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TAMIL NADU HOUSING BOARD, REP. BY ITS MANAGING DIRECTOR AND ORS. versus S. GANESAN

Citation: [2025] 7 S.C.R. 1530 · Decided: 21-07-2025 · Supreme Court of India · Bench: DIPANKAR DATTA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2025] 7 S.C.R. 1530 : 2025 INSC 889
Tamil Nadu Housing Board, Rep. by its 
Managing Director and Ors. 
v. 
S. Ganesan
(Civil Appeal No. 9631 of 2025)
21 July 2025
[Dipankar Datta* and N.V. Anjaria, JJ.]
Issue for Consideration
Whether in the facts and circumstances of the case, the High 
Court was justified in directing the sale deed of the plot to be 
executed in favour of the respondent subject to the fulfilment of 
the condition stated.
Headnotes†
Public Property – Occupied by the respondent for over three 
decades despite defaults in making the balance payment 
therefor – Long-drawn litigation – High Court directed the sale 
deed of the plot to be executed in favour of the respondent on 
payment of Rs.3 crore in three monthly instalments despite 
noting that the market value of the property was around Rs.4.86 
crore – Interference with:
Held: Respondent has been in occupation of the plot for over three 
decades having paid only Rs.1,97,031/- (Rs.1,19,731/- given as 
initial deposit and Rs.77,300/- later on) despite he having offered 
the bid of Rs.4,78,921/- in 1986 – He has been utterly lackadaisical 
while dealing with the appellant-Board, the High Court as well as 
this Court – Respondent was given sufficient indulgence by the High 
Court to make the balance payment for the Plot however, he did 
not avail of the opportunity so granted and has shown continued 
apathy and indifference with regard to compliance of judicial orders 
requiring payment to be made – Notwithstanding non-compliance 
of this Court’s order dtd.19.05.2025, the right of the respondent to 
make payment now stands conclusively closed even in terms of 
the impugned judgment – The Board, being the custodian of public 
property, holds it in trust for the public and is under a duty to take 
decisions regarding it which serves the broader public interest best – 
Indulgences granted to the respondent resulted in loss of revenue 
* Author
[2025] 7 S.C.R. 
1531
Tamil Nadu Housing Board, Rep. by its Managing Director and Ors. v. 
S. Ganesan
to the public exchequer on account of inflation in market value of 
the property from 1986 till date – Respondent to vacate the Plot and 
deliver possession of the Plot to the Board. [Paras 28, 29, 32, 33]
List of Keywords
Tamil Nadu Housing Board; Public Property; Plot; Prime Commercial 
Plot; Auction; Allotment; Failure to make initial deposit; Allotment 
cancelled; Defaulter; Chronic defaulter; Defaults in making 
the balance payment; Custodian of public property; Regular 
Allotment Order; Re-auction; Public interest; Cancellation order 
revoked; Direction to execute sale deed; Public auction; Loss of 
revenue to the public exchequer; Inflation in market value of the 
property; Sufficient indulgence; Lackadaisical attitude; Apathy and 
indifference with regard to compliance of judicial orders; Plot to 
be vacated; Possession of plot to be delivered.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9631 of 2025
From the Judgment and Order dated 28.01.2025 of the High Court 
of Judicature at Madras in WA No. 1347 of 2022
Appearances for Parties
Advs. for the Appellants:
Ms. G. Indira, P Gandepan, Ms. Amrita Kumari, Ms. Anjali Singh, 
Ms. Deepa Rathore, Ms. Raniba Pangnila.
Adv. for the Respondent:
S. Gowthaman.
Judgment / Order of the Supreme Court
Judgment
Dipankar Datta, J.
1.	
Leave granted. 
2.	
The first appellant1 invited sealed bids for disposal of Prime 
Commercial Plot No. PC-16 at Razaak Garden Road, Arumbakkam, 
1	
Board, hereafter
1532
[2025] 7 S.C.R.
Supreme Court Reports
Chennai - 6001062. An open auction was conducted on 23rd 
September, 1986. The respondent participated in such auction and 
offered a bid of Rs. 4,78,921/-. He emerged as the highest bidder 
and was declared as such. 
3.	
Vide letter No. AS 1/11364/1986 dated 23rd December, 1986, the 
Board communicated acceptance of the respondent’s offer for the 
Plot with a request to him to pay Rs. 1,19,731/- towards 25% as the 
initial deposit within 15 days from date of receipt thereof to enable 
it issue the Regular Allotment Order. 
4.	
Due to the respondent’s failure to make the initial deposit as aforesaid, 
the said allotment was cancelled vide order dated 01st June, 1987. 
5.	
The respondent thereafter made several representations to the 
Board to permit him to pay the arrears, which was ultimately 
allowed, as a special case, vide letter No. AR2/11364/86 dated 22nd 
November, 1993. It was stipulated therein that in add

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