INDORE DEVELOPMENT AUTHORITYversusDR. HEMANT MANDOVRA

                 [2024] 12 S.C.R. 1038 : 2024 INSC 983

                     Indore Development Authority
                                  v.
                         Dr. Hemant Mandovra
                      (Civil Appeal No. 13940 of 2024)
                              13 December 2024
           [Bela M. Trivedi and Satish Chandra Sharma,* JJ.]


                            Issue for Consideration
       An allotment of land to the Respondent was canceled by the
       Appellant for not paying the full amount as per the scheme. In
       a writ petition filed by the Respondent, High Court directed the
       respondent to pay the balance outstanding amount within 30 days
       and directed the appellant to handover the possession of the plot
       to the respondent. Respondent did not deposit the full amount and
       instead preferred a complaint against the Appellant in the District
       Forum, which dismissed Respondent’s complaint. In the appeal filed
       by the Respondent before the State Commission, respondent filed
       an application under Section 13(3B) of the Consumer Protection Act,
       1986 for grant of permission to deposit the amount under protest
       with the liberty to reclaim the said amount. On such application,
       State Commission passed an interim order directing the appellant
       to accept the outstanding amount with interest and to deliver the
       possession of plot. In the revision petition, the National Commission
       directed the appellant to calculate the interest within a period of
       two weeks and after receiving the amount along with interest, to
       handover the possession of the plot within a period of three weeks
       from the date of receipt of such deposit. Whether such an order
       could have been passed by the National Commission and whether
       final relief could not have been granted by the State Commission
       on an interlocutory application.

                                   Headnotes†
       Consumer Protection – Grant of final relief by State Commission
       on an Interlocutory Application – If Proper.
       Held: The District Forum was justified in dismissing the complaint of
       the respondent – The State Commission by directing the appellant
       to accept the outstanding amount with interest and to deliver the

* Author
[2024] 12 S.C.R.                                                             1039

        Indore Development Authority v. Dr. Hemant Mandovra


     possession of plot in question to the respondent, granted a final
     relief by way of an interim order – Final relief could not have been
     granted by the State Commission on an interlocutory application
     filed in the matter – The National Commission without considering
     any ground raised by the appellant directed the appellant to receive
     and accept the amount from the respondent along with interest
     and handover the possession of the plot in question – It was the
     respondent who committed default in depositing the balance amount
     as per the terms and conditions of the NIT and even after the first
     round of litigation before the High Court, the respondent did not
     deposit the amount which was outstanding against him, even though
     appellant reduced the amount of interest to be paid and, therefore,
     at this juncture, after a lapse of 28 years, the question of directing
     the appellant as has been done by the National Commission to
     accept the amount does not arise – Resultantly, the orders passed
     by the State Commission and National Commission deserve to be
     set aside and are accordingly set aside. [Paras 10 and 11]

                                 List of Acts
     Constitution of India; Consumer Protection Act, 1986; Town and
     Country Planning Act, 1973.

                              List of Keywords
     Tender; Allotment of land; Cancellation of allotment; Terms and
     conditions of the NIT; Premium amount; Interlocutory application;
     Interim order; Final relief; National Consumer Disputes Redressal
     Commission; State Commission; Revision petition; Lapse of time.

                             Case Arising From
     CIVIL APPELLATE JURISDICTION: Civil Appeal No. 13940 of 2024
     From the Judgment and Order dated 29-03-2023 of the National
     Consumer Disputes Redressal Commission, New Delhi in RP No.
     2808 of 2018

                         Appearances for Parties
     Amit Pawan, Adv. for the Appellant.
     Udayaditya Banerjee, Adv. for the Respondent.
1040                                                     [2024] 12 S.C.R.

                        Supreme Court Reports


               Judgment / Order of the Supreme Court

                               Judgment

     Satish Chandra Sharma, J.

1.   Leave granted.
2.   This present petition is arising out of order dated 29.03.2023 passed
     by National Consumer Disputes Redressal Commission (for short,
     “the National Commission”) in Revision Petition No. 2808 of 2018
     whereby the National Commission directed the appellant to handover
     possession of the plot in question to the respondent within three
     weeks from the date the amount is paid along with interest to the
     Indore Development Authority.
3.   The undisputed facts of the case reveal that the appellant i.e. Indore
     Development Authority which is an authority constituted under the
     Town and Country Planning Act, 1973, issued an advertisement/
     Notice Inviting Tender (NIT) on 05.10.1994 in respect of Scheme
     No. 54 offering various plots to the public at large. The respondent
     pursuant to the said advertisement/tender notice dated 05.10.1994
     submitted his offer and was allotted a Plot No. 314 on 02.01.1995 in
     Scheme No. 54 with a payment plan to deposit 50% premium amount
     and lease rent within 30 days from the date of allotment and the rest
     50% was required to be deposited in 12 quarterly instalments. The
     undisputed facts further reveal that the respondent deposited the
     initial amount and did not deposit the balance instalments on time
     and, therefore, as per the terms and conditions of the allotment and
     rules of the authority, the allotment was cancelled on 22.03.2000.
4.   The respondent being aggrieved by the cancellation of allotment
     preferred a Writ Petition No. 174 of 2001 before the Indore Bench
     of the Madhya Pradesh High Court and the Indore Bench of that
     High Court vide order dated 01.08.2006 passed in Writ Petition
     No. 174 of 2001 allowed the writ petition thereby directing the
     Indore Development Authority i.e. the appellant herein to deliver the
     possession of the plot to the writ petitioner i.e. respondent herein
     subject to payment of the remaining outstanding amount within 30
     days from the date of the order, meaning thereby, the allotment of
     the respondent was restored and 30 days’ time was granted to him
     to pay the outstanding dues.
[2024] 12 S.C.R.                                                       1041

        Indore Development Authority v. Dr. Hemant Mandovra


5.   The respondent pursuant to the order passed by the High Court
     submitted a Demand Draft amounting to Rs 5,72,782/-, though the
     total outstanding amount was Rs. 12,02,592/-. The Demand Draft
     was returned to the respondent as it was not in respect of the total
     outstanding amount. According to the respondent, in response to
     his letter dated 18.06.2008 whereby he requested the appellant
     to reduce the interest and therefore, based upon his request, the
     amount was reduced to Rs. 11,04,948/- by the appellant, which was
     required to be deposited on or before 28.02.2009. The respondent,
     even though the amount was reduced, failed to deposit the amount
     of Rs. 11,04,948/- and took a different route for redressal of his
     grievance by approaching District Consumer Disputes Redressal
     Forum, Indore, (hereinafter referred to as, “District Forum”) by filing a
     consumer complaint No. 391/2009 under Section 12 of the Consumer
     Protection Act, 1986, challenging the demand dated 17.02.2009 and
     for issuance of an appropriate direction for execution of sale deed
     in his favour and the District Forum vide order dated 25.02.2015
     dismissed the complaint on the ground that the amount was not
     deposited as directed by the High Court.
6.   The respondent being aggrieved by the order passed by the District
     Forum preferred another writ petition No. 1661/2015 before the
     Indore Bench of the Madhya Pradesh High Court and the said writ
     petition was dismissed as withdrawn on 08.04.2015 with the liberty to
     avail the statutory remedy provided under the Consumer Protection
     Act. Thereafter, the respondent preferred an appeal before the
     Madhya Pradesh State Consumer Disputes Redressal Commission,
     Bhopal (hereinafter referred to as, “State Commission”). The State
     Commission admitted the appeal and during the pendency of the
     appeal, the respondent filed an application under Section 13(3B) of
     the Consumer Protection Act, for grant of permission to deposit the
     amount of Rs. 11,04,948/- under protest with the liberty to reclaim
     the said amount. The Indore Development Authority i.e. the appellant
     herein filed its reply stating on affidavit that the total amount of Rs.
     22,73,079/- is outstanding which included the interest. The State
     Commission passed an interim order on 15.12.2017. Though, it was
     an interim order but granted final relief to the respondent by directing
     him to deposit the entire outstanding amount with interest and the
     appellant i.e. Indore Development Authority was directed to place
     the respondent in possession.
1042                                                        [2024] 12 S.C.R.

                         Supreme Court Reports


7.   Being aggrieved by the order dated 15.12.2017 passed by the State
     Commission, a revision petition was preferred before the National
     Commission and the National Commission had disposed of the
     revision petition directing the appellant to calculate the interest within
     a period of two weeks and after receiving the amount along with
     interest, to handover the possession of the plot within a period of
     three weeks from the date of receipt of such deposit.
8.   We have heard the learned counsel for the parties at length and
     perused the records minutely.
9.   It is an undisputed fact that in respect of advertisement/NIT which
     was issued on 05.10.1994, National Commission vide order dated
     29.03.2023 has directed the appellant to accept the deposit made
     by respondent and to allot the plot to him, meaning thereby, after
     the lapse of period of 28 years. In the present case, the respondent
     at the first instance opted to file a writ petition before the High Court
     of Madhya Pradesh and a favourable order was also passed in his
     favour on 01.08.2006 directing the respondent to pay the balance
     outstanding amount within 30 days and further directed the appellant
     i.e. Indore Development Authority to handover the possession of
     the plot to the writ petitioner i.e. respondent herein. However, only
     a sum of Rs. 5,72,782/- through a demand draft was presented in
     the month of September, 2006, against the total outstanding dues
     of Rs. 12,02,592/-.
10. The appellant i.e. Indore Development Authority has shown
    magnanimity in the matter by reducing the interest vide letter dated
    17.02.2009 and the amount was reduced to Rs. 11,04,948/- which
    was required to be paid on or before 28.02.2009. The respondent,
    not being satisfied even with the reduction of amount, opted for a
    different route for redressal of his grievance by approaching the
    District Forum and the District Forum was justified in dismissing the
    complaint of the respondent. The respondent again approached the
    High Court by way of a writ petition which was dismissed as withdrawn
    on 08.04.2015 with the liberty to avail statutory remedy provided
    under the Consumer Protection Act and thereafter the respondent
    preferred an appeal before the State Commission against the order
    passed by the District Forum. The State Commission by way of an
    interim order dated 15.12.2017 directed the appellant i.e. Indore
    Development Authority to accept the outstanding amount with interest
[2024] 12 S.C.R.                                                         1043

           Indore Development Authority v. Dr. Hemant Mandovra


     and to deliver the possession of plot in question to the respondent,
     meaning thereby, a final relief was granted by way of an interim
     order and under these circumstances, the matter had reached the
     National Commission. In the considered opinion of this Court, final
     relief could not have been granted by the State Commission on an
     interlocutory application filed in the matter.
11. The other important aspect of the case is that the National Commission
    without considering any ground raised by the appellant has directed
    the appellant to receive and accept the amount from the respondent
    along with interest and handover the possession of the plot in question.
    In our considered opinion, in respect of NIT/advertisement issued on
    05.10.1994, no such order could have been passed by the National
    Commission in the peculiar facts and circumstances of the present
    case i.e. after a lapse of period of 28 years. It was the respondent
    who committed default in depositing the balance amount as per the
    terms and conditions of the NIT and even after the first round of
    litigation before the High Court, the respondent did not deposit the
    amount of Rs. 12,02,592/- which was outstanding against him and,
    therefore, at this juncture, after a lapse of 28 years, the question
    of directing the appellant i.e. Indore Development Authority as has
    been done by the National Commission to accept the amount does
    not arise. Resultantly, the orders passed by the State Commission
    dt. 15.12.2017 and National Commission dt. 29.03.2023 deserve to
    be set aside and are accordingly set aside and it is made clear that
    the appellant i.e. Indore Development Authority shall issue a fresh
    tender in respect of the said plot in question and shall allot the plot
    only by way of auction or by following the due process as per rules.
12. With the aforesaid, the appeal stands allowed.

     Result of the case: Appeal allowed.



     †
         Headnotes prepared by: Adeeba Mujahid, Hony. Associate Editor
                                 (Verified by: Liz Mathew, Sr. Adv.)