P&H High Court Lays Down Formula To Calculate Amount Payable For Restoration Of Plot Resumed Over Instalment Default

KanoonHQ Legal Gazette · AI-generated brief from the source linked below. How briefs are made

Published 29 October 2026

Case: Not stated in source
Court: High Court of Punjab and Haryana
Bench: Not stated in source
Citation: Not stated in source
Source: LiveLaw

Bottom Line Up Front (BLUF)

The Punjab and Haryana High Court established a formula for calculating the amount payable for the restoration of a resumed plot due to instalment default. The formula considers the original price, instalments paid, interest on arrears, and current market value, ensuring a balanced approach for both allottees and authorities.

Ratio Decidendi · Legal Principle Established

When a plot is resumed due to default in instalment payments, the amount payable for its restoration should be calculated using a formula that accounts for the original price, instalments paid, interest on arrears, and the current market value, to ensure fairness.

Practice & Procedural Impact for Advocates

Advocates representing allottees seeking restoration of resumed plots should use the High Court's formula to calculate the exact amount due. Litigants should be prepared to pay the calculated amount, which includes interest on arrears and a component reflecting current market value. Authorities must apply this specific formula when determining restoration charges.

Key Legal Takeaways

1The High Court provided a specific formula for plot restoration charges.
2The formula balances original price, payments made, and current market value.
3Interest on arrears is a mandatory component of the restoration amount.

The Legal Issue The Punjab and Haryana High Court addressed the issue of calculating the amount payable for the restoration of a plot that had been resumed by authorities due to the allottee's default in paying instalments. The court sought to establish a clear and equitable method for determining the restoration charges.

Court's Reasoning The Punjab and Haryana High Court devised a formula to calculate the amount payable for restoration. The formula is: `Original Price - Instalments Paid + Interest on Arrears + (Current Market Value - Original Price) / 2`. This formula aims to ensure that the allottee pays for the delay and the authority is compensated for the opportunity cost, while also acknowledging the payments already made. The court emphasized the need for a balanced approach that is fair to both the allottee and the resuming authority.

What Follows Allottees seeking the restoration of a resumed plot must pay the amount calculated using this specific formula. The authorities are directed to apply this formula consistently when processing applications for plot restoration following instalment defaults. This ensures uniformity and transparency in such transactions.