In a landmark judgment, the Allahabad High Court has ruled against the Uttar Pradesh State Industrial Development Authority (UPSIDA) for imposing unjust interest rates on a petitioner due to delays in plot allotment. The Division Bench, comprising Justice Mahesh Chandra Tripathi and Justice Prashant Kumar, delivered this decision while hearing a petition filed by 75-year-old Smt Madhubala Jaiswal, a plot allottee in ‘Saraswati-Hi Tech City Naini, Allahabad’.
Background of the Case
Smt Madhubala Jaiswal applied for a residential plot under UPSIDA’s scheme and was allotted a 200 sq meter plot in February 2017, with the total cost fixed at Rs 36 lakh. She was required to deposit 25% of the total amount within 30 days, but she chose to pay approximately 80% (Rs 29 lakh) upfront. Despite her prompt payment, the possession of the plot was delayed, contrary to the original promise of possession by July 2017.
Aggrieved by the delay, Jaiswal approached the Real Estate Regulatory Authority (RERA) in November 2017, which directed UPSIDA to deliver the plot. However, UPSIDA failed to comply due to unresolved issues with the State Government, which delayed the execution of the Conveyance Deed until January 2021.
Court’s Observations and Ruling
The Court found that UPSIDA was at fault for failing to provide timely possession, as the delay was due to internal issues and lack of proper title, not the fault of the petitioner. Despite these delays, UPSIDA attempted to charge Jaiswal a 14% interest rate on the outstanding amount, later reduced to 12%, which the Court deemed unjust.
The judges underscored that no party can benefit from their own defaults or wrongs. The Court applied the legal principle that a party cannot “blow hot and cold” or “approbate and reprobate” simultaneously. UPSIDA’s demand for high-interest payments, despite the delays being attributable to its own shortcomings, was found to be inequitable.
Final Directions
The Allahabad High Court directed UPSIDA to correct the interest rates imposed on Jaiswal. The Court ruled that UPSIDA could only charge a 6% interest rate on the outstanding amount, aligning with the interest offered to individuals opting out of the agreement. The Court further instructed UPSIDA to execute the lease deed and complete all necessary formalities within two weeks of Jaiswal clearing her outstanding balance with the revised interest rate.
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Conclusion
This ruling marks a significant step in ensuring justice for plot allottees and holds authorities accountable for their obligations. The Allahabad High Court’s decision emphasizes the importance of equity and fair practice, setting a precedent for similar cases in the future.