Punjab and Haryana High Court Quashes Arbitrary Cancellation of Plot Allotment by HSVP

Court Orders Restoration or Alternative Plot for Petitioners, Imposes Penalty on HSVP for Violation of Natural Justice

In a significant judgment, the Punjab and Haryana High Court has quashed the arbitrary cancellation of plot allotments by the Haryana Shahari Vikas Pradhikaran (HSVP) and directed the restoration of the plots to the petitioners or the allotment of alternative plots. The court found the HSVP’s actions to be in violation of principles of natural justice, contractual obligations, and legitimate expectations. The court also imposed a penalty of Rs. 1 lakh each on the HSVP to ensure accountability and prevent future lapses.

The case involved the unilateral cancellation of a plot allotment in Pinjore, Haryana, despite the petitioners having fulfilled all contractual obligations, including full payment for the plots. The petitioners, led by Vishal Kandwal, challenged the cancellation, highlighting that the HSVP refunded the payment without notice or reason, violating their rights under the Indian Contract Act, 1872, and the Constitution of India.

The court, comprising Justices Anupinder Singh Grewal and Deepak Manchanda, observed that the cancellation infringed upon the petitioners’ right to life under Article 21 of the Constitution, given the financial hardship and deprivation of shelter it caused. The court criticized the HSVP for lack of due diligence and arbitrary conduct, which contradicted its statutory purpose of providing affordable housing.

In its decision, the court directed the HSVP to either restore the allotment or provide a suitable alternative plot within three months, in compliance with existing policies. The judgment emphasized the need for public authorities to act fairly and reasonably, upholding the doctrine of legitimate expectation and ensuring adherence to contractual obligations.

The case sets a precedent for ensuring fairness in public auctions and reinforces the protection of citizens’ rights against arbitrary actions by public authorities.

Bottom Line:

Cancellation of allotment after full payment and issuance of possession letter without notice or reason violates principles of natural justice, contractual obligations, and legitimate expectation.

Statutory provision(s): Indian Contract Act, 1872 Sections 4, 5, Constitution of India Article 21

Vishal Kandwal v. State of Haryana, (Punjab And Haryana)(DB) : Law Finder Doc Id # 2815898