2024 Supreme(Cal) 425
IN THE HIGH COURT AT CALCUTTA
RAI CHATTOPADHYAY, J.
Salt Lake AG Block Sourav Abasan Shop Owners Welfare Association & Anr. – Appellants
Versus
The State of West Bengal & Ors. – Respondents
W.P.A No. 21494 (w) of 2017
Decided on : 04-03-2024
Advocate Appeared:
For the Appellant : Mr. Probal Mukherjee, Sr. Adv. Ms. Shebatee Datta, Mr. Rahul Auddy, Mr. Aditya Gooptu.
For the KMDA : Mr. Satyajit Talukdar.
The doctrine of estoppel by representation and the finality of the sale price per unit as declared in the information brochure were central to the judgment.
Headnote:
Estoppel - Property Dispute - West Bengal Societies Registration Act, 1961 - [2004, 2010, 2012, 2014] - The court discussed the application of the doctrine of estoppel by representation in relation to the representation made in the brochure and the subsequent actions of the respondent. It highlighted the importance of the information brochure, the finality of the sale price per unit, and the inclusion of the common area cost. The court found the impugned demand notices to be beyond the authority and jurisdiction of the respondent/KMDA, suffering from unreasonableness and arbitrariness, and set them aside.
Fact of the Case:
The members of the petitioner No.1/Society responded to an advertisement of 2004 for grant of long term lease of shops, office spaces, and residential apartments. After taking possession, they noticed a major deviation in the measurement of the allotted portion. Subsequently, demand notices for additional costs were issued by the respondent, which were challenged in the writ petition.
Finding of the Court:
The court found the impugned demand notices to be beyond the authority and jurisdiction of the respondent/KMDA, suffering from unreasonableness and arbitrariness, and set them aside.
Issues: The issues included the representation made in the brochure, the finality of the sale price per unit, the inclusion of the common area cost, and the maintainability of the writ petition by the Society.
Ratio Decidendi: The court applied the doctrine of estoppel by representation and emphasized the importance of the information brochure, the finality of the sale price per unit, and the inclusion of the common area cost. It also discussed the maintainability of the writ petition by the Society under the West Bengal Societies Registration Act, 1961.
Final Decision: The writ petition was allowed, and the impugned demand notices were set aside.
JUDGMENT :
Rai Chattopadhyay, J.
1. A bunch of demand notices, all dated April 3, 2017, and issued by the respondent no.2, individually to the members of Petitioner No. 1/Society are assailed in this writ petition. The writ petitioners have prayed for setting aside of the same.
2. Facts leading to filing of the writ petition, may be mentioned, as herein below:-
3. Members of the petitioner No.1/Society responded to an advertisement of 2004, of the respondent No. 2, for grant of long term lease of 99 years, of shops, office spaces and residential apartments at “Sourav Abasan” Phase II, at AG Block, Sector II, Bidhanager, Kolkata – 700091, to the successful allotees, by way of lottery. They purchased the offer document, i.e. the brochure and application forms. On the understanding of the declaration made in the brochure, to be true and final, as regards the area, pricing or completion of the project within the stipulated time, they applied to participate in the lottery and had succeeded ultimately. The entire price money was paid to avail benefit of discount, as disclosed in the brochure. On March 1, 2010, those applicants were handed over the possession of the allotted shops/commercial places, along with civil, electrical and mechanical works, common area and common facilities.
4. The writ petitioners say that after the actual possession was taken up, pursuant to the letter of respondent No. 2, dated April 6, 2010, a major deviation, in terms of the measurement of the allotted portion, could be noticed. It is stated that in spite of depositing price for the shop floor space of 97 sq.ft. (as mentioned in the brochure), they have been allotted floor space of 77 sq.ft. only.
5. Two years passed without any pitfall, but not thereafter. A letter dated September 13, 2012, of the respondent No.2, was received by all the allottees. Vide the same, the respondent No. 2 demanded a sum of Rs. 2000/-per sq.ft. towards cost of common space/area, to all the individual shop owners. A written representation against the same was submitted immediately thereafter, on October 11, 2012.
6. Later, on December 5, 2014, the respondent No.2 had issued a further letter, addressed to the writ petitioner No.2, that is, the Secretary of Petitioner No.1/Society, for realisation of service tax @ 12.36% and lease rent @ Rs. 5/-per sq.ft. from each shop owner. In response and protest, the writ petitioners submitted another letter dated December 11, 2014.
7. Finally, the impugned demand notices were issued, dated April 3, 2017, to each of the shop owners, individually, which reads as follow:-
| “Sub: Demand Notice Sir, The undersigned is directed to request you to deposit the amount of Rs.3,20,065/-(Rupees Three Lakh Twenty Thousand Sixty Five) only towards cost of common space after adjustment of 5% penal interest, penal interest @ 15% for delay payment and Service Tax @ 15% including cess on cost of common space and cost of shop. The same amount is payable by Bank Draft/Pay Order in favour of Kolkata Metropolitan Development Authority to the office of the Deputy Secretary, Estate (M&M) Unit, KMDA, Unnayan Bhawan, Salt Lake, Kolkata – 700091 in one lump within 30(thirty) days from the date of the issuance of this letter. The Calculation is given below in details: | |
| Cost of common space (87 sq.ft. @ Rs. 2000/-per sq.ft.) | Rs. 1,74,000/- |
| Less: 5% penal interest for delay handling over of possession (27.07.07 to 22.04.10) | Rs. 26,585/- |
|
| Rs. 1,47,415/- |
| Add: Penal Int.@ 15% for delay payment of cost of common space | Rs. 1,17,450/-
|
| Add: Service Tax @ 15% on cost of shop | Rs. 29,100/- |
| Add: Service Tax @ 15% on cost of common space | Rs. 26,100/- |
| TOTAL | Rs. 3,20,065/- |
| Thanking You, Yours faithfully.” | |
The sum total of demand made to the respective allottee, though varied, but the contentions made in the said demand notices, remained same, for all the recipients. These are – dema