The court’s legal analysis in a recent case led to the reinstatement of a plot allotment in an organized development scheme. This decision sheds light on the intricacies of upholding contractual obligations and addressing financial difficulties in such schemes. Stay tuned to learn more about the details of this significant ruling.
Facts
- The appellant was allotted a residential plot in an organized development scheme in Pilkhuwa, Uttar Pradesh.
- She made an upfront payment and paid the first three installments regularly.
- Due to her husband’s ill-health, she faced financial crisis leading to default in installments 4 to 7.
- After managing to secure money from relatives, she deposited the balance amount along with interest on 16.06.2006.
- She also deposited a further sum as per the interim order from the High Court.
- Total amount deposited by the appellant was Rs.3,84,546, which included principal and interest.
- She filed a writ petition seeking to quash the cancellation notice, prevent initiation of any proceedings against the plot, and direct completion of registration in her favor.
- High Court dismissed the writ petition
- Reason for dismissal was appellant’s failure to fulfil terms and conditions of the Scheme
- Appellant did not deposit instalments regularly as required
- Authorities had the right to cancel the allotment
Also Read: Ruling on Circumstantial Evidence in Murder Case
Analysis
- Appellant failed to deposit the next four instalments after the first three were paid, leading to allotment cancellation.
- Appellant cites ill-health of husband and financial difficulty as reasons for payment delays.
- Appellant deposited Rs. 3,84,546 (including interest) against the total sale consideration of Rs. 2,70,000.
- Offered Rs. 2 lakhs for compensation for delayed payment and was willing to deposit an additional Rs. 2 lakhs to regularize payments.
- Respondents refunded entire money after cancellation with a 20% deduction, but the appellant did not cash the cheque.
- The appellant failed to make payments regularly and on time leading to cancellation of the allotment.
- The High Court correctly rejected the writ petition.
- By paying an additional amount of Rs.2 lakhs for delayed payments, the allotment can be saved.
- Appellant initially made upfront payment and three instalments before facing financial difficulties due to her husband’s ill-health.
- Appellant showed good faith by making payments with interest and depositing a further sum as per the High Court’s interim order.
- Total amount deposited by the appellant now stands at Rs.3,84,546/- against the total cost of Rs.2,70,000/-.
Also Read: Challenging Legal Presumptions in Negotiable Instrument Cases
Decision
- Order dated 14.06.2006 cancelling plot allotment quashed and set aside.
- Upon payment of Rs.2,00,000/-, respondents to hand over vacant possession of plot and execute necessary documents within four weeks.
- Appeal allowed on above grounds.
- Impugned judgment and order passed by High Court set aside upon further payment of Rs.2,00,000/- within six weeks.
- Appellant’s offer of payment deemed fair for compensation for delay.
- Allotment of plot in Middle-Income Group Scheme to lady to be reinstated as plot remains vacant and unallotted.
Also Read: Legal Analysis Critique in High Court’s Quashing Order
Case Title: ANJANA SARAIYA Vs. THE STATE OF UTTAR PRADESH (2022 INSC 561)
Case Number: C.A. No.-003784-003784 / 2022
