise · 
for consideration only after the grant of final completion C 
certificate in respect of the entire colony/development - In 
case, it is found that the owners had exceeded the said 15% 
limit on the profit, it is alway

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