Court may set aside cancellation of allotment and grant time for payment if petitioner shows willingness to pay outstanding dues with interest.

ORDER

This petition has been filed challenging the impugned letter dated

17.11.2023 issued by the Manager (Sales and Service) Anna Nagar Division, Tamil Nadu Housing Board,Thirumangalam, Chennai- 600 101, whereby cancelled the petitioner’s house allotment videproceeding No. ANA. II.3/ 1112/ 2022 dated 01.08.2022 and to quash the same and to direct the respondents 2 and 3 to issue a certificate A and B as provided by the Tamil Nadu Housing Board, to the petitioner, to enable him to avail a loan from the financial institutions, and consequently to extend the reasonable time, for payment of the entire balance amount.

2.The case of the petitioner is that he applied for the purchase of a flat under a scheme called as “Anna Nagar West Extension (205 Residential Quarters)” which was formulated in the year 2022. The petitioner was allotted a Flat No.202/6, by the Manager- Sales and Service, Anna Nagar Division on 01.08.2022. The total sale consideration was fixed at Rs.1,08,76,000/-. The petitioner paid a sum of of Rs.11,50,000/- being 10% of final rate on 29.07.2022. The second respondent, by letter dated 19.07.2023, directed the petitioner to pay the remaining amount on or before 18.08.2023, and subsequently, by another letter dated 4.09.2023, directed payment on or before 15.10.2023 with interest. As the petitioner failed to pay the said amount within the stipulated time, the second respondent cancelled the allotment on 17.11.2023. The petitioner sought issuance of ‘A’ & ‘B’ Certificates to avail a bank loan, however, he was required to pay 50% of the total amount for issuance of such certificate. Without considering the petitioner’s request, the impugned letter was issued. Aggrieved by the same, the present writ petition has been filed.

3.The learned counsel for the petitioner would submit that though the present writ petition has been filed challenging the cancellation of the allotment order dated 17.11.2023, the third respondent has now filed a detailed counter affidavit and a calculation memo stating that the petitioner is liable to pay an outstanding amount of Rs.1,36,12,554/- as on 30.04.2026. The petitioner is willing to pay the said amount within a period of three months. It is further submitted that, for the period subsequent to 30.04.2026, this Court may direct the respondent Housing Board to calculate interest at the rate of 8.5% per annum for the said amount. Accordingly, he prayed for appropriate orders. 4.The learned Standing Counsel appearing for the respondent Housing Board would submit that, in the event of the petitioner failing to deposit the entire amount i.e Rs.1,36,12,554/- along with interest at the rate of 8.5% per annum within a period of three months, liberty may be granted to the respondent Housing Board to alienate the property by way of public auction.

5.In view of the above submission, the impugned cancellation order dated

17.11.2023 passed by the 2^nd respondent is hereby set aside, subject to the following terms:

i)The petitioner is directed to pay the outstanding balance of Rs.1,36,12,554/- (Rupees One Crore Thirty-Six Lakhs Twelve Thousand Five Hundred and Fifty-Four only), together with interest at the rate of 8.5% per annum from 30.04.2026, to the respondent Housing Board, within a period of three (3) months from the date of receipt of a copy of this order.

ii)Upon receipt of the aforesaid amount, the respondent Housing Board shall forthwith execute the sale deed in favour of the petitioner.

iii) In the event of failure on the part of the petitioner to remit the said amount within the stipulated period, it is open to the respondent Housing Board to proceed in accordance with law, including by way of public auction of the property.

6.In fine, this writ petition stands allowed. There shall be no order as to costs. Consequently, connected miscellaneous petition is clos