Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Delhi Development Act Allotment of flats |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Delhi Development Act, 1957 - ss. 2 (13), 5A and 52 - Allotment of flats under Self Financing Scheme (SFS) - By Delhi Development Authority - Default in payment of instalments - Condoned by Authority in terms of original contract - Subsequent policy decision by delegatee of the Authority, imposing 20% surcharge on the flats of South Delhi and recovery of current price on condonation of the default - Policy made effective with retrospective effect - Validity of restoration policy - Held: The policy is ultra vires - Imposition of surcharge was in effect a compulsory exaction - The delegatee having no power to frame such scheme under the Act or the Regulations framed thereunder, or to apply the same with retrospective effect, could not have done so by an executive order - The policy, being in the realm of contract, cannot be stated to be a policy decision as such-It was dehors the original terms and conditions of the contract - The contract could not have been novated in absence of provisions under the contract or law - The Authority having condoned the default as per terms of original contact, estopped from seeking application of subsequent restoration policy - Disposal price was permissible to be fixed within the purview of original terms of the contract and the statutory requirements - Action of a State must treat persons similarly situated equally and grant equal protection to them - Delhi Development Authority (Management and Disposal of Housing Estates) Regulations, 1968 - Regulations 5 and 6 - Constitution of India, 1950 - Articles 14 and 265 - Contract - Estoppel.Contract Act, 1872 - ss. 29 and 60 - Novation of contract - Conditions for - Held: Terms and conditions of contract cannot be altered unilaterally without notice to the other party of the contract - When a contract has been worked out fresh liability cannot be thrust upon contracting party.Administrative Law - Delegation of power - Power of delegatee - Held: A delegatee is bound to act within four corners of the delegation and not beyond the same - Delegation of power must be tested in terms of statutory provisions. Judicial Review:Judicial review of policy decision - Scope of - Held: Policy decision is subject to judicial review - An executive order termed as policy decision is not beyond pale of judicial review - Grounds for interference with - Discussed. Judicial review of Contract - Permissibility - Held: Permissible, When a contract emanates from a statute or is otherwise governed by provisions thereof.Judicial review of price fixation - Permissibility - Held: Though ordinarily not permissible - But where the price is fixed de hors the statutory provisions, it is permissible. Constitution of India, 1950 - Parts III and IV, Articles 12, 14 and 37 - Validity of an action of State - Ascertainment of - Held: Action of State giving effect to provisions of Part IV to be upheld only when it is not ultra vires Fundamental Rights - The act of the State must at the first instance be adjudged on the touchstone of principles of Fundamental Rights and then of the provisions of the Parliamentary Act, or the regulations framed thereunder or the terms of contract between the parties - Action of State must satisfy the principal requirements of Article 14.Doctrines - Doctrine of ultra vires - Applicability ofFlats under a Self Financing Scheme (SFS) flooted in the year 1991, were allocated by Delhi Development Authority. Registrants defaulted in payment of instalments resulting in automatic cancellation of their allotments. Vice-Chairman of the Authority, delegated with the power of Authority, took a policy decision by order dated 16.8.1996 levying 20% surcharge over and above disposal price in respect of registrants who had been allotted flats in South Delhi; and that defaulting registrants were required to pay current cost on regularization of the default. A resolution was passed and an executive order was also passed to that effect. The resolution was given retrospective effect and retroactive operation. Several writ petitions were filed questioning the legality and validity of the resolution. Single Judge of High Court allowed the petitions in part quashing the policy of charging current cost upholding the policy of charging 20% surcharge. Letters patent appeals were referred to larger Bench of High Court, by the Division Bench. The Full Bench up held the levy of 20% surcharge and further held that the Authority had requisite jurisdiction also in respect of imposition of'current cost'. Hence the present appeals. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2007 INSC 1299 |
Petitioner | Delhi Development Authority, N.d. & Anr. |
Respondent | Joint Action Committee, Allottee Of Sfs Flats & Ors. |
SCR | [2007] 13 S.C.R. 811 |
Judgement Date | 2007-12-13 |
Case Number | 6668 |
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