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TMI Blog2011 (10) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... building at 6, Jantar Mantar Road, New Delhi. 2. Learned counsel for the petitioner submits that the impugned order deserves to be set aside and quashed on two grounds, namely, that it is a non-speaking order and does not set out and give any reasons and secondly, Chapter XXC is not applicable to the transaction in question between the petitioner and respondent Nos. 4 and 5, namely, Ansal Properties and Industries Limited and Satyawati Dhawan. 3. The first contention is factually correct. However, we would like to dispose of the present writ petition on the second contention but keep in mind the first contention and the effect thereof on the second aspect. It may be noted that in the counter affidavit also the respondents have not tried ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s out various clauses. 6. The petitioner being an original allottee in terms of the letter of allotment dated 6th May, 1980, was issued a fresh allotment letter dated 15th October, 1990. The said letter of allotment records the past history and the terms and conditions, which were agreed between the parties. 7. Chapter XXC of the Act was introduced with effect from 1st October, 1986. The second contention raised by the petitioner is that the said Chapter will not apply to the transaction in question. The contention of the petitioner is that the said Chapter is not applicable as the agreement to sell/the allotment letter was issued in the year 1980, whereas the case of the Revenue-respondents is that the said Chapter will apply as there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and create interest only in the name and on behalf of Smt. Satyawati Dhawan. Though the entire investment in the construction of the immovable property was at the expense of Competent Builders, nevertheless, when any immovable property is erected on land, the ownership there-after necessarily vests in the owner of the land. It is for this reason that Smt. Satyawati Dhawan specifically empowered and authorised Competent Builders to execute sale deeds or issue allotment letters as the attorney of Smt. Satyawati Dhawan. In the allotment letters issued by Competent Builders, there is a specific reference to the agreement dated September 4, 1979, between Smt. Satyawati Dhawan and Competent Builders and, in addition thereto, there is also a re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the flat-buyers. This is also clear evidence of the fact that the original allotment in a way had indeed created rights and liabilities between the flat allottees and Mrs. Satyawati Dhawan. Possibly realising that the commitment in favour of the flat-owners had to be honoured, a memorandum of understanding was entered into between Smt. Satyawati Dhawan and Ansals. According to this memorandum of understanding, Ansals agreed that the original flat-buyers will be sold flats at an enhanced rate of Rs. 850 per sq. ft. The other difference was with regard to an area of 1,050 sq. ft. which was specified in the case of the petitioner. What Ansals agreed to was that the petitioner would get a super area of 1,050 sq. ft. Therefore, the letter of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nderstanding was entered into. It is difficult to imagine that an experienced builder like Ansals would have agreed to sell large areas of built up property at a rate of Rs. 850 per sq. ft. unless and until it was advised and, in our opinion, rightly so, that the flat buyers had a right to the allotment of flats in their favour and that Smt. Satyawati Dhawan could not defeat their right by changing the builder. We are unable to agree with Shri Rajendra that Competent Builders or Ansals were not the agents of Smt. Satyawati Dhawan. The two builders, apart from being financiers, had powers of attorney executed in their favour and a power of attorney is always regarded as an agent of the principal. The attorney is empowered to have dealings w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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