The cancellation of land allotment by MHADA was justified due to the Trust's failure to comply with payment obligations and suppression of material facts.

JUDGMENT :

Kamal Khata, J.

1) By this Petition under Article 226 of the Constitution of India, the Petitioners seek cancellation of the Order contended in the letter dated 1^st July, 1999 whereby Maharashtra Housing and Area Development Authority (“MHADA’)-Respondent No.1 cancelled the allotment of the plot in favour of the Petitioner-Trust. Additionally, it also seeks cancellation of Order dated 26^th April, 1999 whereby the said plot was allotted to Respondent No.3.

BRIEF FACTS:

2) The Petitioners are present trustees of a public trust namely G.S. Garodia Charitable Trust (‘Trust’). The Trust’s object is to impart education and run educational institutions in addition to other charitable acts for the purpose of benefits to public at large.

2.1) The Trust was allotted plot No.51 reserved for school admeasuring 6100 sq. mtrs. at Juhu Vile Parle Development Scheme under the provisions of Regulation No.16 of The Maharashtra Housing and Area Development (Disposal of Land) Regulations, 1982, pursuant to their Application dated 28^th April, 1992 to the then Hon’ble Minister for Housing, Maharashtra. The Trust submitted various documents from time to time as being called upon to furnish by MHADA. By its letter dated 11^th February, 1993 MHADA called upon the Trust to pay Rs.53,91,425/- towards the premium amount, annual lease rent and other legal charges as more particularly set out therein. Additionally, the Trust would have to pay cost of construction of the compound wall and the guarding charges (that would be communicated). Upon receipt of the premium amount and the additional costs, MHADA would hand over the possession of the school plot immediately.

2.2) MHADA acknowledged the receipt of the 25% premium amount namely, Rs.13,50,000/- from the Trust and thereupon granted their No Objection to the Trust to prepare and approach the BMC for approval of the detailed building plans for the construction of the school building. On21^st March, 1993 MHADA called upon the Trust to pay the balance amount in respect of the allotment of the school plot. Normally, six months are granted to make the entire payment which would have ended on 20^th September 1993. However, on 18^th June, 1993 MHADA informed the Trust that, the State Government had granted stay against the allotments of the plot made under Regulation 16 by its letter dated 12^th April, 1993 and therefore, they should not take any further action in respect of the allotment of the said plot.

2.3) Upon receiving such a letter, the Trust by its letter dated 28^th June, 1993 made a representation to then Minister for Housing requesting him to vacate the stay Order in respect of the school plot as the Trust had completed all formalities including measurement of land by the City Survey Office and submissions of all documents to the concerned Authorities for undertaking construction work of a primary school. That apparently did not fructify.

2.4) The Petition then states that, in December, 1996, the Trust paid MHADA the remaining balance amount of Rs.40,41,425/-. MHADA received the entire amount of Rs.53,91,425/- without any protest or complaint regarding late payment charges or claims for interest due to late payment. The Trust contends that upon receiving the entire payment, MHADA was obligated to handover the possession of the school plot.

2.5) Only on 27^th February, 1997, MHADA for the first time called upon the Trust to pay interest in the sum of Rs.13,19,949/- on the amount of Rs.53,91,425/-. The Trust was also informed that, the cost of construction of the compound wall, fencing and guarding charges if any incurred by the Executive Engineer, Housing Poisar Division, would be communicated to them. In response to this communication, the Trust requested MHADA to waive the interest since it was the charitable institution and the plot was allotted for setting up an educational institution. By letters dated 10^th March 1997, 24^th July 1998, 21^st August 1998 and 18^th September 1998 repeated requests to waiv