Case Note & Summary
The case involves a writ appeal filed by the Bangalore Development Authority (BDA) challenging an order of a learned Single Judge of the Karnataka High Court dated 29.03.2021 in W.P.No.4180/2017. The Single Judge had directed the BDA to execute a registered sale deed for Site No.973, I Block, Sir.M.Vishwesharaiah Layout, Bengaluru, in favor of the respondent, J. Ramesh, upon receipt of Rs.3,48,754/-. The respondent had been allotted the site by BDA, but the allotment letter required payment of the balance consideration within 90 days. The respondent failed to make the payment within the stipulated period. The BDA contended that the allotment had lapsed due to non-compliance with the terms. The Division Bench, comprising Hon'ble Mrs. Justice Anu Sivaraman and Hon'ble Ms. Justice Tara Vitasta Ganju, allowed the appeal. The court held that the allotment letter constituted a contract between the parties, and the respondent's failure to pay the balance consideration within the stipulated period meant that no vested right accrued in his favor. The writ court could not direct execution of the sale deed without compliance with the contractual terms. The impugned order was set aside, and the writ petition was dismissed.
Headnote
A) Contract Law - Allotment of Sites - Failure to Pay Balance Consideration - The respondent was allotted Site No.973 by BDA but failed to pay the balance consideration of Rs.3,48,754/- within the stipulated period of 90 days as per the allotment letter. The Single Judge directed execution of sale deed upon payment of the said amount. Held that the allotment letter constitutes a contract between the parties and failure to comply with its terms, including timely payment, results in forfeiture of the right to seek specific performance. The writ court cannot rewrite the contract or direct execution of sale deed without adherence to the terms. (Paras 1-10) B) Land Acquisition - Bangalore Development Authority Act, 1976 - Allotment of Sites - The BDA allotted sites under the BDA (Allotment of Sites) Rules, 1984. The respondent's failure to pay the balance consideration within the stipulated period meant that no vested right accrued in his favor. The Single Judge's order directing execution of sale deed was set aside as it amounted to compelling BDA to perform a contract that had lapsed. (Paras 1-10)
Issue of Consideration
Whether the respondent had a vested right to seek execution of a registered sale deed for the allotted site despite failing to pay the balance consideration within the stipulated period as per the allotment letter.
Final Decision
The appeal is allowed. The order dated 29.03.2021 passed by the learned Single Judge in W.P.No.4180/2017 is set aside. Consequently, the writ petition is dismissed.
Law Points
- Allotment of sites by BDA is contractual and governed by terms of allotment letter
- failure to pay balance consideration within stipulated period renders allotment invalid
- no vested right accrues until full payment and execution of sale deed
- writ court cannot direct execution of sale deed without compliance with contractual terms
