2012 Supreme(SC) 549
SUPREME COURT OF INDIA
G.S. SINGHVI & SUDHANSU JYOTI MUKHOPADHAYA, JJ.
S. SRINIVASA MURTHY - Appellant
VERSUS
KARNATAKA HOUSING BOARD - Respondent
Civil Appeal No. 5584 of 2012 (Arising out of SLP (C) No. 12334 of 2009)
Decided on : 22-08-2012.
IMPORTANT POINT
Approbation and reprobation.
Headnote:Estoppel - Housing Board receiving full cost price of flat - Suggesting to allottee to show only 81% of the price as consideration amount for purposes of registration - Allottee agreeing to same giving undertake not to ask for refund of the rest 19% - Allottee saving on stamp duty on the basis of reduced consideration amount - Making claim before Consumer Forum for refund of 19% amount with interest - Allottee estopped from asking for refund - He cannot reprobate. (Paras 17 and 18)
(2004) 5 SCC 65 - Referred
Facts of the case:
1. The Housing Board allotted a flat on lease-cum-sale basis, later converted into outright sale basis at the instance of the allottee.
2. Allottee agreeing to show 81% of the cost price as sale consideration and giving undertaking not to ask for refund of the rest 19% amount.
3. After taking possession and registration of the flat, allottee made claims for refund of the amount with interest.
Finding of the Court:
After giving undertaking and taking advantage of the reduced consideration amount, the allottee cannot reprobate and ask for refund.
Result : Appeal allowed.
JUDGMENT
G. S. Singhvi, J.-This appeal is directed against order dated 14.3.2008 of the National Consumer Disputes Redressal Commission (for short, ‘the National Commission’) whereby the application filed by the appellant for review of order dated 9.9.2004 was dismissed.
2. In response to an advertisement issued by Karnataka Housing Board (respondent), which was published in the Times of India dated 14.7.1993, the appellant applied for allotment of a HIG flat in Vth Phase, Yelahanka under the self-financing scheme. He was allotted under S-HIGA Flat No.37, First Floor. In the allotment letter issued on 29.11.1993, the tentative cost of the flat was shown as Rs.3,40,000/-.
3. As per the advertisement, the flat was to be ready for occupation by December, 1994 but the construction of the flat was completed only in 1998 and possession thereof was delivered to the appellant on 19.5.1999.
4. In the meanwhile, the appellant sent letter dated 14.12.1998 to the Executive Engineer of the respondent with the request that he may be permitted to change the mode of purchase from lease-cum-sale basis to outright sale basis. He also conveyed his willingness to pay the balance amount required for that purpose. That letter reads as under:
“From
S.SRINIVASA MURTHY, QR 9/TYPE IV, TELECOM QUARTERS, C.T.O. COMPOUND, JUHU ROAD, MUMBAI-400054
To
The Executive Engineer, Karnataka Housing Board, KHB Metro No.1 Dn, BANGALORE - 560064.
Dear Sir,
Sub: Allotment of House at YELAHANKA-5 PHASE- SHIG-FF
Bangalore Metro Division I ALLOTMENT CODE: 210-288-37: Request to purchase the above under ABSOLUTE SALE DEED.
This is to request you kindly permit me to change the purchase of the above allotment from LEASE-CUM-SALE to ABSOLUTE SALE. I am willing to pay the balance amount required for this purpose on receiving a letter from you for this purpose. Please note that I require a letter indicating the balance amount to be paid so that I can avail loan from my office and send you the payment.
I shall await an early action on my request.
Thanking you,
Yours faithfully, Mumbai, 14-12-98
(S.SRINIVASA MURTHY)”
5. The respondent accepted the request of the appellant and allotted a flat to him in 3500-Multi-tenaments at Vth Phase, Yelahanka on outright sale basis. The cost of that flat was shown to be Rs.5,23,232/-.
6. Upon receipt of the revised allotment letters dated 22.1.1999 and 25.1.1999, the appellant sent communication dated 15.2.1999 to the Housing Commissioner of the respondent and protested against the alleged failure of the concerned authority to take cognizance of the fact that he had already deposited Rs.3,75,750/-. Thereafter, the respondent issued letter dated 6.4.1999 indicating therein that the appellant is required to pay the balance amount of Rs.1,57,482/-. The appellant accepted the revised allotment and deposited the remaining amount.
7. During the interregnum, the respondent suggested to the appellant that for the purpose of registration of the sale deed, the price of the flat be shown as Rs.4,31,918/- so that he will be required to pay registration charges on 81% of the total cost. The appellant conveyed his acceptance vide letters dated 22.8.1998, 27.11.1998 and 15.5.1999. The English translation of the last letter is reproduced below:
“(TRANSLATION)
KARNATAKA HOUSING BOARD "CONSENT LETTER"
I have been allotted by the Karnataka Housing Board Flat No.37-S-HIG 'A' F.F. on full price basis and I have paid the full value of Rs.533232.00. I am agreeable to the decision of the Board that the registration value should be 81% of the sale price namely Rs.43198.00 and the stamp duty should be paid over the said amount. If the remaining 19% of the value is included in the registration value the registration charges will be higher. Hence I agree to have the registration done at 81% of the sale price and I will not ask for refund of the remaining 19% of the sale price under any circumstances.
NAME OF THE ALLOTTEE
Sd/-
S.V. Srinivasa Murthy Date: 15.05.1999