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Delhi District Court

Sh. Rajesh S/O Sh. Shiv Ram Dass vs Govt. Of Nct Delhi Through Its :­ on 30 November, 2018

         IN THE COURT OF SH. SUSHANT CHANGOTRA,
                 JSCC/ASCJ/GJ (SHAHDARA), 
              KARKARDOOMA COURTS, DELHI.

Suit No.: 8953/16

Sh. Rajesh S/o Sh. Shiv Ram Dass, Proprietor
M/s Rachna Trading Company, 
6/53, Gali No. 4, Vishwas Nagar, 
Shahdara, Delhi­110032                                   ......Plaintiff
                              versus
Govt. of NCT Delhi through its :­
1.

 Commissioner of Industries Govt. of NCT Delhi,  Udyog Sadan, Patparganj Industrial Area, Delhi­110092

2. Managing Director D.S.I.I.D.C Ltd. 

(Relocation Division)
Udyog Sadan, Patparganj Industrial Area,
Delhi­110092
                                                            ......Defendants

DATE OF INSTITUTION                                :        05.05.2009
DATE OF DECISION                                   :        30.11.2018


  SUIT FOR MANDATORYAND PERMANENT INJUNCTION
            AND DAMAGES/ MESNE PROFITS



Suit No.: 8953/16        Rajesh Vs. Govt. of NCT of Delhi         page no. 1 of 13

1. The brief facts of the case of the plaintiff as stated in the plaint are that plaintiff is proprietor of M/s Rachna Trading Company situated at 6/53, Gali no. 4, Vishwas Nagar, Shahdara, Delhi.   He is engaged   in   manufacturing   of   PVC   compound.     The   plaintiff   had applied for allotment of alternative industrial plot in the name of M/s Rachna   Trading   Company   under   relocation   scheme   of   industries sponsored by defendant no. 1 as per  direction of Hon'ble Supreme Court of India in M. C. Mehta Vs. UOI & Ors.  

2. The   plaintiff   submitted   his   application   no.   18317   and deposited   earnest   money.     The   plaintiff   received   letter   dated 01.11.1998   from   defendant   no.   1   asking   him   to   submit   proof   of existence of his unit prior to cut off date and also visit the office on 04.12.1998.  Accordingly, plaintiff visited the office of defendant no. 1 and submitted the required documents, but he was not given any information.  He again submitted the documents in office of defendant no.   1   vide   application   dated   26.09.2000   for   reconsideration.     The plaintiff   neither   receive   any   reply   to   aforesaid   letter   nor   got   any information regarding the status of his application.  

3. Upon inquiry, plaintiff came to know that his application had   been   rejected.     He   sent   another   letter   dated   03.09.2007   to defendant no. 1 for re­considering his case.   In response thereto, he received letter dated 23.10.2007 that his application was rejected due Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 2 of 13 to reason that "no documents/absent for hearing" and the file was sent to   defendant   no.   2   for   refund   of   earnest   money   vide   letter   dated 30.10.2001.  He was advised to apply for allotment of industrial plot under  future relocation schemes, if  launched by the government of India.  

4. The plaintiff did not receive refund of earnest money nor received any information from defendant no. 2.  The defendant no. 1 had declared almost all such units eligible for allotment of industrial plots, but plaintiff had been declared ineligible.  

5. The plaintiff sent a notice dated 29.12.2018 to defendants with request to decide his case.  It was duly served and in the reply to the   said   notice,   it   was   informed   that   his   application   had   not recommended and was rejected in the year 2001 and his file had been recommended to defendant no. 2.  The earnest money was refunded in the year 2002.  

6. The plaintiff fulfilled criteria for eligibility of allotment of alternative industrial plot, but the defendants failed to take action. Hence, the plaintiff has prayed for decree of declaration that unit of plaintiff   company   be   declared   eligible   for   allotment   of   plot   under relocation   scheme   and   relocate   the   unit   of   plaintiff   from   non­ confirming residential area to confirming user zone.  

7. Defendant no. 1 and defendant no. 2 filed their separate Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 3 of 13 written statements.  Defendant no. 1 took preliminary objections that suit   is   not   maintainable.   There   is   no   cause   of   action   in   favour   of plaintiff.   He has suppressed material facts.   Plaintiff does not have locus standi and the suit is barred by limitation.  

8. On merits, defendant no. 1 pleaded that application filed by   plaintiff   was   rejected   on   the   ground   that   MCL   name   of   the firm/proprietor/trade,   differ.     Defendant   no.   1   sent   letter   dated 01.11.1998 to the plaintiff for submitting proof of existence of his unit prior   to   04.12.1998.     Defendant   no.   1   had   informed   the   plaintiff regarding   rejection   of   his   application   vide   office   letter   dated 24.08.2000. Thereafter, plaintiff sent representation dated 03.09.2000. Vide letter dated 23.10.2007, plaintiff was intimated about the status of   his   application.     The   earnest   money   had   been   refunded   by defendant no. 2 through cheque no. 49590 dated 14.01.2002 and the same was intimated by defendant no. 2 to the plaintiff vide letter dated 17.01.2002.     The   defendant   no.   1   had   also   sent   a   letter   dated 16.05.2001   to   plaintiff   through   speed   post   for   appearing   before appellate   committee   on   12.06.2001,   but   no   one   turned   up.     The remaining averments of plaint were denied and it was prayed that suit may be dismissed.  

9. Defendant no. 2 in its written statement took objections that the suit is not maintainable against managing director because he Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 4 of 13 has no legal entity.  The suit is barred by limitation and plaintiff does not have locus standi to file present suit.  The persons who were found eligible   and   had   deposited   the   amount   have   been   handed   over   the possession of the plots.   The plaintiff was not found eligible.   The amount of earnest money was refunded to plaintiff on 17.01.2002 vide cheque no. 490590 dated 14.01.2002 drawn on Punjab & Sindh Bank, Connaught Place. The case of plaintiff was financed through Delhi State Cooperative Bank. The amount of earnest money was refunded through the  said  bank  and plaintiff   was  intimated vide  letter  dated 17.01.2002.   The   said   defendant   also   pleaded   that   plaintiff   has   not come to the court with clean hands. 

10. On merits, the defendant no. 2 also pleaded that plaintiff was   found   ineligible.     He   was   aware   of   refund   of   security   vide aforementioned cheque.   There was no reason for plaintiff  to have applied for reconsideration in the year 2007.  Remaining averments of plaint were denied and it was prayed that suit may be dismissed. 

11. The plaintiff filed replication to the written statements of defendants   and   denied   the   averments   of   written   statements   and reiterated the averments of his plaint.

12. From the pleadings, following issues are framed :

(i) Whether the suit is not maintainable in the name of Managing Director of defendant no. 2? (OPD no. 2) Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 5 of 13
(ii) Whether suit of the plaintiff is barred by limitation? (OPD)
(iii) Whether suit is not maintainable in its present form in   view   of   preliminary   objection   no.   5   &   7   taken   by defendant no. 1? (OPD No. 2)
(iv)   Whether   there   was   a   privity   of   contract   between plaintiff and defendant no. 2? (OPP)
(v) Whether plaintiff has concealed material facts from the court? (OPD)
(vi) Whether suit is not correctly valued for the purpose of court fees and jurisdiction? (OPD) (viA) Whether this court has no jurisdiction to try and entertain the present suit? OPD
(vii)   Whether   the   plaintiff   is   entitled   for   relief   of relocation of the unit as prayed by him? (OPP)
(vii) Relief.

                  Vide order dated 09.02.2017 passed by Ld. Predecessor of this court, issues no. 3, 4, 5 & 6A were deleted.

13. In   order   to   prove   his   case,   plaintiff   stepped   into   the witness box and examined himself as PW­1.  He tendered his affidavit Ex. PW1/1 and relied upon documents Ex. PW1/A to PW1/L.  He was Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 6 of 13 cross­examined.  Then plaintiff closed PE on 22.02.2018.

14. Defendants   examined   DW1   Sh.   Pawan   Kumar,   Asst. Manager   in   Delhi   State   Cooperative   Bank.     He   proved   record   Ex. PW1/1 vide which aplication dated 11.02.2002 was moved by Rachna Trading Company for refund of earnest money of Rs. 60,000/­.

15. Defendants   also   examined   DW­2   Sh.   Surender   Singh Meena, Divisional Manager and authorized signatory of defendant no.

2. He tendered his affidavit Ex. DW2/A.  After his cross­examination, DE was closed on 10.07.2018.  

16. Several   opportunities   were   given   to   the   plaintiff   for advancing   arguments.     However,   none   appeared   for   plaintiff. Arguments of ld. counsel for defendants were heard.  I have also gone through the evidence on record carefully. The issue wise findings are as follows :­ ISSUE NO. 1

17. Onus to prove this issue was on defendant no. 2.  Neither evidence has been led nor any argument was advanced in this regard. Ld. Counsel for defendants had argued that both defendant no. 1 and defendant 2 had merged.  Hence, defendant no. 2 has failed to prove this issue.  It is decided against defendants.  

ISSUE NO. 2

Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 7 of 13

18. Onus   to   prove   this   issue   was   placed   on   defendants. Section 3 of Limitation Act provides that every suit instituted after the prescribed period shall be dismissed, although limitation has not been set up as defence.  It is reproduced as below:­          Section 3 of the Limitation Act is as follows:  

(1)   Subject   to   the   provisions   contained   in   sections   4   to   24 (inclusive),   every   suit   instituted,   appeal   preferred,   and application   made   after   the   prescribed   period   shall   be dismissed, although limitation has not been set up as a defence.
(2) For the purposes of this Act......
(b) any claim by way of a set off or a counter claim, shall be treated as a separate suit and shall be deemed to have been instituted­ 
i) in the case of a set off, on the same date as the suit in which the set off is pleaded;
ii) in the case of a counter claim, on the date on which the counter claim is made in court."

19. Plaintiff has pleaded that he had applied for allotment of alternative industrial plot in the year 1998.  As per averments of para no. 4 of the plaint, plaintiff did not receive any intimation, therefore, he   once   again   applied   for   reconsideration   vide   application   dated Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 8 of 13 26.09.2000.     The   plaintiff   has   filed   the   copy   of   the   same   i.e.   Ex. PW1/B.   The perusal of the said application shows that plaintiff has specifically mentioned therein, that his application bearing no. 18317 may   be   reconsidered.     The   word   of   'reconsidered'   in   the   said application   shows   that   plaintiff   was   aware   that   his   application   had been considered and had been declined, otherwise the plaintiff would have use the expression 'consideration' instead of 'reconsideration'.

20. The   case   of   defendants   as   set   out   in   their   written statements is that the plaintiff was duly informed about the rejection of his application vide letter dated 03.09.2000.  In his cross­examination, plaintiff admitted that his application was rejected near about the year 2000.

21. In the plaint, plaintiff has pleaded that he did not receive the   refund   of   earnest   money.     Whereas,   defendants   categorically pleaded that the said amount was refunded in the year 2002 through Delhi State Cooperative Bank through which the application had been processed.   The same was also intimated to the plaintiff vide letter dated   30.10.2001.     In   this   regard,   DW­1   proved   application   dated 11.02.2002 written by the plaintiff to the Manager, Delhi Cooperative Bank.     As   per   said   letter,   the   plaintiff   had   requested   the   manager concerned that the cheque/ pay order received from defendant no. 2 be returned to him.  This witness was cross­examined by the ld. Counsel Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 9 of 13 for plaintiff.  However, the aforesaid fact was not denied. 

22. Therefore, it has to be said that it has been proved (also admitted in the evidence by plaintiff) that the plaintiff had moved the said application dated 11.02.2002 and the amount was released.  This fact clearly shows that the plaintiff was well aware about the rejection of his application and yet he concealed the said fact in his plaint and rather made false averments that he was not aware about the factum of rejection of his application as well as about refund of earnest money.

23. Since   the   application   for   allotment   of   alternative industrial   plot   had   been   dismissed   in   the   year   2000,   therefore,   the plaintiff had to file the suit for declaration and mandatory injunction within period of 3 years from the date of said rejection. However, the present suit was filed on 05.05.2009 i.e. after the gap of almost 8/9 years.

24. The mere giving of representation or filing appeal in the year 2007 as well as service of notice u/s 80 of CPC does not extend the period of limitation which had already lapsed.  

25. Hence, it can be safely concluded that it has been proved to   the   preponderance   of   the   probability   that   the   suit   of   plaintiff   is barred by limitation.   Thus, this issue is decided against the plaintiff and in favour of defendants.

ISSUE NO. 6

Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 10 of 13

26. Onus to prove this issue was on defendants.  Defendants took a plea that the suit has not been valued properly for the purpose of court fees and jurisdiction.  Defendants also stated to the extent that plaintiff is seeking possession of plot.   However, it is clear from the pleadings and evidence that the plot was to be allotted by defendants and   therefore,   the   suit   for   mandatory   injunction   for   directing   the government   departments   to   perform   their   duty   as   per   law   is maintainable.  The plaintiff could not seek possession of specific plot as allotment of plot was the prerogative of the defendants.  Thus, this issue is decided against the defendants and in favour of plaintiff.

ISSUE NO. 7

27. Onus to prove this issue was on plaintiff.   The case of plaintiff is that he had applied for allotment of alternative industrial plot because he was eligible.   On the contrary, the defendants have pleaded that plaintiff was found ineligible on the ground that MLC name of firm/proprietor/trade was different.  

28. Plaintiff   was   under   obligation   to   prove   to   the preponderance   of   probability   that   the   actions   of   defendants   were cryptic/malafide/patently   illegal.     The   plaintiff   has   not   led   any evidence to show that the aforesaid ground taken by defendants was fallacious.  Rather in his cross­examination, plaintiff admitted that he was   having   two   firms   i.e.   Rachna   Trading   Company   and   Krats Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 11 of 13 International.     Thereafter,   in   his   cross­examination,   he   stated   that previously the name of his firm was Krats International and in the year 1992   it   was   changed   to   Rachna   Trading   Company.     Electricity connection was also in the name of Krats International.  The said facts show that the decision of defendants was not cryptic or illegal on the face of it.  

29. Plaintiff   has   not   produced   any   document   on   record   to show that he was proprietor of Krats International or the documents filed by him did not show the aforementioned contradiction.  

30. Hence, the plaintiff has failed to prove that he fulfilled the eligibility criteria of defendants and had furnished documents in proof thereof within the time limit specified.  

31. It is further  necessary to mention that in discussion of issue no. 2, it has already been held that plaintiff had withdrawn the earnest   money   deposited   by   him   vide   letter   dated   11.02.2002. Therefore, after  having withdrawn the earnest money, plaintiff was estopped from claiming the allotment of alternative industrial plot in his favour.  

32. Hence, from all the perspectives, it has to be concluded that   the   plaintiff   has   failed   to   prove   to   the   preponderance   of probability that he is entitled to allotment of alternative plot as per scheme   floated   by   the   defendants.     Accordingly,   this   issue   is   also Suit No.: 8953/16 Rajesh Vs. Govt. of NCT of Delhi page no. 12 of 13 decided against the plaintiff.  

RELIEF

33. In view of the findings given on issues no. 2 & 7, the suit of plaintiff is dismissed with cost.   Decree sheet be prepared.  File be consigned to record room after due compliance.  

                                                               Digitally signed
                                                               by SUSHANT
                                                               CHANGOTRA
                                                     SUSHANT
Announced in open Court                              CHANGOTRA Date:
                                                               2018.12.01
                                                               16:06:30
on 30.11.2018                                                  +0530


                                                      SUSHANT CHANGOTRA   
                                                 JSCC/ASCJ/GJ (SHAHDARA)
                                                  KKD Courts/Delhi/30.11.2018




Suit No.: 8953/16               Rajesh Vs. Govt. of NCT of Delhi     page no. 13 of 13