Allahabad High Court
Allure Developers Private Limited vs State Of U.P. And 2 Others on 5 March, 2020
Bench: Abhinava Upadhya, Shamim Ahmed
HIGH COURT OF JUDICATURE AT ALLAHABAD ?Court No. - 37 Case :- WRIT - C No. - 7962 of 2020 Petitioner :- Allure Developers Private Limited Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Durgesh Kumar Singh,Anil Kumar Rai Counsel for Respondent :- C.S.C.,Kaushalendra Nath Singh Hon'ble Abhinava Upadhya,J.
Hon'ble Shamim Ahmed,J.
Heard Sri G.K.Singh, learned Senior Advocate assisted by Sri Ravi Nanda and Sri Durgesh Kumar Singh, learned counsel appearing for the petitioner, learned Standing Counsel appearing for the State-respondents and Sri Kaushalendra Nath Singh, learned counsel appearing for the respondent-NOIDA Authority.
The petitioner, being a part of consortium, was allotted 60000 Square meter land for the development of the Sports City in NOIDA and a lease deed was executed on 19.12.2014.
Relevant portion of lease deed reads as under:
"1.NOW THIS LEASE DEED WITNESSETH AS FOLLOWS:
That in consideration of the premium of Rs.116,40,00,000/-(Rupees One hundred sixteen crores forty lakhs only) out of which 20% i.e., Rs. 23,28,00,000/- (Rupees twenty three crores Twenty eight lakhs only) have been paid by the Lessee to the Lessor (the receipt thereof the Lessor hereby acknowledges) and the balance 80% premium i.e., Rs.93,12,00,000/- (Rupees ninety three crores twelve lakhs only) of the plot will be paid in 16 half yearly installaments along with interest @11% p.a. from the date of issue of reservation letter for the land."
The lease deed has also fixed schedule for the payment of lease rent. It is mentioned in the lease deed that the ground rent payable by the petitioner from the date of lease deed would be at the rate of Rs.1/- per square meter for the first three years. After three years the ground rent/lease rent shall be charged at the rate of 2.5% of the total premium of the plot for the next seven years of the first 10 years. The total premium of the land was Rs.1,16,00,000/-(Rs. One Crore and Sixteen Lacs) and odd.
Learned counsel for the petitioner submits that the Development Authority could not give possession of the land to the petitioner till 2016 and once the petitioner came into possession, it applied for 'zero period' from the date of execution of the lease till the delivery of possession. The said application of the petitioner was allowed and the petitioner was granted 'zero period' upto 30th September, 2016. Now a demand notice has been issued on various heads including that of the ground rent/lease rent and surprisingly the lease rent that is being charged is from 2015 to 2020.
It is to be noted that once the Development Authority itself granted 'zero period' upto 30.9.2016, how can lease rent be charged at the rate of 2.5% of the total premium from 2015.
Learned counsel for the petitioner submits that the petitioner has already made a representation before the Chief Executive Officer, NOIDA raising his grievances, which is still pending and has not yet been decided but the recovery is being pressed for the said amount.
Sri Kaushalendra Nath Singh, learned counsel appearing for the NOIDA Authority submits that the petitioner has also defaulted in payment of premium.
Be that as it may, so far as the demand of lease rent is concerned, which has been made from 2014, whereas the petitioner has been granted zero period upto 30.9.2016, this aspect has to be clarified by the NOIDA Authority before whom the representation is still pending.
The writ petition is disposed of with the direction to the Chief Executive Officer, NOIDA-respondent no.3 to pass a fresh order only with regard to lease rent, which has been charged from 2015 upto 2020, especially in view of the fact that the 'zero period' has been allowed upto 30.9.2016 and why the petitioner should be saddled with extra lease rent, once the property in question was not handed over to the petitioner and 'zero period' having been declared by the authority itself. The said decision shall be taken by the Chief Executive Officer-respondent no.3 within a period of six weeks from the date a certified copy of this order is presented before the authority concerned.
Till such decision is taken by the Chief Executive Officer, so far as lease rent is concerned, no coercive steps shall be taken against the petitioner pursuant to the demand notice dated 6.9.2019 only with regard to lease rent. The said demand shall be subject to final decision that may be taken by the Chief Executive Officer.
Order Date :- 5.3.2020 SKM (Shamim Ahmed,J.) (Abhinava Upadhya,J.)