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2025 DIGILAW 1210 (SC)

Commissioner, Bengaluru Development Authority v. T. Seetharamappa (dead) thr. Lrs

2025-05-14

N.KOTISWAR SINGH, SURYA KANT

body2025
ORDER : 1. Leave granted. 2. The lead matter in this batch of appeals is directed against the common impugned judgment dated 17.02.2021, passed by a Division Bench of the High Court of Karnataka at Bengaluru, in Writ Appeal No. 3890/2019 and Writ Appeal No. 2770/2019, thereby upholding the judgment of the learned Single Judge, in terms whereof the Appellant (BDA) was directed to decide the representations of the allottees in accordance with law. Insofar as the connected appeals are concerned, they arise out of the common impugned judgment dated 23.09.2022 passed by a Division Bench of the High Court of Karnataka at Bengaluru disposing of a batch of writ appeals whereby allotment of sites were ordered to be restored in favour of the individual allottees. There are certain other connected appeals which though arise out of different impugned judgments passed by the High Court but pertain to the same controversy. 3. Broadly, in all these cases sites were allotted by the Appellant to the Respondents at various places in Bengaluru. These allotments were made at different times but largely in and around the year 2000. While the facts pertaining to each allotment such as the site and payment of value by the Respondents are different, the dispute in all these cases pertains to the cancellation of allotment by BDA on account of non-payment of balance sital value. For the sake of convenience, we are adverting to the facts of the lead matter only, however, the decision shall be applicable on all the connected matters, alike. 4. The BDA allotted different sites admeasuring 40x60 ft. to the private respondents in Anjanapura layout on 07.07.2001 or so. The allotments were made as a welfare measure in favour of the members of the Scheduled Castes community at a highly concessional rate. Some of the terms and conditions of the allotment were as follows: "1. In the prescribed affidavit format enclosed herewith on Rs.15.00 stamp paper to be olemnised (sic), and the additional information form is to be filled, and within 15 days of receipt of this allotment letter is to be submitted. Failed to do so the site allotted to you is deemed to have refused and the site allotment without, issue of notice will be cancelled and the registration fee will be forfeited. 2. Failed to do so the site allotted to you is deemed to have refused and the site allotment without, issue of notice will be cancelled and the registration fee will be forfeited. 2. The site total value out of Rs.343450/- after the initial deposit is deducted the remaining amount of Rs.326250/- within 30 days of receipt of the allotment letter is to be paid to the authority. And if the balance amount is not paid, the allotment of site without any prior intimation will be cancelled and the registration fee will be forfeited. 3. In case if the prescribed balance amount cannot be paid within 30 days, you can submit an application and can obtain 60 days time for payment with l8% interest and obtain the extended time intimation in writing with in the extended time if the balance amount is not paid. The allotted site without any prior notice the allotment will be cancelled and the earlier paid registration fee will be forfeited.(this condition is not applicable for altenate site allotment). 4. The amount payable should be paid in the form of Demand Draft or through remittance of cash in BDA Premises Canara Bank Extension Counter or Indian Overseas Bank KP West Branch, and in this regard intimation to be made to the BDA. 5. After remittance of the above said site amount, the absolute sale deed form will be given. The allotee of the site should get registration of the absolute sale deed. At the time of the handing over of the site which is mentioned in this allotment letter is subjected to verification. For each sq.metre is Rs.1590/- and the total cost of the site is Rs.343450/- Site number and layout name Measurement of site approx. sq.ft./sq.mtr. Value of the site and as initial deposit paid amount Within 30 days to be paid balance amount 881 Block VG Anjanpura 12x18 Meters 17200/-Slum charges 326250 1000 ------------ 327250 [Emphasis Supplied] 5. There is no dispute that in terms of the allotment conditions, the allottees were required to submit an affidavit within 15 days of the Allotment Letter accepting the allotment and, thereafter, deposit the earnest money in the stipulated period. The balance amount was to be paid within 60 days of the allotment. 6. Admittedly, the respondent-allottees failed to deposit the first instalment as well as the subsequent instalments. The balance amount was to be paid within 60 days of the allotment. 6. Admittedly, the respondent-allottees failed to deposit the first instalment as well as the subsequent instalments. There being a persistent default in payment, they were served with Show Cause Notices dated 12.12.2001 for cancellation of the allotted sites. No amount was deposited even after issuance of the Show Cause Notices. Consequently, the allotments were cancelled vide Cancellation Order dated 23.04.2002. 7. Some of the respondents made representations after more than six years, to be precise on 08.08.2008, for recalling the cancellation orders on the ground that the allotment price could not be deposited due to financial constraints. Since BDA did not accept their belated payments, the respondents approached the High Court through various Writ Petitions. A learned Single Judge allowed those Writ Petitions vide judgment dated 07.12.2018 observing that the delay in approaching the Court would not be fatal as no third-party interest was created and that BDA could be well compensated with interest at the rate of 21% per annum. The aggrieved BDA filed intra-court appeals which have been turned down by a Division Bench of the High Court vide the impugned judgment dated 17.02.2021. 8. While issuing notice in the Special Leave Petitions on 01.10.2021, operation of the impugned order of the High Court was stayed by this Court. Consequently, neither the allotments has restored in favour of the respondents nor the allotment price has been taken from them. 9. At the same time, learned counsel for the BDA relied upon the Order dated 11.04.2022, passed by a coordinate Bench of this Court in Civil Appeal No. 2884 of 2022 (The Bangalore Development Authority vs. Gundappa R.), where in identical circumstances, this Court has held as follows: "11. Rule 13(1) of the Rules mandates the allottee to deposit sital value deducting the initial deposit. The appellant could extend time for payment for a further period not exceeding sixty days as a final chance along with additional interest. Since the writ petitioner failed to deposit the amount within the stipulated period, therefore, there is no corresponding obligation on the appellant to allot an alternative site to the writ petitioner. If the writ petitioner was being transferred from place to place, it was his duty to keep the appellant informed about his change of address on which he could be communicated. If the writ petitioner was being transferred from place to place, it was his duty to keep the appellant informed about his change of address on which he could be communicated. The appellant had no duty to find out the address of the writ petitioner. The sole duty to communicate the address, his place of posting etc. was on the writ petitioner alone. In the absence of any proof of change of address, the writ petitioner has lost his right of allotment of the said site and also to claim any alternative site. [Emphasis Supplied] 10. Though learned counsel for the respondents has earnestly attempted to distinguish the cited decision, however, we find that the issue involved in this set of appeals is broadly similar to the one resolved by this Court in the cited decision. Independently thereof also, we see no valid justification for the respondents not to pay even the nominal allotment price and/or to sit at home silently for over six years and then approach the High Court for obvious reasons of hike in market value. 11. That being so, we are inclined to maintain consistency. The instant appeals are, accordingly, allowed; the impugned judgments of the learned Single Judge and that of the Division Bench of the High Court are set aside. 12. The amount, if any, deposited by the respondents is ordered to be refunded to them within a period of two months, along with interest at the rate of 7% per annum, from the date of deposit till actual payment thereof. 13. As a sequel to the above, the pending interlocutory application, if any, also stands disposed of.