Cancellation of allotment

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I have booked a flat in a housing project constructed by the Lucknow Development Authority. I have deposited booking amount and 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 remaining amount in time even after receiving a notice.

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

Question from - Property Law

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 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 obedience of any rule made by the authority.

Sometimes authority offers to deposit due amount with penalty but it also does not create any right to deposit any due amount without such 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 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 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 a allottee, has no right to compel the authority to accept payment of due amount in devoid of any offer or scheme of the authority.

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You can ask your question to Mr Shivendra Pratap Singh, (Advocate, High Court Allahabad, Lucknow Bench)

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