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2024 Supreme(All) 2186

IN THE HIGH COURT OF ALLAHABAD
Mahesh Chandra Tripathi, Prashant Kumar, JJ.
Maa Luxmi Housing and Health Welfare Trust and another – Petitioners
Versus
State of U.P. and Others – Respondents
Writ - C No. - 21518 of 2021, Writ - C No. - 26005 of 2024
Decided On : 12-11-2024

Advocates:
Advocate Appeared:
For the Petitioner: Alok Mishra, Vikrant Rana
For the Respondent: Bhupeshwar Dayal, C.S.C., Rajesh Kumar Pandey, C.S.C., Pranjal Mehrotra, Shiv Prakash Gupta

A party cannot benefit from its own default; the court upheld the cancellation of allotment due to non-payment of dues.

Headnote:(A) U.P. Urban Planning and Development Act, 1973 - Section 41(3) - Writ petitions challenging cancellation of allotment and e-auction proceedings - Petitioners defaulted in payment of installments for a plot allotted for Health Centre, sought change of land use to commercial - Court found no merit in petitions as petitioners failed to honor financial commitments and sought to benefit from their own defaults. (Paras 28, 38)

(B) Legal Principle - A party cannot take advantage of its own default; the court emphasized that the petitioner had no intention to pay and lacked clean hands. (Paras 32, 37)

Facts of the case:
The petitioner, a trust, was allotted a plot for a Health Centre but defaulted on payments, leading to cancellation of the allotment and subsequent e-auction of the property.

Findings of Court:
The court found no illegality in the cancellation order and dismissed both writ petitions for lack of merit.

Issues: The main issues were the legality of the cancellation of allotment and the validity of the e-auction proceedings.

Ratio Decidendi: The court ruled that the petitioner could not benefit from its own defaults and that the cancellation of the allotment was justified.

Result: Both writ petitions dismissed.

JUDGMENT :

1. Heard Shri Shashi Nandan, learned Senior Counsel assisted by Shri Vikrant Rana, learned counsel for the petitioners, Shri Pankaj Rai and Shri Devesh Vikram, learned Additional Chief Standing Counsel for the State respondents and Shri M.C. Chaturvedi, learned Senior Counsel assisted by Shri J.N. Maurya, learned counsel for the Meerut Development Authority.

2. While entertaining Writ C No.26005 of 2024 on 08.08.2024, it was pressed by learned Senior Counsel that as the petitioners had instituted the earlier Writ C No.21518 of 2021 against the order dated 18.12.2020 passed by State Government under Section 41(3) of the U.P. Urban Planning and Development Act, 1973[Act 19] and the same is pending before the learned Single Judge, in the interest of justice both the matters are to be heard together.

3. Accordingly, the matter was placed before Hon'ble the Chief Justice and by an administrative order dated 14.08.2024 passed by Hon'ble the Chief Justice, both the matters were placed before this Court for adjudication.

4. As both the writ petitions are arising out of the same issue, hence, with the consent of parties, both the petitions are tagged and heard together.

5. The first Writ C No.21518 of 2021 under Article 226 of Constitution of India was preferred by the petitioner inter-alia with following reliefs:-

    "(i) Issue an appropriate writ, order or direction quashing the E-auction proceedings in respect of property no.LMCP-01 admeasuring an area 262.50 sq. mtrs. (Commercial), property no.LMCP-02 admeasuring an area 262.50 sq. mtrs. (Commercial), property no.LMCP-03 admeasuring an area 262.50 sq. mtrs. (Commercial), property no.LMCP-04 admeasuring an area 262.50 sq. mtrs. (Commercial), property no.LMCP-05 admeasuring an area 262.50 sq. mtrs. (Commercial), property no.LMCP-06 admeasuring an area 262.50 sq. mtrs. (Commercial), property no.LMCP-07 admeasuring an area 262.50 sq. mtrs. (Commercial), property no.LMCP-08 admeasuring an area 262.50 sq. mtrs. (Commercial), property no.LMCP-09 admeasuring an area 218 sq. mtrs. (Commercial), property no.LMCP-10 respectively situated at Pocket-C, Shardha Puri Phase-II Housing Scheme, Meerut published by respondent development authority which are being carved out from the plot allotted to the petitioner i.e. a plot under category Health Centre admeasuring an area 2920 sq. mtrs. situated at Pocket-C, Phase-II, Shradha Puri, District Meerut.

    (ii) issue any other and further writ, order or direction commanding the respondent development authority to maintain status-quo over the plot in question i.e. a plot admeasuring an area 2920 sq. mtrs. under category of Health Centre situated in Shradha Puri, Pocket-C, Phase-2 Scheme, District Meerut."

6. The petitioner had also preferred another Writ C No.26005 of 2024 under Article 226 of Constitution of India inter-alia with following reliefs:-

    "(i) Issue a writ, order or direction in the nature of certiorari to quash the impugned order dated 18.12.2020 passed by respondent no.2.

    (ii) Issue a writ, order or direction in the nature of certiorari to quash the impugned order dated 09/13.11.2017 passed by the respondent no.3.

    (iii) Issue a writ, order or direction in the nature of mandamus commanding and directing the Respondent Authorities not to proceed the auction proceedings and in the light of power conferred under the Act, 1973, the Rules 2014 framed thereto and relevant Government Orders; the land use allotted to the petitioner Trust for developing the Health Centre, shall be changed to commercial activities to the allotted land in favour of petitioners vide dated 20.12.2012.

    (iv) Award the cost of writ petition to the petitioners."

7. In view of the administrative order dated 14.08.2024 passed by Hon’ble the Chief Justice, both the writ petitions were heard together and are being collectively decided by the common judgement.

BRIEF FACTS OF THE CASE

8. We have laid down the factual matrix leading to the instant writ petitions below.

9. It reflects from t

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