High Court Of Delhi
R.K.DEKA - Appellant
Versus
UNION OF INDIA - Respondent
Civil 2372 of 1981
Decided On : 04/27/1984
PROMISSORY ESTOPPEL - LAND ALLOTMENT SCHEME - DROPPING OF SCHEME - PUBLIC INTEREST - EXECUTIVE NECESSITY - DOCTRINE OF PROMISSORY ESTOPPEL NOT APPLICABLE - WRIT PETITIONS DISMISSED.
Fact of the Case:
The Government announced a scheme for allotment of land in Delhi to non-resident Indians living abroad to build residential houses. The petitioners applied for allotment of land under the scheme and deposited earnest money. The Government later dropped the scheme on grounds of public interest and equitable distribution of land resources. The petitioners filed writ petitions challenging the decision of the Government.
Finding of the Court:
The Court held that the doctrine of promissory estoppel was not applicable in the present case as the Government had disclosed special considerations in public interest for dropping the scheme. The Court also held that the Government was not bound by the scheme as it had not tied its hands by any undertaking that the scheme would not be withdrawn in future.
Issues: Whether the doctrine of promissory estoppel was applicable in the present case.
Ratio Decidendi: The Court held that the doctrine of promissory estoppel was not applicable in the present case as the Government had disclosed special considerations in public interest for dropping the scheme. The Court also held that the Government was not bound by the scheme as it had not tied its hands by any undertaking that the scheme would not be withdrawn in future.
Final Decision: The writ petitions were dismissed with no order as to costs.
( 1 ) THIS order will dispose of C. W. Ps. 2372/81, 1704/82. 250/1983 and 2100/83, filed under Article 226 of the Constitution of India seeking appropriate writs, orders or directions. The petitions raise the question, mainly on the ground of promissory estoppel of the legality of the policy decision of the Government in dropping a scheme for allotment of land in Delhi to non-resident Indians living abroad to build residential houses in Delhi.
( 2 ) THE objective of the scheme which was announced by the Government in early 1978, was to facilitate non-resident Indians living abroad to build residential houses in India and thus to satisfy their natural urge to own property in their own country and to settle down therein whenever they wished to do so. It was felt that it was difficult for such persons living abroad to acquire properties through Government auctions or private dealers and, therefore, it was decided to frame the scheme which would facilitate this. The scheme was introduced in Delhi on an experimental basis. A non-resident Indian living abroad who does not own a residential plot of land/ house/ flat either in his/her name or in the name of his/her family members as defined in Urban Land (Ceiling and Regulation) Act, 1976; i. e. wife/husband/unmarried children in Delhi/new Delhi, was eligible to apply for the allotment of a house plot under the scheme. Persons in the Indian Foreign Services were not entitled to get allotment under the scheme. The Land under the scheme is located at Badarpur, Mehrauli Road, New Delhi and is under the control of the Land and Development Officer, under the Ministry of Works and Housing, New Delhi.
( 3 ) THE mode of payment of the price was also provided. The price of the plot (the premium) and the cost of construction on the plot was payable in foreign exchange to be converted into Indian rupees specifically for this purpose by its sale through the Reserve Bank of India or its authorised dealers. The annual ground rent and the share of the Government in the unearned increase in the value of the land on its transfer was payable in Indian rupees. If, however, the lease-hold rights of the lessee in the plot allotted were to be transferred or assigned to another nonresident Indian residing abroad, the share of the Government in the unearned increase in the value of the land on such transfer or assignment was payable in foreign exchange in the manner prescribed above. The entire price of the land and the cost of construction was payable in foreign currency. The plots were normally available in one size of 334. 452 sq. metres (400 sq. yds. approximately ). The total permissible covered area for a plot of 400 sq. yards is 4050 sq. ft. and, the approximate total cost of construction was given at Rs. 2,43. 000. 00 (estimated @ Rs. 60. 00 per sq. ft ). These rates were tentative and subject to variation depending on the rate prevailing at the time of construction, and the specifications adopted. It was permissible for the allottees to construct the house to any specifications that may be approved by the local body.
( 4 ) THE scheme further provided that the plots would be allotted on lease-hold basis at the reserve prices of Rs. 200. 00 per sq. yd. (Rs. 239. 20 per sq. metre ). The price of the plot was payable in lump sum within a period of three months from the date of allotment In addition to the cost of land each plot holder was required to remit to India foreign exchange equivalent to the cost of construction of the residential house to be built by his/her according to specification and plans approved by the local body. The allottees were permitted to deposit foreign exchange equivalent, if they so wished, to the cost of construction for full coverage on ground floor only. If and when they decided, to take up additional construction up to permissible limit, they were required to deposit additional foreign exchange in advance. In cases where multi- construction was essential under
REFERRED TO : Jit Ram Shiv Kumar v. State of Haryana
Motilal Padampat Sugar Mills Co.Ltd. v. State of Uttar Pradesh
Radhakrishna Aggarwal v. State of Bihar
N.Ramanathan Pillai v. State of Kerala
State of Kerala v. The Gwalior Rayon Silk Manufacturing (Wvg) Co. Ltd.
Spinning and Manufacturing Co. Ltd. v. The Ulhasnagar Municipal Council AIR 1971 SC 1021
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