Holding

A right to allotment that accrues through a successful lottery draw vests in the applicant and survives his death, passing to the legal heir, rendering the cancellation unlawful.

Summary

The appellant's father applied to NOIDA for a plot in 2006 and, after his death in 2007, was allotted a plot in an open lottery in October 2009. NOIDA cancelled the allotment in September 2011, arguing that the allotment was made to a deceased person. The appellant contended that the civil rights vested in his father passed to him as legal heir, and he had informed NOIDA of the death and deposited the required demand draft. The Supreme Court held that the father's application and successful lottery draw vested a right that survived his death and passed to the heir, and that NOIDA's cancellation was unjustified. Consequently, the Court directed NOIDA to issue a fresh allotment letter to the appellant and set aside the High Court's order, allowing the appeal.

Issues considered

Whether the right to a plot allotted through a lottery survives the death of the original applicant and passes to the legal heir.
Whether NOIDA was justified in cancelling the allotment on the ground that the original allottee was deceased.

Subjects

AllotmentAllotment of plotDeath of original allotteeDraw of lotsCancellation of allotmentCivil rightsLegal RepresentativeIntimation of deathAcceptance of demand draftFresh allotment letter

Judgment

[2024] 8 S.C.R. 805 : 2024 INSC 653

Steve Kanika
v.
New Okhla Industrial Development
Authority (Noida) & Anr.
(Civil Appeal No. 9815 of 2024)
27 August, 2024
[Ahsanuddin Amanullah* and Ujjal Bhuyan,* JJ.]

Issue for Consideration
The appellant’s father had applied for allotment of a plot under the
Respondent No.1/New Okhla Industrial and Development Authority
(NOIDA) in the year 2006. The father of the appellant had passed
away on 08.11.2007. After an open lottery held on 01.10.2009, the
father of the appellant was allotted a plot on 26.10.2009. However,
NOIDA on 21.09.2011 cancelled the allotment on the ground that
it was made in favour of a dead person on the day such draw of
lots was held.

Headnotes†
Allotment – Allotment of plot/land – Appellant submitted that
the application was made to NOIDA by the late father of the
appellant in his individual capacity and there cannot be any
denial of the fact that whatever civil right a person has passes
on to the next generation/Legal Representatives upon his death:
Held: The fact remained that the father of the appellant had properly
applied and was satisfying all the prerequisite conditions for allotment
which was followed by actual draw of lots and issuance of allotment
letter; undoubtedly though after his passing away – The demise of
the appellant’s father would not negate the right which stood vested
in the appellant – The appellant is the Legal Representative and
heir of his father – In the instant case, vide letter dated 10.11.2009,
the appellant had intimated NOIDA about the demise of his father
on 08.11.2007 – With the letter dated 23.11.2009, the appellant,
alongwith documents, had also submitted a Demand Draft for
Rs.7,46,825/-, which continues to be with NOIDA till date, as averred
by the appellant – What prompted NOIDA to accept the Demand
Draft in the first instance, and then retain the same even after
cancelling the allotment has not been explained – Further, there
* Author
806 [2024] 8 S.C.R.

Digital Supreme Court Reports

is no explanation as to why it took NOIDA two years to cancel the
allotment, once, admittedly, it was in the know of the death of the
appellant’s father – Had the cancellation followed in close proximity
to 10.11.2009 or had NOIDA refused to accept the Demand Draft
or returned it soon thereafter, the fate of this case could have taken
a different turn – On an overall circumspection, the appellant has
made out a case for the Court’s intervention – NOIDA directed to
issue fresh allotment letter in the name of appellant. [Paras 8, 10, 11]

Case Law Cited
Greater Mohali Area Development Authority v. Manju Jain [2010]
10 SCR 134 : (2010) 9 SCC 157 – distinguished.

List of Keywords
Allotment; Allotment of plot; Death of original allottee; Draw of
lots; Cancellation of allotment; Civil rights; Legal Representative;
Intimation of death; Acceptance of demand draft; Fresh allotment
letter.

Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9815 of 2024
From the Judgment and Order dated 21.10.2019 of the High Court
of Judicature at Allahabad in WC No. 71420 of 2011
Appearances for Parties
P.S. Patwalia, Sr. Adv., Ms. Ayshwarya Chandar, Advs. for the
Appellant.
Anil Kaushik, Sr. Adv., Ms. Arunima Dwivedi, Shashank Shekhar
Singh, Advs. for the Respondents.
Judgment / Order of the Supreme Court

Judgment
Ahsanuddin Amanullah & Ujjal Bhuyan, JJ.
Heard Mr. P.S. Patwalia, learned senior counsel for the appellant
and Mr. Anil Kaushik, learned senior counsel and Mr. Shashank
Shekhar Singh, learned counsel for the Respondents No.1 and 2
respectively. Leave granted.
2. The issue involved in this case is simple.
[2024] 8 S.C.R. 807

Steve Kanika v.
New Okhla Industrial Development Authority (Noida) & Anr.

FACTUAL OVERVIEW:
3. The appellant’s father had applied for allotment of a plot under the
Respondent No.1/New Okhla Industrial and Development Authority
(hereinafter referred to as ‘NOIDA’) in the year 2006. Be it noted, the
appellant had been authorised to apply as such in his own behalf
for a company, pursuant to consent and no-objection by the other
Directors of the company. After an open lottery held on 01.10.2009,
the father of the appellant was allotted a plot on 26.10.2009, for
which an allotment letter of even date was issued in favour of
the appellant’s father. The allotment was of Plot No.144, Block-C,
Sector-100, Noida, admeasuring 176.40 sqr. metres.
4. However, in the interregnum, the original allottee i.e. the father of
the appellant had passed away on 08.11.2007.
5. In that view of the matter, NOIDA on 21.09.2011 cancelled the
allotment on the ground that it was made in favour of a dead person
on the day such draw of lots was held. Assailing the said action,
the appellant filed a writ petition viz. Writ C No. 71420/2011 before
the High Court of Judicature at Allahabad, which was dismissed on
21.10.2019 (hereinafter referred to as the ‘Impugned Order’) by a
Division Bench.
SUBMISSIONS:
6. Learned senior counsel for the appellant submitted that the application
was made to NOIDA by the late father of the appellant in his individual
capacity and there cannot be any denial of the fact that whatever
civil right a person has passes on to the next generation/Legal
Representatives upon his death. Thus, in the present case, it was
contended that the moment the father passed away, the appellant
stepped into his shoes. As such, it was submitted that all rights which
had accrued in favour of the late father of the appellant i.e., a right
to be considered in the draw of lots devolved to the appellant. Upon
subsequently succeeding in the draw of lots, the allotment letter was
also issued. Mr. Patwalia contends that the allotment was wrongly
cancelled by NOIDA.
7. Per contra, learned senior counsel for NOIDA submits that the law
does not require the allotment of the plot to flow merely upon being
successful in the draw of lots. Mr. Kaushik submitted that success in
the draw of lots does not create any right. Further, it was contended
that the person in whose favour the allotment having been made
808 [2024] 8 S.C.R.

Digital Supreme Court Reports

being dead, such allotment in law could not be sustained and rightly
NOIDA had cancelled the allotment, more so, for the reason that the
appellant never chose to inform the NOIDA of the passing away of his
father, doing so only after the allotment letter was issued. In support
of his contentions, learned senior counsel referred to the decision
of this Court in Greater Mohali Area Development Authority v Manju
Jain, (2010) 9 SCC 157, the relevant being at Paragraphs No.21.1
ANALYSIS, REASONING AND CONCLUSION:
8. Having considered the matter, we find merit in the contentions urged
by the appellant. The fact remained that the father of the appellant
had properly applied and was satisfying all the prerequisite conditions
for allotment which was followed by actual draw of lots and issuance
of allotment letter; undoubtedly though after his passing away. In
our view, the demise of the appellant’s father would not negate the
right which stood vested in the appellant. The appellant is the Legal
Representative and heir of his father.
9. The objection taken by the learned senior counsel for NOIDA has
been evaluated and the judgment supra relied upon by him has been
examined by us. The objection cannot be accepted due to NOIDA’s
conduct which we deal with infra. We do not think the judgment is
applicable in the extant facts and circumstances. Manju Jain (supra)
is distinguishable for more reasons than one:
(i) The respondent therein took a ‘vague’ plea that the allotment
letter was never communicated to her;
(ii) The amounts sought for were never deposited by her, and;
(iii) The ratio laid down was that ‘if an order is passed but not
communicated to the party concerned, it does not create any
legal right which can be enforced through the court of law, as
it does not become effective till it is communicated.’2
10. In the case at hand, vide letter dated 10.11.2009, the appellant had
intimated NOIDA about the demise of his father on 08.11.2007. Further,

1 ‘21. Mere draw of lots/allocation letter does not confer any right to allotment. The system of draw of
lots is being resorted to with a view to identify the prospective allottee. It is only a mode, a method,
a process to identify the allottee i.e. the process of selection. It is not an allotment by itself. Mere
identification or selection of the allottee does not clothe the person selected with a legal right to allotment.
(See DDA v. Pushpendra Kumar Jain [1994 Supp (3) SCC 494: AIR 1995 SCC 1].)’
2 Para 24 of Manju Jain (supra).
[2024] 8 S.C.R. 809

Steve Kanika v.
New Okhla Industrial Development Authority (Noida) & Anr.

the appellant informed NOIDA that being a whole-time Director of the
company, just like his father, he was competent to execute a contract
with NOIDA. By way of letters dated 23.11.2009 and 18.10.2010, the
appellant requested NOIDA to move forward with the allotment. With
the letter dated 23.11.2009, the appellant, alongwith documents, had
also submitted a Demand Draft for Rs.7,46,825/- (Rupees Seven
Lakhs Forty-Six Thousand Eight Hundred and Twenty-Five only), which
continues to be with NOIDA till date, as averred by the appellant. What
prompted NOIDA to accept the Demand Draft in the first instance, and
then retain the same even after cancelling the allotment has not been
explained. What is also hard to comprehend is why it took NOIDA two
years to cancel the allotment, once, admittedly, it was in the know of
the death of the appellant’s father since at least 10.11.2009. Had the
cancellation followed in close proximity to 10.11.2009 or had NOIDA
refused to accept the Demand Draft or returned it soon thereafter,
the fate of this case could have taken a different turn.
11. On the first day of listing of the writ petition, the High Court on
13.12.2011 had directed NOIDA not to allot the plot in question in
anybody else’s favour. This order continued during the pendency of
the writ proceedings. Before this Court, on the first day of hearing
i.e., 02.06.2020, the parties had been directed to maintain status
quo as on the said date. In the wake of the sequence of events, as
has played out, and on an overall circumspection, the appellant has
made out a case for the Court’s intervention.
12. For the reasons aforesaid, NOIDA is directed to issue fresh allotment
letter within four weeks from today in the name of the appellant on
the same terms and conditions as was mentioned in the original
letter of allotment dated 26.10.2009 with the modification that the
time-limit would run from today.
13. The Impugned Order is set aside; the appeal is allowed accordingly.
14. I.A.s No. 42353/2020 and 42349/2020 are allowed. I.A. No.
42504/2020 is disposed of.

Result of the case: Appeal allowed.

†
Headnotes prepared by: Ankit Gyan