IN THE HIGH COURT OF ALLAHABAD
MANOJ KUMAR GUPTA, JAYANT BANERJI, JJ.
Smt. Krishna – Petitioner
Versus
State of U.P. and Others – Respondents
Writ (C) No. 17717 of 2022
Decided On : 09-12-2022
Constitution of India, 1949 – Article 226 – Power of High Court to issue certain writs – Allotment Authority – Petitioner is an allottee of Sector vide allotment letter by Greater Industrial Development Authority – Allotment was on lease hold basis – Allotment letter specifically mentions that possession was likely to be offered to the allottees within two years from issue of allotment letter – Held, Suit that was filed was for permanent injunction damages and not for specific performance – Transfer is permissible without permission of Authority and that too when transfer was made after execution of lease deed – Instant case no lease deed was ever executed even otherwise – Authority could not have taken notice of any such transaction – Court considered opinion that petitioner who had been deliberately deprived of returns on her investment solely attributable to Authority is entitled to interest deposit till acquisition was set aside by Supreme Court period beyond it until actual payment – Petition stands allowed.
JUDGMENT :
1. Heard Shri O.P. Rai, learned counsel for the petitioner, learned Standing Counsel for respondent no. 1 and Ms. Anjali Upadhya for respondent nos. 2 and 3.
2. The petitioner is an allottee of plot no. 19, Block-C, Sector Zeta-2, area 120 sq. mts. vide allotment letter dated 7.1.2011, by Greater Noida Industrial Development Authority (for short ‘the Authority’). The allotment was on lease hold basis for 90 years. The allotment letter specifically mentions that possession was likely to be offered to the allottees within two years from the date of issue of allotment letter. The allottee had to complete formalities for execution of lease deed upon intimation. If the allottee fails to execute legal documents in time, action for cancellation of allotment and forfeiture of deposited money would be taken. According to brochure, 30% of the total premium of the plot (after adjusting registration money already paid) would be payable within 45 days from the date of allotment under Plan D-2 opted by the petitioner and balance 70% was payable in ten equal half-yearly installments calculated from the 46th day from the date of allotment with interest @ 12% per annum. The allottee had been given option to surrender the allotment. In case of surrender after the draw of plots/allotment but within 30 days from the date of allotment, 10% of the registration money would be forfeited and balance amount deposited would be refunded without interest. In case of surrender within 45 days of allotment under payment plan D-2, 50% of the registration money would be forfeited and balance amount would be refunded without any interest. In case the allotment is surrendered after 45 days under payment plan D-2 but before six months from the date of allotment, 10% of the total premium of plot would be forfeited and the balance amount, would be refunded without any interest. In case of surrender after six months from the date of allotment, entire deposited money would be forfeited. In case the allottee fails to deposit the due amount within stipulated time, allotment was liable to be cancelled and in such case, the money deposited till the date of cancellation would be forfeited.
3. The petitioner deposited the registration money and installments (total: Rs. 19,80,071) from time to time. However, the Authority failed to execute lease deed and deliver possession of the allotted plot to the petitioner despite having realised entire amount from the petitioner in terms of the allotment letter. On 21.8.2019, the respondent-Authority for the first time informed the petitioner that the Authority had taken decision to cancel the Scheme and that refund will be made in terms of Clause U-3 of the brochure and the petitioner will only be paid 4% per annum interest. Even, thereafter, when money was not returned, the petitioner filed the instant petition for issue of a writ of mandamus directing the respondent-Authority to forthwith refund the entire amount with interest @ 12% per annum.
4. Under Clause U-3, it was provided that if due to any ‘force majeure’ or such circumstances beyond the Authority's control, the Authority is unable to make allotment or the possession of the allotted plot, entire registration money or the deposit, depending on the stage of allotment will be refunded along with simple interest at the rate of 4% per annum if delay in refund is more than one year from such date.
5. Learned counsel for the petitioner submitted that Clause U-3 is not applicable to the facts of the instant case inasmuch as the land acquisition proceedings in relation to the allotted land had concluded on 15.4.2011 when the Supreme Court allowed Civil Appeal No. 3261 of 2011 and quashed the acquisition proceedings. The retention of the money deposited by the petitioner thereafter was without any justification. It was not beyond the control of the Authority to refund the amount soon after the judgment was delivered by the Supreme Court. However, it kept the allottees in dark
The principle of unjust enrichment and the doctrine of legitimate expectations were central to the court's decision, emphasizing the obligation of the Development Authority to act fairly and reasonab....
The cancellation of allotment was justified due to the petitioner's failure to comply with payment terms, emphasizing the importance of adhering to auction conditions and public interest.
Authority must provide preferential land allotment to disabled persons per applicable legislation; arbitrary cancellations and excessive interests are unjust.
The principles of natural justice require that an allotment cannot be cancelled without due process, including notice and an opportunity to be heard.
(1) Breach of reciprocal contractual obligations – A commercial document ought not to be interpreted in a manner that arrives at a complete variance with what may originally have been intention of pa....
The court upheld the forfeiture of earnest money due to the petitioner's failure to comply with contractual obligations, emphasizing that reliefs sought were not maintainable under Article 226.
Non-payment of lease salami within stipulated time does not automatically cancel allotment; requires active governmental cancellation, establishing a directory interpretation of time limits.
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