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MOHIT KUMAR SHAH
Dhananjay Kumar – Appellant
Versus
State of Bihar – Respondent
Mohit Kumar Shah, J. – The present writ petition has been filed for quashing the order dated 25.1.2014, passed by the Chairman, Pricing Committee, Bihar State Housing Board, Patna, by which the application, filed by the petitioner for waiving the interest charged over the enhanced price has been rejected. The petitioner has also prayed for quashing the consequential fresh demand notice dated 31.01.2014, issued by the Revenue Officer, Bihar State Housing Board, Patna. Lastly, it has been prayed to direct the Respondent authorities to execute the registered lease deed for 90 years in favor of the petitioners.
2. The brief facts of the case, according to the petitioners, are that the father of the petitioners, late Sri Devendra Prasad Sinha (hereinafter referred to as “the original petitioner”) had applied for allotment of house in the middle income group, vide Application No. 168850, before the Bihar State Housing Board, Patna (hereinafter referred to as “the Board”), whereupon the Respondent-Board, after due scrutiny and verification, had issued an allotment letter, vide Memo No. 6184, dated 2.8.1980, for MIG House No. 224, ad-measuring 2.06 kattha, situated at Lohiyanagar, Kankarbag
The court directed the Housing Board to reassess penal interest charges, emphasizing the need for fairness in interest calculations for the petitioner.
The Jharkhand State Housing Board cannot charge compound interest on amounts already paid; only simple interest on outstanding amounts is permissible.
The court found the demand for 14% interest arbitrary and ruled for a reduced rate of 6% during the ongoing litigation.
The court affirmed that applicants under a housing scheme are bound by the terms of the scheme, including any cost adjustments made by the housing authority.
The court affirmed that applicants under a housing scheme are bound by the terms they accepted, including payment obligations, and cannot contest cost escalations due to delays not promised by the Bo....
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