Case Note & Summary
The dispute arose from the cancellation of a plot allotment made to the first respondent by the appellants, the Government of Haryana. The first respondent applied for an industrial plot in 1994, paid the requisite earnest money, and was subsequently allotted a plot. However, due to a change in government policy in 1996, the appellants sought to cancel the allotment and refund the earnest money. The first respondent contested this decision, leading to a complaint before the Monopolies & Restrictive Trade Practices Commission. The Commission ruled in favor of the first respondent, directing the appellants to allot a plot of at least 500 sq. mts. and to compensate the first respondent with interest on the earnest money. The appellants appealed this decision, arguing that the new policy mandated an auction for plot sales and that the allotment process had not been completed. The court analyzed the legal implications of the completed allotment and the government's policy, ultimately dismissing the appeal and upholding the Commission's order. The court found that the appellants could not refuse to complete the allotment formalities based on the new policy, as the allotment had already been finalized. The court concluded that the first respondent should not be charged a higher rate than what was originally agreed upon, affirming the Commission's decision without costs.
Headnote
A) Administrative Law - Plot Allotment - Cancellation of Allotment - Monopolies & Restrictive Trade Practices Act, 1969, Section 12(B) - The appellants could not cancel the allotment of a plot already granted to the first respondent based on a new policy directive as the allotment process had been completed. The Commission's order directing the allotment of a plot measuring not less than 500 sq. mts. was upheld, affirming the rights of the first respondent (Paras 1-3).
Issue of Consideration
Whether the appellants were justified in cancelling the allotment of the plot to the first respondent based on the new government policy.
Final Decision
The Supreme Court dismissed the appeal, affirming the Commission's order to allot a plot of at least 500 sq. mts. to the first respondent at the previously agreed rate of Rs. 750 per sq. mts. The court found no justification for the appellants to cancel the allotment based on the new policy.
Law Points
- Monopolies & Restrictive Trade Practices Act
- 1969
- plot allotment
- government policy
- auction process
- compensation for earnest money
