Miss Lucy
← All judgments

Haryana Urban Development Authority vs Viresh Sangwan & Anr

Supreme Court8 November 2011G.S. Singhvi · Sudhansu Jyoti Mukhopadhaya

Ratio decidendi

The rule this decision rests on

Once a development authority delivers possession of an allotted plot to the original allottee free from encumbrances, it is not obliged to ensure against encroachments made by third parties after that delivery of possession, nor to provide substitute plots or alternative accommodation on the ground that encroachments have occurred after the original allottee took possession. A transferee of such a plot who acquires it by registered sale deed from an intermediate purchaser and does not raise any objection about encroachments or deficiency in area at the time of execution of the sale deed cannot subsequently prefer a claim against the original allotting authority for deficiency in service on the ground that encroachments exist, particularly when the complaint is filed long after the acquisition with inordinate delay and without prompt protest to the vendor.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

1
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL No.9691 OF 2011(Arising out of SLP(C)No.33789 OF 2010)

HARYANA URBAN DEVELOPMENT AUTHORITY .......APPELLANT

VERSUS

VIRESH SANGWAN & ANR ......RESPONDENTS

J U D G M E N T

Whether the appellant - Haryana Urban Development

Authority (HUDA) is obliged to ensure that no encroachment is

made on the plot allotted by it after possession thereof has

been delivered to the allottee is the question, which arises

for consideration in this appeal filed against the order of the

National Consumer Disputes Redressal Commission (for short,

'the National Commission') whereby the revision filed by the

appellant was dismissed and the orders passed by the State

Consumer Dispute Redressal Commission, Haryana (for short, 'the

State Commission') and District Consumer Disputes Redressal

Forum, Gurgaon (for short, 'District Forum') were approved.

Plot No. 478 (measuring 335.50 square meters), Sector

12-A was allotted by the competent authority of HUDA to Shri

Champat Jain in January 1986 subject to the terms and

conditions specified in allotment letter dated 23.1.1986 issued

2

under Regulation 5 (3) of the Haryana Urban Development

(Disposal of Land and Buildings) Regulations, 1978 (for short,

'the Regulations'). The possession of the plot was handed over

to Shri Champat Jain on 27.2.1998 by Shri Om Prakash, Junior

Engineer, HUDA, Gurgaon. The allottee accepted the possession

and signed the possession certificate, the relevant portions of

which are extracted below

"POSSESSION CERTIFICATE

Certified that I Om Prakash Junior Engineer Office of the Estate Officer, Gurgaon have carefully check the relevant paper and the Dimension of plot no. 478 sector 12-A Urban Estate Gurgaon and the size of the plot allotted to Shri Champat Jain s/o___________________ is given as under:-

1. Length of the plot 22.0 m

2.Breadth of the plot 17.0+13.50 - 15.25 m

2

3. Area 335.50 sq.m.

4. Rear set Back As per demarcation plan

5. Front set Back

Accordingly, on the basis of above details the possession of the plot has been given to the said allottee/Authorised person.

Sd/-

Junior Engineer

For Estate Officer

HUDA, Gurgaon.

I Champat Jain s/o Sh. J.C Jain the above named allottee of the Urban Estate, Gurgaon have taken the possession of the said plot as per above dimension, as allotted to me vide Estate Officer Allotment letter No. 1309 dated 23.01.1986.

As per the provision of Regulation 10 of the HUDA (Erection of Building) Regulations, 1979, I hereby note that I will give at least one week's notice to the Estate Officer before actually

3

commencing the erection of the building on the said site.

Memo No. 1477

Dated 27.02.1998

Name & signature of allottee"

After some time, Shri Champat Jain sold the plot to

Devender Yadav and Narender Yadav (both sons of Karan Singh)

and revised allotment letter dated 17.11.1999 was issued in

their names. After 6 years and 2 months, conveyance deed

dated 18.1.2006 was executed between HUDA acting through

Estate Officer, Gurgaon and the transferees as per the

requirement of Regulation 20 of the Regulations.

Within a week of the execution of conveyance deed,

the transferees sold the plot to the respondents by

registered sale deed dated 24.1.2006 and re-allotment letter

dated 3.3.2006 was issued in their favour.

At the time of execution of the sale deed, the

respondents did not raise any objection about the total area

of the plot or any encroachment made by the villagers. Even

after receiving the re-allotment letter, they did not make a

grievance about the encroachment allegedly made by the

villagers. However, after 1 year and 3 months, they filed a

petition under Section 12 of the Consumer Protection Act,

1986 for issue of a direction to HUDA to allot alternative

plot to them by asserting that there was deficiency in

service inasmuch as the actual area of the plot re-allotted

4

to them was less than 335.50 square meters and there was

encroachment on the plot. In support of their plea, the

respondents relied upon report dated 20.4.2007 allegedly

prepared by the Junior Engineer of HUDA.

In the reply filed on behalf of the appellant, the

respondents' assertion about fresh demarcation of the plot by

the Junior Engineer was disputed and it was denied that

gates of two houses of inhabitants of the village were found

in the area of the plot and chabutra and chhajja had been

constructed over the plot. It was also denied that the plot

was being used as passage and the Junior Engineer had

expressed his inability to get the encroachments removed.

By an order dated 19.11.2009, the District Forum

allowed the petition of the respondents and directed the

appellant to allot them alternative plot of the same size in

the same sector or in an adjoining sector. For coming to the

conclusion that the plot re-allotted to the respondents had

been encroached, the District Forum relied upon report dated

20.4.2007 of the Junior Engineer. This is evinced from the

following portion of order dated 19.11.2009:

"A perusal of case file shows that re-allotment letter bearing no. 1280 dated 03.03.2006 regarding plot no. 478, Sector 12-A measuring 335.50 Sq. Mtrs. was issued in favour of the complainants. A perusal of report dated 20.04.2007 given by Junior Engineer shows that he has gone to the plot No.478, Sector 12-A for demarcation. After giving demarcation it was found that the doors of the houses of the villages were opened in the plot no. 478 Sector 12-A, Gurgaon and Chabutra and Chajje

5

also existed there. The owners of those houses were creating obstruction in the demarcation of the plot no. 478 as there was no way going the their houses. Previously, a rasta of the village existed at that place.

In view of the above said report given by the junior engineer of the opposite parties, we hold that there was deficiency in service on part of the opposite parties. The complainants are entitled to an alternate plot of the same size in the same sector i.e. Sector 12-A or in a sector adjoining Sector 12-A on the same rates. The present order is ordered to be complied with within one month from the date of passing of this order. File be consigned to the records after making due compliance."

The State Commission dismissed the appeal by simply

repeating the observations made by the District Forum that as

per the report of the Junior Engineer, there was encroachment

on the plot allotted to the respondents.

The National Commission negatived the appellant's

challenge to the order of the State Commission and dismissed

the revision filed by the appellant.

We have heard Ms. Anubha Agarwal, learned counsel for

the appellant and Mr. Gagan Gupta, learned counsel for the

respondents and carefully scrutinized the record.

In our view, the finding recorded by the District

Forum that there was deficiency in service on the appellant's

part is ex facie erroneous and the Sate Commission and the

National Commission committed serious error by confirming the

direction given by the District Forum for allotment of

alternative plot to the respondents. Unfortunately, none of

6

the consumer forums adverted to the fact that possession of the

plot was delivered to the original allottee Shri Champat Jain

on 27.2.1998 free from all encumbrances and there is no

provision in the Haryana Urban Development Authority Act, 1977

and the Regulations for redelivery of possession to the

transferees. One can easily visualise that after taking

possession of the plot allotted to him, Shri Champat Jain did

not take steps to protect the same and by taking advantage of

his absence at the site, the people from the neighbouring areas

may have opened their doors towards the plot or made some

encroachment. However, the appellant cannot be blamed for the

encroachment, if any, made after possession of the plot was

delivered to the original allottee. The respondents must have

executed the sale deed after inspecting the site. If there was

any encroachment or the area of the plot was less than the one

specified in the allotment/re-allotment letter, they would have

immediately lodged a protest with the vendor. However, the

fact of the matter is that the respondents did not raise any

objection in this regard and by taking shelter of a

manipulative report prepared by the Junior Engineer, they filed

complaint and succeeded in convincing the District Forum to

ordain allotment of an alternative plot.

In our considered opinion, the appellant cannot be

held responsible for the encroachment, if any, made after

possession of the plot had been delivered to Shri Champat Jain

7

and neither Devender Yadav and Narender Yadav, who purchased

the plot from Shri Champat Jain nor the respondents could

possibly accuse the appellant of deficiency in service in the

matter of allotment of plot on the ground that some people had

made encroachment on it.

In the result, the appeal is allowed, the impugned

order as also orders passed by the District Forum and the Sate

Commission are set aside and the complaint filed by the

respondents is dismissed. The parties are left to bear their

own costs.

...........................J. (G.S.SINGHVI)

...........................J. (SUDHANSU JYOTI MUKHOPADHAYA) NEW DELHI;

NOVEMBER 8, 2011.

8

This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.

Research this judgment with Miss Lucy

Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.

Try Miss Lucy free