Can an allottee plead frustration of the allotment contract for non-demarcation and non-delivery of possession where the site plan was appended to the allotment letter and the land was allotted on an 'as it is where it is' basis?
Coram: Surya Kant; Nongmeikapam Kotiswar Singh
No. Where the site plan appended with the allotment letter describes precise measurements and all other relevant details, and the allotment was made on an 'as it is where it is' basis, communications alleging non-demarcation are ex-facie an afterthought. None of the alleged acts of non-demarcation, removal of encroachment or non-delivery of possession constitutes conduct that would frustrate the performance of the allotment terms where the authority acted in accordance with prescribed procedures and the allottee failed to fulfil its own obligations.
Manual for Marketing and Management of Industrial Areas — Clause 2.15 — Clause 3.04(vii) — Legal notice — Cancellation of allotment — Public Trust Doctrine — Allocation of public resources — Art. 21 — Manual for Marketing and Management of Industrial Areas — Clause 3.04(vii) — Essential elements of a legal notice — Held: A 'legal notice' connotes an unambiguous communication along with legal consequences to a noticee alleged to be in default, conveying the facts, the impending breach and the intention to hold the other party liable. A communication not captioned a legal notice is not thereby disqualified. (¶22, 23) Manual for Marketing and Management of Industrial Areas — Clause 2.15 — Possession only after registration of lease deed — Held further: Where the Manual fixes the date of possession only after registration of the lease deed, registration must precede possession. An allottee who fails to furnish the documents for registration is itself to blame for non-delivery of possession. (¶15, 16) Cancellation of allotment — inherent right of the allotment authority — judicial intervention circumscribed — Held further: Land allotment authorities possess the inherent right to cancel allotments upon violation of stipulated conditions. Judicial intervention in matters concerning land revocation should be circumscribed to ensure adherence to procedural safeguards. (¶20) Public Trust Doctrine — Art. 21 — Allocation of industrial land without a competitive process — Held further: Allocation of a substantial tract of industrial land without a competitive process fundamentally violates the Public Trust Doctrine, which demands proper procedure and substantive accountability in public resource allocation. Cancellation upheld and appeals dismissed; the subsequent allotment annulled and directions issued. (¶33, 36)
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