Chronic defaulters in housing allotments lose equitable relief unless full dues paid despite prior cancellations.

(Judgment of the Court was delivered by S.M.Subramaniam J.)

Under assail is the writ order dated 30.03.2022 in W.P.No.30979 of 2005.

2. The Executive Engineer and Administrative Officer of the Tamil Nadu Housing Board have instituted the present intra-court appeal under Clause 15 of the Letters Patent, mainly contending that the respondent, who was allotted with an independent residential house in HIG House No. 53, Phase-VI, Avalapalli Scheme, Tamil Nadu Housing Board, Hosur committed default in payment of initial cost as well as instalments. Subsequently, the allotment came to be cancelled on 11.01.1997, which was thereafter confirmed by the Housing Board again on 14.10.1997. The said cancellation of allotment remains unchallenged. Respondent committed default even in making the initial payment of a sum of Rs.

2,51,000/-. Subsequent instalments were also not paid.

3. Respondent filed W.P.No. 14810 of 1997 seeking a direction to the appellant herein to restore the allotment of HIG House No. 53, Phase-VI, Avalapalli Scheme, Tamil Nadu Housing Board, Hosur. Writ Court disposed of the petition on 24.09.2004 as follows, “…

3. Hence, the following order is passed:

A direction is Issued to the second respondent to revoke the cancellation of the order dated 11.01.1997 subject to payment of dues, if any, by the petitioner. It is made clear that the petitioner shall pay not only the amount due and payable by him but also the interest, if any, accrued thereon a Fixed by the second respondent. The second respondent is directed to furnish such details, particularly, the actual amount due and payable by the petitioner within period of two weeks from the date of receipt of a copy of this order. On receipt of the said communication, the petitioner shall make the necessary payment within a period of eight weeks thereafter. On such payment, the second respondent shall pass final orders as directed above within a two weeks from the date of payment.”

4. In response to the order of the Writ Court, no payment had been made by the respondent, and he continued to remain a chronic defaulter in payment of initial cost as well as monthly instalments, as per the terms and conditions of allotment order dated 27.09.1996.

5. Learned counsel for the respondent would submit that respondent subsequently paid a sum of Rs.35,25,000/- as per the impugned writ order, and that the said amount has not been properly adjusted. It is further contended that interest and penal interest is also calculated exorbitantly. It is also submitted that, as per the Government Order in G.O.Ms.No.116, Housing and Urban Development Department, dated 04.08.2025, the respondent is entitled to more financial benefits, including waiver of penal interest, which have not been extended to him. Thus, the present writ appeal is to be rejected.

6. This Court is of the considered view that allotment was made on

27.09.1996 and admittedly, the respondent failed to make the initial payment of Rs.2,21,000/-. The total cost of Rs.6,28,000/- during the relevant point of time was not paid by the respondent. The instalments for a period of 14 years were not punctually paid, and the respondent continued to be a chronic defaulter in payment of monthly instalments. Admittedly, allotment was cancelled initially on 11.01.1997 and the same was confirmed by the appellant on 14.10.1997. Rrespondent is not in possession of the allotted property and the same is now with the appellant Housing Board.

7. Under these circumstances, this Court is of the view that balance payment, if paid by the respondent, then alone he is entitled to secure the allotment, which was initially made on 27.09.1996, failing which, he is not entitled to an