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High Court of Judicature at Madras
K. CHANDRU
V. Karuna Priya
Versus
The Life Insurance Corporation of India, Zonal Office, Engineering Department
W.P.No.2518 of 2008 & M.P.No.1 of 2008
Decided on: 20-07-2012
LIC - Housing Scheme Dispute - [Article 226 of the Constitution, 2004 SCC 553, 2006 SCC 236, 2005 KLT 690, 2008 SCC 403, 2012 AIR SCW 2403] - The court discussed the maintainability of a writ petition under Article 226 to enforce contractual obligations against a State instrumentality, the expectation of fair and reasonable conduct by the State, the power of the court to entertain a matter involving disputed questions of fact, and the necessity for strict adherence to the stipulated selection procedure in public office appointments.
Fact of the Case:
The petitioner challenged the rejection of her application for a flat in a housing scheme by LIC, claiming to be a policy holder and entitled to the allotment.
Finding of the Court:
The court found that the petitioner failed to provide the required details of her LIC policy and latest premium receipt as per the application form, and therefore, her exclusion from the allotment process was justified.
Issues: The main issue was whether the petitioner, who did not provide the required information in her application, could claim entitlement to the flat allotment as a policy holder.
Ratio Decidendi: The court held that when specific conditions are imposed for fulfillment in an application process, failure to comply with those conditions disqualifies the applicant from claiming entitlement to the benefit sought.
Final Decision: The writ petition was dismissed, and no costs were awarded.
1. The writ petition is filed by the petitioner challenging an order passed by the respondent LIC of India dated 13.10.2007. By the impugned order, a cheque of Rs.51,479/- was returned to the petitioner towards refund of Advance Registration Fees along with accrued interest @ 6% p.a., consequent upon the order of this Court made in W.P.Nos.8843 and 8827 of 2007 and the petitioner was requested to acknowledge the same.
2. When the writ petition came upon 31.01.2008, this Court permitted the petitioner to serve private notice on the respondent. Subsequently, the writ petition was admitted on 01.02.2008. Though the matter was listed before a Division Bench on 15.02.2008, the Division Bench directed the matter to be listed before the Single Bench. Pending the writ petition, this Court in M.P.No.1 of 2008 directed the petitioner to apply to the respondent with a copy of LIC Policy for the allotment of the flat and on such event, the respondent was directed to consider the same.
3. Thereafter, the petitioner filed M.P.No.1 of 2009, seeking to amend the prayer in the writ petition, calling for the records dated 13.10.2007 as well as the order of the respondent dated 23.04.2008 and seeks to set aside the same with a further direction to allot one Flat to the petitioner in the Housing Scheme of Life Insurance Corporation of India at Padi Eri, Chennai. That application was ordered by this Court on 21.08.2009.
4. On notice from this Court, a counter affidavit dated 21.02.2008 was filed by the respondent. An additional counter affidavit was also filed on 10.12.2009.
5. The case of the petitioner was that Life Insurance Corporation of India (LIC) announced a Lucky Dip Scheme in respect of houses and the last date for submission of the applications and making deposit was 19.01.2007. The LIC sent a letter dated 11.04.2007 to the petitioner. The Tamil Nadu Housing Board (TNHB) was permitted to sell 225 grounds of land at Padi Eri, Anna Nagar, Western Exension, Chennai at a cost of Rs.2.55 crores to LIC. The said extent of 225 grounds lie in two parts in the same area but divided by another plot measuring 53 grounds. 53 grounds lies in between the two parts of the extent of 225 grounds. The said middle plot of 53 grounds was also sold to LIC. The market value of the plots were fully paid by the LIC and a single sale deed was executed in respect of 278 grounds and 1164 sq.feet.
6. The LIC advertised for applications from policy holders for allotment of 800 residential plots. The allotment and sale in respect of 800 flats were over except 33 flats which are yet to be sold. In respect of the remaining 53 grounds, the LIC invited applications for allotment of a flat at Padi Eri, Chennai through various newspapers on 19.11.2006. Pursuant to the advertisement, applications were received for the sale of 144 flats to be constructed in the remaining area of 53 grounds.
7. In the mean while, one of the applicant, P.Ganesan filed a writ petition before this Court being W.P.No.8843 of 2007 challenging the advertisement on the ground that proposed flats should not be allotted to persons who are not LIC Policy holders. Similar writ petition was also filed by one Jeevan Bima Nagar Flat Owners Welfare Association in W.P.No.8827 of 2007. This Court granted interim injunction restraining the LIC in respect of the advertisement entitling the non-policy holders to avail the benefit. In view of the interim injunction dated 12.03.2007, the allotment proposals were put on hold. Subsequently, LIC filed an application to vacate the interim injunction in view of the fact that the construction of 144 flats being delayed and construction costs were escalating. Therefore, a settlement was arrived that the proposed 144 flats will not be allotted to non LIC Policy Holders as in the case of earlier allotment of residential flats constructed in 225 grounds. An undertaking was given before this Court that the proposed 144 flats to be constructed at Padi Eri will n
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