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Supreme Court of India 2016-06-29 dismissed

Delhi Development Authority vs Kenneth Builders & Developers Ltd. & Ors

Bench: 2 — Madan B. Lokur

In Brief

The Delhi Development Authority (DDA) auctioned land for a residential development project to Kenneth Builders, which deposited Rs. 450.01 crores. Before construction could commence, the Department of Forests objected, asserting the land fell within or had morphological similarity to the Ridge, requiring approval from the Ridge Management Board and Supreme Court. The DPCC refused to grant the required 'consent to establish' without ridge demarcation. The Supreme Court held the development agreement was frustrated by intervening circumstances unforeseen by both parties—specifically, the legal requirement for Ridge authority approval. Since DDA could not ensure a clear initial path for construction, Kenneth Builders was entitled to full refund with 6% interest from the deposit date.

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