1. Allotment of sites — Non-payment of balance sital value — Cancellation of allotment — Challenge to cancellation after significant delay. (Para 3 , 4 , 5 , 6 )
2025 Supreme(SC) 1510
SUPREME COURT OF INDIA
SURYA KANT AND NONGMEIKAPAM KOTISWAR SINGH, JJ.
The Commissioner, Bengaluru Development Authority
Versus
T. Seetharamappa (dead) thr. Lrs
CIVIL APPEAL Nos. 6809, 6810 of 2025 (Arising out of SLP©Nos.13871-13872 of 2021) with C.A. No. 6811 of 2025 @ SLP© No. 20723 of 2022, C.A. No. 6812 of 2025 @ SLP© No. 21411 of 2022, C.A. No. 6813 of 2025 @ SLP© No. 21597 of 2022, C.A. No. 6814 of 2025 @ SLP© No. 21473 of 2022, C.A. No. 6815 of 2025 @ SLP© No. 21617 of 2022, C.A. No. 6816 of 2025 @ SLP© No. 21285 of 2022, C.A. No. 6817 of 2025 @ SLP© No. 21408 of 2022, C.A. No. 6818 of 2025 @ SLP© No. 21394 of 2022, C.A. No. 6819 of 2025 @ SLP© No. 21447 of 2022, C.A. No. 6820 of 2025 @ SLP© No. 21550 of 2022, C.A. No. 6821 of 2025 @ SLP© No. 21236 of 2022, C.A. No. 6822 of 2025 @ SLP© No. 21253 of 2022, C.A. No. 6823 of 2025 @ SLP© No. 21409 of 2022, C.A. No. 6824 of 2025 @ SLP© No. 21441 of 2022, C.A. No. 6825 of 2025 @ SLP© No. 21287 of 2022, C.A. No. 6826 of 2025 @ SLP© No. 21274 of 2022, C.A. No. 6827 of 2025 @ SLP© No . 3248 of 2023, C.A. No. 6828 of 2025 @ SLP© No . 6155 of 2023, C.A. No. 6829 of 2025 @ SLP© No . 7481 of 2023, C.A. No. 6830 of 2025 @ SLP© No . 7482 of 2023, C.A. No. 6831 of 2025 @ SLP© No. 15821 of 2023, C.A. No. 6832 of 2025 @ SLP© No. 15822 of 2023, C.A. No. 6833 of 2025 @ SLP© No. 14433 of 2023, C.A. No. 6834 of 2025 @ SLP© No. 18596 of 2023 and C.A. No. 6835 of 2025 @ SLP(C) No. 23579 of 2023
Decided on : 14-05-2025
The Supreme Court held that failure to pay the balance site value within the stipulated period, followed by prolonged silence, justifies the cancellation of allotment. Allottees lose their right to the site if they fail to comply with payment terms and approach the court after an unreasonable delay.
Headnote:(A) Writ of Mandamus - Basic principles governing allotments - No duty on local authority to extend time beyond statutory limits if payments are not made as per allotment conditions - The ruling affirms that allotments can be canceled for persistent defaults in payment. (Paras 4, 6, 10)
(B) Jurisdiction of High Courts - Scope of review, especially regarding time-sensitive allotment agreements, restating that courts should uphold terms agreed by parties in statutory frameworks - Parties are to adhere to established timelines. (Paras 8, 10)
Facts of the case:
The appellants, the Bengaluru Development Authority, canceled allotments of sites made to respondents due to persistent defaults in payment of stipulated amounts. The High Court earlier allowed the respondents' plea to restore the allotments, which the appellant contested.
Findings of Court:
The court upheld that allottees must adhere to timelines stipulated in the allotment conditions. The cancellation of allotments was justified due to defaults in payment.
Issues: The high court's power to restore allotments when due payments were not made and the obligations of the respondents regarding timely payment.
Ratio Decidendi: The court emphasized that legal obligations set forth in allotment agreements must be followed, and failures in compliance justify cancellation. Prior court decisions asserted no obligation to extend payment periods was placed on the authority.
Result: Appeals allowed; High Court judgments set aside.
Legal Category Hierarchy
Table of Contents
2. Allottees claimed financial constraints for non-payment; Authority contended cancellation was valid due to persistent default and delayed representations. (Para 6 , 7 )
3. Lack of justification for non-payment and prolonged silence before approaching the court — Consistency with prior rulings on allottee obligations. (Para 9 , 10 )
4. Failure to pay sital value within stipulated time and subsequent prolonged silence forfeits the right to allotment or restoration. (Para 9 , 10 )
5. Appeals allowed — High Court judgments set aside — Deposited amounts to be refunded with interest. (Para 11 , 12 )
6. Does failure to pay the balance sital value within the stipulated period justify the cancellation of site allotment?
Yes. If an allottee fails to deposit the sital value within the prescribed period or the extended time granted, the authority is entitled to cancel the allotment. (Para 4 , 5 , 6 , 9 )
7. Can an allottee seek restoration of a cancelled allotment after a prolonged period of silence?
No. The court observed that there is no valid justification for an allottee to remain silent for several years and then approach the court, especially when the delay is likely motivated by increases in market value. (Para 10 )
8. What is the obligation of an allottee regarding communication and payment in site allotments?
The allottee is mandated to deposit the sital value within the stipulated period and is solely responsible for keeping the authority informed of any change in address to ensure communication. (Para 9 )
ORDER :
1. Leave granted.
2. The lead matter in this batch of appeals is directed against the common impugned judgment dated 17.02.2021, passed by a Division Bench of the High Court of Karnataka at Bengaluru, in Writ Appeal No. 3890/2019 and Writ Appeal No. 2770/2019, thereby upholding the judgment of the learned Single Judge, in terms whereof the Appellant (BDA) was directed to decide the representations of the allottees in accordance with law. Insofar as the connected appeals are concerned, they arise out of the common impugned judgment dated 23.09.2022 passed by a Division Bench of the High Court of Karnataka at Bengaluru disposing of a batch of writ appeals whereby allotment of sites were ordered to be restored in favour of the individual allottees. There are certain other connected appeals which though arise out of different impugned judgments passed by the High Court but pertain to the same controversy.
3. Broadly, in all these cases sites were allotted by the Appellant to the Respondents at various places in Bengaluru. These allotments were made at different times but largely in and around the year 2000. While the facts pertaining to each allotment such as the site and payment of value by the Respondents are different, the dispute in all these cases pertains to the cancellation of allotment by BDA on account of non-payment of balance sital value. For the sake of convenience, we are adverting to the facts of the lead matter only, however, the decision shall be applicable on all the connected matters, alike.
4. The BDA allotted different sites admeasuring 40x60 ft. to the private respondents in Anjanapura layout on 07.07.2001 or so. The allotments were made as a welfare measure in favour of the members of the Scheduled Castes community at a highly concessional rate. Some of the terms and conditions of the allotment were as follows:
"1. In the prescribed affidavit format enclosed herewith on Rs.15.00 stamp paper to be olemnised (sic), and the additional information form is to be filled, and within 15 days of receipt of this allotment letter is to be submitted. Failed to do so the site allotted to you is deemed to have refused and the site allotment without, issue of notice will be cancelled and the registration fee will be forfeited.
2. The site total value out of Rs.343450/- after the initial deposit is deducted the remaining amount of Rs.326250/- within 30 days of receipt of the allotment letter is to be paid to the authority. And if the balance amount is not paid, the allotment of site without any prior intimation will be cancelled and the registration fee will be forfeited.
3. In case if the prescribed balance amount cannot be paid within 30 days, you can submit an application and can obtain 60 days time for payment with l8% interest and obtain the extended time intimation in writing with in the extended time if the balance amount is not paid. The allotted site without any prior notice the allotment will be cancelled and the earlier paid registration fee will be forfeited.(this condition is not applicable for altenate site allotment).
4. The amount payable should be paid in the form of Demand Draft or through remittance of cash in BDA Premises Canara Bank Extension Counter or Indian Overseas Bank KP West Branch, and in this regard intimation to be made to the BDA.
5. After remittance of the above said site amount, the absolute sale deed form will be given. The allotee of the site should get registration of the absolute sale deed.
At the time of the handing over of the site which is mentioned in this allotment letter is subjected to verification. For each sq.metre is Rs.1590/- and the total cost of the site is Rs.343450/-
Site number and layout name Measurement of site approx. sq.ft./sq.mtr. Value of the site and as initial deposit paid amount Within 30 days to be paid balance amount
881 Block VG Anjanpura 12x18 Meters 17200/-Slum charges 326250
1000
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327250
[Emphasis Supplied]
5. There is no dispute that in terms of the