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V. GOPALA GOWDA, J.

Leave granted.

This appeal by special leave is directed against the impugned judgment and order dated 31.05.2011 passed by the High Court of Delhi at New Delhi in RSA No. 6 of 1983, wherein the High Court has dismissed the second appeal filed by the appellant-Authority (hereinafter called “DDA”) holding that acceptance of rent, in the instant case, by the DDA pursuant to a demand made by it amounts to a renewal of lease in respect of the property in question.

Aggrieved by the said judgment of the learned ADJ, DDA preferred the Second Appeal vide RSA No. 06 of 1983, before the High Court of Delhi at New Delhi. During the pendency of the said second appeal an application vide CM No. 13336 of 2007 was moved under Order 22 Rule 10 of the CPC for substitution of M/s Anant Raj Agencies Pvt. Ltd.-the respondent herein in place of original lessee-Balraj Virmani. In the said application it was urged that the property in question had been purchased by the respondent vide sale deed in view of compromise decree dated 22.06.1988 passed by the High Court in terms of settlement between the original lessee and the respondent herein. The High Court vide order dated 03.11.2009 substituted the respondent in place of the original lessee-Balraj Virmani in the second appeal proceedings.

During the pendency of the said RSA No. 6 of 1983, the respondent applied to DDA for conversion of the said premises from leasehold to freehold vide application dated 26.03.2004. The respondent deposited a sum of Rs.96,41,982/- towards conversion charges as per the policy applicable, but the request for conversion was rejected by the DDA. Being aggrieved by the said decision, the respondent preferred writ petition being CWP No. 10015 of 2005 before the High Court of Delhi praying for directions to be issued to the DDA to consider the request of the respondent and grant conversion of the said premises from leasehold to freehold. The High Court by its order dated 19.07.2007 disposed of the said writ petition by directing DDA to decide the matter of conversion within a period of 8 weeks after the disposal of RSA No. 6 of 1983.

The High Court by its judgment and order dated 31.05.2011 has dismissed RSA No. 6 of 1983 filed by the DDA holding that its act of demanding and accepting rent tantamounts to renewal of lease in respect of the property in question. Hence, this appeal by way of special leave has been filed by the DDA raising certain substantial questions of law urging various grounds.

Mr. Ashwani Kumar, the learned counsel appearing on behalf of the DDA contended that the High Court has failed to appreciate that the original lessee has admittedly breached the terms and conditions contained in the lease deed and thus, not entitled to the renewal of the same in his favour.