Case Note & Summary
The petitioner, Sandeep Uttam Bodke, applied for allotment of a flat under the Lower Income Group (LIG) category in response to an advertisement issued by the Maharashtra Housing and Area Development Board (MHADA) on 23.11.2018. He was declared successful in the lottery and received a first intimation letter on 30.01.2019. However, the petitioner did not receive any further communication or demand letter for payment. On 18.04.2022, the Deputy Chief Officer of MHADA issued a communication under Regulation 18(1) of the Maharashtra Housing and Area Development (Disposal of Land) Regulations, 1992, intimating that the Chief Officer had decided to cancel the allotment due to non-payment. Subsequently, on 02.05.2022, the Appellate Authority dismissed the petitioner's appeal under Regulation 18(4) of the same Regulations. The petitioner challenged both the communication and the appellate order by way of a writ petition under Article 226 of the Constitution of India. The court examined the facts and found that no formal demand letter was ever issued to the petitioner. The court held that the cancellation of allotment without issuing a demand letter was illegal and violative of principles of natural justice. The court quashed the impugned communication dated 18.04.2022 and the order dated 02.05.2022, and directed MHADA to issue a fresh demand letter to the petitioner within two weeks, allowing him to make payment within four weeks thereafter.
Headnote
A) Administrative Law - Natural Justice - Cancellation of Allotment - Regulation 18(1) and 18(4) of Maharashtra Housing and Area Development (Disposal of Land) Regulations, 1992 - The petitioner was allotted a flat under LIG category but the allotment was cancelled for non-payment without any formal demand letter being issued. The court held that the cancellation was illegal as no demand letter was served, violating principles of natural justice. The impugned communication and order were quashed and set aside. (Paras 1-10) B) Housing Law - Allotment of Tenement - Demand Letter - Regulation 18(1) of MHADA (Disposal of Land) Regulations, 1992 - The court held that issuance of a formal demand letter is a mandatory prerequisite before cancellation of allotment for non-payment. The petitioner's failure to pay was due to non-receipt of any demand, and the authority's action was arbitrary. (Paras 5-10)
Issue of Consideration
Whether the cancellation of allotment of a flat by MHADA without issuing a formal demand letter for payment is valid under Regulation 18(1) of the MHADA (Disposal of Land) Regulations, 1992.
Final Decision
The court allowed the writ petition, quashed the impugned communication dated 18.04.2022 and the order dated 02.05.2022, and directed MHADA to issue a fresh demand letter to the petitioner within two weeks, allowing him to make payment within four weeks thereafter.
Law Points
- Natural justice
- Issuance of demand letter mandatory before cancellation
- Regulation 18(1) and 18(4) of MHADA (Disposal of Land) Regulations
- 1992
- Article 226 of Constitution of India
