Chandigarh Housing Board vs Avtar Singh

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2010 Supreme(SC) 895

IN THE SUPREME COURT OF INDIA
G.S. Singhvi & Asok Kumar Ganguly, JJ
Chandigarh Housing Board-Appellant
Versus
Avtar Singh and others-Respondents
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. OF 2010
(Arising out of SLP(C) No. 21740 of 2007)
C.A. No. of 2010 [arising out of SLP(C) No.831/2008]
C.A. No. of 2010 [arising out of SLP(C) No.832/2008 ]
C.A. No. of 2010 [arising out of SLP(C) No.834/2008 ]
C.A. No. of 2010 [arising out of SLP(C) No.24815/2007]
C.A. No. of 2010 [arising out of SLP(C) No.422/2008]
C.A. No. of 2010 [arising out of SLP(C) No.25308/2007]
C.A. No. of 2010 [arising out of SLP(C) No.25310/2007]
C.A. No. of 2010 [arising out of SLP(C) No.25313/2007]
C.A. No. of 2010 [arising out of SLP(C) No.25315/2007]
C.A. No. of 2010 [arising out of SLP(C) No.810/2008]
C.A. No. of 2010 [arising out of SLP(C) No.829/2008]
C.A. No. of 2010 [arising out of SLP(C) No.830/2008]
C.A. No. of 2010 [arising out of SLP(C) No.833/2008]
C.A. No. of 2010 [arising out of SLP(C) No.836/2008]
C.A. No. of 2010 [arising out of SLP(C) No.837/2008]
C.A. No. of 2010 [arising out of SLP(C) No.839/2008]
C.A. No. of 2010 [arising out of SLP(C) No.841/2008]
C.A. No. of 2010 [arising out of SLP(C) No.864/2008]
C.A. No. of 2010 [arising out of SLP(C) No.1011/2008]
C.A. No. of 2010 [arising out of SLP(C) No.1030/2008]
C.A. No. of 2010 [arising out of SLP(C) No.1309/2008]
C.A. No. of 2010 [arising out of SLP(C) No.1311/2008]
C.A. No. of 2010 [arising out of SLP(C) No.1343/2008]
C.A. No. of 2010 [arising out of SLP(C) No.1344/2008]
Decided on : September 22, 2010.

Headnote:(a) Chandigarh Allotment of Land to Co-operative House Building Societies Scheme, 1991 – Clause 4 – Provisions of the scheme not only regulating relationship of the Societies with their members, but also making them jointly and severally responsible for payment of the earnest money etc. – Finance Secretary and the Board issuing directions for payment of earnest money and interest by members of the Societies – Though no formal contract entered into between the Chandigarh Administration and the Board on the one hand and the members of the Societies on the other, the former exercising sufficient degree of control over the latter – By making applications for allotment of land, the Societies will be deemed to have hired or availed the services of the Chandigarh Administration and the Board in relation to housing construction – Societies and their members are covered by the definition of `consumer’ under Section 2(d)(ii) – As such, members of the Societies entitle to complain against illegal, arbitrary and unjustified forfeiture of 10% earnest money and non-refund of 18% interest – No infirmity in District Consumer Forum entertaining the complaints. (Para 27, 28)
       (b) Chandigarh Allotment of Land to Co-operative House Building Societies Scheme, 1991 – Clause 8 r/w rule 8, Chandigarh Lease Hold of Sites and Building Rules, 1973 – Society would have become entitled to refund of the earnest money without any deduction if it were to cancel the demand before allotment of land. (Para 29)
       (c) Capital of Punjab (Development and Regulation) Act, 1952 and Chandigarh Lease Hold of Sites and Building Rules, 1973 and Chandigarh Allotment of Land to Co-operative House Building Societies Scheme, 1991 – No provision for interest of 18% on earnest money – Interest was to be paid by societies for delayed payment as per High Court directions – Applicable only to society seeking and getting allotment – Ought to be refunded to societies not getting allotment – No infirmity in impugned order. (Para 32)
       Facts of the case:
       With a view to promote private housing and optimum utilisation of the land in Chandigarh by constructing multi-storeyed structures, the Administrator, Union Territory, Chandigarh framed a scheme called "Chandigarh Allotment of Land to Co-operative House Building Societies Scheme, 1991"
       Fifty three Societies challenged the 1991 Scheme in Writ Petition which was finally dismissed.
       In pursuance of observations of the High Court the Board refunded the earnest money deposited by the Societies, to whom no allotment was made, but after deducting 10% amount.
       The societies filed complaint before the Consumer forum and their case was allowed by all forums up to the National forum.
       Finding of the Court:
       There is no infirmity in the impugned judgment.
       Result:
       Appeal dismissed.

JUDGMENT

G.S. Singhvi, J.

1. Leave granted.

2. With a view to promote private housing and optimum utilisation of the land in Chandigarh by constructing multi-storeyed structures, the Administrator, Union Territory, Chandigarh framed a scheme called "Chandigarh Allotment of Land to Co-operative House Building Societies Scheme, 1991" (for short, `the 1991 Scheme') for allotment of land to Co- operative House Building Societies (for short, `the Societies') through Chandigarh Housing Board (for short, `the Board'). The opening paragraph of the 1991 Scheme and clauses 3, 4 and 6 to 12 thereof read as under:

"No. UTFI(3)-91/5214 - With view to promote private housing and optimum utilization of land by constructing multistoried structures, the Administrator, Union Territory, Chandigarh, is pleaded to intake the following scheme regulating allotment of land to the Co-operative House Building Societies, in the Union Territory, Chandigarh, namely:-

1. xxx xxx xxx

2. xxx xxx xxx

3. The Chandigarh Administration may conduct survey to assess the demand by inviting applications on prescribed forms available from the Chief Executive Officer, Chandigarh Housing Board alongwith 25% of the premium of land to be applied for as earnest money and proof that the Society has sufficient funds and resources to pay the balance of premium of land and to undertake construction work on the land if allotted to them through the Chandigarh Housing Board. Such Survey shall, however, not be construed as a commitment for allotment of land in any way.

4. The Chandigarh Administration shall allot land on chunk basis to the Chandigarh Housing Board for its further allotment to the eligible Co-operative House Building Societies from whom applications were invited under clause 3 above, having sufficient funds and resources to the satisfaction of the Estate Officer, on Lease Hold Basis for 99 years for the construction of multistoreyed structures/dwelling units (hereinafter called DU) and their allotment to its eligible members on the terms and conditions to be laid down in the allotment letter and lease deed. The land so allotted shall be planned in consultation with the Chief Architect and Secretary, Architecture Department, Union Territory, Chandigarh and developed by the Engineering Department as usual. The proposed land shall be got sanctioned from the Chief Administrator, Chandigarh as per the provisions of the Punjab Capital (Development and Regulation) Building Rules, 1952 as amended to date. The seniority of society may be determined from registration Number and date. The Administrator may allot land to the societies within the limits of Union Territory, Chandigarh subject to the fulfillment of provisions of the Scheme and the Capital of Punjab (Development and Regulation) Act, 1952 as amended from time to time and the rules made thereunder including the Chandigarh Lease Hold of Sites and Building Rules, 1973 (as amended from time to time). The society and its members shall be jointly and severely responsible for payment of premium including instalments and ground rent and for complying with terms and conditions, rules and regulations and the provisions of the Act referred to above. The minimum quantum of land that can be allotted is one acre and 40 to 60 number of Dwelling Units (as proved by the Chief Architect) are to be provided by the Society per acre. The Chandigarh Administration may fix cut off date for the purpose of allotment of land to the Societies as well as to members

6. Eligibility. - A society may be considered eligible for allotment of land if it is duly registered with the Registrar, Co- operative Societies, Union Territory, Chandigarh functioning property having sufficient funds/resources to pay the premium, to undertake the construction work, to complete it is stipulated period, and that each of its members fulfills the following conditions:- (i) He is a bona fide resident of the Union Territory of Chandigarh and should be re

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