Skyline Contractors Pvt.Ltd.& Anr vs State Of U.P.& Ors

2. The appellants herein filed a writ petition before the Allahabad High Court for quashing an order dated 21.6.2006 issued on behalf of the New Okhla Industrial Development Authority (hereinafter referred to as `NOIDA')cancelling the allotment of Plot 2 no.A-28 in Sector 62 made in favour of the appellant.

3. Admittedly, the appellant made an application for allotment of the aforesaid plot measuring 8000 square meters pursuant to an advertisement published on behalf of the NOIDA inviting such applications and made an initial deposit of Rs.13,20,000/- while submitting the application. On 17.4.2003 an order of allotment was issued in favour of the appellant whereby the petitioner was required to deposit 25 per cent of the premium amount in cash or by a bank draft in favour of NOIDA within 60 days of such allotment. It was categorically stipulated that if the said amount was not deposited within the time specified the depositor's earnest money would be forfeited and no extension of time would be granted for deposit of the said amount under any circumstances. The balance 75% of the premium amount was required to be deposited 3 by the allottee in 10 equal half-yearly instalments along with interest at the rate of 14% per annum on outstanding premium. Here also, it was categorically stipulated that no extension for payment of instalments would be granted and if the allottee failed to pay the instalments within due dates the allotment would be cancelled and the amount equivalent to 25% of the premium would be forfeited in favour of the NOIDA. In exceptional circumstances, however, the Chief Executive Officer of NOIDA was vested with the discretion to extend the time for making deposits, which would be subject to payment of interest @ 17% per annum compounded every half yearly on the defaulted amount for the defaulted period.

4. As has been noticed by the High Court in its judgment impugned in this appeal, the appellants did not deposit any amount for a period of two and a half years after receipt 4 of the allotment letter. The Authority wrote to the appellant on 3.5.2005 requesting the appellant to produce receipts of deposits, if any, made in pursuance of the allotment letter. Three months after receiving the said letter the appellant started making deposits in September 2005 and on 16.12.2005 wrote to the NOIDA asking for details with regard to the deposit of stamp duty, etc. for execution of the lease deed pursuant to the allotment made in its favour. Despite the said letter, the NOIDA cancelled the allotment made in favour of the appellants by its order dated 21.6.2006 on the ground that the appellant had failed to make the deposits as per clause 2(iv) of the Terms and Conditions for allotment. As stated hereinbefore, the writ petition was filed challenging such cancellation.

7. It was urged that since no reply was received to the said letter no further payments were made in terms of the allotment letter till the appellants received the letter written on behalf of the NOIDA on 3.5.2005 asking the appellants to produce proof of deposit of the allotment amount which was required to be deposited by 16.2.03. It was urged that once the said letter was received, deposits were made on 6.12.2005 making up a total sum of 8 Rs.3,80,20,000/- after giving credit for deposit of the initial amount of Rs.13,20,000/-. It was reiterated by counsel that having accepted the aforesaid deposits, the NOIDA was estopped from cancelling the allotment by its order dated 21.6.2006.

9. Learned counsel firstly referred to the decision of this Court in R.K. Saxena v. Delhi Development Authority (AIR 2002 SC 2340) where a similar set of facts were under consideration. In the said case, after making the initial deposit of 25 per cent of the auctioned price, the auction purchaser prayed for extension of time to deposit the 9 balance of 75 per cent which was required to be paid within 60 days from the date of issuance of the demand letter. In the said case also the Chairman, Delhi Development Authority, was vested with discretion to extend the time for such payments up to a maximum period of 180 days, subject to payment of interest on the balance amount @ 18 per cent per annum. The demand letter for payment of the said amount was issued on 3.1.1996 but only a part thereof was deposited on 19.2.1996 with a prayer for further extension to make the balance payment. Such prayer was granted and further time was granted for the said purpose. Pursuant to said extensions certain amounts were deposited towards the balance 75 per cent, but ultimately when on 2.9.1996 further extension was sought for there was no reply to the letter though various sums deposited thereafter were accepted by the Authority despite the fact that such 10 deposits were made after the stipulated time. It was also brought to the notice of the Court that the entire balance amount had since been paid for the plot in question. Since, despite having accepted the delayed payment the plot was not delivered to the appellant, legal notices were issued on its behalf and subsequent thereto the allotment was cancelled and the earnest money was forfeited. The writ petition filed in the High Court against said cancellation of allotment was dismissed on 29.2.2000 by the High Court which held that after the expiry of the period stipulated in the agreement the allottee could not have deposited the balance amount unilaterally without any demand being issued to him after the extended dates and no relief could be given to the allottee. Learned counsel pointed out that when the said matter was carried to this Court, this Court held that the order of the High Court could not be sustained 11 particularly when both the delayed payments and the interest amount thereupon were accepted by the respondent-authority. This Court observed that the moment those payments were accepted there was deemed extension of time and that it was only one and half years after the legal notices had been sent to the Authority that the allotment order was cancelled. This Court held in the facts of that case that after accepting the delayed payment the respondent-authority could not have cancelled the allotment.

17. There is no dispute that the appellant did not make any deposits, other than the initial deposit of Rs.13,20,000/-, in terms of the allotment order. There is also no dispute that the deposits ultimately made 2= years after the allotment order had been passed, had been made unilaterally and only after a communication was received from the NOIDA asking for proof of deposits made and, that too, three months after receipt of such letter.

19. We, therefore, have no option but to dismiss the appeal, but without any order as to costs. The appellant will be entitled to withdraw the deposits made by it in favour of the respondents towards the balance of the premium amount.