Supreme Court Dismisses Appeals by Third-Party Shop Owners Challenging Demolition Order for Unauthorized Commercial Construction on Residential Plot. U.P. Avas Evam Vikas Parishad's Demolition Order Upheld as High Court's Directions for Removal of Illegal Construction and Initiation of Criminal/Departmental Proceedings Are Affirmed.

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Case Note & Summary

The case involves appeals by third-party purchasers of commercial shops constructed on a residential plot originally allotted to Veer Singh by U.P. Avas Evam Vikas Parishad (the Housing Board) in 1986. The plot was converted to freehold in 2004 with a condition for residential use only. Despite show cause notices, the allottee constructed commercial shops without sanction. The Housing Board passed a demolition order on 31.05.2011 but could not execute it due to lack of police cooperation. The Board filed a writ petition in the Allahabad High Court, which on 05.12.2014 directed demolition by 31.12.2014, initiation of criminal proceedings against the allottee and officers, and departmental action. The appellants, who purchased shops from the allottee, challenged the order. The Supreme Court dismissed the appeals, holding that the appellants cannot claim rights over unauthorized construction, the Board's action was not barred by delay or laches, and no notice was required to be given to the appellants as they were aware of the illegality. The Court affirmed the High Court's directions.

Headnote

A) Property Law - Unauthorized Construction - Demolition - U.P. Avas Evam Vikas Parishad Adhiniyam, 1965, Sections 82, 92-94 - The original allottee of a residential plot constructed commercial shops without sanction. The Housing Board issued show cause notices and passed a demolition order. The High Court directed demolition and initiation of criminal/departmental proceedings. The Supreme Court held that the appellants, who purchased shops from the original allottee, cannot claim any right over unauthorized construction, and the Housing Board's action is not barred by delay or laches. (Paras 5-7)

B) Natural Justice - Notice to Third Parties - Principles of Natural Justice - The appellants, being subsequent purchasers of unauthorized shops, were not entitled to notice before demolition as their rights were created in violation of law. The Housing Board had no knowledge of the transfers, and the appellants were aware of the illegal nature of the construction at the time of purchase. (Para 7.1(ii))

C) Limitation - Delay and Laches - Demolition of Unauthorized Construction - The Housing Board had been issuing notices since 1990 and passed a demolition order in 2011. The delay in execution was due to non-cooperation of authorities, not acquiescence. The right to demolish unauthorized construction is not lost by delay. (Para 7.1(iii))

D) Estoppel - Acquiescence - Statutory Authority - The Housing Board's action cannot be barred by acquiescence or estoppel as the construction was patently illegal and the Board acted within its statutory duty. (Para 7.1(iv))

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Issue of Consideration

Whether the High Court was justified in ordering demolition of unauthorized commercial construction on a residential plot without issuing notice to the appellants who are subsequent purchasers of shops, and whether the claim of the appellants for regularization or protection on grounds of delay, laches, and acquiescence is tenable.

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Final Decision

The Supreme Court dismissed the appeals, upholding the High Court's order directing demolition of unauthorized construction, initiation of criminal proceedings against the allottee and responsible officers, and departmental action. No costs.

Law Points

  • Unauthorized construction cannot be regularized merely due to passage of time
  • Purchaser of property constructed in violation of law cannot claim better title than original allottee
  • Principles of natural justice do not require notice to third-party purchasers when construction is patently illegal
  • Delay and laches cannot be a defense against demolition of unauthorized construction
  • Acquiescence and estoppel do not apply when statutory authority acts against illegal construction
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Case Details

2024 LawText (SC) (12) 209

Civil Appeal No. 14604 of 2024 (Arising out of SLP (C) No.36440 of 2014) and Civil Appeal No. 14605 of 2024 (Arising out of SLP (C) No.1184 of 2015)

2024-12-10

R. Mahadevan

2024 INSC 990

Rajendra Kumar Barjatya and Another; Rajeev Gupta and Others

U.P. Avas Evam Vikas Parishad & Ors.

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Nature of Litigation

Civil appeals against High Court order directing demolition of unauthorized commercial construction and initiation of proceedings.

Remedy Sought

Appellants sought to set aside the High Court order and protect their shops from demolition.

Filing Reason

Appellants, who purchased shops constructed on the subject property, challenged the High Court's demolition order passed in a writ petition filed by the Housing Board.

Previous Decisions

The High Court allowed the writ petition filed by the Housing Board, directing demolition of unauthorized construction, initiation of criminal proceedings against the allottee and officers, and departmental action.

Issues

Whether the High Court was justified in ordering demolition without issuing notice to the appellants? Whether the Housing Board's claim for demolition is barred by delay, laches, acquiescence, or estoppel? Whether the appellants, as subsequent purchasers, have any right to protect the unauthorized construction?

Submissions/Arguments

Appellants argued that shops existed for 24 years, the freehold deed was on 'as is where is basis', they purchased for valuable consideration, no notice under Section 82 was given to them, and the Board adopted a pick and choose policy. Respondent No.1 argued that the allottee violated the residential condition, notices were issued to him, the appellants were aware of the illegality, and the Board's action is not barred by delay or laches.

Ratio Decidendi

A person who purchases property constructed in violation of statutory provisions cannot claim any right over such unauthorized construction. The statutory authority's right to demolish illegal construction is not lost by delay, laches, or acquiescence, especially when the authority has been consistently taking action. Principles of natural justice do not require notice to third-party purchasers who are aware of the illegality at the time of purchase.

Judgment Excerpts

The Respondent No.5 with the assistance of his power of attorney agent by name, Vinod Arora i.e., Respondent No.6, started raising illegal commercial construction on the subject property without obtaining any sanction / approval from the Respondent No.1. The appellants herein, who are the owners of the commercial shops, which are stated to have been illegally / unauthorizedly constructed on the subject property by the Respondent Nos.5 and 6. The learned counsel for the appellants submitted that without issuing notice to the appellants and occupants of the shops, the High Court has ordered demolition of the entire construction in the subject property. The learned counsel for the Respondent No.1 submitted that the appellants were aware of the unauthorized construction and notices issued to stop the same, at the time of purchasing the shops itself.

Procedural History

The Housing Board (Respondent No.1) filed Writ-C No.46342 of 2013 before the Allahabad High Court seeking a mandamus to stop unauthorized commercial construction on a residential plot and to execute a demolition order dated 31.05.2011. The High Court allowed the writ petition on 05.12.2014, directing demolition, criminal proceedings, and departmental action. The appellants, third-party purchasers of shops, filed SLPs against this order, which were converted into civil appeals and dismissed by the Supreme Court.

Acts & Sections

  • U.P. Avas Evam Vikas Parishad Adhiniyam, 1965: 82, 92, 93, 94, 3, 7, 8
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