IN THE HIGH COURT OF DELHI AT NEW DELHI
Jasmeet Singh, J.
Ram Nath - Appellant
Versus
Delhi Development Authority - Respondent
W.P.(C) 2544 of 2011
Decided On : 19-01-2024
Writ Petition - Restoration of Allotment - 21.11.1997, 10.02.2000, 30.10.2000, 14.07.2008 - The court held that the respondent's cancellation of the allotment without following the principles of natural justice is bad in law and cannot be sustained. The subsequent letters issued by the respondent restoring the allocation and mutating the flat in favor of the petitioner indicate that the cancellation was revoked. The court quashed the letter dated 12.07.2010 and issued a writ of Mandamus to the respondent to issue a final demand letter and hand over possession of the flat to the petitioner.
Fact of the Case:
The petitioner's son was allotted a flat, which was later cancelled due to non-payment of the last installment. After the petitioner's request for restoration was accepted, the flat was mutated in his name. However, the respondent later cancelled the allotment and requested the petitioner to apply for a refund.
Finding of the Court:
The court found that the respondent's cancellation of the allotment without following the principles of natural justice is bad in law and cannot be sustained. The subsequent letters issued by the respondent indicate that the cancellation was revoked. The court quashed the letter dated 12.07.2010 and issued a writ of Mandamus to the respondent.
Issues: Cancellation of Allotment, Restoration of Allotment, Principles of Natural Justice
Ratio Decidendi: Cancellation of allotment without following the principles of natural justice is bad in law. Subsequent actions by the respondent indicating restoration of the allocation and mutation of the flat in favor of the petitioner revoke the earlier cancellation.
Final Decision: The Writ Petition is allowed, and the letter dated 12.07.2010 issued by the respondent is quashed. A writ of Mandamus is issued to the respondent to issue forthwith a final demand letter to the petitioner and hand over possession of the flat to the petitioner.
JUDGMENT
Jasmeet Singh, J.
1. This is a petition seeking amongst others, the following prayers:
"(a) ....
(b) Writ of Certiorari quashing the impugned letter dated 12.7.2010 (Annexure P-10) issued by Respondent to the Petitioner requesting him to apply for refund;
(c) Writ of Certiorari quashing cancellation of allotment of the demised flat (in case the same has been cancelled)
(d) Writ of Mandamus commanding the Respondent to forthwith issue final demand letter in respect of the demised flat bearing no. D-123, Sarita Vihar, New Delhi and hand over possession thereof after payment;
(e) ...."
BRIEF FACTS GIVING RISE TO THE PRESENT PETITION
2. Mr. Ashwani Kumar, the son of the Petitioner, registered for the allocation of SFS Flat vide FDR/Registration No. 038110 dated 24.07.1985. In the draw of lots held on 31.12.1987, the Petitioner's son was allotted a Category II SFS Flat in Pocket D and E of Sarita Vihar at an estimated cost of Rs. 2,89,000/-.
3. Thereafter, a public notice indicating the revised due dates of payment of installments in respect of flats allotted in Sarita Vihar, Pocket D and E was issued by the Respondent authority. In terms of the due dates, the Petitioner's son paid all the installments before their respective due dates. However, there was a delay of three years in making the payment of the last installment.
4. The son of the Petitioner was unfortunately murdered on 07.07.1993, due to which his mother went into deep depression and passed away in 2008. The flat allotted to the Petitioner's son was cancelled against which the Petitioner made a representation dated 01.12.1999. Upon this representation made by the Petitioner for withdrawal of the cancellation, the Respondent- Delhi Development Authority (hereinafter referred to as "DDA") conceded to the request of the Petitioner and restored the allotment of Category II SFS Flat in Sarita Vihar, D Block vide letter dated 10.02.2000.
5. The Respondent intimated the Petitioner that a specific flat number will be allotted to him in due course through computerized draw. The Petitioner vide letter dated 07.08.2000 requested the Respondent to intimate him about the particulars of the flat allotted to him. In response to this letter, the Respondent vide letter dated 30.10.2000 informed the Petitioner that in the draw held on 23.10.2000, he has been allotted a flat bearing No. 123, 3rd Floor, D Block, Sarita Vihar (hereinafter referred to as "demised flat").
6. The Petitioner submitted documents for effecting mutation of the demised flat in his name. Based on the documents submitted by the Petitioner, mutation of the demised flat No. 123, 3rd Floor, D Block, Sarita Vihar was carried out in the name of the Petitioner by the Respondent vide letter dated 14.07.2008. Thereafter, since there was no communication from the Respondent regarding the demised flat, the Petitioner made a representation sometime in the year 2009 requesting the Respondent to issue a final demand letter and handover possession of the demised flat to him.
7. However, even after a passage of more than two years of effecting mutation of the demised flat in the name of the Petitioner, the Respondent did not issue the final demand letter regarding the demised flat. The Petitioner made a representation dated 25.06.2010 to the Respondent narrating the facts of the case and requesting them to issue the final demand letter and hand over possession of the demised flat, as all the installments for the flat were made by the Petitioner way back in 1988 and 1992. In response to this representation, the Respondent vide letter dated 12.07.2010 (impugned letter) informed the Petitioner that the request for restoration of the allotment has not been acceded to and informed the Petitioner to apply for a refund.
8. It is the case of the Petitioner that after the demised flat was restored by the Respondent vide letter dated 10.02.2000, there has been no reason or occasion for the Respondent to cancel the allotment. In fact, till as late
Timely action against administrative decisions is essential, as courts cannot condone delays after significant lapses, particularly when property rights have transferred.
Failure to adhere to mandatory payment schedules in housing scheme allotments, particularly involving a delay of over three years, constitutes a valid ground for automatic cancellation under contract....
“Since Demand-cum-Allotment letter was not served upon allottee, the cancellation of allotment held not proper.”
The importance of exercising vested rights within the specified time frame and the authority's discretion in cancellation of allotment.
Extension of completion period and waiver of penal interest altered the original terms of the contract, making time no longer the essence of the payment.
The court emphasized that failure to comply with payment directives, as mandated by public notice, results in cancellation of allotment, and timely action to enforce rights is critically important.
The court affirmed the validity of Paragraph XXVI of SO No. 03/2015, emphasizing the importance of preventing unauthorized construction and maintaining harmonious relations in government quarters.
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