Supreme Court of India
ASHISH SETHversusSUMIT MITTAL AND OTHERS
- Citation
- 2020 INSC 585
- Decided
- 9 October 2020
- Disposal
- Directions issued
- Bench
- ASHOK BHUSHAN
Holding
The Court held that the parties must comply with the specific obligations under the MoS, directing the Mittal Group to renew the licences and both groups to pay their respective licence renewal and EDC liabilities, and warned that further non‑compliance will attract contempt action.
Summary
The Supreme Court dealt with a contempt petition filed by the Seth Group against the Mittal Group arising from a joint‑venture dispute over land development, license renewal and EDC liabilities. Both parties had executed a Memorandum of Settlement (MoS) on 4 May 2015, which the Court incorporated into its order disposing of earlier writ petitions. The Court previously held on 24 April 2020 that the Mittal Group wilfully failed to fulfil its MoS obligations, particularly renewing three licences and paying its share of EDC dues, and gave it two months to comply. Since the Mittal Group still did not renew the licences and the parties had not paid the requisite fees, the Court clarified each party’s liability under the MoS, directed the Mittal Group to apply for licence renewal within two weeks, ordered both groups to pay licence renewal fees proportionate to their land shares, and required them to opt for the one‑time settlement scheme for EDC liabilities. The Court warned that any further non‑compliance would attract contempt proceedings, disposed of all interlocutory applications and ordered the matter to be listed after three months for a compliance report.
Issues considered
- Whether the Mittal Group's failure to renew licences and pay EDC liabilities constitutes contempt of the Supreme Court.
- How the obligations under the Memorandum of Settlement dated 4 May 2015 should be interpreted with respect to licence renewal fees and EDC liability.
- Whether both parties may avail the one‑time settlement scheme "Samadhan Se Vikas" and what conditions apply.
- What specific directions are necessary to enforce compliance with the Court's earlier order.
Legislation cited
Subjects
Contempt of CourtMemorandum of SettlementJoint Venture disputeLicense renewalEDC liabilityOne Time Settlement SchemeSupreme Court enforcementCompliance with court orders
Judgment
[2020] 11 S.C.R. 525 525
ASHISH SETH A
v.
SUMIT MITTAL AND OTHERS
(Contempt Petition(C) No. 34/2016 in
Writ Petition (Criminal) No.5/2015) B
OCTOBER 09, 2020
[ASHOK BHUSHAN AND M. R. SHAH, JJ.]
Contempt of Court – Dispute between two groups of a Joint
Venture (JV) Company – Seth Group and Mittal Group – The JV C
Company had acquired some land and also availed licenses with
an intent to develop the land – Subsequently, both the Groups agreed
to divide the development in the land and thereupon the development
rights in the land were sold – Dispute arose between them in respect
of payment of liabilities out of the JV Company which gave rise to
D
various litigations – Matter was referred to arbitration –
Memorandum of Settlement (MoS) dated 04.05.2015 was executed
between the Groups whereunder both the groups were to fulfill the
reciprocal obligations – Writ Petition was disposed of in terms of
the MoS – In the contempt petitions filed by Seth Group, the
grievance was that Mittal Group failed to comply with the obligations E
under the MoS and the non-compliance was wilful and intentional
– On 24.04.2020, this Court held that the Mittal Group deliberately
and willfully did not fulfill their obligations under the MoS and as
such they rendered themselves liable for action under the Contempt
of Courts Act – However, two months’ time was given to them to
F
fulfill their part of obligations under the MoS – Despite the above
specific directions, licenses were not renewed by the Mittal Group
and because of non-renewal of the licenses, the balance amount of
EDC liability was not paid by the Seth Group and even the Mittal
Group also did not pay their liability towards EDC of the said licenses
– Hence IAs filed by both the Groups – Held: Considering the earlier G
order dated 24.04.2020, it is not disputed that the Mittal Group
was to renew licenses and for which application was to be submitted
by them – The three licenses were with respect to the entire 48.03
acres of the land, out of which the development rights of only 14.80
acres were given to Seth Group – Even bifurcation of licenses was
H
525
526 SUPREME COURT REPORTS [2020] 11 S.C.R.
A with respect to 14.80 acres in favour of Seth Group and the
remaining 33.23 acres in favour of the Mittal Group and others –
Conjoint reading of relevant clauses of MOS showed that the liability
of the Seth Group towards the license renewal fees is with respect
of the lands falling to the share of Seth Group i.e. 14.80 acres and
additionally, the Seth Group is also required to pay half of the
B
liability of others towards license renewal fees and the Mittal Group
is liable to pay balance license renewal fees – Thus, both the Groups
are directed to pay their respective license renewal fees liability
within 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 required
to submit mutual consent opting for the benefit of OTS scheme –
Thus, in continuation of earlier order dated 24.04.2020, directions
passed in respect of renewal of license and payment of amount
towards EDC liability under the new OTS scheme – Matter to be
listed after three months for reporting compliance.
D
CIVIL 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.
E Viswanathan, 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, Ayush
Sharma, Akhilesh Kumar Pandey, M/S. Karanjawala & Co., Bankey
F Bihari, 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.
1. The dispute is between the two groups – Seth Group and Mittal
G
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. Non-compliance of the order passed by this Court in the aforesaid
H writ petitions is the subject matter of the present contempt petition No.
ASHISH SETH v. SUMIT MITTAL AND OTHERS 527
[M. R. SHAH, J.]
34/2016 initiated by the Seth Group. After considering the rival A
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 B
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 C
under MOS dated 4.5.2015, more particularly,
(i) To pay the entire EDC liability of TFIPL with interest in
relation to license Nos. 34, 35 and 36 other than the share
of the EDC liability which the Seth Group has undertaken
to pay as per Clause 1.2 of the MOS; D
(ii) As per Clause 1.2, EDC liability of the Seth Group is to the
extent of Rs.25,27,92,000/-, out of the total EDC liability of
TFIPL in relation License Nos. 34, 35 and 36 as on
24.03.2015 together with interest accrued thereon from
24.03.2015. Therefore, the Seth Group shall make the entire E
payment of Rs.25,27,92,000/- along with the interest accrued
thereon from 24.03.2015 towards their EDC liability in
respect of License Nos. 34, 35 and 36 of 2007;
(iii) The Mittal Group is hereby further directed to renew the
license Nos. 34, 35 and 36 of 2007; to execute GPA by F
TFIPL (as per Clause 5.3), Board Resolution by TFIPL for
availing benefit under EDC Relief Policy (as per Clause
1.2.1), NOC without any conditions (as per Clause 8) to
the Seth Group;
(iv) Thereafter, the DTCP to bifurcate the Seth Group’s portion G
of the land in accordance with law and as per the policy
and/or the rules and regulations, if any. It is also observed
that it will be open to the respective parties to avail the
benefit of the applicable EDC Relief Policy, which may be
considered by the DTCP in accordance with the applicable
EDC Relief Policy, if any. H
528 SUPREME COURT REPORTS [2020] 11 S.C.R.
A 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
non-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, license
numbers 34, 35 and 36 of 2007 are not renewed by the Mittal Group and
because of the non-renewal 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
C 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.
3. Seth Group has filed Interlocutory Application No. 78952 of
2020 for the following reliefs:
D
i) allow the present application and direct that in the event the
Mittal Group still fails to comply with its obligations under the MOS
dated 04.05.2015, as reiterated in the directions of this Court dated
24.4.2020, the bifurcation and renewal of license Nos. 34, 35 and 36 of
2007 be granted in favour of the Seth Group, subject to any further
E conditions;
ii) direct that consequent to the bifurcation and renewal of licenses
in question, the Seth Group shall handover the apartments to the flat
buyers within a time bound manner, under the control and direction of
Director General Town and Country Planning, Haryana.
F
4. Mittal Group has also filed Interlocutory Application No. 96206
of 2020 and have prayed for the following reliefs:
i) direct Seth Group to comply clause 1.2 (to the extent of providing
Bank Guarantee) and clauses 1.3 and 1.4 and all other formalities
as contained “para-17” of the order dated 05.05.2015 and to
G
furnish the requisite documents to the Maximal Infrastructure Pvt.
Ltd. as entailed in the Check-List formulated by DTCP for renewal
of license, in a time bound manner;
ii) direct other developers, namely, Official Liquidator of Triveni
Infrastructure Development Company Limited (presently company
H
ASHISH SETH v. SUMIT MITTAL AND OTHERS 529
[M. R. SHAH, J.]
is under liquidation), PAL Infrastructure Pvt. Ltd., ORS A
Infrastructure Pvt. Ltd. and Heritage Cottage Pvt. Ltd. to comply
with all formalities as contained in the Check-List for renewal of
license and furnish the requisite documents to the Maximal
Infrastructure Pvt. Ltd. in a time bound manner.
5. It is the case on behalf of the Seth Group that the Mittal Group B
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 Check-List formulated by the DTCP for renewal of licensees. It
is submitted that unnecessarily the Mittal Group is insisting the other C
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 Check-List for renewal of license and
furnish the requisite documents to Maximal Infrastructure Pvt. Ltd. It is D
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 non-payment of
the renewal license fee charges and non-submission of the relevant
documents and/or asking the documents from the Seth Group, though E
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. F
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 Check-List formulated by the DTCP are required to be
furnished and the Seth Group is not furnishing the requisite documents G
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.
6.1 Shri Ranjit Kumar, learned Senior Advocate appearing on
behalf of the Mittal Group has further submitted that after the order H
530 SUPREME COURT REPORTS [2020] 11 S.C.R.
A dated 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 Se
Vikas”. It is submitted that the Mittal Group is ready and willing to avail
the new One Time Settlement Scheme – “Samadhan Se Vikas”. It is
submitted that the amount due and payable under the new scheme has
been computed by the DTCP in the last communication dated 17.09.2020.
B
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
C 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
D 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
E 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,
which are as under:
“1.3 Pay License Fee to “Directorate of Town and Country
Planning” (DTCP) Haryana as under:
F 1.3.1 The Seth Group shall pay Rs.1,46,58,000/- (Rs. One Crore
Forty Six Lacs and Fifty Eight thousand only) to TFIPL in the
form of Demand Draft drawn in favour of “Directorate of Town
and Country Planning” Haryana towards License Renewal Fee
in respect of License Nos. 34, 35, & 36 of 2007 to the TFIPL on
G or before 21.06.2015 for forwarding the same to DTCP, Haryana
on 21.06.2015 together with the balance license fee made available
by Mittal Group in terms of the clause 5.4 below.
2. The amount to be paid by Seth Group towards License Fee
under Clause 1.3 and the Bank Guarantee to be furnished by Seth
Group towards IDW, under Clause 1.4 above, includes not only
H
ASHISH SETH v. SUMIT MITTAL AND OTHERS 531
[M. R. SHAH, J.]
the liability of Seth Group in that behalf, but also that of M/s Pal A
Infrastructure & Developer Pvt. Ltd. (for short “Pal”), M/s ORS
Infrastructure Pvt. Ltd. (for short “ORS”) and M/s Heritage
Cottages Pvt. Ltd. (for short “Heritage”) to the extent of
Rs.53,11,000/- (approx.) towards license fee liability and
Rs.1,69,83,000/- (approx.) towards IDW Bank Guarantee amount.
B
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 Bank
Guarantee for the IDW amount, the Seth Group and Mittal Group
will be entitled to the refund of the excess License Fee paid by
them and also for restriction of the IDW Bank Guarantee to the C
amounts actually due by them, by substituting/replacing the Bank
Guarantees of Seth Group and Mittal Group by the Bank Guarantees
of Pal, ORS and Heritage. 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
D
Group is authorized in its own name, to initiate appropriate legal
proceedings against the defaulter/s, to the extent of the amount
advanced by Seth Group along with interest, and/or in respect of
Bank Guarantees so furnished, as stated herein before.
5.4 The Mittal Group shall pay/cause to be paid the balance license
fee as well as the balance IDW Bank Guarantee (i.e. total amount E
payable on account of TFIPL less the Seth Group share as stated
in 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 23.06.2015 F
subject to compliance of clause 1.2 (to the extent of providing
Bank Guarantee), 1.3 & 1.4 by the Seth Group. The Seth Group
have provided 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, G
and (ii) Service Plan status its drawing, estimates and its approval
from HUDA, Chandigarh annexed as Annexure – 16, to enable
Mittal Group to apply for renewal of license. Seth Group does not
have any further document in this regard, however, it is clarified
that in case any indemnity, undertaking, letter and/or similar
H
532 SUPREME COURT REPORTS [2020] 11 S.C.R.
A 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 if so requested by Mittal Group.
18. On application made for renewal of license in terms of clause
B 17, 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 and
Heritage for renewal of license shall be paid by the Mittal Group.
All such charges in respect of FIPL agreement shall be exclusively
paid/borne by Seth Group by similarly paying to TFIPL immediately
C on 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 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
D 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 as under:
E
F
Therefore, the liability of the Seth Group towards the license
renewal fees would be to the extent of 14.80 acres of Sector 89 land
only. However, it is required to be noted that as per clause 1.3 of MOS
dated 4.5.2015, the Seth Group agreed to pay Rs.1,46,58,000/- to TFIPL
G towards license renewal fees in respect of license nos. 34, 35 and 36 of
2007 which included not only the liability of the Seth Group, but also that
of PAL Infrastructure Pvt. Ltd., ORS Infrastructure Pvt. Ltd. and
Heritage Cottage Pvt. Ltd. to the extent of Rs.53,11,000/- towards license
renewal fees liability.
H
ASHISH SETH v. SUMIT MITTAL AND OTHERS 533
[M. R. SHAH, J.]
7.3 As mentioned in clauses1.3 and 2 of MOS dated 4.5.2015, the A
Mittal Group is also required to borne part of the liability of PAL
Infrastructure Pvt. Ltd., ORS Infrastructure Pvt. Ltd. and Heritage
Cottage Pvt. Ltd. As mentioned in clause 2, as and when, PAL, ORS
and Heritage contribute their share of the license fee and furnish their
Bank Guarantee for the IDW amount, the Seth Group and Mittal Group
B
will be entitled to the refund of the excess license fee paid by them and
also for restriction of the IDW Bank Guarantee to the amounts actually
due by them, by substituting/replacing the Bank Guarantees of Seth Group
and 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 or
neglect to pay the amounts due by them within 120 days from the date C
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,
and/or in respect of Bank Guarantees so furnished.
Even as per clause 1.3.1, the Seth Group was required to pay the D
aforesaid amount of Rs.1,46,58,000/- to TFIPL in the form of demand
draft drawn in favour of “Directorate of Town and Country Planning,
Haryana”, together with the balance licensee fee made available by the
Mittal Group in terms of clause 5.4. Clause 5.4 is reproduced hereinabove
and as per the said clause, the Mittal Group shall pay/cause to be paid
the balance license fee as well as the balance IDW Bank Guarantee E
(i.e. total amount payable on account of TFIPL less the Seth Group
share as stated in clauses 1.3 and 1.4) to DTCP, Haryana for renewal of
license nos. 34, 35, and 36 of 2007 in the name of TFIPL.
7.4 Even as per Clause G – Renewal of License, the Seth Group
is required to provide documents/undertakings with respect to the lands F
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 Annexure-16 to MOS dated 4.5.2015 to enable Mittal Group
to apply for renewal of license. Even as per clause 18, on application G
made for renewal of license in terms of clause 17, Mittal Group will
secure renewal of license within 90 days and all administrative and
miscellaneous charges, compounding fee, penalties and other charges
levied and payable by PAL, ORS and Heritage for renewal of license
shall be paid by the Mittal Group and all such charges in respect of FIPL
H
534 SUPREME COURT REPORTS [2020] 11 S.C.R.
A m agreement shall be exclusively paid/borne by Seth Group by similarly
paying to TFIPL immediately on being demanded.
7.5 Therefore, on conjoint reading of the relevant clauses of MOS
dated 4.5.2015, the liability of the Seth Group towards the license renewal
fees would be with respect to the lands falling to the share of the Seth
B Group, i.e., 14.80 acres, and additionally, the Seth Group is also required
to pay ½ of the liability of PAL, ORS and Heritage towards the license
renewal fees and the Mittal Group is liable to pay the balance license
renewal fees, i.e., total amount payable on account of TFIPL less the
Seth Group share, including ½ of the total liability of PAL, ORS and
Heritage towards the license renewal fees. The payment of the license
C renewal fees payable by PAL, ORS and Heritage paid by the Seth Group
and the Mittal Group, as stated hereinabove, would be as advance and
as and when PAL, ORS and Heritage contribute their share of the license
fee, the Seth Group and the Mittal Group will be entitled to the refund of
the excess license fee paid by them. As provided in clause 2, in the
D 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.
E 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 Check-List formulated by DTCP, Haryana for renewal of license,
F 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
G as Annexure-16 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
H
ASHISH SETH v. SUMIT MITTAL AND OTHERS 535
[M. R. SHAH, J.]
lands falling in the share of the Seth Group under agreement dated A
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 B
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. C
9. Now so far as the liability towards EDC is concerned, directions
contained in clauses 10 (i) and (ii) of our order dated 24.04.2020 are
very specific and clear. However, it is reported that the earlier EDC
Relief Policy has expired by the efflux of time and the same has been
replaced by the subsequent policy dated 6.7.2020/10.08.2020, which reads D
as under:
“From
Principal Secretary to Govt. Haryana,
Town and Country Planning Department
Haryana, Chandigarh. E
To
The Director,
Town and Country Planning Department
Haryana, Chandigarh. F
Memo no. Misc-SSV (EDC)-206/3536 Dated : - 10.08.2020
SUBJECT:- INTRODUCTION OF ONE-TIME
SETTLEMENT SCHEME “Samadhan Se Vikas” TO G
ENABLE RECOVERY OF LONG PENDING EDC DUES.
In accordance with the powers conferred under Section 9-A of
the Haryana Development and Regulation of Urban Areas Act,
1975, the Governor of Haryana is pleased to notify following One-
H
536 SUPREME COURT REPORTS [2020] 11 S.C.R.
A time Settlement Scheme “Samadhan se Vikas” to enable recovery
of long pending EDC dues with the following terms and conditions:-
1. The scheme shall be applicable in respect of full amount
outstanding on account of the EDC as well as interest and penal
interest.
B (a) In case, a colonizer deposits 100% of the outstanding Principal
Amount against EDC as well as 25% of the accumulated interest
and penal interest, within a period of six months from the date of
notification of this scheme, the balance 75% of the accumulated
interest and penal interest shall be waived off.
C (b) In case, a colonizer deposits at least 50% of the outstanding
Principal Amount against EDC as well as 50% of the accumulated
interest and penal interest, within a period of six months from the
date of notification of this scheme, the balance 50% of the
accumulated interest and penal interest shall be waived off;
D Further, the remaining 50% of outstanding Principal Amount shall
be recoverable in four six-monthly installments along with interest
at the rate of 8% per annum on the delayed period and an additional
2% interest per annum on the default period; and; the first six
months period for deposit of first installment shall start from the
E date of deposit of 50% Principal plus 50% Interest and Penal
Interest component.
Provided further that in case the colonizer does not clear the entire
EDC dues within the above said two year period, the waiver of
balance 50% of the accumulated interest and penal interest shall
F stand annulled and the original EDC amount and schedule shall
be automatically restored less payment made under (b) above.
Explanation:-
Thus, no major penalty is imposed on the colonizer in case of
default of installments within the prescribed two year period for
G deposit of installments. However, in case any amount of the
balance 50% outstanding Principal Amount along with interest is
not deposited within the prescribed two year period, the colonizer
shall lose all benefits under this policy and the original EDC
schedule applicable before availing the present policy shall stand
restored and all payments received till such date and thereafter
H
ASHISH SETH v. SUMIT MITTAL AND OTHERS 537
[M. R. SHAH, J.]
shall be considered to have been paid against the original EDC A
schedule.
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) B
Principal Secretary to Govt. Haryana,
Town & Country Planning Department
Endst.No. Misc-SSV (EDC)-206/3537 Dated: 10.08.2020 C
A copy is forwarded to the Secretary, Council of Minister, Haryana
with reference to their U.O. No. 9/116/2020-2 Cabinet
dated 06.07.2020 for information please.
Sd/
(A.K. Singh, IAS) D
Principal Secretary to Govt. Haryana,
Town & Country Planning Department”
Learned counsel appearing on behalf of both the parties – Seth
Group and Mittal Group have stated at the bar that they want to
avail the benefit of the aforesaid one time settlement scheme, E
“Samadhan Se Vikas”, as per option 1(a) under which their liability
would be to deposit 100% of the outstanding principal amount
against EDC as well as 25% of the accumulated interest and
penal interest, within a period of six months from the date of
notification of this scheme and the balance 75% of the
F
accumulated interest and penal interest shall be waived off. The
liability of the Seth Group as well as Mittal Group (TFIPL) under
the new scheme under option 1(a), as per communication dated
17.09.2020 from the office of the Directorate of Town and Country
Planning, Haryana, is as under:
“To avail One Time Settlement Scheme, if both groups submits G
mutual consent and opt under option 1(a), then the payable amount
is an under:-
H
538 SUPREME COURT REPORTS [2020] 11 S.C.R.
A (Rs.In Lacs)
Sr. Group Principal Interest Penal Interest Total
No.
1. TFIPL 1773.25 29.27 766.09 2568.61
2. Seth Group 1326.83 21.90 338.24 1686.97
Total 3100.08 51.17 1104.33 4255.58
B
For the aforesaid, both the groups – Seth Group and Mittal Group
are required to submit mutual consent opting the benefit of one time
settlement scheme – “Samadhan Se Vikas” under option 1(a).
10. In view of the above and for the reasons stated above, in
C 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;
D (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
E 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
F
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
G
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
H
ASHISH SETH v. SUMIT MITTAL AND OTHERS 539
[M. R. SHAH, J.]
of the MOS dated 4.5.2015. In the event of PAL, ORS and Heritage fail A
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;
B
(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. C
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; D
(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 E
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 F
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 G
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
H
540 SUPREME COURT REPORTS [2020] 11 S.C.R.
A 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
B
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 non-compliance of the aforesaid directions
C 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.
D
12. Put up after three months for reporting compliance.
Devika Gujral Directions issued.
E
F
G
H
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