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2014 Supreme(P&H) 1559

PUNJAB AND HARYANA HIGH COURT
HEMANT GUPTA & BHARAT BHUSHAN PARSOON, JJ.
Sonu Kapoor - Petitioner
Versus
State of Haryana and others - Respondents
CWP No. 17297 of 2013
Decided On : 12.9.2014

Advocates:
Advocate Appeared:
For the Petitioner:Shyam Kumar Sharma, Advocate
For the Respondent No. 1: Ms. Shubhra Singh, DAG, Haryana
For the Respondent Nos. 2 to 4:Manish Bansal, Advocate
For the Respondent No. 5:Aalok Jagga, Advocate

Failure to communicate acceptance and deposit the required amount within the stipulated time does not lead to a concluded contract for plot allotment.

Headnote:

Cancellation of Allotment - Plot Allotment - [Haryana Urban Development Authority Act, 1977 - Section 15(2)(b), Haryana Urban Development Authority (Allotment, Management and Sale of Flats) Regulations, 1977 - Regulation 4(2)] - The court discussed the cancellation of plot allotment and the relevant provisions of the Haryana Urban Development Authority Act, 1977 and the Haryana Urban Development Authority (Allotment, Management and Sale of Flats) Regulations, 1977. The court emphasized that failure to communicate acceptance within the stipulated time does not lead to a concluded contract, citing legal precedents such as Chaman Lal Singhal v. Haryana Urban Development Authority and others, (2010) 9 SCC 157, Jasbir Singh Chhabra and others v. State of Punjab and others, (2010) 4 SCC 192, and Greater Mohali Area Development Authority and others v. Manju Jain and others, (2010) 9 SCC 157.

Fact of the Case:

The petitioner applied for a residential plot, but the allotment was cancelled due to failure to communicate acceptance and deposit the required amount within the stipulated time. The petitioner contested the cancellation, citing policy provisions for extension of the deposit period.

Finding of the Court:

The court found that the petitioner's failure to communicate acceptance and deposit the required amount within the stipulated time did not lead to a concluded contract. The court emphasized that the allotment letter was only an offer, which required acceptance to create a contract.

Issues: The main issue was whether the petitioner's failure to communicate acceptance and deposit the required amount within the stipulated time led to a concluded contract for plot allotment.

Ratio Decidendi: The court relied on legal precedents and the relevant provisions of the Haryana Urban Development Authority Act, 1977 and the Haryana Urban Development Authority (Allotment, Management and Sale of Flats) Regulations, 1977 to establish that failure to communicate acceptance within the stipulated time does not lead to a concluded contract.

Final Decision: The court dismissed the writ petition, holding that the petitioner's failure to communicate acceptance within the stipulated time did not confer any right to the petitioner for plot allotment.

JUDGMENT :

Hemant Gupta, J.

The challenge in the present writ petition is to communications dated 24.03.2009 (Annexure P-10); 02.06.2009 (Annexure P-11); 16.06.2009 (Annexure P-15) and 10.04.2012 (Annexure P-22) as well as an order dated 19.11.2012 (Annexure P-26) whereby the allotment of plot No.2396, Sector 65, Faridabad, was cancelled.

2. The petitioner applied for a residential plot at Sector 65, Faridabad by raising loan from Central Bank of India, Putlighar Branch, Amritsar on deposit of 10% of the amount of total sale consideration i.e. Rs.2,22,138/-. In the draw of lots, the petitioner was successful and letter dated 30.05.2007 was forwarded by Estate Officer, Haryana Urban Development Authority (for short `HUDA'), Faridabad to Manager, Central Bank of India, Queens Road, Civil Lines, Amritsar (Punjab) i.e. the address given by the petitioner in the application form submitted to the respondents. It was pointed out that the allotment letter was sent by Estate Officer, HUDA to the Bank which was released after the petitioner cleared the loan of the Bank on 08.02.2012. A copy of letter of allotment has been attached with the writ petition as Annexure P-6. The relevant conditions from the letter of allotment reads as under:-

"4. In case you refuse to accept this allotment you shall communicate your refusal by a Registered A.D. Letter within 30 days from the date of issue of this allotment letter, failing which this allotment shall stand cancelled, and the earnest money deposited by you shall be forfeited to the authority & you shall have no claim for damages.

5. In case you accept this allotment please send your acceptance by Registered A.D. alongwith an amount of Rs.333207.00 within 30 days from the date of issue of allotment letter which together with an amount of Rs.222138.00 paid with your application form as earnest money will constitute 25% of tentative price."

3. The petitioner asserts that she contacted Central Bank of India in October, 2007 and on being informed that she is successful in draw of lots, she sent a demand draft of Rs.3,60,000/- on 24.10.2007 towards 15% of the amount of total sale consideration to Estate Officer. The petitioner sent another communication on 30.08.2008 that she has been informed that demand draft of Rs.3,60,000/- has not been received, therefore, she sought to furnish a new demand draft on issuance of a certificate by the respondent- HUDA that the amount of draft has not been credited to their account. It was on 04.09.2008, the Bank confirmed that draft dated 24.10.2007 has not been paid.

4. On 24.03.2009, the allotment of the plot was cancelled, the communication which was sent to the petitioner through Central Bank of India, the address available with the respondents. Thereafter, the petitioner submitted representation on 22.05.2009 referring to payment of Rs.3,60,000/- vide demand draft dated 24.10.2007. The representation was declined by learned Administrator for the reason that no payment has been made within the period as stipulated in the allotment letter. The draft was never received in HUDA office nor was it even encashed at any stage. The revision was dismissed on 10.04.2012 after returning a finding that draft of 15% was sent after the expiry of period of 30 days, therefore, no concluded contract has come into existence. The petitioner relies upon policy dated 20.03.2007 (Annexure P-27) contemplating period for extension of initial deposit of 15% to contend that if the petitioner has not remitted the amount within 30 days, but in terms of the policy, the period of deposit should have been extended.

5. In reply filed on behalf of respondents No.1 to 3, it is averred that allotment letter dated 30.05.2007 was issued to the petitioner through Manager, Central Bank of India, through registered post as the application was submitted by the petitioner through Bank. The address in th























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