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2026 Supreme(Online)(NCDRC) 430

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
J. Rajendra, Presiding Member, Anoop Kumar Mendiratta, Member
Delhi Development Authority – Appellant
Versus
Bhanwar Singh Rajwat – Respondent
REVISION PETITION NO.550 OF 2021



Advocates:
For the Appellants/Petitioners: Sanjay Vashishstha, Krish Bhatia
For the Respondents: Kulwinder Singh Mattoo

Failure to adhere to mandatory payment schedules in housing scheme allotments, particularly involving a delay of over three years, constitutes a valid ground for automatic cancellation under contractual terms, and courts cannot compel authorities to provide alternate allotments at superseded historical rates.

Headnote:(A) Consumer Protection - Cancellation of Flat - Delay in Payment - Allottee failed to deposit initial payment of Rs.5,26,460/- by the stipulated date of 31.03.2002 despite multiple notices - Delay of over three years in making the initial payment was not condoned by the competent authority - Demand-cum-Allotment Letter contained mandatory clauses for automatic cancellation upon default which were invoked by the housing authority - Contractual obligations under housing schemes are to be strictly adhered to in order to ensure fairness to wait-listed candidates - Directions by State Commission for allotment of alternate flat at 2001 rates in 2021 were legally unsustainable due to the prolonged default by the allottee. (Paras 11, 12, 13)

Facts of the case:
The complainant registered for an MIG flat under the Ambedkar Awas Yojna in 1989. Following the issuance of an allotment letter, the complainant failed to deposit the initial demand amount of Rs.5,26,460/- by the deadline of 31.03.2002. Despite various communications and a minor deposit made after significant delay, the allotment was cancelled by the authority on 29.11.2006. The State Commission overturned the District Forum's dismissal, ordering the authority to allot an alternate flat at original 2001 rates, which led to the current revision petition.

Findings of Court:
The court held that the delay of over three years in depositing the substantial initial amount could not be ignored. It noted that the housing authority’s action was compliant with contractual terms. However, given that the authority’s subsequent actions created ambiguity and the complainant had deposited a significant sum over time, equity demanded a refund with interest rather than the unsustainable order of fresh allotment.

Issues: Whether the cancellation of the flat allotment due to a 1158-day delay in initial payment was justified and whether the State Commission was correct in ordering an alternate allotment at original prices.

Ratio Decidendi: Mandatory payment schedules in government housing schemes must be strictly observed; failure to do so as per contractual terms (e.g., automatic cancellation clauses) justifies cancellation, and courts should not pass unrealistic directions for allotment of flats at decades-old prices based on a default that remains unexcused.

Result: Revision Petition allowed; order of State Commission set aside and modified to mandate refund of deposits with interest.

Table of Content
1. summary of facts leading to allotment cancellation due to payment default. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. arguments regarding the validity of the cancellation and the reasonableness of the claims made. (Para 8 , 9 , 10)
3. court's reasoning on the mandatory nature of payment schedules and the appropriate equitable remedy. (Para 11 , 12 , 13)

1. Present petition preferred on behalf of DDA (Opposite Party in the original complaint) assails Order dated 12.01.2021 passed by the learned Delhi State Consumer Disputes Redressal Commission in FA No.470 of 2015, whereby the appeal preferred on behalf of the complainant Bhanwar Singh Rajwat (Respondent herein) was allowed. Petitioner and respondent are hereinafter referred to as Complainant and Opposite Party as appearing in the complaint, for the sake of convenience.

2. Facts fall within a narrow encompass. Complainant Bhanwar Singh Rajwat registered for allotment of MIG flat under Ambedkar Awas Yojna vide application dated 29.12.1989, reflecting his residential address as Quarter No.104, Sidhoran Kalan, Delhi. Complainant was declared successful for allotment of MIG flat under afore-said scheme on hire purchase basis and demand letter No.9560 dated 26.12.2001 to 31.12.2001 was forwarded by DDA/OP. However, the said demand letter was received back as undelivered.

Complainant thereafter approached office of DDA/Opposite Party on 28.02.2002 and received the Demand-cum-Allotment Letter. Further, an amount of Rs.20,000/- was deposited by him on 04.03.2002.

3. In terms of the allotment letter, the last date to deposit the initial demanded amount was 31.03.2002 but the said payment was not deposited by the complainant.

In terms of the demand letter dated 26.12.2001-31.12.2001, in case the allottee failed to deposit the amount of Rs.5,26,460/- by 31.03.2002, the cancellation was automatic. Also, the cost of the flat was reflected as Rs.8,88,400/-. The complainant thereafter requested for extending the date for further payments and for waiving the interest on account of confirmation deposits as well as monthly deposits vide letter dated 11.03.2002 but the same was categorically declined by OP vide letter dated 09.04.2002 with a request to follow the terms and conditions of demand-cum-allotment letter dated 31.12.2001 or to apply for refund of registration.

4. DDA/OP further issued a show-cause notice dated 20.01.2004 to the complainant in view of breach of terms and conditions of allotment and cautioned that in case the reply is not furnished within 15 days, the allotment shall stand cancelled. However, in response to show-cause notice, complainant instead of complying with the terms and conditions of deposit, sought the extension of date for further payment and requested for informing the due amount towards pending monthly instalments along with amount to be paid on cash-down basis vide letter dated 29.01.2004. In furtherance to the same, a communication was further forwarded by OP/DDA vide letter dated 17.02.2004 asking to deposit the amount within seven days of receipt of the letter, failing which the allotment could be cancelled. Complainant, however, kept on dilly-dallying and forwarded letter dated 23.02.2004 which was responded by DDA vide letter dated 17.05.2004. Only thereafter, the complainant deposited an amount of Rs.1,96,881/- vide challan dated 24.06.2004 which did not cover the up-to-date payments including the payment of Rs.5,26,440/- which he was required to initially deposit. Vide letter dated 29.07.2004, complainant was again requested by OP/DDA to deposit the amount of Rs.5,26,460/-, failing which cancellation would be effective from 30 days of the issue of the letter. The said demand was again disputed by the complainant vide letter dated 13.08.2004. Further, DDA again informed the default in payment of Rs.5,26,460/- by the complaint vide letter dated 04.09.2004.

5. A tripartite agreement dated 21.05.2005 was thereafter executed at request of complaina

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