Allotment of flat

Acceptance letter – Clause in the allotment letter reads as: “In case you accept this allotment, you should send your acceptance by registered post along with amount of balance of twenty five percent of price within sixty days from the date of receipt of allotment letter.” -- An acceptance letter had not been sent by allottee, thus, the allotment in her favour remained of no significance. Greater Mohali Area Development Authority & Anr. v. Manju Jain & Others, 2011(1) L.A.R. 147 (SC).

Allottee did not make any response whatsoever after applying for allotment -- No explanation for why she kept quiet for 4½ years after receiving the allocation letter and why she did not make any attempt to find out what had happened to her application – Allottee did not send her acceptance of the allotment; did not deposit the amount which became due; and did not execute the required hire-purchase agreement with the authority -- It is solely because of her that no concluded contract could come into existence between the parties -- In such a fact-situation, the allottee could not be handed over possession of the flat -- Forfeiture of the earnest money is in terms of the statutory provisions. Greater Mohali Area Development Authority & Anr. v. Manju Jain & Others, 2011(1) L.A.R. 147 (SC).

Draw of lots – Mere draw of lots/allocation letter does not confer any right to allotment –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. Greater Mohali Area Development Authority & Anr. v. Manju Jain & Others, 2011(1) L.A.R. 147 (SC).