Case Note & Summary
The dispute arose from the allotment of an industrial plot by Haryana State Industrial Development Corporation Ltd. (appellant) to Inderj (respondent). The respondent applied for a one-acre industrial plot in Udyog Vihar, Gurgaon in 1983. A provisional letter of allotment dated 27.12.1984 offered one acre at a tentative rate, but expressly stated that it conferred no legal right unless a final allotment letter was issued. The respondent did not complete the prerequisites. Subsequently, due to administrative changes, the offered plot numbers were wrongly communicated. After discussions, the appellant made a revised offer of a half-acre plot at the old rate on 5.1.1989, stating that the case would be treated as closed. The respondent initially accepted conditionally on 14.1.1989, reserving the right to claim the remaining half acre. The appellant clarified on 24.2.1989 that no further plot would be given against this application. The respondent then unconditionally accepted the half-acre plot on 4.3.1989. A final allotment letter was issued on 6.7.1990, followed by an agreement and possession on 4.9.1990. Four years later, the respondent filed a writ petition in the High Court claiming the remaining half acre based on the original provisional allotment. The High Court allowed the writ petition on 14.11.1994, directing the appellant to allot the additional half acre. The appellant's review petition was dismissed on 9.8.1995. The Supreme Court examined whether the provisional letter created any legal right and whether the respondent's subsequent conduct estopped him. It held that the provisional letter expressly stated that it conferred no legal right, and no final allotment for one acre was ever issued. The respondent's unconditional acceptance of the half-acre plot, after the appellant's clarification, constituted a binding contract. The Court observed that had this unconditional acceptance not been given, the appellant would not have made the allotment. Therefore, the respondent was estopped from claiming additional land. The Supreme Court set aside both High Court judgments and dismissed the writ petition, allowing the appeal with costs on parties.
Headnote
A) Contract Law - Allotment of Industrial Plot - Provisional Allotment Letter Not Conferring Vested Right - General Principles of Contract - The provisional allotment letter dated 27.12.1984 expressly stated that it did not give any legal right unless a final allotment letter was issued. The High Court erred in treating it as creating a vested right to one acre. Held that the provisional letter did not create any enforceable right to claim one acre plot (Paras 1-5). B) Estoppel - Unconditional Acceptance of Revised Offer - Respondent's Acceptance of Half Acre Plot Barred Further Claim - General Principles of Estoppel - The respondent, after initial reservation in letter dated 14.1.1989, unconditionally accepted the half acre plot via letter dated 4.3.1989, leading to final allotment and possession. Held that by such unconditional acceptance and subsequent conduct, the respondent was estopped from claiming additional half acre (Paras 1-5).
Issue of Consideration
Whether the respondent had a legal right to claim an additional half acre plot based on the provisional allotment letter dated 27.12.1984, despite having unconditionally accepted the allotment of half acre plot vide letter dated 4.3.1989 and final allotment letter dated 6.7.1990.
Final Decision
Appeal allowed; judgments of High Court dated 14.11.1994 in C.W.P. No. 5123/1994 and dated 9.8.1995 in Review Petition No. 41 of 1995 set aside; writ petition filed by respondent dismissed; parties to bear their own costs.
Law Points
- Provisional allotment letter confers no legal right
- Estoppel by unconditional acceptance
- Unconditional acceptance of revised offer bars further claim
- Contractual obligations binding
- Special leave appeal against High Court writ order
