Updated on Thursday, January 08, 2009, 00:00 IST

New Delhi, Jan 08: A person who buys a plot from its original allottee cannot claim any right over it in case the land owning agency cancels the allotment due to lapses committed by the plot applicant.

The buyer loses the right over the plot even if the transfer of the plot in his name was duly approved by the land owning agency, which later cancels the allotment.

A bench of Justices Altamas Kabir and Markandeya Katju took the view that the transferee has a right over the allotment only if the original allotment itself is valid.

The apex court rejected the argument of the transferee Baljit Singh that he had independent subsisting rights even after cancellation of the allotment made to the original allottee was cancelled by the Ludhiana Improvement Trust.

"We agree with the Chairman of the Trust that notwithstanding the fact that the transfer of the plot in favour of the appellant had been duly approved by the Trust, the appellant did not acquire any independent right in the plot and he had only acquired whatever rights the transferor or the original allottee had therein," the apex court observed in judgement.

Baljit Singh had filed the appeal after the Punjab and Haryana High Court dismissed his plea.

It was the case of Singh that in January 1989, one Shammi Verma was allotted a plot in the Development Scheme at Balmik Nagar by the Improvement Trust, Ludhiana.

However, in January 1989 the allotment was cancelled by the Trust on the ground that she did not fulfil the eligibility criteria.

But in the meantime, Shammi Verma had sold the land to Baljit Singh through a sale deed which was initially approved by the Trust, but subsequently cancelled on the ground that the original allotment was irregular.

The Trust took the stand that Shammi Verma did not meet the eligibility criteria for allotment and as such even the transfer made by her to Baljit Singh was invalid.

Aggrieved Singh filed the petition claiming that as a transferee he had independent rights irrespective of the fact that the original allotment was cancelled. The High Court rejected Singh's view and the apex court has now concurred with the ruling.

Bureau Report