SUPREME COURT OF INDIA
Faizan Uddin, Kuldip Singh
HOUSING BOARD, HARYANA, APPELLANT
VERSUS
HOUSING BOARD COLONY WELFARE ASSOCIATION AND OTHERS, RESPONDENTS.
Civil Appeals Nos. 7849-7851 of 1995
decided on September 1, 1995.
Housing Board, Haryana (Allotment, Management and Sale of Tenements) Regulations, 1972 - Section 11 - Haryana Consumer Protection Rules, 1988 - Rule 4 - Purposes of providing cheap and economical housing facilities - Payment of interest on demand by HUDA - Appellant Housing Board is statutory body constituted for purposes providing cheap and economical housing facilities - land for construction of tenements is provided by Haryana Urban Development Authority hereinafter which is also statutory body - Land is acquired by appellant-Board from HUDA stipulation with regard to enhancement in price of land consequent upon judicial pronouncement –Appellant Board invited applications for allotment of houses flats from economically weaker section belonging category – Held, Present case as laid before State Commission appellant contended that order was pronounced by District Forum in open court was not signed and dated as President had proceeded on leave soon thereafter and therefore neither reasons on which order was based were known nor copy thereof was furnished to appellant Board so as to know reasons and contents of order - It was also case appellant that on an enquiry by counsel for appellant Board he was informed by stenographer President that order would be dictated and typed after return President and that copy would be made available to parties only on signature of President and copy was in fact made available to counsel for appellant only - It may be pointed out that counsel appearing for appellant Board before National Commission had filed has own affidavit affirming these facts which have not been controverter by respondents - On contrary reply filed in this Court by Board Colony Welfare Association on behalf of respondents has admitted that in present case free copies were ready with office on which were collected by counsel for answering respondent whereas counsel for petitioner got same - Appeal allowed
JUDGMENT
FAIZAN UDDIN, J. - Delay condoned.
2. Leave granted.
3. The appellant Housing Board is a statutory body constituted for the purposes of providing cheap and economical housing facilities. The land for construction of tenements is provided by Haryana Urban Development Authority (hereinafter HUDA) which is also a statutory body. The land is acquired by the appellant-Board from HUDA under stipulation with regard to enhancement in the price of the land consequent upon judicial pronouncement. The appellant-Board invited applications for allotment of houses/flats from the economically weaker section, belonging to LIG/MIG category. The appellant-Board issued allotment letters to various applicants specifically mentioning in clause (9) of the allotment letters that as a result of the land award or arbitration proceedings, etc. if there is an increase in the cost, the Board may enhance the price of the dwelling houses/flats allotted to them. This condition was reiterated in clause 2(W) of the Hire Purchase Tenancy Agreement (Form A) entered into under Section 11(4) of the Housing Board, Haryana (Allotment, Management and Sale of Tenements) Regulations, 1972. It was also provided that there shall be no enhancement in the price after a period of 7 years from the date of allotment. According to the appellant-Board, this clause 2(W) of Form A of the Regulations was, however, amended by a notification dated 26-5-1985 whereby a proviso was inserted to the effect that the restriction of 7 years shall not be applicable when the escalation in the price is due to judicial pronouncement or award of an arbitrator.
4. Consequent upon the judicial pronouncements enhancing the compensation granted to the landowners, HUDA also raised an additional demand on 5-3-1992 on the appellant-Board demanding a sum amounting to Rs. 27,96,011.80 (approximately) for the land given to the appellant-Board. In pursuance of this demand by HUDA, the appellant-Board in turn, issued additional demand letters to its various allottees of the houses/flats towards the enhanced price of the land as per terms of the agreement and the regulations. In order to avoid payment of interest on the demand by HUDA the appellant-Board paid the entire amount to HUDA in May, 1992 including the interest that had accrued till the date of the said payment.
5. Three complaints were made before the District Consumer Forum, Kurukshetra by the respondents herein in the three appeals aforementioned against additional demand raised by the appellant-Board by contending that in view of clause 2(W) of the agreement the additional demand was barred by time having been made after more than 7 years of the allotment of houses/flats. The appellant-Board defended the said complaints by disputing the jurisdiction of the Consumer Forum to entertain such complaints besides other grounds of attack. The appellant-Board took the stand that there was no service rendered within the meaning of clause (o) of sub-section (1) of Section 2 of the Consumer Protection Act, 1986 (hereinafter the Act) nor was there any deficiency in the service within the meaning of clause (g) of Section 2(1) of the Act. According to the appellant the dispute, if any, related to an alleged breach of the terms of contract for which the remedy lies in the civil court and not in the Consumer Forum.
6. The District Forum by its order dated 22-10-1992 rejected the objections and defence set up by the appellant-Board, allowed all the three complaints and quashed the additional demand made by the appellant-Board. The appellant-Board filed three separate appeals on 30-11-1992 before the State Commission against the aforementioned order dated 22-10-1992 quashing the additional demands. The State Commission took the view that all the three appeals as were filed beyond the prescribed period of limitation under Section 15 of the Act and as no sufficient cause for condonation was pleaded, dismissed all the three appeals as barred by time. Being
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