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Union of India through Secretary vs. Buddha Tri-Ratna Mission

Civil Appeal · 2022 INSC 595Decided 19 May 2022
Civil Appeal Nos. 4162-4163 of 2022
Uday Umesh Lalit · S. Ravindra Bhat · Sudhanshu Dhulia

Background

A plot of land of about half an acre in Chittaranjan Park, New Delhi, was allotted to the respondent society, which was required to pay a premium and annual ground rent but delayed payments, leading to decades of litigation including an earlier Supreme Court order permitting payment of dues in installments with a status quo on cancellation. In the latest round, the Delhi High Court, while hearing the society's appeal, directed the Union of India to hand over possession of the plot pending final resolution despite the outstanding dues dispute, and this order was challenged by the Union before the Supreme Court.

Decision Breakdown

The Supreme Court examined a detailed affidavit filed by the Union computing the total outstanding dues (including the principal/premium amount, 12% interest on delayed premium payments, and the annual ground rent plus 10% interest on that) arriving at a figure of Rs. 78,84,099 as of 31 May 2022 (having excluded improperly-compounded "interest on interest" from an earlier, larger demand). The Court found this computation reasonable and consistent with policy, and disposed of the appeals by directing that this amount be frozen until 31 August 2022 for the respondent-society to pay; if paid in time, possession and documentation would be completed in the society's favour, but if not paid, the freeze would lift (interest would run from 1 June 2022) and the Union would be free to consider cancelling the allotment for another public purpose. The pending High Court appeal and any contempt petitions were disposed of in these terms.

Lesson Learnt

In long-running government land allotment disputes involving delayed payment of dues, courts will scrutinize the government's own interest computation for correctness (including disallowing improper compounding of "interest on interest") and can impose a clear, time-bound payment deadline as a final resolution, with automatic consequences (loss of the frozen/discounted rate, or even cancellation) if the allottee fails to pay within that window.

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

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