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Home | Advice | Property Law | Cancellation of allotment

Cancellation of allotment

By Shivendra Pratap Singh

I have booked a flat in a housing project constructed by the Lucknow Development Authority. I have deposited booking amount and the flat is allotted in my name. Thereafter LDA gave me 30 days to deposit 25% of the total value of the property which is also deposited in time. Due to some financial crisis, I could not deposit the remaining amount in time even after receiving a notice.

But I have deposited all the reaming amount with a penalty but it is refused by the concerned officer of the LDA. This is an illegal act because I have priority above any other person and my consideration must be accepted by the LDA.

Merely allotment does not give a right to claim ownership in the property. Allottee is bound to follow all the rules made by the authority in respect of completion of the sale. It is not clear from your question that time period for payment of due amount was extended by the authority or you deposited it in the obedience of any rule made by the authority.

Sometimes authority offers to deposit due amount with a penalty but it also does not create any right to deposit any due amount without such an offer.

In Ravi Gautam vs State of U.P. AIR 2015, it is held by the Allahabad high court that the condition of allotment with regard to deposit of balance amount must be strictly followed within the time otherwise letter of allotment would be stood cancelled automatically and allottee cannot claim any right to continue with allotment right subject to the payment.

You cannot claim that some offer was made by the authority in respect of due payment with a fine. In R. D. Shetty vs International Airport Authority AIR 1979; it is held by the Supreme court that if a public authority has laid down certain norms and conditions in respect of allotment it should be strictly followed by the applicant in the same manner. This is also reiterated by the Supreme Court in Post Master General vs Tutu Das AIR 2007.

Thus it is clear from the above discussion that you, as an allottee, has no right to compel the authority to accept payment of the due amount in devoid of any offer or scheme of the authority.

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