SC bars commercial plot holder from acquiring residential plot

NEW DELHI, JULY 20: The Supreme Court has held that if a person builds a residential flat on a commercial plot, he or his family members w...

NEW DELHI, JULY 20: The Supreme Court has held that if a person builds a residential flat on a commercial plot, he or his family members will be barred from acquiring a residential plot in the same city. A two-judge bench ruled in favour of an appeal filed by the Chandigarh Housing Board, challenging the National Consumer Redressal Forum8217;s judgment in the case.

A commercial plot was allotted to a person by the Chandigarh Notified Area Committee in April 1979 on free-hold basis at the Motor Market commercial complex in Manimajra. He constructed a building in which the ground floor was used for commercial purposes and the first floor was used as a residence. Later, his wife applied for allotment of a residential plot after declaring that neither she nor her husband or any of her dependent relations owned any free-hold plot or house in the Union territory of Chandigarh, Mohali or Panchkula.

A residential plot was allotted to her but later, the authorities cancelled the allotment realising that her husband owned a residential flat. She challenged the cancellation in the district Consumer Disputes Redressal Forum, which directed the authorities to allot her a residential plot. The state and National Consumer Redressal Forum also upheld the district forum8217;s order.

However, when the Chandigarh Housing Board challenged the ruling in the Supreme Court, a bench comprising Justice M Jagannadha Rao and Justice D P Mohapatra allowed the appeal, saying it was an admitted fact that there was a residential flat on the second and third floors of the building on the commercial plot.

The wife of the allottee had contended that her husband was allotted only a commercial plot and that he did not own any residential plot which would have barred her from being eligible for a residential plot in Chandigarh.

Rejecting her contention, the bench said as her husband owned a residential house within the territory in question, the wife of the allottee was not eligible for allotment of another residential plot from the said authority. The bench said: 8220;It must be realised that these plots are allotted on concession basis to the allottees by the public authority and the relevant regulations must therefore be interpreted in such a manner to serve their real purpose so that the plots are available, as far as possible, to the largest number of persons.8221;

It added that this ruling would ensure that members of one family, whether a husband or wife or their dependents, would be prevented from getting more than one plot or house for the same purpose.

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The court was of the view that the words 8220;residential house8221; in the regulation must be treated as including a flat constructed on the ground floor as well. 8220;This will be so even if originally the plot was allotted for commercial purpose and incidentally, construction of residential flat above the ground floor commercial plot is permitted as per plans,8221; the court said.

Therefore, the court was of the view that the declaration made by the wife that her husband did not own a residential house was incorrect.