AAYUSH BUILDWELL PVT. LTD.versusHARYANA URBAN DEVELOPMENT AUTHORITY & ORS.
- Citation
- 2014 INSC 134
- Decided
- 25 February 2014
- Disposal
- Disposed off
- Bench
- S S NIJJAR
Holding
An unsuccessful applicant in a cancelled allotment has no vested right to a plot; any claim must be made afresh under the authority's established procedures, leading to dismissal of the appeal.
Summary
The appellant, Aayush Buildwell Pvt. Ltd., applied for a half‑acre institutional plot advertised by the Haryana Urban Development Authority (HUDA) and paid earnest money, but was unsuccessful and had the money refunded. The High Court set aside the allotments made to private respondents, finding procedural irregularities and violation of Article 14, but did not award any plot to the appellant. The appellant then sought a fresh allotment, arguing that the High Court’s decision should entitle it to a plot. The Supreme Court held that because the appellant was an unsuccessful applicant in a cancelled allotment, no vested right to a plot had crystallised; any claim must be pursued through HUDA’s regular process and depends on the factual circumstances of each case. Consequently, the Court dismissed the appeals, directing the appellant to comply with HUDA’s established procedures for future allotments.
Issues considered
- Whether an unsuccessful applicant in a vitiated allotment procedure acquires any vested right to a plot of land.
- Whether the Court can direct a fresh allotment process and include the appellant despite the earlier cancellation of allotments.
- Whether the appellant is barred by res judicata from relitigating the matter.
- Whether the High Court’s directions can be modified to grant the appellant a plot.
Legislation cited
Subjects
Judgment
[2014] 3 S.C.R. 181
MYUSH BUILDWELL PVT. LTD. A
v.
HARYANA URBAN DEVELOPMENT AUTHORITY & ORS.
(Civil Appeal No. 2833-2834 of 2014)
FEBRUARY 25, 2014
B
[SURINDER SINGH NtJJAR AND
PINAKI CHANDRA GHOSE, JJ.]
Urban Development:
c
Allotment of institutional plots - Discrepancies in
allotment process.- High Court setting aside the allotments
made - Held: Appellant was an unsuccessful party i[l the initial
allotment, which was set aside by High Court, but it did not
give any right to appellant to claim allotment as a matter of D
right - Therefore, when no right arises to an applicant in a
vitiated/cancelled allotment procedure, a subsequent claim
for allotment depends upon factual circumstances of each
case - The right of appellant has not been crystallized --
Appellant has to comply with the process followed by HUDA E
for allotment of plots.
The appellant, pursuant to an advertisement issued
by the respondent-Haryana Urban Development
Authority, applied for a half an acre freehold institutional
plot and submitted a demand draft for earnest money of F
Rs. 27,75,000/- along with the project report. The
respondent-authority conducted interviews of 371
applicants including the appellant. By letter dated 22-9-
2006, the earnest money of the appellant was refunded
without giving any reasons therefor. The allotments made G
were challenged before the High Court. The High Court
identified certain discrepancies in the allotment process,
and set aside the allotments made to the private
respondents. The SLPs were disposed of by the
181 H
182 SUPREME COURT REPORTS [2014] 3 S.C.R.
A Supreme Court on 29.4.2011 and on the statement of the
Additional Solicitor General, respondent no. 1 was
directed to allot a plot to Delhi Assam Roadways
Corporation Ltd.
In the instant appeal the question for consideration
8
before the Court was: whether on the basis of a
comparative analysis, the appellant was eligible to have
allotment of a plot in its favour, and further while setting
aside the process for allotment of plots, could the Court
direct the process afresh allowing the ineligible
C candidates/parties to participate in the said fresh process.
Disposing of the appeals, the Court
HELD: 1.1 The appellant was an unsuccessful party
0 in the initial allotment. It is not disputed that the earnest
money deposited by it was also refunded. The initial
allotment was also set aside by High Court by judgment'
dated 13.3.2008, but the same did not give any right to
the appellant to claim allotment as a matter of right.
E Therefore, when no right arises to an applicant in a
vitiated/cancelled allotment procedure, a subsequent
claim for allotment may or may not succeed, depends
upon the factual circumstances of each case. [para 7-8]
[189-F-G; 190-E]
F Manjul Srivastava vs. Government of Uttar Pradesh 2008
(12) SCR 903 = 2008 (8) SCC 652; Haryana State
Agricultural Marketing Board vs. Sadhu Ram, 2008 (6) SCR
43 = (2008) 16 sec 405 -- relied on.
G A. Jithendernath v. Jubilee Hills Coop. House Building
Society 2006 Suppl. 1 SCR 102 = (2006) 10 sec 96;
Industrial Assistance Group, Goverment of Haryana & Anr. vs.
Ashutosh Ahluwalia & Anr. (2001) 4 SCC 359; U. G. Hospitals
(P) Ltd. v. State of Haryana (2011) 14 SCC 354 - referred
H to.
AAYUSH BUILDWELL PVT. LTD. v. HARYANA URBAN 183
DEVELOPMENT AUTH.
1.2 In SLP [CJ Nos.10818-23 of 2008 - Haryana Urban A
Development Authority etc. vs. Delhi Assam Roadways
Corporation Ltd. & Ors. where this Court issued a
direction to the Authority to allot a plot to Delhi Assam
Roadways Corporation Ltd. since the Additional Solicitor
General, on instructions, conceded to the effect that half B
an acre plot shall be made available to Delhi Assam
Roadways Corporation Ltd., the said order was passed
on concession granted on behalf of HUDA. But the
respondent did not agree to concede it to that extent in
the instant case. Accordingly, there is a distinction in the c
situation. (para 10] (191-E-H; 192-A]
1.3 The right of the appellant has not been
crystallised. No right can be conferred on the appellant,
granting allotment as has been prayed. The appellant has
to comply with the process followed by HUDA to allot D
plots in favour of the allottees and, if the appellant, on its
taking steps, fulfils all the criteria laid down by HUDA in
the process of allotment, HUDA shall consider its case
for such allotment. [para 11] (192-B-C]
E
Case Law Reference:
(2008) 8 sec 658 relied on para 8
2008 (6) SCR 43 relied on para 8
2006 (1) Suppl. SCR 702 referred to para 9 F
(2001) 4 sec 359 referred to para 9
(2011) 14 sec 354 referred to para 9
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. G
2833-2834 of 2014.
From the Judgment and Order dated 13.03.2008 of the
High Court of Punjab & Haryana at Chandigarh in C.W.P. No.
9962 Of 2007, dated 30.03.2009 in RA No. 132 Of 2008 in H
184 SUPREME COURT REPORTS (2014] 3 S.C.R.
A C.W.P. No. 9962 of 2007.
V.K. Bali, Aditya Soni, Shree Pal Singh for the Appellant.
Anubha Agarwal, Amboj Agarwal, Dr. Monika Gusain for
the Respondent.
B
The Judgment of the Court was delivered by
PINAKI CHANDRA GHOSE, J. 1. Leave granted.
2. These appeals have been filed by the present appellant
C -- Aayush Buildwell Pvt. Ltd. -- against the final order dated
March 13, 2008 passed by the High Court of Punjab and
Haryana in CWP No.9962 of 2007 which was disposed in
terms of judgment passed in CWP No. 7790 of 2007 titled
"Delhi Roadways Corporation Ltd. vs. The Haryana Urban
D Development Authority & Ors." and the order dated March 30,
2009 dismissing the review petition being Review Application .
No. 132 of 2008 in CWP No. 11501 of 2007.
3. The question which came up before this Court, as
E pressed by the appellant, is whether on the basis of a
comparative analysis, the appellant was eligible to have
allotment of a plot in its favour, and further while setting aside
the process for allotment of plots, can it direct the process
afresh allowing the ineligible candidates/parties to participate
F in the said fresh process.
4. The facts of the case briefly are as follows :-
4.1. In January/February 2006, the respondent-authority
(Haryana Urban Development Authority) issued an
G advertisement for allotment of freehold institutional plots for
Corporate Offices, R&D Centres, Corporate Towers and Staff
Training Institutes in Sectors 18, 32 and 44 of Gurgaon. The
appellant obtained the brochure and duly applied for a half an
acre plot in accordance with the said advertisement. The
H earnest money of Rs. 27,75,000/- by way of a demand draft
AAYUSH BUILDWELL PVT LTD. v. HARYANA URBAN 185
DEVELOPMENT AUTH. [PINAKI CHANDRA GHOSE, J.]
and the project report of the appellant were duly submitted. A
4.2. The respondent-authority duly conducted interviews of
371 applicants and on June 9, 2006, the appellant duly
appeared in an interview for such allotment before the authority
in terms of letter dated June 1, 2006. By letter dated September B
22, 2006, the earnest money of the appellant was refunded
without giving any reasons therefor.
4.3. The allotments made were challenged before the High
Court in CWP No. 17138 of 2006 by M/s. Sigma Corporation
India Ltd., notice was issued on October 31, 2006 and interim C
stay was granted. Subsequently, said CWP No.17138 of 2006
was allowed to be withdrawn by an order dated October 3,
2007 in an application being Civil Misc. No.15033 of 2007 in
CWP No.17138 of 2006.
D
4.4. It appears that Delhi Assam Roadways Corporation
Ltd., an applicant for such allotment, which had filed CWP No.
7790 of 2007, also filed an application under the Right to
Information Act, 2005 in respect of the allotments made by the
said authority. Since no reply was received within the time E
prescribed under the Act, the said applicant moved the Central
Information Commission on March 14, 2007 and subsequently,
by letter dated May 7, 2007, the respondent-authority provided
the requisite information, admitting that no report/comments
were given by the Committee regarding the individual
F·
application for such allotment. The appellant found
discrepancies in the allotment and duly asked for the information
under the RTI Act, with regard to the profiles of the companies
which were allotted plots in Sector 32 of Gurgaon.
4.5. Being aggrieved by the action on the part of the G
respondent-authority, the appellant filed CWP No. 9962 of 2007
before the High Court. The said CWP was disposed of by order
. dated March 13, 2008 along with the writ petitions in terms of
a common order passed in CWP No. 7790 of 2007 in Delhi
Roadways Corporation Ltd. vs. The Haryana Urban H
186 SUPREME COURT REPORTS [2014] 3 S.C.R.
A Development Authority & Ors.
4.6. The High Court in its judgement dated March 13,
2008, observed that no pre-determined criteria was published
nor terms and conditions which were to apply to the allotments
were made known to the applicants, and that the guidelines
8
framed by the Committee regarding the allotments were also
not kept in mind and no reasons have been highlighted for
adopting the allotment method over the method of sale by
auction. Thereby, the Court held that :
c "We are further of the view that the so called
selection committee failed to advert to the comparative
merits of the applicants and it has not been pointed out
as to why the allottee was selected from amongst those
applicants who have been left out".
D
4.7. The Court perused the comparative table submitted
by the petitioner in CWP No. 7790 of 2007 and identified the
discrepancies in the allotment process, thereby holding that the
"respondents have adopted the pick and choose method". The
E Court further held that :
" .. .in the absence of any declared pre-determined criteria
element of arbitrariness has crept in which has resulted in
flagrant violation of Article 14 of the Constitution".
F 4.8. On these grounds the High Court set aside the
allotments made to the private respondents in Sectors 18, 32 ,
and 44 of Gurgaon. Furthermore, the Court gave the
Government and respondent no. 1 two options 'A' and 'B' along
with a set of directions each regarding the allotment; and either
G of the options had to be followed.
4.9. Being aggrieved, one of the private respondents filed
Review Application No. 418 of 2008 in CWP No. 9962 of 2006
before the High Court for recalling of its order dated March 13,
2008. The High Court by a common judgment dated March 30,
H
AAYUSH BUILDWELL PVT. LTD. v. HARYANA URBAN 187
DEVELOPMENT AUTH. [PINAKI CHANDRA GHOSE, J.)
2009 dismissed both Review Application No. 418 of 2008 and A
the earlier filed review application being R.A. No. 132 of 2008
in CWP No. 11501of2007.
4.10. Delhi Assam Roadways Corporation Ltd. as well as
the respondent-Authority- Haryana Urban Development 8
Authority and 28 other allottees filed special leave petitions
against the orders of the High Court before this Court. All the
petitions were tagged together under SLP [CJ Nos.10818-
10823 of 2008 and were disposed by this Court on 29th April,
2011 when the following order was passed :
c
"Delay condoned.
Learned Additional Solicitor General, on instructions,
submits that the petitioner, namely, Haryana Urban
Development Authority shall be making available half an D
acre of plot, as far as possible, Plot No.55-P, Sector-44
(Institutional), Gurgaon to the first respondent in SLP©
10818-10823 of 2008, namely, Delhi Assam Roadways
Corporation Ltd.
In the circumstances, there shall be a direction E
directing the Authority to allot the said plot, as expeditiously
as possible, preferably within four weeks from today. The
allotment shall be made on the same terms and conditions
on which the other respondents had been earlier allotted.
F
Obviously, no further dispute, as such, survives so
far as the allotments made in favour of other respondents
are concerned.
In such view of the matter, no further orders, as such, are
required to be passed and the order of the High Court shall G
stand modified to the extent.
It is made clear that allotments already made in favour of
the other respondents is not interfered with ..
H
188 SUPREME COURT REPORTS (2014] 3 S.C.R.
A The impleadment application in SLP (C) No.10818-
10823 of 2008 is allowed.
The special leave petitions are, accordingly,
disposed of."
B 4.11. It appears from the facts that the appellant filed SLP
[CJ Nos.672-673/2011 before this Court raising the question
which has been mentioned hereinabove, and on January 7,
2011 notice was issued on the SLP as well as the application
for condonation of delay. It further appears that by an order
C dated March 8, 2011 on the basis of the application filed by
the appellant, it was ordered in Chambers :
"At the risk and peril of the petitioner, respondent Nos.2-
32 are deleted from the array of parties. Amended cause
D title shall be filed within two weeks from today."
5. Thereafter, the matter did appear before the Court for
hearing and the respondents duly filed their counter in the
matter. In the counter affidavit it appears that the respondent
duly pointed out that the appellant duly participated in the
E process of allotment and had been unsuccessful, hence, filed
the present appeals to the limited extent that the impugned
order while allowing the writ petition, did not direct allotment of
a plot in favour of the appellant because the appellant's claim
was more meritorious. It is stated that allotment of a plot in
F favour of the appellant could not be made by the High Court
and, furthermore, without explaining the inordinate delay, the
appeal has been filed by the appellant. It is further pointed out
that the appellant was a party in the case of Haryana Urban
Development Authority vs. Delhi Assam Roadways Corporation
G & Ors. being SLP [CJ Nos.10818-10823 of 2008. It is pointed
out that since the appellant was a contesting party before this
Court wherein a batch of petitions had been decided, the
appellant cannot challenge the same again by way of the
present appeals. It is further pointed out that the impugned
H order of the High Court did not direct allotme:nt of plot in favour
AAYUSH BUILDWELL PVT. LTD. v. HARYANA URBAN 189
DEVELOPMENT AUTH. [PINAKI CHANDRA GHOSE, J.]
of the appellant, neither alleges that the criteria adopted for A
allotment of plots was arbitrary nor challenges the criteria but
merely seeks the benefit of allotment of a plot despite being
unsuccessful. This Court by the final order dated April 29, 2011
clarified that the allotments already made in favour of other
respondents should not be interfered with. It is further stated that B
the appellant is now estopped from contending/contesting the
claim since the claim is barred by res judicata. Since challenge
to the impugned order of the High Court has already been
decided by this Court, the appellant cannot challenge the same.
6. It is submitted that the appellant was not found eligible
c
for allotment as per the Selection Committee and hence no plot
was allotted to it. The appellant without challenging the process
of allotment is merely seeking a direction for allotment of plot
in its favour which cannot be acceded to. In these
circumstances, the learned senior counsel appearing on behalf D
of the respondent authority, HUDA, submitted that no order can
be passed on these petitions on the ground of res judicata, and
further the appellant did not challenge the process of allotment.
In reply, it was stated that the appellant was a party in the earlier
SLP [CJ Nos. 10818-10823 of 2008 as respondent No.26. E
According to the appellant, no notice was received in the same.
7. We have heard learned counsel for the parties at length.
It appears to us that the appellant was an unsuccessful party in
the initial allotment. It is also not disputed that the earnest money F
deposited by it was also refunded. The initial allotment was also
set aside by judgment dated March 13, 2008 but the same did
not give any right to the appellant to claim allotment as a matter
of right.
8. This Court in Manju/ Srivastava vs. Government of G
Uttar Pradesh [(2008) 8 SCC 658], while disallowing a claim
for allotment made on the basis that there was a "plot reserved",
held that "the appellant could not have acquired any legal right
for allotment of a plot until and unless she could be found to be
successful in the draw of lots." In Haryana State Agricultural H
190 SUPREME COURT REPORTS [2014] 3 S.C.R.
A Marketing Board vs. Sadhu Ram [(2008) 16 SCC 405], this
Court in a m,atter where the allotment by way of auction was
cancelled on the ground that the reserve price was not met, held
regarding the claim of allotment by the highest bidder that:
B "It is, therefore, difficult to accept the views expressed by
the High Court that since reserve price was not known to
the respondents and they were found to be the highest
bidders in the said auction, they have acquired a right to
get the allotment of alternative plots and the appellants had
no authority to rejf ct the highest offers given by the
c
respondents or to cancel the auction itself. Since the entire
auction was cancelled, we do not find any justification how
the High Court could pass an order directing allotment of
the alternative plots on the same terms and conditions
when, after cancellation, the second auction was held in
D which the price fetched was much higher than the offers
made by the respondents."
Therefore, when no right arises to an applicant in a vitiated/
cancelled allotment procedure, a subsequent claim fur allotment
E may or may not succeed, depends upon the factual
circumstances of each case.
9. We have also noticed that in A. Jithendemath v. Jubilee
Hills Coop. House Building Society [(2006) 10 SCC 96, at
F page 114), while deciding a dispute regarding allotment, this
Court held that :
"Even in exercise of its jurisdiction under Article 142 of the
Constitution while making an attempt to do complete
justice to the parties this Court cannot pass an order which
G could cause injustice to others and in particular to those
who are not before it."
We have noticed that in Industrial Assistance Group,
Goverment of Haryana & Anr. vs. Ashutosh Ahluwalia & Anr.
H [(2001) 4 SCC 359), the respondent was allotted land, however
AAYUSH BUILDWELL PVT. LTD. v. HARYANA URBAN 191
DEVELOPMENT AUTH. [P!NAKI CHANDRA GHOSE, J.)
the allotment process was cancelled on the basis that plots A
allotted could only be sold by open auction. Subsequently, the
allotment to the respondent was cancelled and the earnest
money was returned. The Court was of the opinion that he can
be allotted a plot under the new policy, however, as in his case
the allotment process was complete, he was not asked for the B
difference in rates as paid by the earlier allottees. In U.G.
Hospitals (P) Ltd. v. State of Haryana [(2011) 14 SCC 354),
there was an irregular allotment of a plot for construction and
the appellant filed a writ challenging the same after a delay of
one and half years. Apart from the appellant, there were other c
applicants for the allotment of land as well, however, all barring
the appellant and another person had witpdrawn their
applications. Since the other applicant was allotted a plot, this
Court held that as there was a delay, it would not interfere with
the earlier allotment. However, as the appellant was willing to D
accept another plot, the Court directed the Authority to consider
the request of the appellant on such terms as it deems fit, as
per its rules and regulations in accordance with law.
10. We have noticed that in SLP [C) Nos.10818-23 of
2008 - Haryana Urban Development Authority etc. vs. Delhi E
Assam Roadways Corporation Ltd. & Ors. where this Court
issued a direction directing the Authority to allot Plot No.55-P,
Sector 44 (Institutional), Gurgaon to Delhi Assam Roadways
·corporation Ltd. within four weeks from the date of the order,
i.e., 29th April, 2011. It appears that the said order was passed F
by this Court since the learned Additional Solicitor General, on
instructions, who appeared on behalf of HUDA, conceded to
the effect that half an acre of plot No.55-P, Sector 44
(Institutional), as far as possible, shall be made available to
Delhi Assam Roadways Corporation Ltd .. The said order was G
passed on concession granted on behalf of HUDA. But it
appears that in view of the facts and circumstances of this case
and the submissions made on behalf of respondents, the
respondent did not agree to concede it to that extent in this
case. Accordingly, in our opinion, there is a distinction in the H
192 SUPREME COURT REPORTS (2014] 3 S.C.R.
A situation in passing the said order and the present order so
passed by us.
11. Accordingly, in this factual matrix and the law laid down
by this Court, we hold that the right of the appellant has not
been crystallised. No right can be conferred on the appellant,
8
granting allotment as has been prayed before us. In our opinion,
the appellant has to comply with the process followed by HUDA
to allot plots in favour of the allottees and, accordingly, we direct
that if the appellant fulfils all the criteria laid down by HUDA in
the process of allotment, HUDA shall consider its case for such
C allotment. In these facts and circumstances we direct that steps
be taken by the appellant in accordance with the process of
HUDA and if the criteria is being fulfilled by the appellant, HUDA
shall take necessary steps in the matter for allotment in
accordance with the provisions of law.
D
12. In light of the above, the appeals are disposed of
accordingly.
R.P. Appeals disposed of.
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