Supreme Court sets aside NCDRC order restricting Haryana authorities from re-allotting land unused for last 25 years by previous allottee

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The Supreme Court has set aside an order which directed the Haryana state authorities not to alienate, sell, allot, or create any third party rights on the allotted industrial plot.

Noting that after an industrial plot was allotted way back in 1996, the allottees had neither paid the enhanced price of the plot nor raised construction nor started production, which were the conditions of the said allotment, the Supreme Court allowed the Haryana Shahari Vikar Pradhikaran to re-allot the land.

In 1996, the said industrial plot was allotted to one Ranjit Narula, being a Non-Resident Indian (NRI) subject to the conditions that the rate at which the plot was allotted was provisional, subject to upward revision or enhancement.

Narula later disputed the demand of enhanced price and approached the State Consumer Dispute Redressal Commission, which dismissed his plea. Thereafter, an appeal was preferred before the National Consumer Disputes Redressal Commission (NCDRC) which was also dismissed for want of prosecution in 2013.

Then a miscellaneous application was filed in which the impugned order was passed by the NCDRC.

The NCDRC in July 2021, while issuing notice on the said miscellaneous application, had directed Haryana Shahari Vikas Pradhikaran, not to alienate, sell, allot or create any third party rights on the allotted Industrial Plot No. 556-P, Industrial Estate, Pace City, Phase-II, Gurugram, Haryana, until final disposal of the application.

A bench of Justices Hemant Gupta and V Ramasubramaniam after perusing the prayers made in the miscellaneous application noted that the respondents did not seek a recall of the order dismissing their appeal, and the NCDRC not only entertained the miscellaneous application but also restrained the appellants from selling or creating any charge over the plot.

The Court noted that for almost 25 years, the plot allotted to the respondents had not been put to use for which it was intended to be allotted. It was further found that the proceedings under the consumer fora remained unsuccessful, as well as the proceedings under the Haryana Urban Development Authority Act, 1977.

"We find that the order of NCDRC is not sustainable. The industrial plot was allotted to the respondent way back in 1996. The respondents have not paid the enhanced price of the plot nor raised construction nor started production, which are conditions of the allotment. The industrial plot was allotted for the industrial growth in the State and not for holding the plot as an investment....", the bench went on to hold.

Remarking that a circuitous route was taken up by the respondents to file a miscellaneous application for reliefs when the proceeding stood concluded, the top court held such actions to be wholly unfair, unjust and unsustainable. 

Accordingly, the ourt went on to set aside the order of the NCDRC.

Cause Title: Haryana Shahari Vikas Pradhikaran (HSVP) & Anr. vs Ranjit Narula & Anr.