Case Note & Summary
The dispute arose from the allotment of 32 houses constructed under a subsidised rental housing scheme by the Karnataka Housing Board to the Town Panchayat, Arkalgud. The allotment was cancelled on 22.2.1992 due to default in payment by the allottee. Subsequently, the Board allotted the houses to the appellants. A writ petition filed by R.K. Ramanna and others led to the cancellation being quashed by a Single Judge, allowing the appellants to retain possession. The Town Panchayat later filed another writ petition seeking possession of the houses, which was disposed of by the Single Judge, stating that the Town Panchayat would be deemed in possession due to the quashing of the cancellation. The appellants filed a writ appeal, which was initially protected by a stay against dispossession. However, the Division Bench later recalled this order and recognized the Town Panchayat's rights as the allottee. The appellants argued that the Division Bench overlooked the sale deeds executed in their favor during the pendency of the appeal. The Supreme Court found merit in this argument, stating that the High Court's order was liable to be set aside for not considering the sale deeds. The appeal was allowed, the impugned order was set aside, and the matter was remitted to the High Court for fresh disposal of the writ appeal, with a direction that the appellants should not be dispossessed until the matter was resolved.
Headnote
A) Writ Jurisdiction - Allotment Cancellation - Quashing of Cancellation Order - Constitution of India, Article 226 - The learned Single Judge quashed the cancellation of allotment of houses to the appellants, allowing them to retain possession. The Division Bench's subsequent order did not consider the sale deeds executed by the Board in favor of the appellants, necessitating a fresh hearing. Held that the matter should be remitted for proper consideration (Paras 1-2).
Issue of Consideration
Whether the High Court's order regarding the allotment of houses and possession rights was justified, considering the sale deeds executed in favor of the appellants.
Final Decision
The Supreme Court allowed the appeal, set aside the impugned order, and remitted the matter to the High Court for fresh disposal of the writ appeal, directing that the appellants shall not be dispossessed until the matter is resolved.
Law Points
- Public Interest Litigation
- Writ Jurisdiction
- Allotment Cancellation
- Possession Rights
- Sale Deeds



