VidhiSangh

Supreme Court of India · 07/03/2025

DELHI DEVELOPMENT AUTHORITY versus S.G.G. TOWERS (P) LTD. & ORS.

[2025] 3 S.C.R. 779 · 2025 INSC 337

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The DDA's predecessor executed only an agreement to lease a Nazul plot in 1957; clause 24 provided that no right, title or interest would pass until a lease was executed and registered, and no lease was ever executed. The intended lessee nonetheless conveyed the plot to a company in 1985, and in that company's liquidation the plot was auctioned on an 'as is' basis to the first respondent in 2000; the sale was confirmed and the DDA's appeal dismissed. The Supreme Court held that the auction purchaser acquired neither ownership nor leasehold rights but at most whatever rights the original intended lessee had under the agreement, declined to direct payment of unearned income out of the liquidation funds, left the DDA free to pursue possession or unearned income, and dismissed the appeal subject to those findings.

Issues

  1. Whether the first respondent, as auction purchaser in the liquidation of the second respondent, acquired ownership or leasehold rights in the plot when the lease in favour of the original intended lessee was never executed.
  2. Whether the Court should direct that part of the auction consideration lying in the liquidation proceedings be appropriated towards unearned income payable to the DDA.
  3. What remedies remain open to the DDA and to the auction purchaser.

Provisions considered

Held

Result

Appeal dismissed, subject to the findings recorded, including that the auction purchaser acquired no ownership or leasehold rights and that the DDA's remedies for possession and unearned income remain open.

Judgment PDF: Supreme Court of India, [2025] 3 S.C.R. 779.