Punjab & Haryana High Court Quashes HSVP’s Cancellation of Auctioned Plot; Orders Restoration or Alternative Plot, Imposes ₹1 Lakh Costs on Authority
Case Name: Vishal Kandwal & Anr. vs. State of Haryana & HSVP
Date of Judgment: 16 October 2025
Citation: CWP-14243-2024 & CWP-13782-2024
Bench: Hon’ble Mr. Justice Anupinder Singh Grewal and Hon’ble Mr. Justice Deepak Manchanda
Held: The Punjab and Haryana High Court set aside the Haryana Shehri Vikas Pradhikaran’s (HSVP) cancellation of an 8-marla residential plot that had been validly auctioned and fully paid for, holding the action arbitrary, unjustified, mala fide and violative of Article 21. The Court directed HSVP to restore the allotment or allot an equivalent plot in the same vicinity within three months and imposed costs of ₹1 lakh in each petition.
Summary: The petitioner was the highest bidder in an e-auction for a residential plot in Sector-5, Pinjore, paid the entire amount, and received both the allotment letter and symbolic possession. HSVP later refunded the full consideration without notice, claiming the plot was cancelled because the area was on hilly terrain and the layout had been altered to create only large 1000-square-yard plots.
The Court found that HSVP’s justifications lacked any documentary basis and revealed no rational explanation for the abrupt change in layout. The authority admitted that it had levelled the land and reorganised the project, yet provided no evidence of due diligence prior to the auction. The Court held that Clause 39 of the e-auction policy did not apply because there was no force majeure or circumstance beyond control; rather, the cancellation was a result of internal mismanagement. The Court emphasised that HSVP, as a welfare authority, cannot act in a profit-driven manner to the detriment of citizens who invest life savings in affordable housing.
Relying on the doctrine of legitimate expectation and principles of fairness articulated by the Supreme Court in Brahmaputra Metallics, the Court ruled that the petitioner had a vested right to an alternative plot under the 2013 policy, which expressly permits carving out plots when originals are unavailable.
Decision: The High Court held the cancellation of the petitioner’s plot to be arbitrary, unjustifiable, and reflective of mala fide exercise of power by HSVP. The Court directed HSVP to restore the petitioner’s allotment or provide an equivalent alternative plot in the same vicinity by carving out or re-planning a suitable site within three months. The authority was further saddled with ₹1,00,000 in exemplary costs for its conduct, emphasising that public bodies cannot disadvantage citizens due to administrative lapses or profit-driven planning decisions.