Case Note & Summary
The dispute arose from the cancellation of a residential plot allotment to the appellant, Anjana Saraiya, by the State of U.P. due to alleged non-payment of instalments. The appellant was allotted Plot No.415 in Ghaziabad under the Middle Income Group scheme after a successful draw of lots, with a total price of Rs.2,70,000. She made an upfront payment of Rs.94,500 and paid the first three instalments but defaulted on the next four due to her husband's ill health, leading to financial difficulties. A notice was served on her regarding the cancellation of the allotment, but she managed to pay the outstanding amount of Rs.1,39,000, including interest, before the notice was received. The High Court dismissed her writ petition, stating she did not fulfill the payment terms. The appellant argued that her defaults were not willful and offered to pay additional compensation for the delay. The State supported the High Court's decision, asserting that the cancellation was justified due to the appellant's failure to pay on time. The Supreme Court, however, found that the appellant had made significant payments and was willing to pay further compensation. The court ruled that the cancellation was unjustified and allowed the appeal, quashing the cancellation order and directing the respondents to hand over possession of the plot upon payment of Rs.2,00,000 within six weeks.
Headnote
A) Property Law - Allotment Cancellation - Justification for Cancellation - Not applicable, 2006 - The appellant's allotment was cancelled due to non-payment of instalments, but the court found that the appellant had made substantial payments and was willing to pay additional compensation. Held that the cancellation was not justified and allowed the appeal (Paras 5-6).
Issue of Consideration
Whether the cancellation of the allotment of the residential plot was justified due to non-payment of instalments.
Final Decision
The Supreme Court allowed the appeal, quashed the cancellation of the allotment, and directed the respondents to hand over possession of the plot upon payment of Rs.2,00,000 within six weeks.
Law Points
- Property allotment
- default in payment
- compensation for delayed payment
- cancellation of allotment
- High Court jurisdiction
