GHAZIABAD DEVELOPMENT AUTHORITY Vs VED PRAKASH AGGARWAL
Case number: C.A. No.-000794-000794 / 2001
Diary number: 20191 / 2000
Advocates: JATINDER KUMAR BHATIA Vs
ABHA JAIN
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REPORTABL E
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.794 OF 2001
Ghaziabad Development Authority ...Appellant
Versus
Ved Prakash Aggarwal ...Respondent
J U D G M E N T
TARUN CHATTERJEE,J.
1. This appeal at the instance of Ghaziabad
Development Authority (in short "the GDA")
is filed against the judgment and order
dated 3rd of August, 2000 passed by the
Monopolies and Restrictive Trade Practices
Commission, New Delhi (in short ‘the MRTP
Commission’) in R.T.P.E. No.82 of 1998 by
which the MRTP Commission had directed the
GDA to deliver possession of a plot of 90
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sq. mtrs. to the complainant/respondent in
Govindpuram Scheme or any adjacent scheme
at a price prevalent in the year 1988.
2. The dispute in this appeal pertains to the
allotment of certain land by the GDA in its
Govindpuram Scheme. In the complaint filed
before the MRTP Commission by the
respondent, it was alleged that the GDA had
first allotted certain land to him and
after many years, cancelled the allotment
arbitrarily. The respondent also claimed
the refund of the invested amount.
Challenging the cancellation of allotment
as arbitrary and also for refund of the
invested money, a proceeding was initiated
at the instance of the respondent before
the MRTP Commission alleging that the
cancellation of the allotment by the GDA
was not only arbitrary but also indicative
of its monopolistic hold on the land and
therefore, it amounted to an unfair trade
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practice under the MRTP Act. The GDA
entered appearance and denied the
allegations made in the complaint, inter
alia, alleging that no specific allotment
order was made by the GDA and, therefore,
cancellation of the same did not arise at
all. It was further stated by the GDA in
their written objection to the complaint
that the long delay was attributable to the
fact that the scheme was tied up in
litigation for many years and when that
litigation was over, the draw prescribed
for allotment of land was held. Since the
respondent had failed in this draw, the
allotment of the land could not be made and
therefore, the refund was offered. After
hearing the parties and on the basis of the
available records, the MRTP Commission held
that the land was indeed allotted to the
respondent and the cancellation of the
respondent’s allotment when other allottees
had been given the plots in the same
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circumstances amounted to an "unfair trade
practice" under Section 36 of the MRTP Act.
The MRTP Commission also held that the
respondent had suffered pecuniary losses
and damages. Based on these findings, the
MRTP Commission directed the GDA to allot
90 sq. mtrs. of plot to the respondent in
Govindpuram Scheme and in case the plot was
not available, to hand over the possession
of vacant plot of the same size to the
respondent in other schemes nearby the
Govindpuram Scheme at the previously
decided price. Feeling aggrieved by this
order, the GDA has come up in appeal in
this Court.
3. Having heard the learned counsel for the
parties and after going through the order of
the MRTP Commission as well as the other
available records, two questions crop up
before us for decision of this appeal: -
(i) Whether any unfair trade practice was
resorted to by the GDA;
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(ii) Whether the MRTP Commission had the
jurisdiction to direct the GDA to allot an
alternative plot of land to the respondent
at the previously fixed price under the
MRTP Act.
4. Before we go into these questions, we may,
at this stage, narrate certain other facts
also, which would be required for decision
in this appeal. In October 1988, the GDA had
floated a housing scheme the particulars of
which are reproduced as under.
"Col.3.40 - This scheme relates to pay plan which says that the plots/houses under these schemes are being constructed under lump sum plan (code 1), self financing plan (code 2) and hire purchase plan (code 3).
Col.3.43 The reservation amount, as mentioned in column 8 of table 1 is to be paid within 30 days from the date of reservation letter.
Col. 3.66 If payment fixed for such allotment of land is not made within three months after its due date along with penal interest, if any, the allotment shall be treated as cancelled without notice. The GDA reserves its right to cancel for non-payment within
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the time specified in column 3.66 without notice.
Col.8 The allotment will be made by a manual computerized draw in the presence of applicants who wish to be present as per the serial Nos. of the application forms. Claim for any particular house by any applicant will not be acceptable. Dates of lottery for reservation and allotment shall be published in the newspaper. Col.9 speaks about unsuccessful applicants.
Col.9.10 Those applicants, who have not been allotted/reserved plots/houses, will be returned their registration amount without interest if the period of deposit of such money with the GDA is less than one year.
Col.9.20 If the period of deposit is more than one year 5% simple interest shall be paid for the entire period of deposit. Co.9.30 For the purpose of calculation of period of deposit the month of deposit & refund shall not be counted. Any period after the date of start of refund of registration amount of unsuccessful applicants, shall not be counted for the purpose of calculation of ‘period of deposit’."
Keeping the columns, as noted herein above,
in mind, let us now proceed with the other
subsequent relevant documents. A letter dated 10th
of February, 1989 issued by the GDA to the
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respondent is one of the important documents that
needs to be considered by us in disposing of this
appeal. This letter indicates reservation of Plot
E in Govindpuram Scheme and the estimated cost is
shown as Rs.55, 800/-. The payment schedule as
appearing from the same is as under: -
The due date for payment is 10th of March,
1989 and the amount due indicated in the said
letter is Rs.50, 000/-.
The conditions for taking account for non-
payment is shown in the following manner -
(i) The grace period of one month shall be given
for payment of the above amount after the due
date.
(ii) If the amounts payable to the GDA are not
paid within the prescribed time limit, penal
interest at the rate of 18% per annum shall be
payable along with the payable amounts. If the
payment is not made within three months after its
due date along with penal interest, if any, the
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allotment shall be treated cancelled without
notice.
The reservation of Plot E in Govindpuram
Scheme so far as the respondent was concerned was
subject to rules and regulations in force,
prescribed from time to time by the GDA or the
State Government. It was also stated in the
letter that the terms and conditions as
stipulated in the brochure of above scheme hold
good and the allocation was subjected to those
conditions. Draw for specific plot number was to
be held separately.
5. Having considered the relevant materials, as
noted hereinabove, let us now look at the
findings of the MRTP Commission based on
which it has passed the impugned order. The
findings are as under: -
1. By a reservation letter dated 10.2.1989, the GDA
intimated the complainant regarding
reservation/allocation of a plot in Plot E category
in Govindpuram Plots Scheme in the name of the
complainant and was allotted/reserved allottee code
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no. 539 700 0070 for an approximate area of 90 sq.
metres.
2.The complainant deposited Rs. 45000/- vide demand
draft dated 10.4.1989 with the GDA within grace
period and the balance Rs. 5000 was paid vide
demand draft dated 7.1.1990 with 18 %penal interest
amounting to Rs. 750/- and therefore, the
complainant had deposited a total sum of Rs.
58000/- by the end of January, 1990.
3.The order of the Allahabad High Court in Satya
Prakash Vs. State of UP dated 24.4.1991 nowhere
mentioned that the area of the Govindpuran scheme
had been reduced and therefore the reason given by
the GDA was not supported by this order of the
Allahabad High Court.
6. We have examined the findings of the MRTP
Commission in the light of the materials on
record. Having done that, it is difficult to
conceive that the respondent was unsuccessful in
the draw of lots as alleged by the GDA, which is
the excuse given by them for not giving the
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possession of the plot to the respondent. It is
an admitted fact that the GDA had already issued
a reservation/allocation letter to the respondent
and it is also a finding of the MRTP Commission
that the respondent had paid the full amount of
Rs.58000/-. This shows that the respondent was
successful in the draw of lots because otherwise,
where was the need for the GDA to issue the
reservation/allocation letter to the respondent
which also required him to make the necessary
payments. In this view of the matter, we affirm
the finding of the MRTP Commission that the act
of the GDA amounted to an unfair trade practice.
7.Having decided issue no.1 in the manner
indicated above, the other question that we
need to decide is whether the MRTP Commission
had the jurisdiction to direct the GDA to
handover possession of a vacant plot of 90 sq.
mtrs. to the respondent in the Govindpuram
scheme or if not available, an alternative plot
in some other scheme. So far as this question
is concerned, we hold that the MRTP Commission
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was clearly in error in directing the GDA to
handover possession to the respondent. Under
the Act, there are provisions for inquiries
that can be instituted by the MRTP Commission
while Section 36D read with Section 12A and 12B
lay down the powers of the MRTP Commission in
dealing with instances of Unfair trade
practices. None of the provisions seem to
indicate that the MRTP Commission has the
authority to do what it did in this case. The
MRTP Commission has the power to impose damages
or give compensation to the respondent as a
mode of redressal for harm caused by the unfair
trade practices, but it certainly cannot assume
the powers of the civil court because the
action of the MRTP commission in this case
virtually amounts to grant of specific
performance.
8.In this view of the matter and in view of the
foregoing reasons, we consider it appropriate
to remand this appeal to the MRTP Commission
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for decision afresh on the compensation, which
may be given to the respondent in accordance
with law along with refund of the amount
deposited by the respondent with the GDA with
simple interest. The appeal is thus allowed to
the extent indicated above. No costs.
..........................................J. [TARUN CHATTERJEE]
........................................J. [HARJIT SINGH BEDI] New Delhi.
May 14,2008.