Facts
The Indore Development Authority issued a Notice Inviting Tender (NIT) on 05.10.1994 offering plots in Scheme No. 54. The respondent, Dr. Hemant Mandovra, was allotted Plot No. 314 on 02.01.1995 with a payment schedule. After depositing the initial amount, the respondent failed to pay subsequent installments, leading to the cancellation of the allotment on 22.03.2000. The respondent pursued legal remedies, including writ petitions and consumer complaints, seeking possession of the plot.
Contentions of the Appellant
The Indore Development Authority argued that the respondent repeatedly defaulted on payments despite extensions and reductions in interest. They maintained that the plot’s allotment was canceled due to the respondent’s non-compliance with the payment terms. They opposed the National Commission’s order directing them to hand over the plot after 28 years.
Contentions of the Respondent
The respondent claimed that the appellant’s actions were arbitrary. He argued that he was entitled to possession after depositing the outstanding amount. He also sought relief through various legal forums, asserting that the cancellation of his allotment was unjust.
Issues
- Whether the respondent was entitled to possession of the plot after defaulting on payments.
- Whether the National Commission’s directive to hand over the plot after 28 years was legally sustainable.
- Whether the State Commission could grant final relief through an interim order.
Observations/Findings by the Supreme Court
The Court found that the respondent was at fault for not paying the outstanding amount despite favorable court orders. It ruled that the State Commission’s interim order granting final relief was improper. The Court held that the National Commission erred in directing the appellant to hand over the plot after a lapse of 28 years.
Principle of the Case
Courts must adhere to legal procedures and avoid granting final relief through interim orders. Compliance with financial obligations as per the terms of the agreement is crucial.
Final Order
The appeal was allowed. The orders of the State and National Commissions were set aside. The Indore Development Authority was directed to issue a fresh tender for the plot, ensuring allotment through proper auction procedures.
Importance of the Judgment to Society
The judgment underscores the necessity of adhering to contractual terms and legal procedures in property allotments. It affirms that judicial bodies must avoid granting final relief through interim orders, ensuring fairness and procedural integrity in legal proceedings.
Case Citation:
Court Name: Supreme Court of India
Case Title: Indore Development Authority vs. Dr. Hemant Mandovra
Case No.: Civil Appeal No. __ of 2024 (Arising out of SLP (C) No. 14908 of 2023)
Date of Judgment: December 13, 2024
Judges: Justice Bela M. Trivedi and Justice Satish Chandra Sharma
