Summary
A woman allotted a residential plot at Pilkhuwa, Ghaziabad under the Middle-Income Group category of a development scheme for Rs. 2,70,000 paid the upfront amount and three instalments but defaulted on the remaining four owing to her husband's ill-health. She deposited the entire balance with interest on 16.06.2006, before the cancellation notice dated 14.06.2006 was served on her, and paid a further Rs. 50,000 under the High Court's interim order, taking her deposits to Rs. 3,84,546. The Allahabad High Court dismissed her writ petition, holding the authority entitled to cancel for irregular payment. The Supreme Court allowed her appeal: the payments showed bona fides and no wilful default, the plot was still vacant, and on her fair offer to pay a further Rs. 2,00,000 as compensation for the delay the cancellation was set aside and possession directed to be handed over.
Issues
- Whether cancellation of a residential plot allotment under a Middle-Income Group scheme for delayed payment of four instalments should be sustained where the allottee, in financial difficulty due to her husband's illness, cleared the entire balance with interest, deposited further sums, offered additional compensation for the delay, and the plot remained unallotted.
Provisions considered
- Article 226 (writ petition against cancellation of allotment), Constitution of IndiaThe allottee challenged the cancellation notice by writ petition; the High Court dismissed it solely on the ground that she had not deposited instalments as and when due under the scheme. The Supreme Court, in appeal, found the equities to favour regularisation on terms rather than forfeiture. (¶¶ 2, 2.1, 5, 5.1, 6)
Held
- The appellant's upfront payment, timely payment of the first three instalments, deposit of the remaining four instalments with interest on 16.06.2006 and a further Rs. 50,000 under the High Court's interim order — Rs. 3,84,546 in all against a plot cost of Rs. 2,70,000 — show her bona fides and that the delay, caused by her husband's ill-health, was not deliberate or wilful. (¶ 5.1)
- Where the allottee, a woman holding an allotment under the Middle-Income Group scheme, is ready and willing to pay a further Rs. 2,00,000 as compensation for the delayed instalments and the plot is still vacant and unallotted, the offer is fair and the account should be regularised and the cancellation set aside rather than the allotment lost. (¶¶ 5, 5.1, 6)
Result
Appeal allowed: on deposit of a further Rs. 2,00,000 with the respondents within six weeks, the Allahabad High Court's judgment of 03.04.2019 in Writ-C No. 56136 of 2006 is set aside and the order dated 14.06.2006 cancelling the allotment of Plot No. 415, Organized Development Scheme Phase-III, Pilkhuwa, is quashed; the respondents to hand over vacant possession and execute the necessary documents within four weeks thereafter. No order as to costs.