Quick Summary: The Delhi High Court rejected an appeal by MS Durga Builders Private Limited (DBPL) against an agreement from 2003, confirming it was valid and dismissing claims of cheating.
The case is about a property in Panchsheel Park, New Delhi, originally owned by K.D. Somaia. In 1992, MS Durga Builders Private Limited (DBPL) agreed to buy it, but later sold it to Mr. Ajay Relan in 1993. A legal fight started when Mr. Ajay Relan wanted the sale agreement to be honored, leading to an agreement in 2003.
MS Durga Builders Private Limited (DBPL), represented by Mr. Divij Mehra, claimed that Mr. R.K. Nanda, the former managing director, was not allowed to make the agreement. They argued the agreement was invalid because he didn't have the authority and claimed there was cheating in the transaction.
The court found that even though the Mehra group claimed to own MS Durga Builders Private Limited (DBPL) through a 1997 agreement, they never actually took control. The Nanda family stayed in charge, as shown by company records, and Mr. R.K. Nanda had the authority to make the agreement.
"The Nandas were the 'alter ego' and lawful controller at the time of the agreement," the court noted.
MS Durga Builders Private Limited (DBPL) claimed that the payment of Rs. 1.80 crores was never made. However, the court found no evidence of cheating, noting that payments were recorded and no objections were raised at the time.
The court stated, "No fraud is shown in the records, and the agreement is valid."
The appeal was filed over a decade after the agreement, weakening MS Durga Builders Private Limited's (DBPL's) position. The court pointed out that the Mehra group, knowing about the agreement, delayed challenging it directly.
The court decided that the agreement was lawful and rejected the appeal, confirming the agreement's validity.
"The request to cancel the agreement filed by MS Durga Builders Private Limited (DBPL) was not allowed because it was too late," the court ruled.
