Case Note & Summary
The dispute arose from the allotment of plots to land losers by the Haryana Urban Development Authority (HUDA) under a scheme formulated in 1987. The appellants, owners of 38 bighas and 3 biswas of land in Karnal, had their land acquired for development purposes and sought allotment of plots under the oustees policy. After delays in allotment, they filed a writ petition which led to a contempt petition when their applications were not timely addressed. Eventually, they were allotted plots but at a higher market price rather than the cost plus development charges they argued should apply. The High Court dismissed their petition, leading to an appeal in the Supreme Court. The Supreme Court examined whether HUDA could charge the market price and interpreted the term 'normal allotment rate' in the context of the scheme. The court found that the appellants were entitled to the initial allotment rate as specified in the scheme, emphasizing that the scheme required claims to be invited before the sector was opened to the general public. The court allowed the appeal in part, directing HUDA to charge the appellants the initial rate of Rs.1032/- per sq.m. and awarded costs to the appellants.
Headnote
A) Land Acquisition - Allotment Rates - Entitlement of Land Losers - Land Acquisition Act, 1894, Sections 23(1A), 23(2), 28 - The court held that the appellants, as land losers, should be charged the initial allotment rate of Rs.1032/- per sq.m. instead of the higher rate prevailing at the time of allotment, as per the HUDA scheme which required claims to be invited before the sector was floated for sale (Paras 12-13).
Issue of Consideration
Whether HUDA should charge only the actual land cost plus development charges for the plots allotted to oustees/land losers, and what is the meaning of the words ‘normal allotment rate’ used in the scheme for allotment to oustees?
Final Decision
The Supreme Court allowed the appeal in part, directing HUDA to charge the appellants at the initial rate of Rs.1032/- per sq.m. for the allotted plots instead of the higher rate of Rs.1342/- per sq.m. Each appellant was awarded costs of Rs.2500/- from HUDA.
Law Points
- Land acquisition
- allotment rates
- rehabilitation policy
- statutory provisions
- normal allotment rate



