High Court Quashes Re-allotment Direction in Housing Board Dispute Citing Valid Cancellation and Abolition of Discretionary Quota. Tamil Nadu Housing Board's Allotment Cancellation Upheld as Allottee Failed to Pay Initial Deposit Within Stipulated 21 Days, and Government Order of Cancellation Remained Unchallenged.

High Court: Madras High Court Bench: Principal
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Case Note & Summary

The case concerns an intra-court appeal filed by the Tamil Nadu Housing Board against an order of a single judge dated 15.07.2022 in W.P.No.13947 of 2015, which directed re-allotment of an HIG flat to the second respondent, Smt. S. Suseela. In 2005, the second respondent, claiming to be a social worker, was allotted Flat No. 41/4 HIG at Ambattur under the Government's preferential quota as per G.O.(2D) No. 41 dated 25.02.2005. The allotment order required payment of an initial deposit within 21 days, a condition the allottee failed to comply with. Consequently, the Government cancelled the allotment through G.O.(3D).No.8 dated 25.02.2008, on the ground of non-payment. The allottee had earlier, on 10.11.2000, written to the Managing Director expressing inability to pay the deposit. Despite the cancellation, the allottee filed W.P.No.7180 of 2008, which was disposed of on 07.02.2011 granting liberty to approach the Government for re-allotment. The Government did not consider this request, and an appeal to the Government was also rejected, primarily on the ground that the discretionary quota had been abolished. The rejection order was challenged in W.P.No.13947 of 2015, where the single judge directed re-allotment. The Housing Board then filed the present appeal, contending that the cancellation order was never challenged, the allottee had no right to re-allotment after the abolition of the quota, and there were inordinate delays. The appeal arises from these contentious issues, and the matter was heard by a Division Bench consisting of Justices S.M. Subramaniam and K. Rajasekar.

Headnote

A) Housing Law - Allotment of HIG Flat - Cancellation for Non-Payment - Tamil Nadu Housing Board - Government Order G.O.(3D).No.8 dated 25.02.2008 - Original allotment made on 25.02.2005 under preferential quota could not be sustained as the allottee failed to pay the initial deposit within 21 days, leading to cancellation. The cancellation order was never challenged and attained finality (Paras 2-3, 6).

B) Administrative Law - Discretionary Quota - Abolition - Government of Tamil Nadu - The Government rejected the allottee's request for re-allotment on the ground that the discretionary quota under which the original allotment was made had been abolished, leaving the allottee with no enforceable right to seek re-allotment of a flat under that quota (Para 6).

C) Writ Jurisdiction - Delay and Laches - Limitation Act, 1963 - The allottee's first writ petition in 2008 was filed after three years from the date of allotment, and even after the cancellation in 2008, the allottee failed to pursue re-allotment timely, leading to dismissal of the subsequent writ petition as barred by delay and laches (Paras 3-4).

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Issue of Consideration

Whether the writ court was justified in directing re-allotment of a cancelled HIG flat despite the abolition of the discretionary quota and the original cancellation order remaining unchallenged.

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Law Points

  • Allotment cancellation due to non-payment
  • abolition of discretionary quota
  • writ maintainability
  • re-allotment based on lapsed allotment
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Case Details

2025 LawText (MAD) (03) 123

WA No. 264 of 2024 and CMP No. 1669 of 2024

2025-03-26

S. M. Subramaniam, K. Rajasekar

2025:MHC:1178

Mr. D. Veerasekharan, Mrs. E. Ranganayaki AGP, Mr. R. Syed Mustafa

The Managing Director, Tamil Nadu Housing Board; The Executive Engineer cum Administrative Officer, Tamil Nadu Housing Board, Thirumangalam; The Executive Engineer cum Administrative Officer, Tamil Nadu Housing Board, Dr.J.J.Nagar Division

The State of Tamil Nadu rep. by its Secretary, Housing and Urban Development Department; S. Suseela

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Nature of Litigation

Intra-court writ appeal by Tamil Nadu Housing Board against a single judge order directing re-allotment of a cancelled HIG flat.

Remedy Sought

Appellant (Tamil Nadu Housing Board) sought to set aside the order dated 15.07.2022 in W.P.No.13947/2015 and allow the writ appeal.

Filing Reason

The writ court directed re-allotment despite cancellation, non-payment, and abolition of the quota; the Board challenged the re-allotment direction.

Previous Decisions

Writ petition W.P.No.7180 of 2008 disposed on 07.02.2011 granting liberty to approach Government for re-allotment; Government rejected the request; W.P.No.13947 of 2015 allowed on 15.07.2022 directing re-allotment, now under appeal.

Issues

Whether the writ court could direct re-allotment when the original cancellation order remained unchallenged. Whether the abolition of the discretionary quota extinguished any right to seek re-allotment. Whether the writ petition was barred by delay and laches.

Submissions/Arguments

Appellant contended that the allottee failed to pay the initial deposit and the cancellation order was never challenged. Appellant argued that the discretionary quota stood abolished, hence no right to re-allotment survives. Appellant raised objection regarding the long delay in approaching the court. Respondent S. Suseela claimed eligibility as a social worker under the preferential quota and sought re-allotment of the same flat.

Judgment Excerpts

The Govt cancelled the allotment vide G.O.(3D).No.8, Housing and Urban Development (HB 4(2)) Department dated 25.02.2008. The said Government order remains unchallenged. The Government had abolished the discretionary quota under which the original allotment was made in favour of the 2nd respondent in the year 2005.

Procedural History

1. Allotment of Flat No. 41/4 HIG at Ambattur to S. Suseela by G.O.(2D) No. 41 dated 25.02.2005. 2. Non-payment of initial deposit led to cancellation by G.O.(3D).No.8 dated 25.02.2008. 3. S. Suseela filed W.P.No.7180 of 2008 which was disposed on 07.02.2011 with liberty to approach Government for re-allotment. 4. Government rejected her request after appeal. 5. She filed W.P.No.13947 of 2015 challenging the rejection. 6. Single judge allowed the writ on 15.07.2022 directing re-allotment. 7. Tamil Nadu Housing Board filed the present writ appeal (WA No. 264 of 2024).

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