In Brief
The Delhi Development Authority executed an agreement to lease a plot to M/s Mehta Constructions in 1957, but the formal lease deed was never executed. M/s Mehta Constructions subsequently sold its supposed interest to Pure Drinks Private Limited in 1985, which was later sold at public auction to the first respondent during liquidation proceedings. The Supreme Court held that since the lease deed was never executed, M/s Mehta Constructions acquired no leasehold rights and could not validly transfer what it did not possess. Therefore, the first respondent is not entitled to ownership or leasehold rights. The Court dismissed the appeal but left open the Authority's remedies for recovery of possession and unearned income, and permitted the first respondent to seek regularization by applying directly to the Authority.
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