Ghaziabad Development Authority vs. Machhla Devi: Supreme Court Upholds Property Eviction Order

The case of Ghaziabad Development Authority vs. Machhla Devi revolves around a long-standing property dispute concerning the cancellation of an allotment under the Shastri Nagar Housing Scheme. The Supreme Court of India, in its judgment dated 23rd October 2018, upheld the eviction of the respondent, Machhla Devi, and ruled that she had been in unauthorized possession of the property for over 14 years.

Background of the Case

The dispute arose when the Ghaziabad Development Authority (GDA) launched the Shastri Nagar Housing Scheme and allotted a High-Income Group Duplex ‘A’ category house to the respondent, Machhla Devi, under a hire-purchase scheme. The estimated cost of the house was Rs. 4,33,248. The allotment letter, dated 5th October 1994, required her to make an initial payment, followed by installments under a specified payment schedule.

The key conditions of the allotment were:

A penal interest of 21% per annum would be levied for delayed payments.
Failure to pay the balance amount within three months would result in cancellation.
Possession of the property would be granted only after 50% of the final cost was paid.

The respondent deposited only Rs. 38,325 initially but made subsequent payments without following any schedule. Her payments were irregular, and she failed to clear her dues, leading to a substantial outstanding amount, including penalties.

Cancellation of Allotment and Legal Battle

Due to non-payment for over three and a half years, the GDA canceled the allotment. However, upon the respondent’s request, GDA issued a direction on 7th May 2004, allowing her to deposit Rs. 20,00,000 within 15 days for the restoration of the allotment.

Machhla Devi challenged this decision by filing Writ Petition No. 28834 of 2004 before the Allahabad High Court. The High Court, in its order dated 17th May 2016, dismissed the petition and imposed a fine of Rs. 5,000 on her, upholding the cancellation.

Despite this, the respondent continued to occupy the property. The GDA then sought her eviction and wrote to the District Magistrate, Ghaziabad, on 10th January 2018, requesting her removal.

Respondent’s New Writ Petition

To prevent eviction, the respondent filed another writ petition, Writ Petition No. 7928 of 2018, before the Allahabad High Court, seeking to quash the eviction notice. Surprisingly, without issuing a notice to GDA, the High Court granted her relief and directed GDA to accept her payment, effectively nullifying its own previous decision from 2016.

Arguments Before the Supreme Court

Arguments by the Petitioner (GDA)

The Ghaziabad Development Authority presented the following arguments:

The 2016 judgment had attained finality, and the High Court had no jurisdiction to contradict its own ruling.
The respondent had unauthorized possession of the property for over 14 years and had approached the Court with unclean hands.
The High Court granted relief without issuing a notice to GDA, violating the principle of natural justice.

Arguments by the Respondent (Machhla Devi)

The respondent countered the appeal by arguing:

She was in peaceful possession of the property based on a valid allotment letter.
The GDA was demanding an exorbitant price arbitrarily.
A person in settled possession could not be forcibly dispossessed without following due process of law.

Supreme Court Judgment

The Supreme Court ruled in favor of the Ghaziabad Development Authority and upheld the eviction order. The Court made several key observations:

The respondent had violated the terms of the hire-purchase scheme and failed to clear her dues.
The High Court’s 2016 ruling had attained finality, and its subsequent decision was legally untenable.
The respondent’s continued occupation for 14 years without payment was unjust and an abuse of the legal process.
The High Court’s failure to issue notice to GDA before passing the impugned order violated the principles of natural justice.

Key Observations by the Supreme Court

The Supreme Court stated:

“The allottee has remained in unauthorized possession for over 14 years without paying the due amount, in clear violation of the terms of the hire-purchase scheme.”

It further emphasized:

“It is against judicial propriety to issue orders contradicting a coordinate bench’s previous ruling that has attained finality.”

Final Judgment

The Supreme Court:

Allowed the appeal and set aside the High Court’s order.
Directed the respondent to be evicted immediately.
Authorized the GDA to seek police assistance for eviction.

Legal Precedents and Significance

This judgment reinforces several important legal principles:

Finality of judgments – Once a decision attains finality, it cannot be reopened without due cause.
No relief for unauthorized occupants – Unlawful occupation of public property should not be rewarded.
Principles of natural justice – Courts must issue notice to all parties before granting relief.

Conclusion

The case of Ghaziabad Development Authority vs. Machhla Devi establishes an important precedent in property law. The Supreme Court’s ruling ensures that government authorities can take strict action against defaulters while upholding the sanctity of legal proceedings. This judgment serves as a strong deterrent against prolonged unauthorized occupation of public properties.

Petitioner Name: Ghaziabad Development Authority.
Respondent Name: Machhla Devi.
Judgment By: Justice N.V. Ramana, Justice Mohan M. Shantanagoudar.
Place Of Incident: Ghaziabad, Uttar Pradesh.
Judgment Date: 23-10-2018.

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