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POONAM VERMA AND ORS. versus DELHI DEVELOPMENT AUTHORITY

Citation: [2007] 13 S.C.R. 552 · Decided: 13-12-2007 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Dismissed

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Judgment (excerpt)

A 
POONAM VERMA AND ORS. 
4 
?'""
' 
v. 
,..
DELHI DEVELOPMENT AUTHORITY 
DECEMBER 13, 2007 
B 
[S.B. SINHA AND HARJIT SINGH BEDI, JJ.] 
-l -
Urban Development: 
c 
Delhi Development Act, 1957-ss. 41 and 56-Direction by 
Central Government for creation of 'out of turn quota' for allotment 
of flats--Legality of-Held: Central Government could not issue such 
directions-It did not have any quota under the Act or the Scheme-
s. 41 envisages that Central Government could issue directions having 
D nexus with efficient administration of the Act and not in the matter of 
allotment of flats-Moreso, Scheme was closed and could not be 
revived thereafter-Guidelines being advisory in character per se did 
not confer any legal right-Also doctrine of legitimate expectation was 
not invokable-Thus, purported decision being wholly without 
E jurisdiction is a nullity-Administrative law-Legitimate expectation. 
The respondents floated the Self Financing Registration Scheme, 
1982 for the allotment of flats. The appellants got themselves registered 
under the Scheme, but were not successful in obtaining the flats. The 
1 -
F Scheme was closed. Thereafter, public notice was issued for release of 
more flats and the unsuccessful registrants were given chance to apply. 
Appellants did not respond to the notice, however, were allotted flats in 
category III. Appellants did not make payments whereas raised a claim 
for including their names in VI and VI A Schemes. Respondents rejected 
G the claim. Aggrieved appellants filed complaint before the Consumer 
Forum on the ground of deficiency of service and unfair trade practice. 
They were unsuccessful in the first round oflitigation. Appellants then 
approached the Ministry ofU rban Affairs. The Joint Secretary ( D & 
L) by letter dated 24.08.2000 addressed to Vice Chairman, DDA 
H 
552 
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t 
POONAM VERMA v. DELHI DEVELOPMENT 
553 
AUTHORITY 
directed that the VC, DDA would cover the case of pending registrants A 
(three in number) under the out of Turn Allotment Quota, being hard 
cases and action would be taken to allot flats. Despite availability of 
flats, the Ministry's orders were not complied with. Appellant's 
application before the State Commission was dismissed. Appellants then 
filed application before Lok Adalat. Lok Adalat held thatthe DDA did B 
not accept the recommendations since SFS Scheme had become defunct 
and the scheme of OTA was no longer in existence and thus, directed 
the appellants to approach appropriate forum. Both the Writ Petitions 
as also Letter Patent appeals thereagainstwere dismissed. Hence the 
present appeal. 
C 
Dismissing the appeal, the Court 
HELD: 1.1. Section 41 of the Delhi Development Act, 1957 only 
envisages that the respondent would carry out such directions that may 
be issued by the Central Government from time to time for the efficient D 
administration of the Act It speaks about policy decision. Any direction 
issued must have a nexus with the efficient administration of the Act. 
The same does not take within its fold an order which can be passed by 
the Central Government in the matter of allotment of flats by the 
Authority in respect of a particular scheme. 
E 
[Para 12] [560-G; 561-A, BJ 
1.2. The Central Government does not have any quota under the 
Act. It did not have any quota under the Scheme. The Central 
Government had no say in the matter either on its own or under the p 
Act. In terms of the Brochure, Section 41 of the Act does not clothe any 
jurisdiction upon the Central Government to issue such a direction. 
[Paras 13and14) [561-B, D,E] 
1.3. The submission that the Central Government could issue the G 
said direction in exercise of rule making power under section 56 of the 
Act is wholly misplaced. In issuing the letter dated 24.08.2000, the 
Central Government did not exercise its legislative power nor could it 
do so. The Central Government in terms of the Act apart from Section 
41 did not have any power and, thus, could not have issued any direction H 
554 SUPREME COURT REPORTS 
[2007] 13 (Addi.) S.C.R. 
A in terms thereof. Hsection 41 of the Actorforthatmatter Section 56(2)(r) 
thereof were not applicable, the question of issuing any direction 
purported to be in terms of Section 21 of the General Clauses Act did 
not arise. [Paras 15and16] (561-E, F, G] 
B 
MP. Gangadharan and Ors. v. State of Kera/a and Ors., (2006] 6 
sec 162, distinguished. 
1.4. All the authorities under the Act including the Central 
G

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