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1989 Supreme(SC) 109

SUPREME COURT OF INDIA
G.L. OZA AND S.R. PANDIAN, JJ.
Bareilly Development Authority and another, Appellants
Versus
Ajay Pal Singh and others, Respondents.
Advocates appeared
Mr. Rajinder Sachher, Sr. Advocate and Mr. Bharat Sanghal, Advocate with him for Appellants; Mr. Harbans Lal, Sr. Advocate, Dr. Meera Agarwal, Mr. R. C. Misra and Mr. Arun Madan, Advocates with him, for Respondents.

Advocates:
ARUN MADAN, BHARAT SANGAL, HARBANS LAL BAJAJ, MIRA AGRAWAL, R.C.MISHRA, RAJINDER SACHAR

Headnote:CONTRACT ENTERED INTO BY THE STATE IS NON STATUTORY AND PURELY CONTRACTUAL AND NOT GOVERNED BY CONSTITUTIONAL PROVISIONS— NO WRIT OR ORDER CAN BE ISSUED UNDER ARTICLE 226 SO AS TO COMPEL THE AUTHORITIES TO REMEDY A BREACH OF CONTRACT PURE AND SIMPLE

       - as held in the case of Bareilly Development Authority v. Ajay Pal Singh, AIR 1989 SC 1076 = (1989) I JT 368 = ( 1989) 2 SCC 116, the contract is valid which determines the rights and obligations of the parties inter se.

JUDGMENT

S. RATNAVEL PANDIAN, J. :— These five appeals by Special Leave under Article 136 of the Constitution of India are preferred against the Judgment and Order dated 6-2-86 passed by the Allahabad High Court in Civil Misc. Writ Petition No. 2274/84 connected with Civil Misc. Writ Petitions Nos. 2983/84, 3860/84, 4558/84 & 3202/84 directing the respondents (appellants herein) to re-determine the cost of the appellants (respondents herein) flats and instalments payable by them after hearing their grievances.

2. Since identical contentions are urged in all the appeals, we are rendering a common judgment.

3. As it is said that Civil Appeal No. 2809/86 arising out of Civil Misc. Writ Petition No. 2274/84 is more comprehensive and the facts alleged therein may be taken as representative in character, the facts relating to this appeal are briefly stated :-

"The Bareilly Development Authority (hereinafter referred as BDA), the first appellant was constituted under Section 4 of the U. P. Urban Planning and Development Act, 1973 by the State Government for the purposes of development in the District of Bareilly. With a view to easing the acute housing problem in the said District, the BDA has undertaken construction of dwelling units for people belonging to different income groups styled as Lower Income Group, Middle Income Group, High Income Group and the Economically Weaker Sections (hereinafter referred as LIG, MIG, HIG and EWS respectively). The BDA issued an advertisement offering to register names of intending applicants desirous of purchasing dwelling houses/flats in any one of the different income groups intended to be constructed by the BDA. In this appeal i.e. Civil Appeal No. 2809/86, the respondents 1 to 17 and 20 got themselves registered for allotment of flats in MIG scheme and respondents 18 and 19 in HIG scheme with the BDA in accordance with the terms and conditions contained in the brochure issued by the Authority. The following table of the brochure shows the necessary details inclusive of the estimated cost for the different types of flats under various categories:-

Type of House Range of Income Cost Initial Payment Interest Approx monthly instalment

MIG Rs. 1000/ to Rs. 1500/- p.m. Rs. 65,000/- Rs. 5000/- 12% Rs. 551/- p.m. for 15 yrs.

HIG Rs. 1500/- and above p.m. Rs. 1,15,000/- Rs. 7000/- 12% Rs. 1440/- p.m. for 10 yrs.

LIG Rs. 351/- to Rs. 1000/- p.m. Rs. 35,000/- Rs. 2000/- 11% Rs. 345/- p.m. for 15 yrs.

EWS Rs. 350/- p.m. Rs. 11,000/- Rs. 100/- 7% Rs. 89/- p.m. for 20 yrs.

4. The note under the General Information Table given in the said brochure states that the cost shown therein is only estimated cost and it would increase or decrease according to the rise or fall in the price at the time of completion of the houses/flats.

5. All the respondents registered their names for MIG, HIG and EWS flats as the case may be and made the initial deposit. Thereafter, the respondents in MIG group received identical notices dated 19/20-1-84 from the Secretary, Bareilly Development Authority (second appellant) intimating that the revised cost of houses/flats of MIG group as well as the amount of monthly instalment would be as follows:-

1. No. of houses available for allotment 77

2. Cost of house Rs. 1,27,000/-

3. Down payment to be made/paid on allotment Rs. 35,000/-

4. No. of monthly instalment fixed for the payment of remaining amount 180

5. Rate of yearly interest 13.5%

6. Amount of monthly instalment with interest Rs. 1,031.50/-

6. By the said notice, the respondents in MIG group were informed that 40% of the houses/flats mentioned in the notice would be given to the allottees who would deposit the entire cost in one cash payment and that the other allottees who intend to buy houses/ flats on the above revised price/ instalment must send by 28-1-84 their written acceptance on the annexed pro forma to the Registration Section of the office of the BDA, otherwise their claims would not be included in the lots to be drawn on





































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