News: HC allows institutional plots' sale in Haryana-31-07-2019
Updated On : July 31, 2019
The high court also imposed a cost of Rs 50,000 on D Suresh, senior Haryana IAS officer and chief administrator, HSVP, for being “pedantic and unusually bureaucratic.”
CHANDIGARH: In an order paving way for transfer of institutional plots allotted by Haryana Sahari Vikas Pradhikaran (HSVP), earlier known as Haryana Urban Development Authority, the Punjab and Haryana high court has held that once a conveyance deed has been executed, the HSVP cannot restrain the owner of plot from transferring it to another’s name.
The high court also imposed a cost of Rs 50,000 on D Suresh, senior Haryana IAS officer and chief administrator, HSVP, for being “pedantic and unusually bureaucratic.”
The high court was of the view that the terms of allotment and the terms of brochure inviting applications for allotment of HSVP’s institutional plots will apply only till the entire consideration has been paid and the conveyance deed has been executed.
“On execution of the conveyance deed, terms of allotment letter cease to apply and a fresh contract comes into being and the parties shall then be governed only by the terms thereof. A condition being part of the terms of the allotment or not is irrelevant after a conveyance deed has been executed and this proposition of law is well known,” observed the high court.
The approach of the HSVP chief administrator was described by the high court as pedantic and unusually bureaucratic. “It shows that he is not open to reason despite being goaded by this court. Such administrators can only harm public interest rather than promoting the same.”
“For his intransigence, the incumbent chief administrator D Suresh, IAS is burdened with costs of Rs 50,000 to be paid to the Army Central Welfare Fund,” ordered the HC. It also clarified that Rs 50,000 shall be paid by the IAS officer from his personal resources.
The division bench comprising Justice Daya Chaudhary and Justice Sudhir Mittal passed these orders while allowing a petition filed by Gurugram-based company, Nehru Place Hotels and Real Estate Private Limited.
The petitioner firm was allotted an institutional plot in 2012 in Gurugram for setting up its corporate office, research and development centre and other ancillary purposes. The area of the plot was 4,050 square metre and total price of the plot was Rs 14,94,45,000.
After payment of all the dues, a conveyance deed was executed by the HSVP in its favour. The building was completed in accordance with the building plans sanctioned by the respondent and occupation certificate dated April 22, 2016 was issued.
Thereafter, the petitioner wanted to transfer the plot by way of sale but the HSVP refused to grant necessary permission through a communication dated May 28, 2016. Aggrieved from the refusal, the petitioner had approached the high court.
The petitioner submitted that once the title stood transferred in favour of the petitioner, it became the absolute owner of the plot in dispute and had the absolute right to transfer it to anybody on taking permission from HSVP.
Defending its stand, HSVP informed the high court that institutional plots were advertised with a precondition that the same would not be transferable under any circumstances and the petitioner was bound by the same. The HSVP relied on Clause-23 of the allotment letter, according to which a transfer cannot be permitted except in case of death or succession.
After hearing both the parties, the HC held that there is no condition in the conveyance deed absolutely restraining transfer.
“The only requirement is of seeking permission before a transfer is made so that the transferee is also bound by the condition of no change of user of the plot. In any case, in view of Section-10 of the Transfer of Property Act (TPA), the condition barring transfer absolutely would be void,” observed the HC, which directed the HSVP to grant transfer permission to petitioner within four weeks.
