Cancellation of allotment

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…

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.

It is important to understand the terms and conditions of the agreement that you signed with the Lucknow Development Authority (LDA) at the time of booking the flat. If the agreement specifies a timeline for payment of the remaining amount, then the LDA is within their rights to refuse the payment made after the due date, even with a penalty.

However, it is also important to note that the LDA cannot act outside the scope of the agreement and refuse your payment without any valid reason. In case the LDA has acted unlawfully, you can file a complaint with the appropriate authorities or approach a lawyer for legal advice.

It is advisable to communicate with the LDA and understand the reason behind their refusal to accept the payment. If the reason is not justified or the LDA has acted unlawfully, then you can take legal action. If the reason is valid, you can try to negotiate with the LDA for an extension or an alternate solution.

In any case, it is important to maintain all the records and documentation related to the transaction and seek legal advice before taking any action.

In the case of property allotment, simply being allotted a property does not give the allottee the right to claim ownership. The allottee must adhere to all the rules set by the authority regarding the completion of the sale. It is unclear from the question whether the time period for payment of the due amount was extended by the authority or whether the payment was made in accordance with any rule set by the authority.

Depositing due amount without authority's offer is not allowed. Sometimes, the authority may offer to deposit the due amount with a penalty, but this does not create the right to deposit any due amount without such an offer.

In the case of Ravi Gautam vs State of U.P. AIR 2015, the Allahabad High Court held that the conditions of allotment with respect to the deposit of the balance amount must be strictly followed within the given time. Otherwise, the letter of allotment would be automatically canceled, and the allottee cannot claim any right to continue with the allotment subject to the payment.

Strict adherence to rules is required. It is not possible to claim that an offer was made by the authority in respect of due payment with a fine. In the case of R. D. Shetty vs International Airport Authority AIR 1979, the Supreme Court held that if a public authority has laid down certain norms and conditions regarding allotment, the applicant must strictly follow them. This was reiterated by the Supreme Court in Post Master General vs Tutu Das AIR 2007.

Based on the above discussion, it is clear that as an allottee, one does not have the right to compel the authority to accept payment of the due amount in the absence of any offer or scheme by the authority. It is essential to follow all the rules set by the authority regarding the completion of the sale, including the deposit of the balance amount within the stipulated time.

Shivendra Pratap Singh

Shivendra Pratap Singh

Advocate

Advocate Shivendra, practicing law since 2005, specializes in criminal and matrimonial cases, extensive litigatin experience before the High Court, Sessions court & Family Court. He established kanoonirai.com in 2014 to provide dependable and pragmatic legal support. Over the years, he has successfully assisted thousands of clients, making the platform a trusted resource for criminal and matrimonial dispute resolution in India.

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