9911796707
TMI Blog1998 (12) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... ee') as per a letter of allotment issued by Haryana State Industrial Development Corpn. Ltd. ('the Corporation'). The said plot is situated within the industrial complex at Dundahera in Gurgaon District, Haryana. The price for such allotment was tentatively fixed as Rs. 13,455 and the allottee was put in possession thereof. On completion of remittance of the entire amount payable by the allottee, a registered deed of conveyance was executed on 10-12-1982 by the Corporation in favour of the allottee. In fact the said plot was transferred by Haryana Urban Development Authority (HUDA - its acronym) in favour of the Corporation for facilitating the objects and purposes of Haryana Urban Development (Disposal of Land and Buildings) Regulation, 1978. 3. As the allottee failed to establish the industrial unit till the end of 1983, a notice was issued by the Corporation on 6-1-1984 calling upon the allottee to show cause why the plot should not be resumed. In the reply which allottee sent to the Corporation, certain reasons were highlighted for showing why it could not complete construction of the building for the proposed industrial unit. But the Corporation was not satisfied with the rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otment, plot was rightly resumed by HSIDC. On resumption of plot, it became the absolute property of HSIDC and allottee had been left with no right, title or interest in the property which he could transfer to second plaintiff." 8. The High Court further noted that the plot which could fetch only bid amount of Rs. 10,000 per sq. metre has subsequently registered an escalation reaching its price up to Rs. 45 lakh. Accordingly, the High Court held that the petitioner purchased the plot for speculative purposes and hence, 'no indulgence of any kind can be shown by the court to a claim which is not bona fide, nor can the court come to the aid of a person trying to resile from the express obligation undertaking by him with the State or its agencies'. 9. The learned counsel for the respondent did not make any endeavour to show that section 52 is a bar to the petitioner to purchase the subject- matter of the suit, presumably because the bar contained therein is intended not to affect the rights of any other party thereto under any decree or order which may be made therein, except under the authority of the court and on such terms as it may impose. 10. The learned counsel for the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Country Planning Department or any other office duly authorised by him in this behalf. Further the allottee shall complete the erection and installation of machinery and commence production within a period of 3 years from the date of allotment of plot railing which the plot be liable to be resumed by the Corporation. Provided that the time under this clause may be extended by the MD, HSIDC Ltd. in case the failure to complete the building and commencement or production by the stipulated date was due to reasons beyond the control of the allottee. The Corporation shall also have the right to call for periodical reports every six months from the allottee starting from one year after the date of delivery about the progress in implementation of the project and if after hearing the allottee in the opinion of the MD the progress, is found to be unsatisfactory he may order the plot resumed." 13. On 6-1-1984 the Corporation issued a notice to the allottee calling upon him to show cause why the plot should not be resumed as per clause 7 of the agreement. It is useful to extend the contents of the said notice as under: "You were allotted plot No. 70 in the industrial complex at Udyog V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 11. But that contention was repelled, according to us, rightly, because the deed of conveyance had not created any absolute interest in favour of the allottee in respect of the plot conveyed. For a transferee to deal with interest in the property transferred 'as if there were no such direction' regarding the particular manner of enjoyment of the property, the instrument of transfer should evidence that an absolute interest in favour of the transferee has been created. This is clearly discernible from section 11. The section rests on a principle that any condition which is repugnant to the interest created is void and when property is transferred absolutely, it must be done with all its legal incidents. That apart, section 31 is enough to meet the aforesaid contention. The section provides that 'on a transfer of property an interest therein may be created with the condition superadded that it shall cease to exist in case a specified uncertain event shall happen, or in case a specified uncertain event shall not happen'. Illustration ( b) to the section makes the position clear, and it reads: "A transfers a farm to B, provided that, if B shall not go to England within thre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect is well-settled and might be stated in simple terms. An assignment of a contract might result by transfer either of the rights or/of the obligations thereunder. But there is a well-recognised distinction between these two classes of assignments. As a rule, obligations under a contract cannot be assigned except with the consent of the promisee, and when such consent is given, it is really a novation resulting in substitution of liabilities. On the other hand, rights under a contract are assignable unless the contract is personal in its nature or the rights are incapable of assignment either under the law or under an agreement between the parties." 20. Here the agreement was entered into between the Corporation and the allottee, as a sequel to the request made by the allottee to give him. an industrial plot for the purpose of setting up an industry. Corporation reciprocated to the request on being satisfied that the allottee was able to carry out the obligations so as to accomplish the purpose of allotment. The assurance given by the allottee that he shall start construction of the building for setting up the industry within a period of six months and complete the construction t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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