JDA can’t deny allotment, possession of plots to highest bidders after receipt of premium: HC

Picture used for representational purposes.

‘Delay is violation of Article 14 of Constitution’

Mohinder Verma

JAMMU, Nov 29: High Court of Jammu & Kashmir and Ladakh has held that Jammu Development Authority (JDA) cannot deny allotment orders and possession of plots to the successful highest bidders after receipt of entire premium amount and delay in this regard is violative of Article 14 of the Constitution of India.
The bench of Justice Rajesh Sekhri was dealing with petition titled Shasi Paul and Another Versus UT of J&K and Others. The petitioners, being successful bidders of JDA plots pursuant to the auction notice issued by the respondents, invoked writ jurisdiction of court under Article 226 of the Constitution of India for issuance of directions to the respondents to finalize the auction of plots falling under Khasra No. 1260 situated at Paloura by executing formal lease deeds in their favour.
As per the facts of the case, an action notice came to be issued by Jammu Development Authority for auction of land at various locations including Strips No. 7 and 8 measuring 2.66 kanals and 4.53 kanals respectively situated at Paloura falling under Khasra No. 1260.
Pursuant to the notice, petitioners applied for and participated in the bidding process. While one petitioner came to be declared as highest bidder for Strip No. 8 measuring 4.53 kanals, the second petitioner was declared successful highest bidder for Strip No. 7 measuring 2.66 kanals.
Consequently, letter of intents vide No. JDA/Strip/Paloura/83-88 dated 02.02.2019 were issued by JDA in favour of the petitioners, pursuant to which, mode of payment of the payable bid amount was worked out and petitioners were directed to produce some documents. As per the letter of intents, formal allotment order was required to be issued in favour of the petitioners only on receipt of the entire payment of premium. Petitioners, accordingly, deposited the entire amount of premium by way of different demand drafts which stand en-cashed by JDA.
The petitioners submitted that despite having been declared successful highest bidders, issuance of letter of intents in their favour and deposition of the entire payment of premium, which stands en-cashed, JDA is not issuing the formal allotment orders and executing lease deed in their favour. The petitioners even submitted the representation to JDA but of no avail.
The petitioners questioned the inaction on the part of JDA primarily on the ground that since the grant of largesse is based on public policy and since they have deposited the entire premium amount, therefore, delay on the part of JDA to issue formal allotment order and execute lease deed and handover possession of the plots to them is violative of Article 14 of the Constitution of India.
However, the respondents resisted the petition on the ground that on the publication of auction notice regarding the plots, certain objections were submitted by the public and in order to redress the grievance of the public, a committee was constituted which recommended that the site put to auction may be cancelled and shall only be put to auction after the issue of demarcation be resolved.
After hearing both the sides, Justice Rajesh Sekhri observed, “since petitioners have been declared successful highest bidders pursuant to the auction notice with respect to the plots in question and they have made the entire payment of premium after the letter of intent dated 02.02.2019 came to be issued in their favour, as such, they cannot be deprived of their right to have the formal allotment orders issued in their favour and possession delivered to them”.
“Record bears testimony to the fact that the entire premium amount has been en-cashed by JDA, therefore, delay on the part of the respondents to execute formal lease deed in favour of the petitioners is violative of Article 14 of the Constitution of India”, High Court said.
Accordingly, High Court directed the respondents to execute formal lease deeds in favour of the petitioners and handover vacant possession of the plots to them.
It is pertinent to mention here that there are several other persons who have also been denied allotment and possession of plots even after payment of premium amount. Two among them are Sudesh Gupta, the successful highest bidder for Strip No.6 at Paloura and Vivek Gupta, successful highest bidder for Strip No.23 at Deeli.