JUDGMENT :

Having heard the learned counsel for the parties, we are of the opinion that the Division Bench of the High Court of Karnataka has erred by relying upon their earlier decision in the case of E.R. Manjaiah and others v. Bangalore Development Authority and others, ILR 1997 KAR 1025 as the factual matrix in the present case is different.

2. The respondents in the present case had exercised their option to be governed by the terms of the notification dated 15.10.1988. Therefore, the respondents by choice gave up their right to be governed by the earlier notification dated 10.03.1988. There were good-reasons why the respondents had given up their right to be allotted sites in terms of the notification dated 10.03.1988 as the Bangalore Development Authority²[For short, ‘the Authority’.] was not in a position to make allotments to all the applicants registered under the notification dated 10.03.1988. In any case, once the respondents had by consent agreed to the terms and conditions mentioned in the notification dated 15.10.1988, they cannot fall back on the notification dated 10.03.1988.

3. The notification dated 15.10.1988 had referred to the sites ‘proposed’ at three different locations/layout plans.

Further, Clause 16 of the notification stated thus:

“16. The B.D.A. reserves its right to allot sites in any layout other than the ones preferred by the applicant. Owing to unforeseen Court litigations and impediments, if any, the B.D.A. also reserves its right to allot sites in any one of its future layouts i.e., in the layouts not advertised at present.”

4. The Authority was again unable to allot the sites mentioned in the notification dated 15.10.1988 for various reasons, including litigation. In any case, the sites specified in the 15.10.1988 Notification were only ‘proposed’ sites. In 1997-1998 the Authority issued allotment letters to the respondents for sites in the layout plan which they had subsequently developed. These sites were not mentioned in the notification dated 15.10.1988. The allotments were to the advantage and for the benefit of the respondents as allotment at the sites mentioned in the notification dated 15.10.1988 was not possible. The respondents had the choice to withdraw their initial deposit and not accept the allotment. Apparently, the respondents were interested and wanted the sites offered, albeit at the price applicable and paid by allottees under the 10.03.1988 Notification.

5. Rule 12 of the Bangalore Development Authority (Allotment of Sites) Rules, 1984³[For short, ‘the Rules’.] stipulates as under:

“12. Value of the site.-The value of a site notified while inviting applications may be altered by the authority and an allottee may accept the site at the altered price or decline allotment.”

Interpreting the said Rule, the Division Bench in the case of E.R. Manjaiah (supra), referring to several decisions of this Court and Karnataka High Court, held that the Authority was entitled to charge the price prevailing on the date of allotment.

6. Once this legal position and facts as accepted, we do not think that the respondents were entitled to any relief on the plea of parity relying upon the decision in the case of E.R. Manjaiah (supra). The facts in E.R. Manjaiah (supra) were different as the allottees had already been issued allotment letters for the sites under the notification dated 10.03.1988. Subsequently, the Authority could not allot the allotted sites to some of the allottees. Fresh allotment at new sites were made at a higher price. In E.R. Manjaiah (supra) it was held that while there was no vice of illegality or unconstitutionality in the power of the Authority to enhance the prices under Rule 12 of the Rules, the Authority had no right to alter the sital value according to its convenience or whims without furnishing any explanation. As Rule 12 is equally applicable to all persons similarly situated, the allottees given plots at the new sites could not be discriminated against other allottee