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Thursday, October 25, 2018

The unauthorized occupation of public property is contrary to public interest. Further, the manner in which it is done by multiple rounds of protracted litigation shocks our judicial conscience wherein unauthorized possession of a public property of GDA has been continued for over 14 long years. It is nothing 13 but an abuse of process of law. - At this juncture, we found that the effect of the disposal of Writ Petition Civil No.7928 of 2018 by the Allahabad High Court is in essence a nullification of the order dated 17.05.2016 in Writ Petition Civil No.28834/04 of its own co­ordinate Bench. This approach is highly condemnable as, firstly, it is against judicial propriety to issue orders contrary to the orders of its own coordinate Bench, as the same had attained finality. Judicial discipline mandates respecting of orders of co­ordinate Benches of the High Court. Secondly, the manner in which the order is made without even issuance of notice to the GDA on the first material date of hearing goes against the cherished Principle of Natural Justice, audi alteram partem, the right to fair hearing. This is of immense importance vis­à­vis the assertion of the GDA that it had not issued any instructions regarding compromise of the matter that was ordered by the Allahabad High Court in its abovementioned order. Had the rule of audi alteram partem been followed and notices issued, the truth could have been discerned. 24. Thus, in light of the observations made above, the appeal is allowed. The order of the Allahabad High Court in Writ Petition Civil No.7928 of 2018 dated 21.03.2018 is set aside and it 14 is directed that the allottee be evicted forthwith. The appellants are at liberty to take the assistance of local police for getting the peaceful possession of the property in question.

1
                 
   
     IN THE SUPREME COURT OF INDIA
          CIVIL APPELLATE JURISDICTION
           CIVIL APPEAL No.10670  OF 2018
           (Arising out of SLP(C)No.11206 of 2018)
GHAZIABAD DEVELOPMENT … APPELLANTS
AUTHORITY & ORS.         
Versus
MACHHLA DEVI       … RESPONDENT
WITH
      CIVIL APPEAL No.10671 OF 2018
          (Arising out of SLP(C)No.12881 of 2018)     
J U D G M E N T
N.V.RAMANA, J.
Civil Appeal No. 10670 of 2018
(arising out of SLP(C) No.11206 of 2018)
1. Leave granted.
2. Heard   Mr.   Rakesh   Uttamchandra   Upadhyay,   learned
counsel   appearing   on   behalf   of   the   appellants   and   Mr.   K.
 NON­REPORTABLE
2
Radhakrishnan, learned senior counsel appearing on behalf of the
respondent.
3. This appeal is directed against order dated 21.03.2018
passed   by   the   High   Court   of   Judicature   at   Allahabad   in   Writ
Petition(C) No.7928 of 2018 wherein without issuance of notice to
the Ghaziabad Development Authority (hereinafter referred to as the
“GDA”)   an   order   was   passed   in   the   favour   of   Machhla   Devi
(hereinafter referred to as the  “allottee”).   It is worthwhile to be
noted that the impugned order in essence nullifies the detailed
order of cancellation of allotment passed by the co­ordinate Bench
of   the   same   High   Court   dated   17.05.2016   in   Writ   Petition
(C)No.28834 of 2004.
Facts in brief
4. The facts giving rise to the present dispute are that GDA
launched a scheme known as Shastri Nagar Housing Scheme.  The
allottee had applied for a High Income Group Duplex “A” Category of
house under hire­purchase scheme. Vide letter dated 05.10.1994,
the allottee was informed of the allotment of House No.E­376.  The
estimated cost of the house was mentioned as Rs.4,33,248/­.  The
allottee had already paid the registration amount of Rs.5,000/­ and
the balance registration amount of Rs.38,325/­ was required to be
3
deposited   within   a   week   from   the   issuance   of   letter   dated
05.10.1994   by   which   the   allotment   was   made.     The   remaining
amount was to be paid in accordance with a payment schedule
which had to be notified at a later date.  The terms and conditions
of allotment letter included that in the eventuality of default in
payment to GDA within the prescribed time limit, a penal interest of
21% per annum would follow. Further in the eventuality of a further
default for a period of three months from the due date along with
penal interest, the allotment shall be treated as cancelled.  It was
also mentioned that possession could be taken pursuant to 50% of
payment of the final cost of the house.  The allottee deposited the
amount of Rs.38,325/­ on 17.10.1994.  It is to be noted that the
respondent thereafter deposited instalments without following any
schedule and a lump sum amount from time to time was deposited
as underS.No.
Date Amount
1 19.12.1994 23,000
2 13.01.1995 10,000
3 30.08.1995 35,000
4 08.04.1996 20,000
5 11.09.1996 35,000
6 16.05.1997 35,000
7 18.05.1998 30,000
4
8 19.05.1998 30,000
9 19.01.2002 45,000
5. The total amount payable by the allottee increased as the
balance amount of cost of the house included interest and for nonpayment
of the same in time also attracted a penal interest at the
rate of 21%. The fact on record as alleged is that the respondent
failed to make payment of substantial amount to the GDA. It is
alleged that the husband of the respondent – Chandra Pal Singh
was posted in U.P. Police and by influence of his position, she
continued in unauthorised possession of said house.   
6. In light of the non­payment of any amount by the allottee
after 19.05.1998 for a period of almost three and half years, GDA
treated   the   allotment   cancelled.   However,   on   the   representation
made by the allottee subsequently, a direction was made by GDA
dated 07.05.2004 regarding depositing of Rs.20,00,000/­ (Rupees
twenty lakhs) within 15 days for the restoration of the cancelled
allotment. 
7. The respondent herein challenged the said cancellation of
allotment by filing Writ Petition (C) No. 28834 of 2004 before the
Allahabad High Court.  The Allahabad High Court vide interim order
5
dated 29.07.2004 directed the GDA not to take coercive measures
for 6 weeks, if the respondent deposits Rs.2 lakhs. This writ petition
was dismissed finally by a detailed order dated 17.05.2016 with
cost of Rs.5,000/­ on the respondent herein.
8. Despite the final order of the High Court, the allottee
continued   with   the   unauthorized   possession   of   the   property.
Accordingly, the GDA issued a letter to the  District Magistrate,
Ghaziabad dated 10.01.2018 for the eviction of the allottee from the
property in question. 
9. The respondent filed Writ Petition (C) No.7928 of 2018
before the Allahabad High Court for prayer of Writ of Certiorari for
quashing the said letter dated 10.01.2018 and mandamus for not
dispossessing her from the property in question. Adjudicating upon
the said matter, the Allahabad High Court disposed of the writ
petition by granting material relief to the allottee without issuance
of notice to GDA on the first material date of hearing itself.  This
disposal of writ petition by the Allahabad High Court is in essence a
nullification of the order dated 17.05.2016 of its own co­ordinate
Bench in Writ Petition (C) No. 28834 of 2004.   The High Court
passed directions for acceptance of amount by the GDA and thereby
regularized   the   allotment,   the   cancellation   of   which   had   been
6
upheld   by   a   co­ordinate   Bench   of   the   same   High   Court   on
17.05.2016.     It   is   against   this   writ   petition,   that   special   leave
petitions   have   been   filed   by   both   the   GDA   and   the   allottee   as
Special Leave Petition (C) No. 11206 of 2018 and 12881 of 2018
respectively.
Contentions on behalf of the appellants
10.  The broad contentions raised by the Ld. Counsel on
behalf of GDA are threefold.
11. Firstly, it is contended that via the detailed judgement of
17.05.2016 passed by a two Judge bench of the Allahabad High
Court in Writ Petition Civil No. 28834 of 2004, the cancellation of
allotment was upheld, and, thus, it attained finality. Hence, it was
wrong and illegal on the part of the Allahabad High Court to
interfere in the matter and pass directions to accept the monetary
amount which is tantamount to regularization of the allotment.
12. Secondly, the High Court ought to have dismissed the
Writ Petition No.7928 of 2018 as the allottee had approached it
with unclean hands. The allottee had remained in unauthorized
possession of the property in question for 14 long years by virtue
of the influence of her husband who is in Uttar Pradesh Police.
13. Thirdly,   the   impugned   order   was   passed   without
7
issuance of notice to the GDA on the first material date of hearing,
and, merely on the ground of statements made by the counsel.
They assert that GDA had not issued any instructions regarding
compromise of the matter and had notices been issued, the truth
could have been discerned.
Contentions on behalf of the respondent
14. On the other hand, the learned counsel on behalf of the
allottee has made twofold submissions.
15. Firstly, it is a settled law that a person in peaceful and
settled possession cannot be forcefully dispossessed. The allottee
claims   its   possession   by   virtue   of   allotment   letter   dated
05.10.1994 which was lawfully issued by the GDA. Accordingly, it
is pleaded that there could be no dispossession except by due
process of law.
16. Secondly, it is contended that the appellants owing to
their own act of negligence, arbitrarily demanded exorbitant price
of the property, and, thereafter forcibly sought to dispossess the
allottee.
    REASONING
17. It   is   abundantly   clear   that   the   allottee   was   allotted
8
House   No.   E­376   under   the   hire­purchase   scheme  vide  letter
dated 05.10.1994 by the GDA. The allottee’s conduct of delayed
payment with respect to the allotment is evident from the fact that
even the balance registration amount of Rs. 38,325/­ which was
required to be deposited within a week from the issuance of letter
dated 05.10.1994 was actually deposited on 17.10.1994. Further,
the deposits made thereafter, were also done so without following
any schedule as is evident from the facts stated hereinabove in
para No.4. In fact, the last deposit of the balance amount abovementioned
was made almost after three and half years which led
to   cancellation   of   allotment   by   the   GDA.   It   is   only   on   the
subsequent representation being made to the GDA that a direction
was   issued   to   deposit   Rs.20,00,000/­   within   15   days   for   the
restoration of the cancelled allotment. In the light of this factual
matrix  it becomes clear that  the allottee has  not honored the
stipulations of the hire­purchase scheme under which allotment of
House No. E­376 was made to her.
18. Pursuant   to   this   came   the   first   round   of   litigation
wherein the Writ Petition (Civil) No.28834 of 2004 was filed in the
Allahabad High Court by the allottee, challenging the order of GDA
seeking   payment   of   Rs.20,00,000/­   within   15   days   for   the
9
restoration of the cancelled allotment. This writ petition eventually
culminated in an order dated 17.05.2016 wherein the same was
dismissed   for   having   no   merit   after   a   detailed   reasoning   and
imposition of cost of Rs.5,000/­ on the allottee. Despite the final
order   of   the   High   Court,   the   allottee   continued   with   the
unauthorized possession of the property. This is indicative of the
lack of bona fides on part of the allottee.
19. Accordingly,   the   GDA   issued   a   letter   to   the   District
Magistrate, Ghaziabad dated 10.01.2018 for the eviction of the
allottee from the property in question. It is pursuant to this letter,
that the second round of litigation started.
20. The   allottee’s   assertion   is   twofold.  Firstly,   the   GDA
owing to  its act  of  negligence, arbitrarily demanded exorbitant
price of the property and thereafter forcibly sought to dispossess
the allottee and, secondly, it is a settled proposition of law that a
person  in peaceful and  settled possession cannot be forcefully
dispossessed which can only be done by following due process of
law. The latter is very much true. However, it is to be noted that,
the allottee claims possession by virtue of allotment letter which
was lawfully issued by the GDA dated 05.10.1994. It is this very
letter that incorporates the terms and conditions that the amount
10
is to be paid within the prescribed time limits failing which a penal
interest at the rate of 21% would be charged, and, further, if
default continues for a further period of three months from due
date,   inclusive   of   penal   interest,   then   the   allotment   shall   be
treated as cancelled. The conduct of the allottee as evident from
paragraphs   17   and   18   not   only   fall   foul   of   the   terms   and
conditions envisaged under the allotment letter issued under the
hire­purchase scheme but also shows that she has approached
the Court with unclean hands. With reference to the possession of
the allottee, the eviction was sought pursuant to the order of the
Allahabad   High   Court   dated   17.05.2016   which   upheld   the
cancellation of the allotment, and, thus, fulfils the due process of
law requirement.
21. It   is   well­settled   principle   of   law   that   unlawful
possession of public property without having paid for the same
would tantamount to unjust enrichment and would be against
public   interest.   We   find   support   for   the   abovementioned
proposition   in  Delhi   Development   Authority  v.  Anant   Raj
Agencies (P) Ltd.
1
 wherein this Hon’ble Court speaking by Justice
V. Gopala Gowda has noted that,
1 . (2016) 11 SCC 406
11
“38. The original lessee has been in unauthorised
occupation of the property in question for around
30 years (till he executed a sale deed in favour of
the   respondent)   and   the   respondent   has   been
illegally inducted in possession of the same, by
the   original   lessee,   who   himself   was   in
unauthorised   possession   of   the   property.   For
around   17   years   the   respondent   has   been
enjoying  the  property  in  question  without  any
right, title or interest. Thus, both are liable to
pay   the   damages   for   unauthorised   occupation
and DDA is empowered under Section 7 of the
Public   Premises   (Eviction   of   Unauthorised
Occupants)   Act,   1971   to   claim   damages   from
them. We record this finding in exercise of our
appellate   power   in   view   of   our   finding   and
reasons assigned in this judgment holding that
the concurrent finding is not only erroneous but
also suffers from error in law in granting decree
of   permanent   injunction   in   favour   of   the
respondent   who   is   not   entitled   in  law   for   the
same.   There   is   a   miscarriage   of   justice   in
granting the relief by the courts below in favour
of the respondent. Further, keeping in view the
public   interest   involved   in   this   case   and
particularly having regard to the peculiar facts
and circumstances of the case we have to allow
12
this appeal of DDA.
39. Since we have answered the points framed in
this appeal in favour of the appellant DDA, we
further,  direct  DDA  to  take  possession  of the
property   immediately   without   resorting   to
eviction proceedings, as the respondent has been
in   unauthorised   possession   of   the   property   in
question,   by   virtue   of   erroneous   judgments
passed by the courts below. The respondent has
been   unlawfully   enjoying   the   public   property
which   would   amount   to   unlawful   enrichment
which is against the public interest.”
(emphasis supplied) 
22. These observations were made in the context of a lease
being   granted   by   the   Delhi   Development   Authority   getting
terminated by efflux of time despite which the lessee continued in
unauthorized   possession   of   the   same.   The   same   principle   is
applicable in our context wherein allotment of a house is made by
GDA. The unauthorized occupation of public property is contrary
to public interest. Further, the manner in which it is done by
multiple   rounds   of   protracted   litigation   shocks   our   judicial
conscience wherein unauthorized possession of a public property
of GDA has been continued for over 14 long years. It is nothing
13
but an abuse of process of law.
23. At this juncture, we found that the effect of the disposal
of Writ Petition Civil No.7928 of 2018 by the Allahabad High Court
is in essence a nullification of the order dated 17.05.2016 in Writ
Petition   Civil   No.28834/04   of   its   own   co­ordinate   Bench.   This
approach is highly condemnable as,  firstly, it is against judicial
propriety to issue orders contrary to the orders of its own coordinate
  Bench,   as   the   same   had   attained   finality.   Judicial
discipline mandates respecting of orders of co­ordinate Benches of
the High Court. Secondly, the manner in which the order is made
without even issuance of notice to the GDA on the first material
date of hearing goes against the cherished Principle of Natural
Justice, audi alteram partem, the right to fair hearing. This is of
immense importance vis­à­vis the assertion of the GDA that it had
not issued any instructions regarding compromise of the matter
that   was   ordered   by   the   Allahabad   High   Court   in   its
abovementioned order. Had the rule of audi alteram partem been
followed and notices issued, the truth could have been discerned.
24. Thus,   in   light   of   the   observations   made   above,   the
appeal is allowed. The order of the Allahabad High Court in Writ
Petition Civil No.7928 of 2018 dated 21.03.2018 is set aside and it
14
is directed that the allottee be evicted forthwith. The appellants are
at liberty to take the assistance of local police for getting the
peaceful possession of the property in question.
25. There shall be no order as to costs.
Civil Appeal No.10671  of 2018 
(arising out of SLP (C) No. 12881 of 2018)
26. Leave granted.
27. As   the   instant   appeal   is   filed   against   the   same
impugned order dated 21.03.2018 passed by the High Court of
Judicature at Allahabad in Writ Petition (C) No.7928 of 2018, the
same is also disposed of in terms of the order passed in C.A.
No.10670 of 2018 (arising out of SLP(C)No.11206 of 2018).
28. There shall be no order as to costs.
  ...........................J.
      (N.V. RAMANA)
 ……………………............................J.
 (MOHAN M. SHANTANAGOUDAR)
NEW DELHI;                                               
OCTOBER 23, 2018.