Summary
The Supreme Court set aside consumer fora orders that had directed a development authority to accept dues and deliver a plot allotted under a 1994 tender. The allottee had repeatedly defaulted, final relief could not be granted on an interlocutory application, and a direction to allot after 28 years was unsustainable; the authority was directed to re-tender the plot.
Issues
- Whether the State Commission could grant final relief (acceptance of dues and delivery of possession) by an interim order on an interlocutory application.
- Whether the National Commission could direct the development authority to accept the outstanding amount and hand over the plot about 28 years after the tender, despite the allottee's repeated defaults.
Held
- A State Commission cannot grant the final relief sought in a consumer appeal by way of an interim order on an interlocutory application; its order directing the authority to accept the outstanding dues with interest and deliver possession was therefore unsustainable. (¶¶ 6, 10)
- The allottee had defaulted on the instalments under the allotment terms, and even after the High Court restored the allotment in 2006 subject to payment within 30 days, he tendered only part of the outstanding amount and did not pay the later reduced figure; having been the defaulting party, he could not obtain an order compelling the authority to accept payment. (¶¶ 9, 10, 11)
- The National Commission erred in directing the authority to accept the amount and hand over the plot without considering the authority's grounds; in the peculiar facts, such a direction could not be issued in respect of a tender notice of 1994 after a lapse of 28 years. (¶ 11)
- The authority was directed to issue a fresh tender for the plot and allot it only by auction or by following due process under its rules. (¶ 11)
Result
Appeal allowed; orders of the State Commission dated 15.12.2017 and the National Commission dated 29.03.2023 set aside; the appellant authority directed to issue a fresh tender for the plot and allot it only by auction or due process as per rules.