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Synopsis

The Supreme Court on December 13, 2024, set aside the decision of the National Consumer Disputes Redressal Commission which upheld the state commission's interim order for handing over possession of a plot. Court emphasized that final relief cannot be granted based on an interlocutory application.

A bench of Justices Bela M Trivedi and Satish Chandra Sharma allowed an appeal filed by the Indore Development Authority and set aside the orders by the state commission passed on December 15, 2017, and the national commission of March 29, 2023.

The court directed the authority to issue a fresh tender in respect of the plot as a period of more than 28 had lapsed since the tender was issued.

"It is an undisputed fact that in respect of advertisement/NIT which was issued on 05.10.1994, National Commission vide order dated 29.03.2023 has directed the appellant to accept the deposit made by respondent and to allot the plot to him, meaning thereby, after the lapse of period of 28 years," the bench pointed out.

In the case, the respondent, Dr. Hemant Mandovra at the first instance opted to file a writ petition before the High Court of Madhya Pradesh and a favourable order was also passed on August 01, 2006 directing him to pay the balance outstanding amount within 30 days and a further directed had been issued to the appellant i.e. Indore Development Authority to hand over possession of the plot to the writ petitioner i.e. respondent herein.

However, only a sum of Rs 5,72,782 through a demand draft was presented in the month of September, 2006, against the total outstanding dues of Rs 12,02,592.

"The Authority has shown magnanimity in the matter by reducing the interest vide letter dated 17.02.2009 and the amount was reduced to Rs 11,04,948 which was required to be paid on or before 28.02.2009," the bench noted.

The respondent, not being satisfied even with the reduction of amount, opted for a different route for redressal of his grievance by approaching the District Forum and the District Forum dismissed the complaint of the respondent.

The respondent again approached the High Court by way of a writ petition which was dismissed as withdrawn on April 08, 2015 with the liberty to avail statutory remedy provided under the Consumer Protection Act and thereafter the respondent preferred an appeal before the State Commission against the order passed by the District Forum.

The State Commission by way of an interim order on December 15, 2017 directed the appellant i.e. Indore Development Authority to accept the outstanding amount with interest and to deliver the possession of plot in question to the respondent, meaning thereby, a final relief was granted by way of an interim order and under these circumstances, the matter had reached the National Commission.

"In the considered opinion of this Court, final relief could not have been granted by the State Commission on an interlocutory application filed in the matter," the bench said.

The court also pointed out that the other important aspect of the case was that the National Commission without considering any ground raised by the appellant had directed the appellant to receive and accept the amount from the respondent along with interest and handover the possession of the plot in question.

"In our considered opinion, in respect of NIT/advertisement issued on 05.10.1994, no such order could have been passed by the National Commission in the peculiar facts and circumstances of the present case i.e. after a lapse of period of 28 years," the bench said.

The court opined that it was the respondent who committed default in depositing the balance amount as per the terms and conditions of the NIT and even after the first round of litigation before the High Court, the respondent did not deposit the amount of Rs 12,02,592 which was outstanding against him and, therefore, at this juncture, after a lapse of 28 years, the question of directing the appellant i.e. Indore Development Authority as has been done by the National Commission to accept the amount did not arise.

"Resultantly, the orders passed by the State Commission dt. 15.12.2017 and National Commission dt. 29.03.2023 deserve to be set aside and are accordingly set aside and it is made clear that the appellant i.e. Indore Development Authority shall issue a fresh tender in respect of the said plot in question and shall allot the plot only by way of auction or by following the due process as per rules," the bench ordered.

Case Title: Indore Development Authority Vs Dr Hemant Mandovra