Restoration of housing allotment for chronic defaulters is contingent upon time-bound payment of outstanding dues.

The respondent was allotted an independent residential house (HIG House No. 53, Hosur) by the Tamil Nadu Housing Board (TNHB) on 27.09.1996

The respondent defaulted on the initial payment of Rs. 2,51,000 and subsequent monthly installments

Consequently, the TNHB cancelled the allotment on 11.01.1997, a decision confirmed on 14.10.1997

The respondent filed W.P. No. 14810 of 1997, where the Court, on 24.09.2004, directed the restoration of allotment subject to the payment of all dues and interest within eight weeks

The respondent failed to comply and remained a chronic defaulter for 14 years

However, pursuant to a subsequent writ order dated 30.03.2022, the respondent paid Rs. 35,25,000, which the TNHB adjusted against the total dues, claiming a remaining balance of Rs. 16,99,587

The TNHB challenged the 2022 writ order via this intra-court appeal

1. Whether a chronic defaulter, who failed to comply with previous court-mandated payment deadlines, is entitled to the restoration of an allotment cancelled decades prior

2. Whether the respondent is entitled to financial waivers under G.O.Ms.No.116 (Housing and Urban Development Department) dated 04.08.2025

The Court adjudicated the matter under Clause 15 of the Letters Patent regarding intra-court appeals

It applied the principle of equity to balance the contractual obligations of an allottee with the socio-economic status of a retired government servant

The Court emphasized that conditional judicial orders for restoration of allotment must be strictly complied with to maintain legal validity

It further acknowledged the administrative authority of the Housing Board to calculate outstanding dues, including interest and penal interest, as per the terms of the allotment

The Court observed that the respondent was a "chronic defaulter" who had failed to meet the initial financial requirements of the 1996 allotment and ignored the 2004 Writ Court's deadline for payment

It noted that the cancellation orders of 1997 remained technically unchallenged and the respondent was not in possession of the property

While the respondent argued for benefits under G.O.Ms.No.116 for waiver of penal interest, the Court held that the primary condition for securing the allotment remained the full settlement of dues

However, because the TNHB had already accepted a substantial payment of Rs. 35,25,000 and the respondent is a retired government servant, the Court invoked equitable jurisdiction to grant a final, time-bound opportunity to settle the balance of Rs. 16,99,587

(ii) If paid, the TNHB must hand over possession and execute the sale deed

(iii) If the respondent fails to pay by the deadline, the 1997 cancellation orders shall stand confirmed, and the TNHB must refund the total amount paid by the respondent within four weeks thereafter

No costs were awarded