Case Note & Summary
The case involved appeals against a High Court order regarding the discretionary allotment of plots under the Haryana Urban Development Authority Act, 1988. The High Court had ruled that while the Government could reserve plots, the Chief Minister's absolute discretion in allotments was not permissible without guidelines. The Court emphasized the need for a structured policy for allotment to avoid arbitrary decisions. The appellants argued that the High Court's interpretation of previous orders led to misinterpretations affecting allotments made prior to a specified date. The Supreme Court clarified that its earlier orders were misinterpreted and that the discretionary allotments made after a certain date should be examined for accountability. The Court also noted that the classification of allottees needed to be revisited to prevent discrimination among different classes of applicants. Ultimately, the Court allowed the appeals, declaring that the High Court's judgment would take effect from a prospective date to maintain public interest and avoid reopening settled issues. The writ petitions related to the matter were deemed unnecessary following this decision. The Court directed that any allotments cancelled must conform to the new guidelines established by its ruling.
Headnote
A) Administrative Law - Discretionary Allotments - Judicial Scrutiny - Haryana Urban Development Authority Act, 1988, Section 30 - The High Court held that the Government can reserve plots but the absolute power cannot vest in the Chief Minister without guidelines. The Court emphasized the need for a policy to ensure fair allotment and rejected the notion of absolute discretion immune from scrutiny. Held that guidelines must be framed for allotment to avoid arbitrary decisions (Paras 1-2). B) Administrative Law - Prospective Overruling - Application of Judicial Decisions - Not applicable - The Court clarified that the doctrine of prospective overruling can only be invoked by the Supreme Court and not by the High Court. It directed that the judgment in Anil Sabharwal's case should be effective from a prospective date to avoid reopening settled issues (Paras 3-4). C) Administrative Law - Classification of Allottees - Discrimination - Haryana Urban Development Authority Act, 1988, Section 30 - The Court noted grievances regarding classification of allottees and indicated that further classifications may be necessary to avoid discrimination. It emphasized the need for a fair examination of cases involving bona fide purchasers and other affected parties (Paras 5-6).
Issue of Consideration
Whether the discretionary allotments made under the Haryana Urban Development Authority Act, 1988 were lawful and how to address discrimination among allottees.
Final Decision
The Supreme Court allowed the appeals, clarifying that the judgment of the High Court in Anil Sabharwal's case would be effective from 23.4.1996. It directed that any allotments cancelled must conform to the new guidelines established by the ruling and that the classification of allottees should be revisited to prevent discrimination.
Law Points
- Discretionary allotment
- prospective overruling
- judicial scrutiny
- public interest
- accountability of authorities



