Case: ASHISH SETH  Vs. SUMIT MITTAL &amp; ORS.

Seth Group agreed to pay Rs.1,46,58,000/- to TFIPL 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. 7.3 As mentioned in clauses1.3 and 2 of MOS dated 4.5.2015, the 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 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 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 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 (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 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 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 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 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 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 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. 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, 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 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 lands falling in the share of the Seth Group under agreement dated 15.06.2007, Seth Group shall do the needful at the earliest.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]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.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 othersTherefore, 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 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.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 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 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 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.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, 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 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 lands falling in the share of the Seth Group under agreement dated 15.06.2007, Seth Group shall do the needful at the earliest.. 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,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, 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 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 mutual consent and opt under option 1(a), then the payable amount is an under:-(Rs.In Lacs)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 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.7.3 As mentioned in clauses1.3 and 2 of MOS dated 4.5.2015, the 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 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 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 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 (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 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 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 agreement shall be exclusively paid/borne by Seth Group by similarly paying to TFIPL immediately on being demanded.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 mutual consent and opt under option 1(a), then the payable amount is an under:-(Rs.In Lacs)