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Pardeep Sharma v. Chief Administrator, Haryana Urban Development Authority & Anr.

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 52-53 of 2016)Decided 7 Jan 2016
Civil Appeal Nos. 52-53 of 2016
Chief Justice T.S. Thakur · Justice R. Banumathi

Background

The appellant was allotted a plot by the Haryana Urban Development Authority (HUDA) in 2001 but, after a dispute over an enhanced cost demand, took a refund of his deposited amount while a consumer complaint was still pending. The District Forum, unaware the amount had been refunded, ordered HUDA to re-allot the same plot; while HUDA's appeal against that order was still pending before the State Commission, HUDA's own Estate Officer went ahead and actually handed over possession, regularised the allotment, and later issued a completion certificate, even after the State Commission had set aside the re-allotment order. The appellant then built on and occupied the plot for years. The State and National Consumer Commissions ultimately held that, having accepted a refund, the appellant was no longer a "consumer" entitled to any relief.

Decision Breakdown

The Supreme Court noted the extraordinary administrative confusion within HUDA: one wing of the authority kept handing the appellant possession, a no-encumbrance certificate, and construction clearances, seemingly unaware of (or disregarding) the ongoing litigation and adverse orders from its own side. Having already directed an internal inquiry into which officials were responsible for this lapse, and noting that the appellant had since spent his retirement savings building a substantial structure on the plot, the Court set aside the National Commission's order and allowed the appeals. It permitted the appellant to retain the plot, conditioned on his paying the current (2014-15) HUDA rate for it after adjusting sums already paid, and directed HUDA to proceed against the officials responsible for the lapses and report back on disciplinary action.

Lesson Learnt

Even where a litigant's own earlier conduct (such as taking a refund) might legally weaken their claim, courts can still fashion equitable relief based on changed ground realities, such as a completed, lived-in construction built in reliance on the authority's own repeated actions, while also holding the responsible officials accountable.

Official source (sci.gov.in)View Judgment (PDF)

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