IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 6049 OF 2002

GHAZIABAD  DEVELOPMENT AUTHORITY

.......APPELLANT(S)  

Versus

RAMESH CHANDRA PANDIYA .....RESPONDENT(S)

O R D E R

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 instalments 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.

.......3.

- 3 -

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

National Commission relied on its earlier decision in HUDA Vs. Darsh Kumar (Revision

Petition No.1197/1998 decided on 31.8.2001) for awarding interest at such rate.  The

said order is under challenge.   

5. Appellant submitted that the decision of the National Commission in Darsh

Kumar  has been reversed by this Court in Haryana Urban Development Authority Vs.

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.

- 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.

......5.

- 5 -

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 interest.   

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 possession.

(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.

  ...........................J.    ( R.V. RAVEENDRAN )

New Delhi;    ...........................J. January 29, 2009.           ( AFTAB ALAM )