Land Allotment Dispute: Supreme Court Directs Payment Settlement for Plot Possession

The case between Union of India & Anr. and Buddha Tri-Ratna Mission & Anr. revolved around a land allotment dispute concerning a half-acre plot in Chittaranjan Park, New Delhi. The Supreme Court ruled that the respondents must pay outstanding dues to secure possession of the allotted land, settling a long-standing litigation.

Background of the Case

The dispute originated from the allotment of a 2023 sq. meter plot in Chittaranjan Park to the Buddha Tri-Ratna Mission. The premium amount for the plot was Rs. 80 lakhs per acre, with an annual ground rent of 2.5% of the premium. However, the respondents failed to pay the required dues on time, leading to multiple legal battles.

Over the years, various courts, including the Delhi High Court, issued directions regarding the payment of dues. Despite partial payments made by the respondents, significant arrears remained, prompting the Union of India to seek cancellation of the allotment. The matter eventually reached the Supreme Court.

Key Legal Issues

Whether the respondents had fulfilled their payment obligations to retain the allotted land.
Whether the government was justified in seeking cancellation of the allotment.
Whether the Supreme Court should intervene to resolve the payment dispute.

Arguments Presented

Appellant’s Arguments (Union of India)

The respondents repeatedly failed to pay dues on time, despite multiple opportunities.
As per the allotment letter, any delay in payment attracted interest, which the respondents had not cleared.
Even though a partial payment of Rs. 50,99,163 had been made, substantial dues remained unpaid.
The government was entitled to cancel the allotment and reallocate the land for public use.
Repeated litigation by the respondents was an attempt to delay payment obligations.

Respondents’ Arguments (Buddha Tri-Ratna Mission)

The society had already paid a substantial portion of the demanded amount.
Interest charges imposed by the government were excessive and unreasonable.
The plot was allotted for a religious and charitable purpose, and the government should not cancel the allotment.
The respondents were willing to settle the remaining dues if given reasonable terms.
The government had accepted payments over the years, indicating an implied waiver of strict enforcement of the allotment terms.

Supreme Court’s Observations

The Supreme Court carefully examined the payment records, previous court orders, and government policies on land allotment. The key observations were:

Balance dues must be cleared: The Court held that the respondents were obligated to pay the remaining amount, including applicable interest.
Government action was reasonable: The Union of India had provided multiple opportunities for payment, and the respondents had failed to comply.
Cancellation was an option: If the respondents failed to pay within the stipulated period, the government could cancel the allotment and repurpose the land.
Litigation should end: The Court noted that the matter had dragged on for too long and needed final resolution.

Key Excerpts from the Judgment

The Supreme Court stated:

“The amount of Rs. 78,84,099 shall remain frozen till 31.08.2022, within which time the respondents shall deposit the said sum with the appellants.”

The Court further held:

“If the amount is not deposited within the stipulated time, the government shall be at liberty to cancel the allotment and utilize the land for public purposes.”

Final Verdict

The Supreme Court dismissed the respondents’ plea for waiver and ruled in favor of the Union of India. The key conclusions were:

The respondents must pay Rs. 78,84,099 by August 31, 2022, to retain the allotted plot.
If payment is made, the government must complete all formalities and hand over possession of the land.
If payment is not made, the government may cancel the allotment and allocate the land for other purposes.
All pending litigation on the matter was declared settled and closed.

Outcome: The ruling reaffirms that land allottees must comply with payment obligations to retain ownership rights.

Petitioner Name: Union of India & Anr..
Respondent Name: Buddha Tri-Ratna Mission & Anr..
Judgment By: Justice Uday Umesh Lalit, Justice S. Ravindra Bhat, Justice Sudhanshu Dhulia.
Place Of Incident: Chittaranjan Park, New Delhi.
Judgment Date: 19-05-2022.

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