ANAND PRASAD SINHA, J.

1. The petitioners, the Postal Co-operative House Construction Society Limited (hereinafter to be referred to as the Society) and its Secretary (hereinafter to be referred to as the Secretary of the Society have filed this writ application for the quashing the resolution dated 26-7-1980 of the Bihar State Housing Board (hereinafter to be referred to as the Board) by which a decision has been taken for allotment of lands in favour of Aniket Girih Nirman Sahyog Samiti (hereinafter to be referred to as the Samiti). A copy of the said resolution is Annexure-1 to this application.

2. The salient facts of the case are stated hereunder: The Society consists of the employees of the post Office working in the Patna district and has been duly registered under the Bihar and Orissa Co-operative Societies Act, 1935 (hereinafter to be referred to as the Act). The Society in the meeting of its general body held on the 3rd Sept., 1955 adopted a resolution for the acquisition of lands for Low Income Group Housing Scheme, and, accordingly, submitted a requisition to the Land Acquisition Officer for acquisition of 10 acres of land in village Mahuli in the district of Patna. A copy of the said letter sent to the District Land Acquisition Officer to that effect is Annexure-3.

3. However, 8.72 acres of land was notified and acquired by the State Government. Copies of the notification under Sec. 4 of the Land Acquisition Act and declaration under Sec. 6 are Annexures 4 and 5 to the writ application.

4. The Government in the Housing Department by letter dated 29-10-1957 (Annexure-6) informed the Society that the land had been acquired for Rupees 90,860.37 P., in addition to the aforesaid amount development cost being Rupees 53,939.00 besides the usual rate of interest was payable thereon. The Society was directed to deposit the amount in the treasury under the appropriate head.

5. The Society deposited Rs. 75,000.00 only. Thereafter, the land having an area of 5.45 acres out of 8.72 acres only was released to the Society. This is indicated by the letters of the Government dated 1-4-1958 and 4-7-1958, Annexures 7 and 8 to the writ application.

6. The Society had requested the Government for the transfer of the entire area of land acquired for the Society, excluding the area occupied for the construction of 40 ft. wide road, saying that Rs. 75.000.00 already deposited was sufficient as the cost of the total lands. The Society protested the demand of the Government in respect of the cost of the construction of the road. This will be apparent from the letter dated 12-3-58 of the Society to the State Government (Annexure-10 to the writ application).

7. The Society repeatedly disputed the demand of the Government for payment of the development cost connected with the construction of the road to the tune of Rs. 1,68,523/- and insisted for allotment of 3.27 acres of land for the amount of Rs. 75,000.00 already deposited. On 2-9-1967 the Housing Department directed the Superintending Engineer for transfer of the remaining 3.27 acres of land immediately to the Society on realisation of necessary cost thereof. A copy of said letter is Annexure 12. When the petitioner-Society did not deposit the price of remaining 3.27 acres of land on 28-12-1967 the State Government directed the Society to deposit Rupees 1,68,523/- at an early date so that the remaining land could be transferred. A copy of that letter is Annexure-13. No deposit, however, was made by the Society.

8. That in the meantime the Bihar State Housing Board was established for framing and execution of such housing schemes as it may consider necessary and the assets and liabilities of the Housing Department were transferred to the said Board, including the land in question. On 22-4-1972 a decision was taken by the Board that as the Society did not deposit the amount aforesaid, the 3.27 acres of land aforesaid be used for construction of houses by the Board. A copy of the sa