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        Companies Law

        2001 (3) TMI 963 - SC - Companies Law

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        Completed allotment protected from later policy change; concluded contract entitled allottee to original terms and delivery of plot. A completed allotment cannot be defeated by a later policy change when the authorities had already identified the plot, accepted the allottee's ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Completed allotment protected from later policy change; concluded contract entitled allottee to original terms and delivery of plot.

                                A completed allotment cannot be defeated by a later policy change when the authorities had already identified the plot, accepted the allottee's acceptance, and retained the earnest money. Those steps were treated as a concluded allotment and, consequently, the later auction policy could not be used to cancel it or require resale by auction. The Commission was therefore justified in directing delivery of a plot of the allotted size at the original rate and in awarding interest on the excess earnest money retained. The impugned order was upheld and the appeal failed.




                                Issues: Whether the allotment in favour of the complainant had been completed so that a subsequent change in policy could not be relied upon to cancel it and require resale by auction.

                                Analysis: The complaint was founded on the cancellation of an allotment after the authorities had already identified a plot, accepted the complainant's acceptance, and transferred the earnest money. The Court held that these steps amounted to completion of the allotment and that the later policy requiring auction could not be invoked to defeat an existing concluded allotment. On that footing, the Commission was justified in directing delivery of a plot of the allotted size at the original rate and in awarding interest on the excess earnest money retained.

                                Conclusion: The issue was decided against the appellant and in favour of the respondent.

                                Final Conclusion: The impugned order was upheld and the appeal failed.

                                Ratio Decidendi: A subsequently changed governmental policy cannot be used to cancel or alter a completed allotment, and where the allotment has culminated in a concluded contract, the allottee is entitled to performance on the original terms.


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