Supreme Court Allows Appellant in Housing Allotment Dispute Due to Unproven Demand Notice Service. DDA's Claim of Cancellation Fails as No Evidence of Demand Notice Delivery Established.

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Case Note & Summary

The dispute arose from the appellant's application for a Category-II flat under the 1985 Sixth Self-Financing Housing Registration Scheme by the Delhi Development Authority (DDA). The appellant paid all required installments but failed to pay the fifth installment on time, leading to a show-cause notice from the DDA. The appellant claimed he did not receive the demand letter for the final installment and subsequently filed a complaint under the Monopolies and Restrictive Trade Practices Act, 1969, alleging unfair trade practices by the DDA. The MRTP Commission ruled against the appellant, stating that the allotment had been cancelled and any revival would constitute a new allotment. The appellant contended that the DDA's actions did not amount to a cancellation and that he had made the payment as per the show-cause notice. The DDA argued that the allotment was cancelled and a fresh allotment was necessary. The Supreme Court found that the DDA failed to prove that the demand notice was served, thus the appellant's allotment was not cancelled. The court set aside the MRTP Commission's decision, directing the DDA to accept the payment made by the appellant and hand over possession of the flat. The parties were ordered to bear their own costs.

Headnote

A) Administrative Law - Unfair Trade Practice - Burden of Proof - Monopolies and Restrictive Trade Practices Act, 1969, Sections 12-A, 36(B) - The MRTP Commission erred in shifting the burden of proof regarding service of demand notice to the appellant, leading to an incorrect conclusion on unfair trade practices. The court held that the respondent failed to prove service of the demand notice, thus the appellant's allotment remained valid and not subject to fresh allotment charges (Paras 22-23).

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Issue of Consideration

Whether the alleged cancellation of the appellant's original allotment could, upon revival, be considered a fresh allotment requiring new payment obligations.

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Final Decision

The appeal was allowed, the MRTP Commission's decision was set aside, and the DDA was directed to accept the payment of Rs.1,63,512/- and hand over possession of the flat to the appellant within a month.

Law Points

  • Unfair trade practice
  • allotment cancellation
  • demand notice service
  • burden of proof
  • restoration of allotment
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Case Details

2008 LawText (SC) (09) 22

Civil Appeal No. 1373 of 2006

2008-09-02

Altamas Kabir, Markandey Katju

R. Srivastava, Manika Tripathy Pandey

V.N. Bharat

D.D.A. & Another

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Nature of Litigation

Dispute regarding housing allotment and alleged unfair trade practices.

Remedy Sought

The appellant sought registration of the sale deed and compensation.

Filing Reason

Allegation of unfair trade practices by the DDA.

Previous Decisions

The MRTP Commission ruled against the appellant, stating the allotment was cancelled.

Issues

Validity of demand notice service Nature of allotment revival

Submissions/Arguments

Appellant argued that the DDA failed to prove service of the demand notice. DDA contended that the allotment was cancelled and a fresh allotment was necessary.

Ratio Decidendi

The court held that the DDA could not prove that the demand notice was served on the appellant, thus the allotment was not cancelled and the appellant's payment was valid.

Judgment Excerpts

The MRTP Commission erred in shifting the burden of proof regarding service of demand notice to the appellant. The court held that the respondent failed to prove service of the demand notice.

Procedural History

The appellant applied for a flat, made payments, received a show-cause notice for non-payment of the final installment, filed a complaint with the MRTP Commission, and appealed against the Commission's ruling.

Acts & Sections

  • Monopolies and Restrictive Trade Practices Act, 1969: 12-A, 36(B)
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