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2015 Supreme(Online)(Chh) 149

CHATTISGARH HIGH COURT
Not mentioned, Not mentioned
Inderchand Dhariwal and Ohers v. State of Madhya Pradesh (Now Chhattisgarh) and Another
Writ Petition / Misc. Petition No. 3360/1985 | Misc. Petition No. 1464/1985



Advocates:
For the Appellants/Petitioners: Dr. N. K. Shukla
For the Respondents: Shri Sumesh Bajaj, Shri Pankaj Agrawal

Claims for land lease rights can be barred by delay, especially when previous agreements are accepted without protest.

Headnote:(A) Constitution of India - Articles 226 and 227 - Writ petition for execution and registration of lease deed - Petitioners challenged forfeiture of auction money for failure to deposit balance amount within the stipulated time - Petitioners accepted the decision of the authority to execute lease for a smaller land area and withdrew prior petitions - Two critical questions arise regarding the enforceability of rights and delay in filing the petition. (Paras 2-24)

(B) Delay and laches - The petitioners filed a writ petition almost three years after the execution of the lease deed without sufficient explanation for the delay - The court reiterated the principle that inordinate delay may prevent relief. (Paras 19-22)

Facts of the case:
The petitioners initially contested the forfeiture of their auction deposit of land by the RDA but later accepted a smaller allotment after withdrawing previous lawsuits. A subsequent claim for remaining land was made years later, prompting this writ petition.

Findings of Court:
The court found that the prior auction of land was concluded with the acceptance of the agreement on reduced land, rendering the current claim untenable.

Issues: Whether the petitioners have a subsisting legal right for the lease of the remaining land and whether the writ petition should have been dismissed due to delay.

Ratio Decidendi: The court concluded that the action from the auction had lapsed due to non-compliance, and the petitioners' later claim was barred by delay and laches; thus, it lacked merit.

Result: Petition dismissed.

Table of Content
1. introduction of the case and background concerning the land auction and petitioners' claims. (Para 1 , 2)
2. court's observations on the legal implications of the petitioners' actions, forfeiture, and acceptance of revised terms. (Para 3 , 4 , 10 , 11 , 12 , 18)
3. arguments from both petitioners and respondents regarding the forfeiture and rights. (Para 7 , 8)
4. court discusses principles of delay and laches affecting the viability of the petition. (Para 21 , 22 , 23)
5. conclusion of the court dismissing the petition based on the merits and delays. (Para 24)

1. Invoking extraordinary jurisdiction of this Court under Art.226/227 of the Constitution of India, petitioners herein have sought appropriate writ(s) commanding respondent No. 2 / Raipur Development Authority (hereinafter referred to as 'RDA' ) herein to execute and register the lease deed in their favour in respect of the land admeasuring 42,000 sq. ft. of Scheme No. 32 Devendra Nagar of said Authority and also sought related consequential benefits.

2. Imperative facts necessary for adjudication of dispute raised in this writ petition are as under :
2.1 Respondent No. 2 - RDA took a decision to auction the land admeasuring 1,08,000 sq. feet, which was lying vacant in Scheme No. 32 of respondent No. 2 - RDA, known as Devendra Nagar Scheme. Accordingly, the auction sale was held on 24-5-1985. In the said auction, bid offered by the petitioners was accepted being highest. The petitioners, in accordance with terms and conditions of the auction, were directed to deposit - 1/3th of the bid amount and they deposited it.
2.2 One Prakashchand Lunked and another filed a writ petition numbered as Misc. Petition No. 1464/85 before the High Court of Madhya Pradesh impugning the legality and validity of the action of respondent No. 2 / RDA in auctioning the land in question. The High Court of M. P. by its order dated 23-5-1985, held that auction shall not be finally confirmed until further orders.
2.3 The petitioners were required to deposit the balance amount of Rs. 24,09,750/- as per Condition No. 11 of the terms and conditions of auction within sixty days of receipt of information of acceptance of bid but they did not deposit the said amount leading to the passing of the order dated 10-9-1985 (Annexure P - 5) by respondent No. 2 / RDA forfeiting the - 1/3th amount of bid i.e. Rs. 8,03,250/- deposited by the petitioners for violation of Clause 11 of the terms and conditions of the auction.
2.4 The petitioners filed Misc. Petition No. 3360/1985 before the High Court of Madhya Pradesh questioning the above - stated order dated 10-9-1985 (Annexure P - 5) forfeiting the one fourth amount Rs. 8,03,250/- by respondent No. 2 / RDA.
2.5 The petitioners, apart from filing writ petition questioning the order forfeiting one fourth amount deposited by them, also made representations to respondent No. 2 / RDA on 23-8-1988 (Annexure P - 6) and 5-6-1995 (Annexure P - 7) stating inter alia that order forfeiting one fourth amount is violative of the principles of natural justice as they have not been afforded opportunity of hearing before forfeiting the said amount and, as such, the order dated 10-9-1985 be revoked.
2.6 The respondent No. 2 / Raipur Development Authority, by memo dated 29-8-1995 (Annexure P - 8) informed the petitioners with reference to their representation that their case can be considered sympathetically, if the decision with regard to the petition preferred by them and the decision relating to other writ petition preferred by Prakashchand Lunkad is informed to the authority / respondent No. 2 and documents in support thereof is produced.
2.7 By memo dated 31-10-1995, respondent No. 2 informed the petitioners that if the writ petition filed by them is withdrawn from the Madhya Pradesh High Court, then the adjustment of the amount forfeited and allotment of the land will be considered sympathetically and in pursuane of application dated 12-2-1996 filed by the petitione
































































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