HARYANA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD. versus INDERJEET SAWHNEY

Citation: [1996] 1 S.C.R. 713 · Decided: 18-01-1996 · Supreme Court of India · Bench: J.S. VERMA · Disposal: Appeal(s) allowed

Judgment (excerpt)

) 
HARYANA STATE INDUSTRIAL DEVELOPMENT 
CORPORATION LTD. 
v. 
INDERJEET SAWHNEY 
JANUARY 18, 1996 
[J.S. VERMA AND B.N. KIRPAL, JJ.] 
llldust1ial Development : 
Industrial land-Allotment of Haiyana State lndustJial Development 
Corporation issuing provisional letter of allotment of one acre plot to allottee 
mentioning that it would not give any legal 1ight of a/lotme11t unless final letter 
of allotment was issued-Allottee not complying with tenns under provisions 
A 
B 
c 
of allotment lette1-Later, on a mutual agreement allottee accepti11g half-acre 
plot-After taking possession thereof allottee claiming further half acre land D 
on old rates under earlier letter of provisional allotment-Held, Corporation 
1101 liable lo allot additio11al half acre of la11d to allottee-Al/ottee was 
estopped from c/aimi11g further half acre of land 011 old rates-Estoppel. 
The respondent applied to the appellant-Corporation for an in-
dustrial plot for setting up a unit to manufacture reinforced concrete 
cement pipes and accessories. On his having deposited 15% of the cost of 
land he was offered an industrial plot measuring one acre at the tentative 
rate of Rs. 120 per sq. metre, and a provisional letter of allotment dated 
27.12.1984 was issued requiring him to fulfil certain pre-requisites within 
E 
the stipulated period before the final allotment could be made in his 
F 
favour. It was also made clear that the provisional letter of allotment 
would not give any legal right of allotment unless the final allotment letter 
was issued. The respondent neither complied with the pre-requisites within 
the stipulated time, nor did he deposit any further amount with the 
Corporation, However, on the basis of a mutual agreement between the 
parties a letter dated 5.1.1989 was issued to the respondent offering him a G 
half, acre plot at the old rate of Rs. 120 per sq. metre. It was stated in the 
letter that request for further space would be considered on submission of 
a fresh application on new rates. Later, a formal letter of provisional 
allotment of two plots measuring 1000 sq. metres each at the tentative rate 
of Rs. 120 per sq. metre was issued to the respondent on 24.2.1989 requir-
H 
713 
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714 
SUPREME COURT REPORTS 
[1996] 1 S.C.R. 
A ing him to complete the pre-requisites. The Corporation reiterated its 
stand taken in the letter dated 5.1.1989 regarding allotment of further 
./ 
space. On receipt of letter of acceptance from the respondent, a final letter 
of allotment was issued to him on 6.7.1990. The parties signed an agree-
ment and possession of the two plots was handed over to the respondent. 
B 
Later, in 1994 was respondent filed a writ petition before the High 
Court seeking a direction to the Corporation to allot him remaining 
half-acre of plot on the basis of provisional allotment letter dated 
27 .12.1984. The Corporation contended that the said letter had been 
superseded and the res1wndent accepted 2000 sq. metres of land under a 
C fresh agreement. The High Court allowed the writ petition. The review 
petition filed by the Corporation was dismissed. Aggrieved, the Corpora-
tion filed the present appeals. 
D 
E 
F 
G 
Allowing the appeals, this Court 
H£LD : The appellant was not liable to allot an additional half acre 
of land to the respondent. The correspondence on record clearly shows 
that the respondent was estopped from making the claim for a further area 
of half acre after he had accepted the allotment of two plots measuring 
2000 sq. metres in total. [720-A, 718-F·G] 
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 2078-79 
of 1996. 
From the Judgment and Order dated 19.8.95 of the Punjab & 
Haryana High Court in R.A. No. 41/95 read \vith judgment/order dated 
14.11.94 in C.W.P. No. 5123 of 1994. 
Dr. A.M. Singhvi, Sumant Batra for Ashok K. Mahajan for the 
Appellant. 
Ranbir Yadav for the Respondent. 
The Judgment of the Court was delivered by 
KIRPAL, J. Leave granted. 
In this appeal, by special leave, there is challenge to two judgments 
H of the Punjab & Haryana High Court, the first being judgment dated 
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• J 
H.S. INDL. DEV. CORPN. LTD. v. I. SAWHNEY [KIRPAL,J.j 
715 
14.11.1994 whereby the respondent's writ petition was allowed and the A 
appellant was directed to allot a plot of land measuring half acre and the 
second judgment is dated 9.8.1995 whereby the Review Application filed 
by the appellant herein, was dismissed. 
The relevant facts are that the appellant is a Governmen

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