01Facts
The petitioner was allotted a Group Housing plot in Sector 62, NOIDA, via an allotment letter dated 19.05.2001
¶ 4Clause 3 of the allotment letter allowed for either annual lease rent or a one-time payment equivalent to 11 years' rent at the time of lease deed execution
¶ 4, 21The petitioner deposited ₹5,56,700 on 08.01.2002 and ₹55,67,000 on 21.02.2002, totaling ₹61,23,700 (11 years' rent) prior to executing the lease deed on 28.02.2002
¶ 5, 24Clause III(a) of the lease deed explicitly recorded that the lessee had made full payment of the one-time lease rent
¶ 5, 23However, in 2006, NOIDA (the Authority) issued a demand notice for ₹29,22,675, claiming the initial payments were not made in "one go" and that the first installment was adjusted as yearly rent, leaving a balance for the one-time settlement
¶ 7, 10, 15(x)The petitioner paid this amount under protest to obtain a ‘No Dues Certificate’ and subsequently filed this writ for a refund
¶ 11-1302Issues
i.1. Whether the amounts deposited by the petitioner on 08.01.2002 and 21.02.2001 can be treated as a one-time lease rent deposit or not?
¶ 18, 33ii.2. Whether the petitioner is entitled to a refund of the ₹29,22,675 deposited under protest on 28.06.2006?
¶ 18, 3403Law Applied
Terms of a concluded contract must be strictly read and natural meanings assigned without external aids unless ambiguous, as established in United India Insurance Co. Ltd. v. Harchand Rai Chandan Lal
¶ 26The principle in Nabha Power v. Punjab SPCL, which cautions against reading "implied terms" into professional commercial contracts
¶ 26The principles of fairness, non-arbitrariness, and "good administration" under Article 14 of the Constitution of India, requiring administrative decisions to be consistent and predictable
¶ 3004Reasoning
The Court observed that the allotment letter and the lease deed are the governing documents
¶ 20Clause 3 of the allotment letter provided a one-time payment option but did not stipulate that it must be paid in a single "lump sum" transaction; it only required payment "at the time of execution"
¶ 21, 26The Authority’s own lease deed, executed after receiving both installments, categorically admitted that "full payment of... one-time lease rent" had been made
¶ 23, 26The Court rejected the Authority’s reliance on internal office orders from 1998 and 2000, noting they were never part of the signed contract and cannot override express contractual terms
¶ 31An RTI response from the Authority’s own Chief Finance Officer admitted that the two payments totaled the required 11-year amount, with only a small fractional balance of ₹1,39,175 due for the period between possession and the start of the financial year
¶ 28The demand for ₹29,22,675 was found to be arbitrary and fallacious as it ignored the Authority’s own records and contractual admissions
¶ 3005Holding
The Court answered both issues in the affirmative, holding that the petitioner had successfully deposited the one-time lease rent before the execution of the lease deed
¶ 33The final holding directed the Authority to refund the ₹29,22,675 deposited under protest, subject to a deduction of ₹1,39,175 (the actual lease rent due for the interim period 08.01.2002 to 31.03.2002)
¶ 32, 34The Authority was ordered to pay the balance within three months, failing which 6% interest per annum would apply. The writ petition was partially allowed
¶ 35Original Court PDF
M/S Designers Park Sahkari Awas Samiti LtdvsState Of U.P. And Others
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