2007(1) Supreme 675
SUPREME COURT OF INDIA
(From Rajasthan High Court)
H.K. Sema and P.K. Balasubramanyan, JJ.
State of Rajasthan & Anr.—Appellants
versus
H.V. Hotels Pvt. Ltd. & Anr.—Respondents
Civil Appeal No. 176 of 2007
(Arising out of SLP (C) No. 12611/2006)
Decided on 12-1-2007
Counsel for the Parties :
For the Appellants : Vijay Hansaria, Sr. Advocate, Jatinder Kumar Bhatia and Ms. Sneha Kalita, Advocates.
For the Respondents : R.Y. Kalia, G.P. Thareja and Dr. Kailash Chand, Advocates.
Held : It is clear that the auction took place on 14.2.1996. The bye-laws of 2000 came into force only on 1.2.2001. There is no case that the said bye-laws had retrospective operation. The sale deed stipulated the floor area ratio as 1.0. This was in terms of the bye-laws then existing. However, the sale deed further stated that if consequent upon any changes in Building bye-laws framed by local authorities including the Jaipur Development Authority, if the buyer gets additional floor area ratio or any relaxation, the State shall not have the objection whatsoever so long as they are permitted by the bye-laws as prevailing from time to time. This, at best, would mean that the bye-laws of 2000 which were in operation when the purchaser applied for an approval of the plan or fixation of parameters, might be applicable notwithstanding the parameters specifically stipulated in the sale deed executed in favour of the purchaser. But then, the court has necessarily to consider the effect of all the relevant clauses in the new bye-laws. It is not open to it to ignore one clause and place undue reliance on another clause. It may be true that the Building Bye-Laws of 2000 fixed a floor area ratio as 1.75 in general, but the question is whether the same could be applied in the case of the present purchaser ignoring bye-law 19.8 of the bye-laws.(Para 9)
Here, obviously, the parameters at the time of the auction, fixed the floor area ratio as 1.0. This is also emphasized by the sale deed in favour of the purchaser. The effect of bye-law 19.8 is clearly that the relevant date for fixing the parameters will be the date of auction, notwithstanding that the new bye-laws might have provided for a higher floor area ratio. The effect of bye-law 19.8 cannot get obliterated by the principle recognized by this Court that normally the relevant date is the date of sanctioning of the plan. Of course, going by that ratio, the bye-laws applicable may be the bye-laws of 2000. The floor area ratio may be 1.75 but for the specific provision in the very bye-laws relied on by the purchaser, that in cases of plots sold by auction, the parameters will remain the same as specified at the time of auction.(Para 10)
The purchaser bid the property in auction knowing fully well, the conditions of the auction with a view to commercially exploit the site. He was aware of the parameters. He was a businessman, an adept in his field. It is not open to the purchaser to get out of the obligations incurred by him by relying on a vague plea of estoppel. The recital in the sale deed does not estop the State from pointing to bye-law 19.8 and taking up the position that going thereby, the purchaser has to fulfill the parameters available at the time of the auction. No principle of estoppel can prevent the State from adopting that stand. We find no merit in the plea of estoppel sought to be raised. There is also no representation in the sale deed acted upon to his detriment by the purchaser on which a plea of estoppel can be founded.(Para 13)
Merely because subsequently the bye-laws have been amended, it does not mean that the parameters should be relaxed in favour of the purchaser. That would be clearly an erroneous approach to the question of relaxation and assumption of such a power would mean the nullification of Building rules themselves and the object sought to be achieved by the Building rules and the need to have planned development of cities and towns in the interests of posterity. Therefore, in our view, there is no merit in the plea based on the power to relax contained in the amended bye-laws.(Para 14)
JUDGMENT
P.K. Balasubramanyan, J.—Leave granted.
2. The Government of Rajasthan issued a public notice advertising sale by auction of a plot of land measuring 10,490 square metres. The purchaser was to use the plot for construction of a hotel. The auction took place on 14.2.1996. The first respondent, acting through its Director, the second Respondent, entered the highest bid. The said bid was accepted. The bid amount was deposited by the respondent on 4.5.1996. The State of Rajasthan – the appellant herein, executed a sale deed in favour of the second respondent in his capacity as the Director of the first respondent on 26.3.1997. The sale deed stipulated that out of the total extent, an extent of 1,510 square metres will be surrendered by the purchaser free of cost for widening of an existing road and that the purchaser will be given the benefit of the floor area ratio calculated on the basis of the original plot size of 10,490 square metres. The parameters of construction were set out and the floor area ratio was given as 1.0. There was also a stipulation that consequent upon any change in Building bye-laws framed by the local authorities including the Jaipur Development Authority, if the buyer got additional floor area ratio or any relaxation, the State would have no objection, so long as the same are permitted by the bye-laws prevailing from time to time.
3. Possession was delivered to the purchaser on 26.7.2000. According to the purchaser, there was a shortage of 263 square metres in the area. The purchaser, therefore, applied to the Government for redressal of his grievance regarding the shortage in extent. On 22.3.2000, the Government agreed to adjust the said extent of 263 square metres as against 1,510 square metres the purchaser had to surrender free of charge for the widening of the road. On 17.8.2001, the purchaser sought permission to change the user of the land and for permission to construct a multi purpose commercial complex and multi complex instead of a hotel. On 27.11.2001, permission for such changed user was given by the State.
4. Meanwhile on 1.2.2001, new Building bye-laws were promulgated by the Jaipur Development Authority. The bye-laws of 2000 thus promulgated permitted a larger floor area ratio than the one prevalent at the time of auction in which the respondent bid. The purchaser applied on 27.4.2004 for increasing the floor area ratio so as to enable him to have the floor area ratio of 1.75 instead of 1.0. The purchaser relied upon the clause in the sale deed that the seller would have no objection if the buyer gets additional floor area ratio or any relaxation if so permitted by bye-laws as prevailing from time to time and the fact that as per the bye-laws of 2000 the permissible floor area ratio was 1.75. The State rejected the claim of the purchaser relying upon by law 19.8 of the Jaipur Development Authority (Jaipur Region) Building Bye-Laws of 2000. Feeling aggrieved, the purchaser approached the High Court with a writ petition, CWP No.5617 of 2004. In that writ petition, the purchaser impleaded only the State of Rajasthan and the Secretary (Estate), General Administration Department of the Government of Rajasthan. The purchaser did not implead the Jaipur Development Authority which was the sanctioning authority, concerned with the sanctioning of the floor area ratio.
5. The State of Rajasthan and the Secretary (Estate), opposed the writ petition. It was pointed out that the relief prayed for in the writ petition could not be granted without the Jaipur Development Authority being on the party array and that even otherwise, the claim of the purchaser was unsustainable for the reason that in the building bye-laws of 2000 there was a specific provision confining all the parameters of construction including the floor area ratio, to the one as specified at the time of auction and the floor area ratio specified in the case of the writ petitioner-purchaser, was only 1.0 and the same could not be a
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