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1990 Supreme(Bom) 212

IN THE HIGH COURT OF BOMBAY
H.H. Kantharia, J.
Jiwan Nath Razdan... Petitioner.
Versus
State of Maharashtra and others ... Respondents.
Writ Petition No. 1597 of 1987, decided on 22-6-1990.
Advocates appeared :
Aspi Chinoy with B.H.P. Sharma, for petitioner.
B.N. Shroff for respondent Nos. 1 to 3.
Virendra V. Tulzapurkar with K.K. Pradhan, for respondent No. 4.

Headnote:MAHARASHTRA HOUSING AND AREA DEVELOPMENT ACT, 1976.

       Section 2 (4)- Authority premises-Ceasing to be authority premises-Hire purchase agreement-For ceasing to be authority premises it is not necessary that full and final payment is made to Board- Instead Board further has to lease out property to housing society formed by allottees and then property conveyed to society.

       The question is, if on making full and final payment (with regard to the hire-purchase agreement, the" Authority premises" were not to belong to any vest in Authority then to whom would the same belong and vest in? In the matter of allotment of premises on the basis of deferred payment (i.e. heir purchase basis) the said Regulations, framed under Section i85 of the said Act of 1976 with the previous sanction of the State Governmej1t, provide under Regulation 21 that in order to completely transfer the premises so as to cease as belonging to and vesting in the Authority a Housing society has to be formed by the intended allottees and on formation of such a society, the Board should arrange to lease the property out to the housing society and thereupon the society shall hold the property as allottes of the Authority until all the allottees have paid the full purchase price of the tenements and all other outstandind dues, if any, to the Authority and the property is duly conveyed to the housing society provided that, where the allottees have paid the full purchase price and there are no outstanding dues to the authority, and the property is duly canveyed to the society, as provided in this Regulation the tenancy executed in favour of the housing society shall terminated and the building shall cease to be "authority premises" and the housing society shall hold the building as owner thereof subject, however, to the condition that the land beneath and appurtenant to the building shall be held on lease from the Authority. In other words, it is not enough that the full and final payment towards the hire purchase agreement is made to the Board but further the Board has to lease out the property to the housing society formed by the allottees and unless the property is conveyed to the society, the premises would not cease to be "Authority premises".

JUDGMENT - H.H. KANTHARIA, J.:---On or about November 15, 1965, the petitioner was posted as Settlement Officer-cum-Deputy Custodian of Evacuees property in the office of the Regional Settlement Commissioner at Bombay. Respondent No. 4 was an employee of Glaxi Laboratories India Limited at Bombay and was transferred to Delhi in the year 1965. One K.K. Kapoor who is the brother-in-law of respondent No. 4 negotiated with the petitioner on behalf of respondent No. 4 and the petitioner was put in possession of a residential flat bearing No. D 67/650 situate at M.I.G. Colony, Gandhi Nagar, Bandra (East), Bombay (hereinafter referred to as "the suit premises") on a monthly compensation of Rs. 250/-. The said flat was taken on hire-purchase basis by respondent No. 4 from the Maharashtra Housing Board and the period of hire-purchase was to expire on 31-7-1979. According to the petitioner, he had made all the payments to the Maharashtra Housing Board towards the hire purchase agreement whereas it is the case of respondent No. 4 that in fact he had made all the payments. The petitioner contended that sometimes he made payments to one V.K. Sibal, brother-in-law of K.K. Kapoor. He also contended that he had made the final payment on February 22, 1983 thus completing full payments. In the meanwhile, in 1973 the Maharashtra Housing Board had adopted proceedings against the petitioner and respondent No. 4 in which an eviction order was passed against both. In the year 1974, petitioner preferred an appeal against the said eviction order in which he made a statement that he was a care taker of respondent No. 4 in respect of the suit premises. Respondent No. 4 had also preferred an appeal and by a common order dated 17-5-1974 both the appeals were allowed. Thereafter, the competent authority of the Board (the second respondent) issued a show cause notice dated 5-6-1986 to the petitioner under section 66 of the Maharashtra Housing and Area Development Act, 1976 (hereinafter referred to as the "said Act of 1976") as to why eviction proceedings should not be taken against him. On 31-7-1986, the competent authority passed an order of eviction against, the petitioner. The petitioner preferred an appeal to the Appellate Officer of the Board (the third respondent) who by his order dated 4-12-1986 dismissed the petitioner's appeal. In the meanwhile, on 6-3-1983 petitioner made an application to Maharashtra Housing Board on diverse circulars of the Board from time to time that the premises in question be regularised in his favour.

2. Being aggrieved by the aforesaid eviction orders dated 31-7-1986 of the Competent Authority and dated 4-12-1986 of the Appellate authority, the petitioner invoked writ jurisdiction of this Court by filing this petition under Article 226 of the Constitution. The writ petition was admitted on 7-5-1987 when a direction was given to the Board to consider and proceed with the application of the petitioner regarding regularisation of the suit premises.

3. In support of the petition, Mr. Chinoy submitted that Maharashtra Housing and Area Development Authority (hereinafter referred to as "MHADA") did not have the necessary jurisdiction to pass the impugned orders. The submission of the learned Counsel is that once the entire amount towards the hire purchase agreement was paid up, MHADA was left with no interest in the suit premises and, therefore, could not have passed the impugned orders thus interfering with the internal dispute between the petitioner and respondent No. 4. Mr. Chinoy also questioned the non-action on the part of MHADA in not finalising the application of the petitioner for regularisation of the suit premises and pending final disposal of the said regularisation application passing the eviction orders. He further urged that the impugned orders were biased and the MHADA has acted at the behest of respondent No. 4 and thus both law and equity are in favour of the petitioner. Mr. Chinoy also submitted that regulation




























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