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2007 Supreme(SC) 1620

Supreme Court Of India
POONAM VERMA - Appellant
Versus
DELHI DEVELOPMENT AUTHORITY - Respondent
Appeal (Civil) 5874 Of 2007
Decided On : 12/13/2007
.

The main legal point established in the judgment is that the Central Government did not have the jurisdiction to revive a closed housing scheme or issue directions for allotment beyond the scheme's provisions.

Headnote:

Schemes - Delhi Development Act, 1957 - Sections 41, 56(2)(r) - The court discussed the Delhi Development Act, 1957 and its provisions, particularly Sections 41 and 56(2)(r), in the context of a housing registration scheme. The court highlighted the independence of the scheme, the mode of allotment, and the reservations for different categories. It emphasized that the Central Government did not have the jurisdiction to revive the closed scheme or issue directions for allotment beyond the scheme's provisions.

Fact of the Case:

The appellants registered for a housing scheme but were unsuccessful in obtaining flats. They sought allotment through various legal and administrative channels, including consumer disputes forums, the Ministry of Urban Affairs, and the Delhi High Court, but were unsuccessful. They argued that the Central Government could direct allotment under an 'out of turn quota' and relied on the principles of Legitimate expectation and Promissory Estoppel.

Finding of the Court:

The court found that the appellants did not have a legal right to obtain allotment of flats and that the Central Government did not have the jurisdiction to revive the closed scheme or issue directions for allotment beyond the scheme's provisions. The court rejected the appellants' claims based on Legitimate expectation and Promissory Estoppel.

Issues: The issues involved the appellants' entitlement to allotment of flats, the jurisdiction of the Central Government to issue directions for allotment, and the applicability of Legitimate expectation and Promissory Estoppel.

Ratio Decidendi: The court held that the appellants did not have a legal right to obtain allotment of flats and that the Central Government did not have the jurisdiction to revive the closed scheme or issue directions for allotment beyond the scheme's provisions. The court rejected the appellants' claims based on Legitimate expectation and Promissory Estoppel.

Final Decision: The appeal was dismissed, and no costs were awarded to either party.

S. B. SINHA, J.

( 1 ) LEAVE granted.

( 2 ) RESPONDENT is an authority created under the Delhi Development Act, 1957 (for short "the Act" ). The Act was enacted to provide for the development of Delhi according to plan and for matters connected therewith or ancillary thereto. Respondent floated a scheme known as Fifth Self Financing Housing registration Scheme, 1982 (for short "the Scheme" ). Appellants herein pursuant to an advertisement issued in this behalf registered themselves; their registration numbers being 13463, 16602 and 13464. For the purpose of allotment of flats, lots were drawn on various occasions, viz. , in June, 1987, November, 1987, March, 1989, July, 1990, January, 1991, January, 1993. Appellants were not successful therein and, thus, were unable to get flats in locality of their choice. The Scheme was closed. However, with a view to give a chance to those who were not successful in the lots on the earlier occasions, a public notice was issued in some newspapers on 8. 12. 1993 for release of about 3000 flats which included some built and ready-built ones situated in Kondli-Gharoli. Registrants under the Scheme were entitled to apply therefor. In the public notice, it was categorically stated that the registrants of the said scheme who had not applied for an allotment in that release would not be eligible to apply again for allotment. It was further stated that in the case registrants of 5th SFS did not avail of this opportunity or if they surrendered allotment/ allocation after being successful, they shall be deemed to have opted out of the scheme and action shall be taken to refund their registration money.

( 3 ) APPELLANTS did not respond to the said notice. Despite the same allegedly they had been allotted Category- III flats. They were called upon to pay the price specified therefor and to take delivery thereof. They declined to do so. They asked their names to be included in the VI and VI-A self Financing Schemes which were issued later on. Respondent did not agree thereto.

( 4 ) A complaint was filed by the appellants before the Consumer Disputes redressal District Forum - II on or about 16. 01. 1995 inter alia for a direction upon the respondent herein that their registration should not be cancelled and they should be considered in future draw of lots till they could be allotted flats in the locality of their choice. By a judgment and order dated 24. 07. 1995, the said application was allowed holding that the action of the respondent in not considering the cases of the appellants for allotment through the process of draw of lots amounted to unfair trade practice, apart from being unilateral and unjustified. Aggrieved by and dissatisfied therewith, the respondent preferred an appeal before the State Consumer disputes Redressal Commission, New Delhi and by an order dated 30. 11. 1998 allowed the said appeal and set aside the order of the District forum. Appellants herein thereafter filed a revision application before the national Consumer Disputes Redressal Commission. During pendency of the said application, they approached the Finance Member and Chairman of the respondent to place their case before the 'out of court settlement committee '. By an order dated 25. 11. 1999, the National Commission dismissed the revision petition filed by the appellants herein relying inter alia on Clause 16 of the Brochure wherein it had categorically been stated that "dda reserves the right to withdraw the Scheme at any time". A special Leave Petition preferred thereagainst was dismissed.

( 5 ) ALTHOUGH the appellants were not successful in their attempt to obtain any remedy on the judicial side, they purported to approach the Ministry of urban Affairs in 1997. They made certain representations. Allegedly, the joint Secretary (Dandl) by reason of a letter dated 24. 08. 2000 addressed to the Vice-Chairman of Delhi Development Authority directed as under:

"i am directed to refer to D. O. letter No. F. 1 (Misc.) 5th S






































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