Case: U.P. HOUSING AND DEVELOPMENT BOARD Vs. RAMESH CHANDRA AGARWAL

to place on record relevant documents including the Registration Booklet, the office order dated 1 November 2002 and the Rules of 1979. The appellant also sought to produce copies of the advertisements which were published from time to time.10. On 26 July 2018 the NCDRC directed the appellant to explore whether any plots/flats were available in any scheme of the appellant and to place relevant data including the particulars for allotment on affidavit.11. In pursuance of the above direction, the appellant filed anf affidavit on 8 August 2018 indicating the following position.“That &hellip; the flats which are available today are subject to auction wherein the rates are fixed according to the size of the flat, the location of the flat i.e. Ground floor, first floor, second floor and third floor. A perusal of the auction booklet of the answering respondent with regard to the aforesaid scheme of the Parishad would show the price at which the left over flats under different schemes are provided to general public. The allotment is done by way of auction and a perusal of the auction rates for Mandola Vihar Yojna, Ghaziabad residential flats is Rs.12.61 lakhs for ground floor; Rs.11.37 lakhs for first floor; Rs.11.23 lakhs for second floor and Rs.11.09 lakhs for third floor.”12. The NCDRC decided the revision by its order dated 11 December, 2018 which is impugned in the present appeal. A direction has been issued to the appellant to allot a flat on the ground floor in the Mandola Vihar Yojana, Ghaziabad to the respondent subject to his paying a sum of Rs 2,50,000 towards consideration for the flat within a period of six weeks from the date of the passing of the order.13. Assailing the judgment of the NCDRC, it has been urged by Mr Vishwajit Singh, learned counsel for the appellant that in the present case the respondent merely got himself registered for allotment. There was no allotment to the respondent. Moreover, it was submitted that the Rules for allotment which have been adverted to earlier, more specifically Rules 15 & 30, indicate that mere registration does not confer an entitlement to the allotment of a flat and every registered applicant is required to furnish written consent for participating in the draw of lots. In the present case, it was submitted that the appellant did nothing of the kind and eventually filed a consumer complaint only after eleven years after the date of registration. Learned counsel submitted that even before the SCDRC, the respondent consistently remained absent. Before the NCDRC, the appellant filed a statement indicating the current prices for the allotment of residential flats in the Mandola Vihar Yojana. It has been urged that the NCDRC by compelling the appellant to allot a flat to the respondent for a sum of Rs 2,50,000 has acted in a manner contrary to law. There was no contract between the appellant and the respondent.14. On the other hand, the respondent, who appeared in person, has submitted before the Court that after he registered himself with the appellant in 1982, he had from time to time made queries with the appellant in regard to the likelihood of his being allotted a flat in any of the schemes of the U.P. Awas Evam Vikas Parishad. The respondent submitted that he was never informed of any scheme or of any allotment in his favour. The respondent urged that the order which has been passed by the NCDRC is just and equitable. Having waited since 1982 for an allotment, he cannot be now compelled to get an allotment at the current market value.15. The appellant is governed by the terms and conditions advertised in its Registration Booklet and by the Rules of 1979. Clause 5 of the Registration Booklet indicates that mere registration does not confer a right for allotment. Rule 15 makes a provision to the effect that the Board is not bound to allot a house or plot to every registered holder. Rule 30 indicates that after the Board advertises the availability of a scheme in the newspaper, every registered applicant is at liberty to submit a consent letter for participation in the draw of lots. Mere registration does not oblige the authority to include every registered applicant in the draw of lots. The applicant must show readiness and willingness to participate in a draw of lots in respect of a specified scheme. This is evident from Rule 30(2 ). A set of priorities is provided in Rule 30 (5). In view of the clear position in the brochure and the Rules of 1979, the respondent had no vested right to seek an allotment. As a registered applicant, the respondent was at liberty to seek to participate in the draw of lots by indicating his consent to the appellant. After paying an initial sum of Rs 500 in 1982 and a further sum of Rs 500 in 1985, the respondent did not pursue any remedies until 1993 when he moved the District Forum. The order of the District Forum gave liberty to the respondent to seek allotment at the current market value under any of the schemes of the appellant. The NCDRC was manifestly in error in issuing a direction to the appellant to make an allotment to the respondent for a total sum of Rs 2,50,000 in any of the flats available in the Mandola Vihar Yojna, Ghaziabad. There is no rationale basis or justification for the amount of Rs 2,50,000 which has been fixed by the NCDRC. This direction proceeds purely on the basis of the Ipse dixit of the forum. The appellant, as a public authority, could not have been compelled to enter into a contract with the respondent. There was no contractual entitlement of the respondent to the allotment of a flat much less for an allotment at a specified price. In its effort to render justice, the NCDRC has adopted a view which is contrary to the basic principles of contract governing the law on the subject.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]15. The appellant is governed by the terms and conditions advertised in its Registration Booklet and by the Rules of 1979. Clause 5 of the Registration Booklet indicates that mere registration does not confer a right for allotment. Rule 15 makes a provision to the effect that the Board is not bound to allot a house or plot to every registered holder. Rule 30 indicates that after the Board advertises the availability of a scheme in the newspaper, every registered applicant is at liberty to submit a consent letter for participation in the draw of lots. Mere registration does not oblige the authority to include every registered applicant in the draw of lots. The applicant must show readiness and willingness to participate in a draw of lots in respect of a specified scheme. This is evident from Rule 30(2 ). A set of priorities is provided in Rule 30 (5). In view of the clear position in the brochure and the Rules of 1979, the respondent had no vested right to seek an allotment. As a registered applicant, the respondent was at liberty to seek to participate in the draw of lots by indicating his consent to the appellant. After paying an initial sum of Rs 500 in 1982 and a further sum of Rs 500 in 1985, the respondent did not pursue any remedies until 1993 when he moved the District Forum. The order of the District Forum gave liberty to the respondent to seek allotment at the current market value under any of the schemes of the appellant. The NCDRC was manifestly in error in issuing a direction to the appellant to make an allotment to the respondent for a total sum of Rs 2,50,000 in any of the flats available in the Mandola Vihar Yojna, Ghaziabad. There is no rationale basis or justification for the amount of Rs 2,50,000 which has been fixed by the NCDRC. This direction proceeds purely on the basis of the Ipse dixit of the forum. The appellant, as a public authority, could not have been compelled to enter into a contract with the respondent. There was no contractual entitlement of the respondent to the allotment of a flat much less for an allotment at a specified price. In its effort to render justice, the NCDRC has adopted a view which is contrary to the basic principles of contract governing the law on the subject.