1. The petitioner had believed, and not without reason, that he had paid off the consideration (i.e., the value of the house along with interest for delayed payment) of the house allotted to him as back as in October, 1982, and the delay in execution and registration of the transfer deeds was due to the slothful ways of the Bihar State Housing Board. But the Housing Board on the basis of a policy decision taken much later and by adopting a different mode of computation of interest makes further demands from the petitioner. The Board maintains that according to its books of account, the petitioner was liable to pay a sum of Rs. 01,67,528/-, as on 30.9.1996 and as a result of accumulation of interest during the pendency of this litigation the Boards demand has swelled up to a sum of Rs. 03,91,679.00 paise, as on 31.12.2002.

2. When the controversy first cropped up in the year 1996, the petitioner came to this Court in C.W.J.C. No. 8906 of 1996, challenging the Boards demand for a further payment of Rs. 01,84,267/- towards the price of the house allotted to him. At that stage this Court did not intervene in the matter. It was noticed that in pursuance of a direction by a Bench of this Court, a committee was constituted in the Board to look into the grievance of the allottees with regard to the Boards demands for further payment for their respective houses/flats. The petitioner was, accordingly, asked to file a representation before the Committee, which in turn was directed to examine his grievances and to pass orders in accordance with law. The petitioner, as directed by this Court, went before the Committee, which by order, dated 8.4.2000, found and held that the Boards demand for further payment(s) was not unwarranted. The petitioner was, accordingly, directed "to pay the up-to-date amount". The order passed by the Committe further said that on receipt of the amount so demanded, along with interest till its payment, the Board would execute lease in favour of the petitioner/ allottee in terms of the letter of allotment.

3. This writ petition was then filed chllenging the order of the Committee as well as the Boards demand for any further payment by the petitioner. This writ petition was filed on 28.7.2000 and was heard for final disposal in January, 2003. All this while,the accrual of interest went on unchecked with the result that the outstanding against the petitioner, according to the case of the Board, stood at Rs. 03.91,679.00 paise, as on 31.12.2002.

4. The facts of the case are simple and without any controversy. MIG House No. 119 was allotted to the petitioner, on rental basis, in December, 1968. by the Housing Department, Government of Bihar. In 1975 the Bihar State Housing Board was established by an Ordinance which was later replaced by the Bihar State Housing Board Act, 1982 (Bihar Act 57 of 1982). Shortly after the establishment of the Board, a decision was taken to transfer the houses to their respective allottees on a permanent basis. On 2.8.1975, the petitioner made an application for transfer of the house (MIG House No. 119) in his favour permanently and on 16.8.1975 he deposited the sum of Rs. 3,000/- as earnest money. The allotment of the house was made in his favour by letter no. 888, dated 13.4.1979 (copy at Annexure 1). In the allotment letter the tentative valuation of the house along with the tentative valuation of the land was fixed at Rs. 39,000/- as on 30 June, 1974. The value of the house as stated in the allotment letter was liable to enhancement depending upon three factors, namely, final determination of the cost of (i) acquisition and (ii) development of the land and (iii) the cost of construction of the house. It was also stipulated that with regard to the final determination of the price of the land and the house the Boards decision will be final.

5. By the allotment letter the petitioner was required to make payment of the consideration money which was determined in the following way.

(