Case Note & Summary
The present dispute pertains to the claim of allottees who were not allotted plots on land owned by respondent No.6-Colonizer, Durga Builders Pvt. Ltd., in Okhla Enclave, Faridabad, Haryana. The colonizer purchased approximately 235 acres of land in 1985 for large-scale settlement in Section 91 of Faridabad-Ballabgarh Complex. In 1991, the State of Haryana enforced its colonization policy, and the colonizer obtained seven colonization licences. In 1996, writ petitions were filed by the petitioner-Association under Article 32 of the Constitution before the Supreme Court, alleging that the colonizer had not adhered to the terms of the agreement in allotment of plots. The Court passed various orders, including directing each allottee to pay Rs.50/- per sq. yd. towards development charges to the Director, Town and Country Planning (DTCP), Haryana, on 02.12.1999. Some allottees complied, but others did not. On 15.11.2013, DTCP filed an affidavit stating that internal development work done had become defunct and that the cost of remaining work would have to be borne by plot holders or licensee, not the government. The Court appointed Mr. Raju Ramachandran, senior advocate, as amicus curiae on 13.01.2015, and on 27.01.2016, referred the matter to arbitration, appointing Justice Vikramajit Sen, former Judge of the Supreme Court, as sole Arbitrator. The Arbitrator held 22 hearings and identified three categories of allottees: General, Economically Weaker Sections (EWS), and No Profit No Loss (NPNL). A Scrutiny Committee was appointed to identify claimants, resulting in 470 General, 350 EWS (106 applied), and 1932 NPNL claimants. The NPNL claimants were further categorized into five lists based on payment status. The Arbitrator sought directions on four questions: (i) determination of land share for Durga Builders claiming succession only for two licences; (ii) who will undertake development and allotments given the State's refusal; (iii) relaxation of density norms by Haryana; and (iv) conversion of proceedings to a Special Committee. The Court heard submissions from all parties and directed them to file responses on various details, including total land extent, approved layout, money collected and deposited, and estimate for completion. The State of Haryana filed a status affidavit detailing the licences granted to the colonizer and its associate companies for a total area of 234.674 acres, divided into Phase-I (126.724 acres) and Phase-II (107.95 acres). Out of this, 46.85 acres is under encroachment, leaving 187.825 acres available for planning. The Court noted that the licences were not renewed after 1999 and that Rs.21,86,97,901/- is outstanding as licence renewal fee payable by the colonizer to DTCP. The Court considered the questions raised by the Arbitrator and sought further assistance from the amicus curiae.
Headnote
A) Arbitration - Reference to Arbitration - Appointment of Sole Arbitrator - Supreme Court referred the matter to arbitration by appointing Justice Vikramajit Sen, former Judge of the Supreme Court, as sole Arbitrator to resolve the dispute between the parties regarding allotment of plots and development of land in Okhla Enclave, Faridabad (Paras 3-6). B) Colonization - Licence Renewal - Outstanding Dues - The State of Haryana stated that an amount of Rs.21,86,97,901/- is outstanding against licence renewal fee payable by the colonizer to DTCP, Haryana (Para 12). C) Allottee Categories - Classification - The Arbitrator identified three categories of allottees: General, Economically Weaker Sections (EWS), and No Profit No Loss (NPNL) (Para 3). D) Development Charges - Payment by Allottees - The Court directed each allottee to pay Rs.50/- per sq. yd. towards development charges to DTCP, Haryana, pursuant to order dated 02.12.1999 (Para 1). E) Encroachment - Land Availability - Out of total 234.674 acres, 46.85 acres is under encroachment and 187.825 acres is available for planning (Para 11).
Issue of Consideration
Whether the dispute regarding allotment of plots and development of land in Okhla Enclave, Faridabad, can be resolved through arbitration and whether directions are required for completion of the project.
Final Decision
The Court directed the parties to submit responses on various details including total land extent, approved layout, money collected and deposited, and estimate for completion. The Court sought further assistance from the amicus curiae and listed the matter for further hearing.
Law Points
- Arbitration
- Colonization Policy
- Allottee Rights
- Development Charges
- Encroachment
- Licence Renewal
