Case Law Details
M/s. Jaiprakash Industries Ltd. (Presently known as M/s. Jaiprakash Associates Ltd.) Vs Delhi Development Authority (Supreme Court of India)
Whether transfer of leasehold rights in pursuance to amalgamation/merger is liable for payment of unearned increase in case of transfer of leasehold rights?
This judgement will be helpful in planning of M&A as often it is thought that once the court approved the merger, the stamp duty and other statutory charges are not payable based on the scheme which is drafted. It is important that the scheme is drafted taking into account every aspect.
An interesting question arose before Hon’ble Supreme Court in this case when Jaiprakash Industries limited received certain leasehold lands in pursuance to amalgamation/merger which rights were held by the amalgamated company and DDA demanded unearned increase in lease rent.
An application was made by the appellant to the respondent-Delhi Development Authority (for short, ‘DDA’) for a grant of permission to mortgage the said plots in favour of the Industrial Finance Corporation of India. By the letter dated 14th March 1991, the respondent-DDA demanded an unearned increase value of Rs.2,13,59,511.20
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