DELHI DEVELPMENT AUTHORITY vs NALWA SONS INVESTMENT LTD

The Supreme Court addressed the issue of whether a lessee, who transferred a leased plot to another company as part of a demerger, is liable to pay 50% unearned increase (UEI) on the market value of the plot to the lessor. The Court held that the lessee remains liable for the payment of UEI as stipulated in the Lease Deed, despite the transfer being to an alter ego company. The judgment reaffirmed the enforceability of contractual obligations regarding unearned increase as per the terms of the Lease Deed.