Supreme Court dismisses Belgaum Urban Development Authority's appeal over demand of additional price for allotted plots

07 May 2024 8:19 AM

By: Admin

The Supreme Court of India, in a recent judgment, has dismissed the appeal filed by the Belgaum Urban Development Authority (BUDA) challenging the demand of additional price for plots allotted to respondents in the case of Dhruva & Anr. v. Belgaum Urban Development Authority. The judgment, delivered by Justice Rajesh Bindal, resolved a bunch of appeals arising from the common judgment of the High Court in R.S.A. Nos. 759, 760, and 864 of 2008.

The dispute centered around the demand of additional price by BUDA from the respondents, who were allotted residential plots. BUDA claimed that the demand was justified due to the enhancement of compensation for the land on which the plots were carved out. However, the respondents argued that there were no specific clauses in the allotment letter or the lease-cum-sale agreement allowing BUDA to demand additional price except for variations in plot size.

After considering the arguments presented by both parties, the Supreme Court analyzed relevant case law, including the judgments in Ishwar Dass Nassa v. State of Haryana and Preeta Singh (Km) v. Haryana Urban Development Authority. The court observed that the clauses in the allotment letter and the lease-cum-sale agreement did not explicitly authorize BUDA to demand additional price on the grounds of enhanced compensation for land acquisition.

Justice Rajesh Bindal, in the judgment, held that the demand made by BUDA for additional price was not justified based on the clauses in the agreements. The court concluded that the allottees were not liable to pay the additional price demanded by BUDA.

Consequently, the Supreme Court dismissed the appeals filed by BUDA, upholding the judgment of the High Court. The court clarified that any future litigation initiated by other allottees who had already paid the additional price would be considered, taking into account the delay, laches, and principles of acquiescence.

Dhruva & Anr. v. Belgaum Urban Development Authority