Supreme Court of India
ASHISH SETH versus SUMIT MITTAL AND OTHERS on 9 October 2020
[2020] 11 S.C.R. 525
ASHISH SETH
v.
SUMIT MITTAL AND OTHERS
(Contempt Petition(C) No. 34/2016 in
Writ Petition (Criminal) No.5/2015)
OCTOBER 09, 2020
[ASHOK BHUSHAN AND M. R. SHAH, JJ.]
Contempt of Court – Dispute between two groups of a JointVenture (JV) Company – Seth Group and Mittal Group – The JVCompany had acquired some land and also availed licenses withan intent to develop the land – Subsequently, both the Groups agreedto divide the development in the land and thereupon the developmentrights in the land were sold – Dispute arose between them in respectof payment of liabilities out of the JV Company which gave rise tovarious litigations – Matter was referred to arbitration –Memorandum of Settlement (MoS) dated 04.05.2015 was executedbetween the Groups whereunder both the groups were to fulfill thereciprocal obligations – Writ Petition was disposed of in terms ofthe MoS – In the contempt petitions filed by Seth Group, thegrievance was that Mittal Group failed to comply with the obligationsunder the MoS and the non-compliance was wilful and intentional– On 24.04.2020, this Court held that the Mittal Group deliberatelyand willfully did not fulfill their obligations under the MoS and assuch they rendered themselves liable for action under the Contemptof Courts Act – However, two months’ time was given to them tofulfill their part of obligations under the MoS – Despite the abovespecific directions, licenses were not renewed by the Mittal Groupand because of non-renewal of the licenses, the balance amount ofEDC liability was not paid by the Seth Group and even the MittalGroup also did not pay their liability towards EDC of the said licenses– Hence IAs filed by both the Groups – Held: Considering the earlierorder dated 24.04.2020, it is not disputed that the Mittal Groupwas to renew licenses and for which application was to be submittedby them – The three licenses were with respect to the entire 48.03acres of the land, out of which the development rights of only 14.80acres were given to Seth Group – Even bifurcation of licenses was
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Awith respect to 14.80 acres in favour of Seth Group and theremaining 33.23 acres in favour of the Mittal Group and others –Conjoint reading of relevant clauses of MOS showed that the liabilityof the Seth Group towards the license renewal fees is with respectof the lands falling to the share of Seth Group i.e. 14.80 acres andadditionally, the Seth Group is also required to pay half of theBliability of others towards license renewal fees and the Mittal Groupis liable to pay balance license renewal fees – Thus, both the Groupsare directed to pay their respective license renewal fees liabilitywithin two weeks – As regards the liability towards EDC, both Groups desired to avail the benefit of One Time Settlement Scheme,C“Samadhan Se Vikas” – In view of that, both the Groups are requiredto submit mutual consent opting for the benefit of OTS scheme –Thus, in continuation of earlier order dated 24.04.2020, directionspassed in respect of renewal of license and payment of amounttowards EDC liability under the new OTS scheme – Matter to belisted after three months for reporting compliance.DCIVIL ORIGINAL JURISDICTION: Contempt Petition (C) No.34 of 2016 in Writ Petition (Criminal) No. 5 Of 2015.
[Under Article 32 of The Constitution of India]
Jayant Sud, ASG, Anil Grover, AAG Haryana, Ranjit Kumar, K.V.EViswanathan, Sr. Advs, Abhimanyu Bhandari, Rajnish Kumar Singh,Rakesh Kumar-i, Ms. Noopur Singhal, Rahul Khurana, Satish Kumar,Sanjay Kumar Visen, Ankit Goel, Sanjay S. Chhabra, Rajnish Singh,Nitesh Jain, Ms. Priyanka Kaushik, K.N. Singh, Abhishek Agarwal, AyushSharma, Akhilesh Kumar Pandey, M/S. Karanjawala & Co., BankeyFBihari, Sahil Tagotra, Sachin Mittal, M.L. Lahoty, Paban K. Sharma,Anchit Sripat, Himanshu Shekhar, Advs. for the appearing parties.
The Judgment of the Court was delivered by
M. R. SHAH, J.
The Judgment of the Court was delivered by
M. R. SHAH, J.
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1. The dispute is between the two groups – Seth Group and MittalGGroup. Both, the Seth Group and Mittal Group entered into aMemorandum of Settlement (MOS) dated 4.5.2015, which ultimatelywas made a part of this Court’s order dated 5.5.2015, disposing of WritPetition (Criminal) No. 5 of 2015 and Writ Petition (Criminal) No.11/2015. Non-compliance of the order passed by this Court in the aforesaidHwrit petitions is the subject matter of the present contempt petition No.
34/2016 initiated by the Seth Group. After considering the rivalsubmissions and the relevant clauses in the MOS dated 4.5.2015 andafter considering the obligations of the Seth Group and the obligations ofthe Mittal Group under MOS dated 4.5.2015 and after having noted andconsidered the material on record, this Court in the earlier detailed orderdated 24.4.2020 specifically held that the Mittal Group have deliberatelyand wilfully not fulfilled their obligations which are required to be fulfilledunder MOS dated 4.5.2015. This Court also opined that as such MittalGroup have rendered themselves liable for the action under the Contemptof Courts Act. However, before taking any further action, this Courtgranted further two months’ time to the Mittal Group, namely, Shri SumitMittal, Shri Madhur Mittal and TFIPL, to fulfil their part of obligationsunder MOS dated 4.5.2015, more particularly,
(i) To pay the entire EDC liability of TFIPL with interest inrelation to license Nos. 34, 35 and 36 other than the shareof the EDC liability which the Seth Group has undertakento pay as per Clause 1.2 of the MOS;
(ii) As per Clause 1.2, EDC liability of the Seth Group is to theextent of Rs.25,27,92,000/-, out of the total EDC liability ofTFIPL in relation License Nos. 34, 35 and 36 as on24.03.2015 together with interest accrued thereon from24.03.2015. Therefore, the Seth Group shall make the entirepayment of Rs.25,27,92,000/- along with the interest accruedthereon from 24.03.2015 towards their EDC liability inrespect of License Nos. 34, 35 and 36 of 2007;
(iii) The Mittal Group is hereby further directed to renew thelicense Nos. 34, 35 and 36 of 2007; to execute GPA byTFIPL (as per Clause 5.3), Board Resolution by TFIPL foravailing benefit under EDC Relief Policy (as per Clause1.2.1), NOC without any conditions (as per Clause 8) tothe Seth Group;
(iv) Thereafter, the DTCP to bifurcate the Seth Group’s portionof the land in accordance with law and as per the policyand/or the rules and regulations, if any. It is also observedthat it will be open to the respective parties to avail thebenefit of the applicable EDC Relief Policy, which may beconsidered by the DTCP in accordance with the applicableEDC Relief Policy, if any.
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AThis Court specifically directed that the entire exercise shall becompleted within a period of two months from the date of lifting lockdownin the concerned area, failing which this Court shall proceed to passappropriate further order/orders under the Contempt of Courts Act fornon-fulfilment of the obligations by the respondents – Shri Sumit Mittal,Shri Madhur Mittal and TFIPL.B
2. It appears that despite the above specific directions, licensenumbers 34, 35 and 36 of 2007 are not renewed by the Mittal Group andbecause of the non-renewal of the aforesaid licensees, even the balanceamount of EDC liability has not been paid by the Seth Group and eventhe Mittal Group has also not paid their liability towards the EDC inCrespect of the aforesaid license numbers 34, 35 and 36 of 2007 andtherefore the ultimate sufferer is the home buyers who are waiting fortheir homes.
3. Seth Group has filed Interlocutory Application No. 78952 of2020 for the following reliefs:D
i) allow the present application and direct that in the event theMittal Group still fails to comply with its obligations under the MOSdated 04.05.2015, as reiterated in the directions of this Court dated24.4.2020, the bifurcation and renewal of license Nos. 34, 35 and 36 of2007 be granted in favour of the Seth Group, subject to any furtherEconditions;
ii) direct that consequent to the bifurcation and renewal of licensesin question, the Seth Group shall handover the apartments to the flatbuyers within a time bound manner, under the control and direction ofDirector General Town and Country Planning, Haryana.
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4. Mittal Group has also filed Interlocutory Application No. 96206of 2020 and have prayed for the following reliefs:
i) direct Seth Group to comply clause 1.2 (to the extent of providingBank Guarantee) and clauses 1.3 and 1.4 and all other formalitiesas contained “para-17” of the order dated 05.05.2015 and toGfurnish the requisite documents to the Maximal Infrastructure Pvt.Ltd. as entailed in the Check-List formulated by DTCP for renewalof license, in a time bound manner;
ii) direct other developers, namely, Official Liquidator of TriveniInfrastructure Development Company Limited (presently company H
is under liquidation), PAL Infrastructure Pvt. Ltd., ORSInfrastructure Pvt. Ltd. and Heritage Cottage Pvt. Ltd. to complywith all formalities as contained in the Check-List for renewal oflicense and furnish the requisite documents to the MaximalInfrastructure Pvt. Ltd. in a time bound manner.
5. It is the case on behalf of the Seth Group that the Mittal Groupis deliberately and wilfully and with malafide intention creating the hurdlesin getting the aforesaid three licensees renewed. It is submitted thatunnecessarily the Mittal Group is asking the Seth Group to furnish therequisite documents to the Maximal Infrastructure Pvt. Ltd. as entailedin the Check-List formulated by the DTCP for renewal of licensees. Itis submitted that unnecessarily the Mittal Group is insisting the otherdevelopers, namely, the Official Liquidator of Triveni InfrastructureDevelopment Company Ltd., PAL Infrastructure Pvt. Ltd., ORSInfrastructure Pvt. Ltd. and Heritage Cottage Pvt. Ltd. to comply withall formalities as contained in the Check-List for renewal of license andfurnish the requisite documents to Maximal Infrastructure Pvt. Ltd. It issubmitted that even the Mittal Group is also not paying their liabilitytowards the EDC, though specifically directed by this Court in its orderdated 24.04.2020. It is submitted that the Mittal Group is required to paythe entire renewal license fee charges and because of non-payment ofthe renewal license fee charges and non-submission of the relevantdocuments and/or asking the documents from the Seth Group, thoughnot required, licensees are not being renewed. It is submitted that so faras the Seth Group is concerned, they have already fulfilled their obligationsunder the MOS dated 4.5.2015 and have already paid the huge amountand despite the same they are not getting any benefits and therefore, it isprayed to grant the reliefs prayed in IA No. 78952 of 2020.
6. On the other hand, Shri Ranjit Kumar, learned Senior Advocateappearing on behalf of the Mittal Group has submitted that for gettinglicense numbers 34, 35 and 36 renewed the requisite documents asentailed in the Check-List formulated by the DTCP are required to befurnished and the Seth Group is not furnishing the requisite documentsand therefore there is a delay in getting the aforesaid licensees renewed.It is submitted therefore that as such the Seth Group is responsible fornot getting the licensees renewed.
6.1 Shri Ranjit Kumar, learned Senior Advocate appearing onbehalf of the Mittal Group has further submitted that after the order A
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Adated 24.04.2020 passed by this Court, with respect to the EDC liability,the DTCP has come out with a new OTS Scheme, i.e., “Samadhan SeVikas”. It is submitted that the Mittal Group is ready and willing to availthe new One Time Settlement Scheme – “Samadhan Se Vikas”. It issubmitted that the amount due and payable under the new scheme hasbeen computed by the DTCP in the last communication dated 17.09.2020.B
7. Having heard the learned counsel for the respective partiesand considering the earlier order passed by this Court dated 24.04.2020,it cannot be disputed that as directed by this Court the Mittal Group is torenew license numbers 34, 35, and 36 of 2007 and for which the applicationis to be submitted by the Mittal Group – TFIPL. For the licensees to beCrenewed, the license renewal fee is required to be paid and only thereafteron payment of EDC by the respective groups – Seth Group and MittalGroup, as determined in the order dated 24.04.2020 and on payment ofother charges due and payable under the law, the aforesaid licensenumbers 34, 35 and 36 of 2007 can be bifurcated. So, first of all, theDrenewal license fee is required to be paid. It is the case on behalf of theSeth Group that they are not required to pay any renewal license feeand it is the liability of the Mittal Group to pay the renewal license fee,which is disputed by the Mittal Group.
7.1 Now so far as the liability to pay the renewal license fee isEconcerned, the relevant clauses of MOS dated 4.5.2015 are required tobe considered and they are clause nos. 1.3, para 2, para 5.4, 17 and 18,which are as under:
“1.3 Pay License Fee to “Directorate of Town and CountryPlanning” (DTCP) Haryana as under:
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1.3.1 The Seth Group shall pay Rs.1,46,58,000/- (Rs. One CroreForty Six Lacs and Fifty Eight thousand only) to TFIPL in theform of Demand Draft drawn in favour of “Directorate of Townand Country Planning” Haryana towards License Renewal Feein respect of License Nos. 34, 35, & 36 of 2007 to the TFIPL onGor before 21.06.2015 for forwarding the same to DTCP, Haryanaon 21.06.2015 together with the balance license fee made availableby Mittal Group in terms of the clause 5.4 below.
2. The amount to be paid by Seth Group towards License Feeunder Clause 1.3 and the Bank Guarantee to be furnished by SethGroup towards IDW, under Clause 1.4 above, includes not only H
the liability of Seth Group in that behalf, but also that of M/s PalInfrastructure & Developer Pvt. Ltd. (for short “Pal”), M/s ORSInfrastructure Pvt. Ltd. (for short “ORS”) and M/s HeritageCottages Pvt. Ltd. (for short “Heritage”) to the extent ofRs.53,11,000/- (approx.) towards license fee liability andRs.1,69,83,000/- (approx.) towards IDW Bank Guarantee amount.Mittal Group have also similarly borne part of the liability of Pal,ORS and Heritage. As and when, Pal, ORS and Heritage,contribute their share of the License Fee and furnish their BankGuarantee for the IDW amount, the Seth Group and Mittal Groupwill be entitled to the refund of the excess License Fee paid bythem and also for restriction of the IDW Bank Guarantee to theamounts actually due by them, by substituting/replacing the BankGuarantees of Seth Group and Mittal Group by the Bank Guaranteesof Pal, ORS and Heritage. In the event of Pal, ORS and Heritagefail or neglect to pay the amounts due by them as aforesaid within120 days from the date of deposit by the Seth Group, the SethGroup is authorized in its own name, to initiate appropriate legalproceedings against the defaulter/s, to the extent of the amountadvanced by Seth Group along with interest, and/or in respect ofBank Guarantees so furnished, as stated herein before.
5.4 The Mittal Group shall pay/cause to be paid the balance licensefee as well as the balance IDW Bank Guarantee (i.e. total amountpayable on account of TFIPL less the Seth Group share as statedin Clause 1.3 and 1.4) to DTCP as per the demand of DTCP,Haryana on or before 23.06.2015 for renewal of License Nos.34, 35 and 36 of 2007 in the name of TFIPL.
17. Mittal Group shall apply for renewal of license by 23.06.2015subject to compliance of clause 1.2 (to the extent of providingBank Guarantee), 1.3 & 1.4 by the Seth Group. The Seth Grouphave provided documents/undertakings with respect to the landsfalling to share of the Seth Group under Agreement dated15.06.2007, i.e. (i) Status of construction/allotment of EWS Flats,and (ii) Service Plan status its drawing, estimates and its approvalfrom HUDA, Chandigarh annexed as Annexure – 16, to enableMittal Group to apply for renewal of license. Seth Group does nothave any further document in this regard, however, it is clarifiedthat in case any indemnity, undertaking, letter and/or similar AB
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Adocument is required to be executed after filing of the applicationfor renewal of license, pertaining to the lands falling in the shareof Seth Group under Agreement dated 15.06.2007, Seth Groupshall do the needful at the earliest if so requested by Mittal Group.
18. On application made for renewal of license in terms of clauseB17, Mittal Group will secure renewal of license within 90 days.All administrative and miscellaneous charges, compounding fee,penalties and other charges levied and payable by PAL, ORS andHeritage for renewal of license shall be paid by the Mittal Group.All such charges in respect of FIPL agreement shall be exclusivelypaid/borne by Seth Group by similarly paying to TFIPL immediatelyCon being demanded.”
7.2 It is required to be noted that as noted in order dated 24.04.2020,the Seth Group earlier deposited a sum of Rs.1.47 crores towards thelicense renewal fees to DTCP, Haryana. It is also required to be notedthat the aforesaid three license numbers 34, 35 and 36 of 2007 are withDrespect to the entire 48.03 acres of Sector 89 land, out of which thedevelopment rights of only 14.80 acres have been given to the SethGroup. Even, bifurcation of licensees shall be with respect to 14.80 acresin favour of the Seth Group and the remaining 33.23 acres in favour ofthe Mittal Group and others as under:E
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Therefore, the liability of the Seth Group towards the licenserenewal fees would be to the extent of 14.80 acres of Sector 89 landonly. However, it is required to be noted that as per clause 1.3 of MOSdated 4.5.2015, the Seth Group agreed to pay Rs.1,46,58,000/- to TFIPLGtowards license renewal fees in respect of license nos. 34, 35 and 36 of2007 which included not only the liability of the Seth Group, but also thatof PAL Infrastructure Pvt. Ltd., ORS Infrastructure Pvt. Ltd. andHeritage Cottage Pvt. Ltd. to the extent of Rs.53,11,000/- towards licenserenewal fees liability.
7.3 As mentioned in clauses1.3 and 2 of MOS dated 4.5.2015, theMittal Group is also required to borne part of the liability of PALInfrastructure Pvt. Ltd., ORS Infrastructure Pvt. Ltd. and HeritageCottage Pvt. Ltd. As mentioned in clause 2, as and when, PAL, ORSand Heritage contribute their share of the license fee and furnish theirBank Guarantee for the IDW amount, the Seth Group and Mittal Groupwill be entitled to the refund of the excess license fee paid by them andalso for restriction of the IDW Bank Guarantee to the amounts actuallydue by them, by substituting/replacing the Bank Guarantees of Seth Groupand Mittal Group by the Bank Guarantees of PAL, ORS and Heritage.As provided in clause 2, in the event of PAL, ORS and Heritage fail orneglect to pay the amounts due by them within 120 days from the dateof deposit by the Seth Group, the Seth Group is authorized in its ownname, to initiate appropriate legal proceedings against the defaulter/s, tothe extent of the amount advanced by the Seth Group along with interest,and/or in respect of Bank Guarantees so furnished.
Even as per clause 1.3.1, the Seth Group was required to pay theaforesaid amount of Rs.1,46,58,000/- to TFIPL in the form of demanddraft drawn in favour of “Directorate of Town and Country Planning,Haryana”, together with the balance licensee fee made available by theMittal Group in terms of clause 5.4. Clause 5.4 is reproduced hereinaboveand as per the said clause, the Mittal Group shall pay/cause to be paidthe balance license fee as well as the balance IDW Bank Guarantee(i.e. total amount payable on account of TFIPL less the Seth Groupshare as stated in clauses 1.3 and 1.4) to DTCP, Haryana for renewal oflicense nos. 34, 35, and 36 of 2007 in the name of TFIPL.
7.4 Even as per Clause G – Renewal of License, the Seth Groupis required to provide documents/undertakings with respect to the landsfalling to share of the Seth Group under agreement dated 15.06.2007,i.e. (i) status of construction/allotment of EWS flats, and (ii) service planstatus, its drawing, estimates and its approval from HUDA, Chandigarhannexed as Annexure-16 to MOS dated 4.5.2015 to enable Mittal Groupto apply for renewal of license. Even as per clause 18, on applicationmade for renewal of license in terms of clause 17, Mittal Group willsecure renewal of license within 90 days and all administrative andmiscellaneous charges, compounding fee, penalties and other chargeslevied and payable by PAL, ORS and Heritage for renewal of licenseshall be paid by the Mittal Group and all such charges in respect of FIPL
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7.5 Therefore, on conjoint reading of the relevant clauses of MOSdated 4.5.2015, the liability of the Seth Group towards the license renewalfees would be with respect to the lands falling to the share of the SethBGroup, i.e., 14.80 acres, and additionally, the Seth Group is also requiredto pay ½ of the liability of PAL, ORS and Heritage towards the licenserenewal fees and the Mittal Group is liable to pay the balance licenserenewal fees, i.e., total amount payable on account of TFIPL less theSeth Group share, including ½ of the total liability of PAL, ORS andHeritage towards the license renewal fees. The payment of the licenseCrenewal fees payable by PAL, ORS and Heritage paid by the Seth Groupand the Mittal Group, as stated hereinabove, would be as advance andas and when PAL, ORS and Heritage contribute their share of the licensefee, the Seth Group and the Mittal Group will be entitled to the refund ofthe excess license fee paid by them. As provided in clause 2, in theDevent of PAL, ORS and Heritage fail or neglect to pay the amounts dueby them, as aforesaid, within 120 days from the date of deposit by theSeth Group, the Seth Group is authorized in its own name to initiateappropriate legal proceedings against the defaulter/s, to the extent of theamount advanced by the Seth Group along with interest.
E8. Now so far as the requisite documents to be supplied by theSeth Group and the prayer on behalf of the Mittal Group in I.A. No.96206 of 2020 directing the Seth Group to comply with the other formalitiesas contained in para 17 of the order dated 5.5.2015 and to furnish therequisite documents to the Maximal Infrastructure Pvt. Ltd. as entailedin the Check-List formulated by DTCP, Haryana for renewal of license,Fin a time bound manner, is concerned, as such, the Seth Group is requiredto provide documents/undertakings with respect to the lands falling toshare of the Seth Group under agreement dated 15.06.2007, i.e. (i) statusof construction/allotment of EWS flats, and (ii) service plan status, itsdrawing, estimates and its approval from HUDA, Chandigarh annexedGas Annexure-16 to MOS dated 4.5.2015 to enable Mittal Group to applyfor renewal of license. It is specifically mentioned in clause G (titledRenewal of License), para 17, that Seth Group does not have any furtherdocuments in this regard. It is further clarified that in case any indemnity,undertaking, letter and/or similar document is required to be executedafter filing of the application for renewal of license, pertaining to theH
lands falling in the share of the Seth Group under agreement dated15.06.2007, Seth Group shall do the needful at the earliest.
To avoid any further controversy, it will be appropriate that theappropriate authority shall communicate to the Seth Group and the MittalGroup within a period of two weeks from today, to provide the documents/undertakings with respect to the lands falling to their respective sharesand the Seth Group and Mittal Group shall provide the documents and/orundertakings required by the appropriate authority, within a period oftwo weeks from the receipt of such demand. However, it is clarifiedthat it is for the TFIPL – Mittal Group to get license nos. 34, 35 and 36of 2007 renewed and it will be responsibility and liability of the MittalGroup to renew the aforesaid licensees.
9. Now so far as the liability towards EDC is concerned, directionscontained in clauses 10 (i) and (ii) of our order dated 24.04.2020 arevery specific and clear. However, it is reported that the earlier EDCRelief Policy has expired by the efflux of time and the same has beenreplaced by the subsequent policy dated 6.7.2020/10.08.2020, which readsas under:
“FromPrincipal Secretary to Govt. Haryana,Town and Country Planning DepartmentHaryana, Chandigarh.
To
The Director,Town and Country Planning DepartmentHaryana, Chandigarh.
Memo no. Misc-SSV (EDC)-206/3536 Dated : - 10.08.2020
SUBJECT:- INTRODUCTION OF ONE-TIMESETTLEMENT SCHEME “Samadhan Se Vikas” TOENABLE RECOVERY OF LONG PENDING EDC DUES.
In accordance with the powers conferred under Section 9-A ofthe Haryana Development and Regulation of Urban Areas Act,1975, the Governor of Haryana is pleased to notify following One- AB
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time Settlement Scheme “Samadhan se Vikas” to enable recoveryof long pending EDC dues with the following terms and conditions:-
1. The scheme shall be applicable in respect of full amountoutstanding on account of the EDC as well as interest and penalinterest.
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(a) In case, a colonizer deposits 100% of the outstanding PrincipalAmount against EDC as well as 25% of the accumulated interestand penal interest, within a period of six months from the date ofnotification of this scheme, the balance 75% of the accumulatedinterest and penal interest shall be waived off.
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(b) In case, a colonizer deposits at least 50% of the outstandingPrincipal Amount against EDC as well as 50% of the accumulatedinterest and penal interest, within a period of six months from thedate of notification of this scheme, the balance 50% of theaccumulated interest and penal interest shall be waived off; D
Further, the remaining 50% of outstanding Principal Amount shallbe recoverable in four six-monthly installments along with interestat the rate of 8% per annum on the delayed period and an additional2% interest per annum on the default period; and; the first sixmonths period for deposit of first installment shall start from thedate of deposit of 50% Principal plus 50% Interest and PenalInterest component.
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Provided further that in case the colonizer does not clear the entireEDC dues within the above said two year period, the waiver ofbalance 50% of the accumulated interest and penal interest shallFstand annulled and the original EDC amount and schedule shallbe automatically restored less payment made under (b) above.
Explanation:-
Thus, no major penalty is imposed on the colonizer in case ofdefault of installments within the prescribed two year period fordeposit of installments. However, in case any amount of thebalance 50% outstanding Principal Amount along with interest isnot deposited within the prescribed two year period, the colonizershall lose all benefits under this policy and the original EDCschedule applicable before availing the present policy shall standrestored and all payments received till such date and thereafter G
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shall be considered to have been paid against the original EDCschedule.
2. This is issued as per approval received vide U.O. No.9/116/2020-2 Cabinet dated 06.07.2020.
Sd/
(A.K. Singh, IAS)Principal Secretary to Govt. Haryana,Town & Country Planning Department Endst.No. Misc-SSV (EDC)-206/3537 Dated: 10.08.2020
A copy is forwarded to the Secretary, Council of Minister, Haryanawith reference to their U.O. No. 9/116/2020-2 Cabinetdated 06.07.2020 for information please.
Sd/
(A.K. Singh, IAS)Principal Secretary to Govt. Haryana,Town & Country Planning Department”
Learned counsel appearing on behalf of both the parties – SethGroup and Mittal Group have stated at the bar that they want toavail the benefit of the aforesaid one time settlement scheme,“Samadhan Se Vikas”, as per option 1(a) under which their liabilitywould be to deposit 100% of the outstanding principal amountagainst EDC as well as 25% of the accumulated interest andpenal interest, within a period of six months from the date ofnotification of this scheme and the balance 75% of theaccumulated interest and penal interest shall be waived off. Theliability of the Seth Group as well as Mittal Group (TFIPL) underthe new scheme under option 1(a), as per communication dated17.09.2020 from the office of the Directorate of Town and CountryPlanning, Haryana, is as under:
“To avail One Time Settlement Scheme, if both groups submitsmutual consent and opt under option 1(a), then the payable amountis an under:- A
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For the aforesaid, both the groups – Seth Group and Mittal Groupare required to submit mutual consent opting the benefit of one timesettlement scheme – “Samadhan Se Vikas” under option 1(a).
10. In view of the above and for the reasons stated above, inCcontinuation of our earlier order dated 24.04.2020, it is further clarifiedand directed as under:
(i) that Mittal Group shall apply for renewal of license numbers34, 35 and 36 of 2007, within a period of two weeks from today, if notapplied for renewal so far;D(ii) that the liability of the Seth Group to pay/cause to be paid the
(ii) that the liability of the Seth Group to pay/cause to be paid therenewal license fees would be proportionate to the lands falling to theshare of the Seth Group, i.e., 14.80 acres under the agreement dated15.06.2007. Over and above their liability towards the renewal licensefees with respect to the lands falling to their share, the Seth Group shallEalso pay ½ of the liability of PAL, ORS and Heritage towards licenserenewal fees, which shall be treated as advance and the payment towardsthe additional liability of PAL, ORS and Heritage would be for and onbehalf of the aforesaid three, PAL, ORS and Heritage;
(iii) that the Mittal Group shall pay/cause to be paid the balancelicense fee (renewal license fee) (i.e. total amount payable on accountFof TFIPL less the Seth Group share as stated hereinabove including ½of the liability of PAL, ORS and Heritage with respect to the liabilitytowards the renewal license fees for renewal of license numbers 34, 35and 36 of 2007;
(iv) that Seth Group and Mittal Group to pay their respective licenseGrenewal fees liability as above within two weeks from today withoutfail;
(v) that as and when PAL, ORS and Heritage contribute theirshare of the license fee, Seth Group and Mittal Group will be entitled tothe refund of the excess license fee paid by them as provided in para 2H
of the MOS dated 4.5.2015. In the event of PAL, ORS and Heritage failor neglect to pay the amounts due by them as aforesaid within 120 daysfrom the date of deposit by the Seth Group, the Seth Group is authorizedin its own name, to initiate appropriate legal proceedings against thedefaulter/s, to the extent of the amount advanced by the Seth Groupalong with interest;
(vi) that the Seth Group is liable to provide documents/undertakingswith respect to the lands falling to their share under Agreement dated15.06.2007, i.e. (i) Status of construction/allotment of EWS Flats, and(ii) Service Plan status its drawing, estimates and its approval fromHUDA, Chandigarh annexed as Annexure – 16 to the MOS dated4.5.2015, to enable Mittal Group to apply for renewal of license.However, it is clarified that in case any indemnity, undertaking, letterand/or similar document is required to be executed after filing of theapplication for renewal of license, pertaining to the lands falling in theshare of Seth Group under Agreement dated 15.06.2007, Seth Groupshall do the needful at the earliest;
(vii) that the appropriate authority, i.e., DTCP, Haryana, shallcommunicate the Seth Group as well as the Mittal Group to provide/furnish the documents/undertakings with respect to the lands falling totheir respective shares. However, it is clarified that the liability of theSeth Group to provide documents/undertakings with respect to the landsfalling to their share only and the liability to furnish/provide the remainingdocuments/undertaking with respect to the remaining lands shall be ofMittal Group. The appropriate authority shall call for the requireddocuments/undertakings, within a period of two weeks from today, sothat further process for renewal of license numbers 34, 35 and 36 of2007 may take place immediately and Seth Group and Mittal Group tofurnish such documents/undertakings, within a period of two weeks fromsuch demand, i.e., within four weeks from today;
(viii) that the entire exercise of renewal of license numbers 34, 35and 36 of 2007 shall be completed within a period of eight weeks fromtoday without fail. The Mittal Group is hereby specifically warned not tocreate any further hindrances in getting license numbers 34, 35 and 36of 2007 renewed;
(ix) the Seth Group and Mittal Group shall file specific undertakingwithin a period of two weeks from today, agreeing to pay the amount A
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Atowards EDC liability under the new one time settlement scheme –“Samadhan Se Vikas” as computed by the District Town Planner (HQ),Directorate of Town and Country Planning, Haryana in its communicationdated 17.09.2020 (as mentioned hereinabove) , and neither the Seth Groupnor the Mittal Group shall dispute the said computation and they shall filespecific undertaking that they shall make the payment towards theirBEDC liability within the time specified in the one time settlement scheme– “Samadhan Se Vikas”.
11. The aforesaid directions are issued over and above thedirections issued by this Court in its earlier order dated 24.04.2020. It isspecifically observed that any non-compliance of the aforesaid directionsCas well as the directions in the earlier order dated 24.04.2020 shall beviewed very seriously, warranting action under the Contempt of CourtsAct.
Interlocutory Application Nos. 96161/2020, 96206/2020,68143/2020, 78952/2020 and 78953/2020 stand disposed off.D
12. Put up after three months for reporting compliance.
Devika Gujral
Directions issued.
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