Authority Vs. Ramesh Chandra Pandiya  INSC 186 (29 January 2009)
JURISDICTION CIVIL APPEAL NO. 6049 OF 2002 GHAZIABAD DEVELOPMENT
.......APPELLANT(S) AUTHORITY Versus ORDER The appellant allotted plot No.
E-170 at Nehru Nagar measuring 167.44 sq. mt. vide allotment letter dated
5.6.1985, the price being Rs.37,842/-. The appellant send letters demanding
payment of installments which had become due and called upon the respondent to
enter into a lease deed and take possession of the allotted site. The said
allotment was cancelled on 16.3.1990 on the ground that the respondent had
failed to take possession.
2. The respondent
requested withdrawal of the cancellation and restoration of the allotment, vide
letter dated 17.3.1990. By letter dated 19.4.1990, the appellant restored the
allotment subject to payment of restoration fee and subject to the condition
that it would be the responsibility of the respondent to take possession and he
will not seek change of plot. The respondent, however, applied for allotment of
alternative plot on 15.9.1994, alleging that the municipal authorities had laid
a sewer line on the plot and that some ......2.
-2- part of the plot
was also encroached. The appellant thereafter allotted an alternative plot
(Plot No. 6/167, Vaishali) measuring 250.77 sq.mt. on 31.1.1996 and demanded
payment of Rs.3,39,179/- after adjusting Rs.56,820/- which had been paid by the
respondent towards the earlier allotment. The price charged for the Vaishali
site is stated to be about Rs.1400/- per sq. mt.
3. Feeling aggrieved
by the said demand, the respondent approached the State Consumer Disputes
Redressal Commission, U.P. seeking a direction to the appellant to deliver the
Vaishali plot at the original price of allotment which was about Rs.226/- per
sq.mt. He also prayed for damages as also interest on the amount that was
deposited by him for the Nehru Nagar plot. The State Commission by its order
dated 29.3.2001 allowed the complaint. It directed the appellant to deliver the
Vaishali plot measuring 250.77 sq.mt. at the original allotment price of
Rs.226/- per sq.mt. It further directed the appellant to pay interest at 18%
per annum on the amount deposited by the respondent towards the cost of Nehru
Nagar plot. It also awarded Rs.38,000/- as compensation to respondent and also
directed the appellant to pay the escalation towards the cost of construction
of the house, worked out on the basis of cost of construction index in U.P. in
the year 1985 and the year of delivery of possession.
4. The said order was
challenged by the appellant before the National Commission. The National
Commission deleted the direction for payment of compensation of Rs.38,000/- and
the direction that appellant should pay escalation in the cost of construction.
It, however, affirmed the direction for delivery of Vaishali plot at the price
of Rs.226/- and the direction for payment of interest at 18% per annum on the
amount earlier deposited by the respondent in regard to Nehru Nagar plot. The
Petition No.1197/1998 decided on 31.8.2001) for awarding interest at such rate.
The said order is under challenge.
submitted that the decision of the National Commission in Darsh Darsh Kumar
& Ors., (2005) 9 SCC 449. The appellant also contended that the
cancellation of allotment in the year 1990 was as a consequence of breaches and
was in accordance with the terms of allotment and the Rules. It was pointed out
that as per the terms of letter of allotment, instalments of Rs.3784.20 had to
be paid by the respondent on 4.12.85, 4.6.86, 4.12.86, 4.6.87, 4.12.87, 4.6.88,
4.12.88 and 4.6.89, apart from executing the lease deed and taking possession.
It was stated that the respondent did not enter into any lease agreement and
-4- take possession
nor pay the instalments as and when they fell due in terms of the said
allotment letter. It was contended that on account of the delay and breaches on
the part of the respondent in executing the lease deed and taking possession,
the plot was encroached subsequent to the date of allotment leading to
unnecessary complications. It was submitted that the appellant was entitled to
charge the prevailing price for the alternative plot.
6. The respondent
denies the allegation of breach by him. According to the respondent, the
allotted plot was under encroachment even when he went to inspect it and,
therefore, he could not take possession. He also stated that possession of
alternative site at Vaishali has been delivered to him in the year 2008, when
he executed the order of the State Commission.
7. However, after the
matter was argued for some time, the learned counsel for respondents on
instructions, submitted that to put an end to the controversy, the respondent
was willing to pay the prevailing allotment price of Rs.1400/- per sq. mt. in
regard to the Vaishali plot and will not press the claim for interest on the
amount paid for the earlier allotted site.
8. Learned counsel
for the appellant is not in a position to give any acceptable reason to deny
the respondent the benefit of the alternative plot that has been delivered to
him, when he is even willing to pay the price demanded. We are of the view that
having regard to the factual background, neither party shall be entitled to
9. We, therefore,
allow this appeal in part and modify the order of the State Commission and
National Commission as follows:
(a) The respondent
will be entitled to retain plot No.6/167 at Vaishali measuring 250.77 sq.mt.
allotted to him. Consequently, the appellant shall issue necessary letter of
allotment/communication regularising and confirming the allotment.
(b) The cost of the
said Vaishali plot shall be paid at the rate of Rs.1400/- per sq.
mt. The price
calculated at the said rate less the amount already deposited by the respondent
shall be paid by the respondent to the appellant within three months.
(c) A sum of
Rs.1,09,160/- is said to have been paid by the appellant to the respondent towards
interest etc. in terms of ....6.
-6- the order of the
Commission. The said amount shall also be refunded by the respondent to the
appellant within three months in addition to the difference in price as a
condition precedent for confirming the allotment.
(d) Failing such
payments, the appellant shall be entitled to cancel the allotment and take back
(e) The appellant
will not be entitled to charge any interest on the balance amount due for the
Vaishali plot. Nor will the respondent be entitled to any interest on the
amount already paid. Neither party will be entitled to any amount by way of
compensation or costs.
(f) On payment of
amounts as aforesaid, the appellant will execute/issue the necessary documents
of title in regard to the Vaishali plot at the cost of the respondent.
(g) Parties to bear
their respective costs.
( R.V. RAVEENDRAN )