AMICUS AI
Citation Codes
Neutral Citations
2000 INSC 335
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 74 of the Haryana Housing Board Act, 1971
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Neutral Citations
2000 INSC 335
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 74 of the Haryana Housing Board Act, 1971
Smart Summary

Factual and Procedural Background

In 1979 the Chandigarh Housing Board allotted a commercial plot in the Motor Market and Commercial Complex at Manimajra, Union Territory of Chandigarh, to the respondent’s husband on a freehold basis. The allotment and the subsequent conveyance deed required any construction to conform to architectural control-sheets. Acting on a 9-7-1993 clarification from the Administrator, the allottee constructed a building with a commercial ground floor and residential flats on the first and second floors.

The respondent (wife of the allottee) later applied for a separate residential plot. Pursuant to Regulation 6 of the Chandigarh Housing Board (Allotment, Management and Sale of Tenements) Regulations, 1979, she filed an affidavit declaring that neither she nor her family owned any residential property in Chandigarh, Mohali or Panchkula. A residential plot was allotted to her on that basis.

On 15-12-1993 the Housing Board cancelled the allotment after discovering that the respondent’s husband in fact owned a residential flat above the commercial premises. The respondent successfully challenged the cancellation before the District Consumer Disputes Redressal Forum; the State Commission and the National Commission upheld that relief. The Chandigarh Housing Board appealed from the National Commission’s order, leading to the present judgment.

Legal Issues Presented

  1. Whether, under Regulation 6(1) of the 1979 Regulations, ownership of a residential flat situated above a commercial unit constitutes ownership of a “residential plot or house” so as to disqualify the spouse from receiving another residential allotment.
  2. Whether the Housing Board’s cancellation of the respondent’s allotment, based on the allegedly false affidavit, was legally justified.

Arguments of the Parties

Appellant’s Arguments (Chandigarh Housing Board)

  • The husband’s building, though on a commercial plot, undeniably contains residential flats on the upper floors; this ownership attracts the disqualification in Regulation 6(1).
  • Regulation 6 does not require that the entire building be exclusively residential; partial residential use suffices to bar a second allotment.
  • Allowing families to obtain both commercial and residential plots defeats the regulatory purpose of distributing concessional plots to the widest eligible public.

Respondent’s Arguments

The opinion does not contain a detailed account of the respondent’s legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court interpreted Regulation 6(1) by focusing on its purpose: preventing multiple concessional allotments to the same family unit. Determining eligibility required examining whether the respondent’s husband owned any “residential plot or house” in the specified territories.

Because the admitted construction includes residential flats on the first and second floors, the Court held that the husband does own a residential house notwithstanding the commercial character of the ground floor or the original commercial allotment. The term “residential house” was construed broadly to include any residential flat erected pursuant to permissible building plans, even when located above commercial premises.

Consequently, the respondent’s affidavit—though possibly made in good faith—was factually incorrect. Under Regulation 6(2) such an incorrect affidavit entitles the Board to cancel the allotment. The consumer fora below erred by restricting “residential house” to premises allotted solely for residential purposes.

Balancing equity, the Court noted the respondent’s bona fide belief and therefore allowed refund of the deposit, albeit without interest, explicitly stating that this concession should not be treated as a precedent.

Holding and Implications

The appeal is allowed; the orders of the District Forum, State Commission and National Commission are set aside, and the Housing Board’s cancellation of the respondent’s allotment is upheld.

Direct consequences: the respondent loses the residential plot but is entitled to a refund of the amounts deposited, without interest. Broader impact: the judgment clarifies that, for purposes of Regulation 6, any residential unit situated on a commercial plot disqualifies the family from obtaining an additional residential allotment. The Court expressly limited the refund ruling to the peculiar facts, signalling no new precedent on forfeiture of deposits.

To access the original judgment, please Sign In or Subscribe.

    Chandigarh Housing Board And Another v. Narinder Kaur Makol .

    Judgment

    1. Leave granted.

    2. This appeal is preferred by the Chandigarh Housing Board against the judgment of the National Consumer Disputes Redressal Commission, New Delhi in RP No. 1469 of 1997 dated 29-4-1999.

    3. A commercial plot was allotted to the husband of the respondent on 4-4-1979 by the Notified Area Committee, Union Territory of Chandigarh, on freehold basis in the Motor Market and Commercial Complex at Manimajra, by the appellant.

    4. Para 8(a) of the said allotment order stated that the allottee should complete the building in accordance with the sanctioned plan which shall be according to the control-sheets prepared by the Chief Architect and Secretary of the Board. Thereafter, the Administrator issued a letter on 9-7-1993 to the respondent's husband that the procedure relating to preparation of architectural control-sheets for shop-flats are applicable for motor shops also and that in these cases the said procedure of architectural control-sheets permits the construction of shops on the ground floor and flats on the first and second floors. On the basis of the abovesaid order, the respondent's husband submitted the plan to the Architect for construction of a ground floor for commercial purposes and for construction of first and second floors as residential flats. A deed of conveyance was thereafter executed by the Board in favour of the respondent's husband, on 30-9-1981. Para 4 of the said conveyance also stated that the transferee should complete the said building in accordance with the sanctioned plan which should be according to the control-sheets prepared by the Chief Architect and the Secretary.

    5. On the basis of the above plan, the husband of the respondent got constructed a building in which the ground floor was being used for commercial purposes and the first and second floors for residential purposes.

    6. Subsequently, the respondent (i.e wife of the above allottee) filed an application for allotment of a residential plot and she filed declaration by way of an affidavit that neither she, nor her husband nor any of her dependent relations including any married children, own any freehold or leasehold or on hire-purchase basis, residential plot or house in the Union Territory of Chandigarh or in any of the urban estates of Mohali or Panchkula. She had to file such an affidavit in view of the conditions of eligibility mentioned in Regulation 6 of the Chandigarh Housing Board (Allotment, Management and Sale of Tenements) Regulations, 1979. The said regulations were framed under Section 74 of the Haryana Housing Board Act, 1971, as extended to the Union Territory of Chandigarh. The relevant regulation reads as follows:

    “6. Eligibility of Allotment.—(1) A dwelling unit or flat in the housing estates of the Board shall be allotted only to such person who (sic) or his wife/her husband or any of his/her dependent relations including unmarried children does not own on freehold or leasehold or on hire-purchase basis, a residential plot or house in the Union Territory of Chandigarh or in any of the urban estates of Mohali or Panchkula. Similarly persons who have acquired a house/residential site anywhere in India through Government/semi-Government/Municipal Committee/Corporation/Improvement Trust at concessional rate in their name or in the name of any dependent member of their family will not be eligible to apply to the Board for allotment of a dwelling unit, or flat. Subject to the above provision, the applicant should have been a bona fide resident of the Union Territory of Chandigarh for a period of at least three years on the date of submitting the application.
    (2) The applicant shall furnish an affidavit in the prescribed form with regard to his eligibility along with the application. In the event of the affidavit being found false at any stage, the Board shall be entitled to cancel the registration or the allotment of dwelling unit or flat, as the case may be, and to forfeit the deposit received with the application and all the payments made to the Board thereafter.”

    7. An allotment of a residential plot was made in favour of the respondent on the basis of the affidavit.

    8. Later on, realising that the husband of the respondent was owning a residential flat, the authorities cancelled the allotment in favour of the respondent. This was done by an order dated 15-12-1993. Aggrieved by the said order, the appellant moved the District Consumer Disputes Redressal Forum, Union Territory at Chandigarh, in Complaint Case No. 1 of 1996. The said Forum allowed the application, set aside the order of cancellation dated 15-12-1993 and directed that the respondent be put in possession of the residential plot allotted to her.

    9. Aggrieved by the said order of the District Forum, the appellant moved an appeal before the State Consumer Disputes Redressal Commission, Union Territory at Chandigarh, in Appeal Case No. 106 of 1997, which by its order dated 11-11-1997 confirmed the order of the District Forum. Aggrieved by the said order, the appellant preferred a revision before the National Consumer Disputes Redressal Commission, New Delhi. As already stated, the National Commission dismissed the revision by its order dated 29-4-1999.

    10. In this appeal, it is contended by Mr B. Datta, learned Senior Counsel appearing on behalf of the Chandigarh Housing Board that all the Tribunals below had gone wrong in their interpretation of Regulation 6(1) referred to above. Learned Senior Counsel contended that it was an undisputed fact that on the commercial plot allotted to the respondent's husband, admittedly a residential flat had been constructed on the second and third floors, while the ground floor was being used for commercial purposes. Learned Senior Counsel contended that for incurring a disqualification under Regulation 6(1), it was not necessary that the entire building owned by the respondent's husband must be one exclusively used for residential purposes. Even if the ground floor was used for commercial purposes and there was a residential flat on the second and third floors, the said ownership of a flat on the said floors on the part of the husband of the respondent would be a ground to disqualify the respondent (wife of the original allottee) from seeking any allotment of another plot for residential purposes.

    11. On a reading of Regulation 6 referred to above, it is clear that the eligibility of the other spouse is to be decided on the basis as to whether the other spouse or their dependants do not own a residential plot or house in the Union Territory of Chandigarh or in any of the urban estates of Mohali or Panchkula. Therefore, in the present case, while considering the question of eligibility of the respondent we have to see whether her husband owned an original plot or house in the Union Territory of Chandigarh or in the urban estates of Mohali or Panchkula, for residential purposes.

    12. In our opinion, in view of the admitted fact that there is a residential flat on the second and third floors of the ground floor commercial plot, it must necessarily be held that the husband of the respondent owned a residential house within the territory in question and that therefore the respondent (wife of the first allottee) is not eligible for allotment of another residential plot from the said authority. It must be realised that these plots are allotted on concessional basis to the allottees by the public authority and the relevant regulations must therefore be interpreted in such a manner as to save (sic serve) their real purpose so that the plots are available, as far as possible, to the largest number of persons, and for preventing the same family members, husband or wife or dependants, as the case may be, from getting more than one plot or house, for the same purpose. We are of the view that the words “residential house” in Regulation 6(1) must be treated as including a flat constructed above the commercial flat on the ground floor. This will be so even if originally the plot was allotted for commercial purposes, if incidentally construction of residential flat above the ground floor commercial plot is permitted as per the plans. In other words, even though the plot is allotted as a commercial plot, if it is permissible to build a residential flat above the commercial plot, and is so constructed, then such a residential flat will come within the prohibition in Regulation 6(1).

    13. We, are therefore, of the view that the declaration made by the respondent that her husband did not own a residential house was not correct. It may be a bona fide statement by her, but it does not in our opinion reflect the facts correctly. The cancellation of the allotment in favour of the respondent by the authorities on 15-12-1994 was therefore, justified.

    14. For the aforesaid reasons we set aside the orders passed by the District Forum, the State Commission and the National Commission and uphold the order of cancellation of allotment.

    15. In view of the fact that the statement made by the respondent in her affidavit is bona fide, it is contended for the respondent that the amount of deposit made by the respondent should be refunded to her.

    16. But, learned Senior Counsel appearing on behalf of the appellant contends that the relevant regulation permits forfeiture of the deposit amount. On the peculiar facts of this case, we are permitting the respondent to get back the amount deposited by her but without interest. This will not be treated as a precedent in any other case.

    17. For the reasons stated above, the appeal is allowed, subject to the direction with regard to the refund of the amount as mentioned above.

    Use AI to get other relevant cases.

    Comments

    Chandigarh Housing Board And Another v. Narinder Kaur Makol .
    (Jul 13, 2000)