High Court Of Delhi
SHILAWANTI - Appellant
Versus
DELHI DEVELOPMENT AUTHORITY - Respondent
Civil Writ 1121 of 1991
Decided On : 02/03/1995
employed is arbitrary whimsical or takes into account extraneous considerations.
From the above, it is clear that the scope of judicial review in the cases involving costing and fixation of prices is very much limited. Apart from the observations and the findings recorded in B.D.A.s case (Page 126), extracted above, that a public body entering in the realm of contract acts merely in its executive capacity and thereafter the relations are no longer governed by constitutional provisions but by contract, which apply in this case as well, even otherwise, what has to be seen and examined by the Writ Court is whether the pricing of flats demanded by the D.D.A. for different categories of allottees is whimsical or arbitrary. The data placed on record by the D.D.A., prima facie, does not warrant so. There are of course some contentious points, like formula and basis for working out the land rate, cost of development, construction and inclusion of certain expenses, which could only be decided on evidence, which we do not propose to do in writ jurisdiction. Merely because the method of valuation suggested by the petitioners would be more fairer or logical, the method or the basis adopted by the D.D.A. cannot be struck down as arbitrary or whimsical.
Article 226 — Petition challenging escalation of price of flats by DDA — Matter in the realm of contract where in DDA had held out only the tentative costs of the flats to the prospective buyers — No interference by Court called for.
DDAs Cases - Hire Purchase — Unilateral change in terms of contract DDA promising to allot 50% of the flats on Hire purchase basis — DDA issuing letters of demand on the basis of cash down payment — Impermissible — Demand quashed with direction to adhere to the earlier scheme of hire purchase.
( 1 ) THIS batch of writ petitions under Article 226 of the Constitution of India assails the price demanded from the intending purchasers of the flats allotted under the "registrarion Scheme on New Pattern - 1979" (the Scheme for short) sponsored by the Delhi Development Authority (the D. D. A. ).
( 2 ) THE petitioners are registrants of flats under the Scheme. In the brochure published by the respondent D. D. A. regarding the Scheme, the terms and conditions were specified along with the details of Scheme "for- mulated to reduce the sale price of MIG/lig and Janta flats, so as to be within the reach of the common man". Apart from prescribing period of registration, eligibility criteria, "area", "accommodation", the "likely cost" and other conditions were stipulated in Clause 13 and 14 respectively. Dispute being only qua the cost, the same set out in Clause 13 for each of the three categories of the flats was: ("the prices are indicative and do no represent the final cost") Clause 14 of the said brochure stipulated:
"it may please be noted that the plinth area of the flats indicated and the estimated prices mentioned in the brochure are illustra- tive and are subject to revision/modification depending upon the exigencies of lay out, cost of construction etc. etc. "the petitioners grievance is that instead of price quoted in the brochure, the D. D. A. demands and has issued demand letters requiring them to pay for a flat under the L. I. G. category about Rs. 3,30,000. 00 and for M. I. G. category between Rs. 4,40,000. 00 to Rs. 5,20,000. 00 which amounts are highly exhorbitant and arbitrary. They seek an appropriate writ, order or direction quashing the illegal demands made by the D. D. A. with further direction to them to renter a true and faithful account of the actual cost incurred on the construction of the flats and for acquiring the land on which the flats stand and handover possession of the flats to the allottees at the same cost as stated by the respondents at the time of registration under the Scheme.
( 3 ) THE matter was initially heard by a Bench comprising late Sunanda Bhandare, J. and Arun Kumar, J. and the orders were reserved. Meanwhile, a miscellaneous application, being C. M. No. 6491 of 1993, was filed in C. W. P. No. 1121 of 1991, to report that another Bench comprising D. P. Wadhwa and Vijender Jain, JJ. had pronounced a judgment in the case of Ashok Kumar Bahl and Ors. Vs. Union of India and Ors. (C. W. P. No. 3267/91) on 25 August 1993 1993 (27) DRJ 82: (52 (1993) Delhi Law Times 153) which had a direct bearing on the controversy involved, similar is- sues had been considered and decided, the writ petition had been allowed and the relief similar to the one claimed herein had been granted and that this batch of writ petitions was liable to be disposed of in terms of the said judgment. On notice, the respondent D. D. A. resisted the application saying that important decisions vital to the issue raised had escaped attention of the Court in A. K. Behl s case, and as. such, the same is not binding. In view of at least six judgments, noticed by the Bench, in which escalation of cost of flats on account of cost of construction and revision of land rates had been challenged and different Division Benches, in view of the judgment of the Supreme Court in Bareili Development Authority Vs. Ajai Pal Singh and Ors - AIR 1989 SC 106: (1989) 2 SCC 116, had declined to interfere in the matter of escalation in cost, the Division Bench felt it appropriate that the matter be decided by a larger Bench to decide particularly the following questions:
1. Whether under Article 226 of the Constitution of India, this Court can interfere in the matter of pricing/costing of flats including escalation in cost of land particularly in view of Clause No. 13 ana 14 of the brochure regarding the Registration Scheme on New Pattern - 1979 under which the petitioners are registrants for allotment of flats? 2. Is the impugned r
Distinguished : Ashok KumarBahl and Ors. v. Union of India and Ors.
Relied on : Shri Sita Ram Sugar Co. Ltd. and Another v. Union of India and Ors.
Kerala State Electricity Board v. Mis S.N. Govinda Prabhu and Bros. and Ors.
O.N.G.C. and Another v. Association of Natural Gas Consumer Industries of Gujarat and Ors. etc.
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