Ashish Seth vs. Sumit Mittal and others [Contempt Petition(C) No. 34/2016 In Writ Petition (Criminal) No.5/2015]
[09.10.2020] – Contempt Petition – Performance of Memorandum of Settlement – Directions of Court
Brief: The Supreme Court in the present petition has refused to initiate contempt proceedings for not following its previous order/directions and Memorandum of Settlement towards a developmental project. The Petitioner had pleaded breach on the part of alleged Contemnors in paying External Development Charges (EDC) and renewing of licenses which were required to be done as per the MoS. The alleged Contemnors, however, contended that the Petitioner were duty bound to supply certain documents which were pre-requisite for renewal of licenses. The Court clarified certain contentions between the parties i.e. which party has obligation to obtain license, liability towards External Developmental Charges and duty of the applicants to supply some documents. The Court directed the Petitioner to supply some documents, renewal of licenses by the alleged Contemnors and payment of EDC by both to respective shares within a defined timeline. The Court specifically observed that any noncompliance of the these directions as well as the directions in the earlier order dated 24.04.2020 shall be viewed very seriously, warranting action under the Contempt of Courts Act. The Court observed that due non-performance of respective duties the ultimate sufferer is the home buyers who are waiting for their homes.
Important Paragraphs
1. The dispute is between the two groups – Seth Group and Mittal Group. Both, the Seth Group and Mittal Group entered into a Memorandum of Settlement (MOS) dated 4.5.2015, which ultimately was made a part of this Court’s order dated 5.5.2015, disposing of Writ Petition (Criminal) No. 5 of 2015 and Writ Petition (Criminal) No. 11/2015. Noncompliance of the order passed by this Court in the aforesaid writ petitions is the subject matter of the present contempt petition No. 34/2016 initiated by the Seth Group. After considering the rival submissions and the relevant clauses in the MOS dated 4.5.2015 and after considering the obligations of the Seth Group and the obligations of the Mittal Group under MOS dated 4.5.2015 and after having noted and considered the material on record, this Court in the earlier detailed order dated 24.4.2020 specifically held that the Mittal Group have deliberately and wilfully not fulfilled their obligations which are required to be fulfilled under MOS dated 4.5.2015. This Court also opined that as such Mittal Group have rendered themselves liable for the action under the Contempt of Courts Act. However, before taking any further action, this Court granted further two months’ time to the Mittal Group, namely, Shri Sumit Mittal, Shri Madhur Mittal and TFIPL, to fulfil their part of obligations under MOS dated 4.5.2015….. This Court specifically directed that the entire exercise shall be completed within a period of two months from the date of lifting lockdown in the concerned area, failing which this Court shall proceed to pass appropriate further order/orders under the Contempt of Courts Act for nonfulfilment of the obligations by the respondents – Shri Sumit Mittal, Shri Madhur Mittal and TFIPL.
2. It appears that despite the above specific directions, license numbers 34, 35 and 36 of 2007 are not renewed by the Mittal Group and because of the nonrenewal of the aforesaid licensees, even the balance amount of EDC liability has not been paid by the Seth Group and even the Mittal Group has also not paid their liability towards the EDC in respect of the aforesaid license numbers 34, 35 and 36 of 2007 and therefore the ultimate sufferer is the home buyers who are waiting for their homes.
5. It is the case on behalf of the Seth Group that the Mittal Group is deliberately and wilfully and with malafide intention creating the hurdles in getting the aforesaid three licensees renewed. It is submitted that unnecessarily the Mittal Group is asking the Seth Group to furnish the requisite documents to the Maximal Infrastructure Pvt. Ltd. as entailed in the CheckList formulated by the DTCP for renewal of licensees. It is submitted that unnecessarily the Mittal Group is insisting the other developers, namely, the Official Liquidator of Triveni Infrastructure Development Company Ltd., PAL Infrastructure Pvt. Ltd., ORS Infrastructure Pvt. Ltd. and Heritage Cottage Pvt. Ltd. to comply with all formalities as contained in the CheckList for renewal of license and furnish the requisite documents to Maximal Infrastructure Pvt. Ltd. It is submitted that even the Mittal Group is also not paying their liability towards the EDC, though specifically directed by this Court in its order dated 24.04.2020. It is submitted that the Mittal Group is required to pay the entire renewal license fee charges and because of nonpayment of the renewal license fee charges and nonsubmission of the relevant documents and/or asking the documents from the Seth Group, though not required, licensees are not being renewed. It is submitted that so far as the Seth Group is concerned, they have already fulfilled their obligations under the MOS dated 4.5.2015 and have already paid the huge amount and despite the same they are not getting any benefits and therefore, it is prayed to grant the reliefs prayed in IA No. 78952 of 2020.
6. On the other hand, Shri Ranjit Kumar, learned Senior Advocate appearing on behalf of the Mittal Group has submitted that for getting license numbers 34, 35 and 36 renewed the requisite documents as entailed in the CheckList formulated by the DTCP are required to be furnished and the Seth Group is not furnishing the requisite documents and therefore there is a delay in getting the aforesaid licensees renewed. It is submitted therefore that as such the Seth Group is responsible for not getting the licensees renewed.
7. Having heard the learned counsel for the respective parties and 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 to renew license numbers 34, 35, and 36 of 2007 and for which the application is to be submitted by the Mittal Group – TFIPL. For the licensees to be renewed, the license renewal fee is required to be paid and only thereafter on payment of EDC by the respective groups – Seth Group and Mittal Group, as determined in the order dated 24.04.2020 and on payment of other charges due and payable under the law, the aforesaid license numbers 34, 35 and 36 of 2007 can be bifurcated. So, first of all, the renewal license fee is required to be paid. It is the case on behalf of the Seth Group that they are not required to pay any renewal license fee and 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 is concerned, the relevant clauses of MOS dated 4.5.2015 are required to be considered and they are clause nos. 1.3, para 2, para 5.4, 17 and 18…..
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 the license renewal fees to DTCP, Haryana. It is also required to be noted that the aforesaid three license numbers 34, 35 and 36 of 2007 are with respect to the entire 48.03 acres of Sector 89 land, out of which the development rights of only 14.80 acres have been given to the Seth Group. Even, bifurcation of licensees shall be with respect to 14.80 acres in favour of the Seth Group and the remaining 33.23 acres in favour of the Mittal Group and others…..
8. Now so far as the requisite documents to be supplied by the Seth 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 formalities as contained in para 17 of the order dated 5.5.2015 and to furnish the requisite documents to the Maximal Infrastructure Pvt. Ltd. as entailed in the CheckList formulated by DTCP, Haryana for renewal of license, in a time bound manner, is concerned, as such, the Seth Group is required to provide documents/undertakings with respect to the lands falling 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 plan status, its drawing, estimates and its approval from HUDA, Chandigarh annexed as Annexure16 to MOS dated 4.5.2015 to enable Mittal Group to apply for renewal of license. It is specifically mentioned in clause G (titled Renewal of License), para 17, that Seth Group does not have any further documents in this regard. It is further clarified that in case any indemnity, undertaking, letter and/or similar document is required to be executed after filing of the application for renewal of license, pertaining to the lands falling in the share of the Seth Group under agreement dated 15.06.2007, Seth Group shall do the needful at the earliest. To avoid any further controversy, it will be appropriate that the appropriate authority shall communicate to the Seth Group and the Mittal Group within a period of two weeks from today, to provide the documents/undertakings with respect to the lands falling to their respective shares and the Seth Group and Mittal Group shall provide the documents and/or undertakings required by the appropriate authority, within a period of two weeks from the receipt of such demand. However, it is clarified that it is for the TFIPL – Mittal Group to get license nos. 34, 35 and 36 of 2007 renewed and it will be responsibility and liability of the Mittal Group to renew the aforesaid licensees.
10. In view of the above and for the reasons stated above, in continuation of our earlier order dated 24.04.2020, it is further clarified and directed as under:
(i) that Mittal Group shall apply for renewal of license numbers 34, 35 and 36 of 2007, within a period of two weeks from today, if not applied for renewal so far;
(ii) that the liability of the Seth Group to pay/cause to be paid the renewal license fees would be proportionate to the lands falling to the share of the Seth Group, i.e., 14.80 acres under the agreement dated 15.06.2007. Over and above their liability towards the renewal license fees with respect to the lands falling to their share, the Seth Group shall also pay ½ of the liability of PAL, ORS and Heritage towards license renewal fees, which shall be treated as advance and the payment towards the additional liability of PAL, ORS and Heritage would be for and on behalf of the aforesaid three, PAL, ORS and Heritage;
(iii) that the Mittal Group shall pay/cause to be paid the balance license fee (renewal license fee) (i.e. total amount payable on account of TFIPL less the Seth Group share as stated hereinabove including ½ of the liability of PAL, ORS and Heritage with respect to the liability towards the renewal license fees for renewal of license numbers 34, 35 and 36 of 2007;
(iv) that Seth Group and Mittal Group to pay their respective license renewal fees liability as above within two weeks from today without fail;
(v) that as and when PAL, ORS and Heritage contribute their share of the license fee, Seth Group and Mittal Group will be entitled to the refund of the excess license fee paid by them as provided in para 2 of the MOS dated 4.5.2015. In the event of PAL, ORS and Heritage fail or neglect to pay the amounts due by them as aforesaid within 120 days from the date of deposit by the Seth Group, the Seth Group is authorized in its own name, to initiate appropriate legal proceedings against the defaulter/s, to the extent of the amount advanced by the Seth Group along with interest;
(vi) that the Seth Group is liable to provide documents/undertakings with respect to the lands falling to their share under Agreement dated 15.06.2007, i.e. (i) Status of construction/allotment of EWS Flats, and (ii) Service Plan status its drawing, estimates and its approval from HUDA, Chandigarh annexed as Annexure – 16 to the MOS dated 4.5.2015, to enable Mittal Group to apply for renewal of license. However, it is clarified that in case any indemnity, undertaking, letter and/or similar document is required to be executed after filing of the application for renewal of license, pertaining to the lands falling in the share of Seth Group under Agreement dated 15.06.2007, Seth Group shall do the needful at the earliest;
(vii) that the appropriate authority, i.e., DTCP, Haryana, shall communicate the Seth Group as well as the Mittal Group to provide/furnish the documents/undertakings with respect to the lands falling to their respective shares. However, it is clarified that the liability of the Seth Group to provide documents/undertakings with respect to the lands falling to their share only and the liability to furnish/provide the remaining documents/undertaking with respect to the remaining lands shall be of Mittal Group. The appropriate authority shall call for the required documents/undertakings, within a period of two weeks from today, so that further process for renewal of license numbers 34, 35 and 36 of 2007 may take place immediately and Seth Group and Mittal Group to furnish such documents/undertakings, within a period of two weeks from such demand, i.e., within four weeks from today;
(viii) that the entire exercise of renewal of license numbers 34, 35 and 36 of 2007 shall be completed within a period of eight weeks from today without fail. The Mittal Group is hereby specifically warned not to create any further hindrances in getting license numbers 34, 35 and 36 of 2007 renewed;
(ix) the Seth Group and Mittal Group shall file specific undertaking within a period of two weeks from today, agreeing to pay the amount towards 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 communication dated 17.09.2020 (as mentioned hereinabove) , and neither the Seth Group nor the Mittal Group shall dispute the said computation and they shall file specific undertaking that they shall make the payment towards their EDC liability within the time specified in the one time settlement scheme – “Samadhan Se Vikas”.
11. The aforesaid directions are issued over and above the directions issued by this Court in its earlier order dated 24.04.2020. It is specifically observed that any noncompliance of the aforesaid directions as well as the directions in the earlier order dated 24.04.2020 shall be viewed very seriously, warranting action under the Contempt of Courts Act. Interlocutory Application Nos. 96161/2020, 96206/2020, 68143/2020, 78952/2020 and 78953/2020 stand disposed off.
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