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1995 Supreme(Pat) 36

PATNA HIGH COURT
Nagendra Rai, J.
Amareshwar Singh And Another
Versus
Bihar State Housing Board
Civil Writ Jurisdiction Case No. 1648 of 1993 ;
Decided On : JANUARY 18, 1995

The Bihar State Housing Board is entitled to charge the price of house sites based on the cost incurred, considering relevant factors. The price fixation is subject to increase or decrease based on subsequent happenings as per the prospectus and agreement. Delay in allotment due to the allottee's laches does not entitle them to pay the price applicable to earlier allottees. Entering into a hire purchase agreement and agreeing to pay the specified price estops the allottees from challenging it later. The price fixed by the Board is not arbitrary, unreasonable, or opposed to public policy unless proven otherwise. The allottees are entitled to interest on the earnest money as per the prospectus, which should be adjusted towards future installments.

Headnote:

HOUSING BOARD - PRICE FIXATION - BIHAR STATE HOUSING BOARD ACT - ARBITRARY PRICE FIXATION - DELAY IN ALLOTMENT - ESTOPPEL - INTEREST ON EARNEST MONEY - PUBLIC POLICY: The Bihar State Housing Board, a no-profit-no-loss organization, is entitled to charge the price of house sites based on the cost incurred, considering factors like land acquisition, development, construction, maintenance, and administrative charges. The price fixation is subject to increase or decrease based on subsequent happenings as per the prospectus and agreement. Delay in allotment due to the allottee's laches does not entitle them to pay the price applicable to earlier allottees. Entering into a hire purchase agreement and agreeing to pay the specified price estops the allottees from challenging it later. The price fixed by the Board is not arbitrary, unreasonable, or opposed to public policy unless proven otherwise. The allottees are entitled to interest on the earnest money as per the prospectus, which should be adjusted towards future installments.

Fact of the Case:

The petitioners applied for house sites under the Bihar State Housing Board scheme in 1980 and deposited earnest money. The allotment was made in their favor in 1980 but they were not informed. In 1992, the Board issued allotment letters charging a higher price based on the valuation in November 1992. The petitioners challenged the price and sought interest on the earnest money.

Finding of the Court:

The delay in allotment was due to the petitioners' laches in not filing the required documents. The Board fixed the price reasonably, considering relevant factors. The petitioners entered into a hire purchase agreement agreeing to pay the specified price. The price fixation was not arbitrary, unreasonable, or opposed to public policy.

Issues: 1. Whether the petitioners should be charged the price of house sites applicable in 1980 or 1992? 2. Are the petitioners entitled to interest on the earnest money?

Ratio Decidendi: 1. The price fixation by the Board is subject to increase or decrease based on subsequent happenings as per the prospectus and agreement. The delay in allotment was due to the petitioners' laches, not the Board's fault. The Board rightly fixed the price applicable to allottees in November 1992. 2. The petitioners are entitled to interest on the earnest money as per the prospectus, which should be adjusted towards future installments.

Final Decision: The petition is partly allowed. The prayer for charging the price of house sites at the 1980 rate is rejected. The petitioners are entitled to interest at 4% on the earnest money from the month of deposit till the date of allotment, to be adjusted towards future installments.

Judgment

Nagendra Singh, J.

1. With the consent of die parties this application is being disposed of at the stage of admission itself.

2. Heard learned Counsel for the parties.

3. Both the petitioners have filed the present writ application against the Bihar Slate Housing Board through its Chairman (respondent No. 1) and its officers for a direction to charge the price of the House sites allotted to the petitioners at the rate which was charged by in the year, 1980 from the other allotees and further to restrain them not to charge from the petitioners with regard to the Houses sites allotted to them at the rate applicable in September, 1992. They have also prayed for giving them interest at the rate of 18% on the earned money deposited by the petitioners in the year, 1980.

4. In this case necessary facts for disposal of the present writ application are stated as follows:

5. Under the provisions of the Bihar State Housing Board Act, the respondent Housing Board has been constituted with sole object of providing of house, house sites and execution of housing schemes in the State of Bihar. In the year, 1974 the Board published a prospectus announcing several schemes for allotment of house sites, dwelling units under different categories in die different town of the State of Bihar. The aforesaid prospectus provided inter alia that the persons desirous of applying for the sites or the dwelling units have to got themselves registered by the Board by depositing Rs. 50.00 and thereafter they were required to file application in the prescribed from by depositing earnest money, according to the types of plot or dwelling units. The persons applying under the high income groups were required to deposit Rs. 3, 000.00 as earnest money for house sites. The Petitioner No. 1 got himself registered on 7.5.1980 and Petitioner No.2 got himself registered on 25.2.1980. Both of them applied for house sites under high income group. Petitioner No. 1 filed prescribed from alongwith requisite earned money of Rs. 3, 000.00 on 10.5.1980 and Petitioner No. 2 filed the application alongwith earned money .of Rs. 3, 000.00 on 10.5.1980. The aforesaid facts are not in dispute between the parties.

6. According to the petitioners the allotment of house sites was made to them on 5.6.1980 but they were not informed about the allotment. In the year, 1983 a notice was published in the Board asking certain details from the applicants to whom house site has not been allotted till that date. The petitioners furnished the information sought for in the notice. In the meantime, according to the direction given by the Ranchi Bench of Patna, High Court in C.W.J.C. No. 242/89 (R) to allot the plots to the awaiting applicants up-to 1980 by drawing of lotteries, the steps were taken by the Housing Board for preparing the list of awaiting applicants. The waiting list prepared by the Housing Board was displayed on the notice board of the Executive Engineer (Respondent No .4). The said list did not contain the name of the petitioners, thereafter they brought to the aforesaid fact to the notice of the respondents and thereafter the petitioners came to know that the house sites were already allotted to them on 5.6.1980. Petitioner No.1 was allotted plot No. H-65 and petitioner No.2 was allotted to house site No. H-64 and due to deliberate laches or inaction of the Housing Board and its employees the petitioners were not informed about the aforesaid allotment for a long time. The Board in its meeting dated 16.12.1991 and 25.7.1992 vide Annexure-2 series, reviewed the entire matter and found that the petitioners were allotted the plots. In the year, 1980 and accordingly ordered that after verification of the records allotment letter may be issued to the petitioners. Thereafter, allotment letters were issued to the petitioners by order dated 19.1.1993 and 4.1.1993 respectively vide Annexure-3 series. In the allotment letters price of the house sites of both the petitioners were mentio

















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