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2023 Supreme(Mad) 1521

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
P. Jagadeeswaran – Appellant
Versus
The Tamil Nadu Housing Board Rep. by its Chairman & Managing Director, Chennai & Others – Respondents
W.P. No. 30130 of 2013 & M.P. No. 1 of 2013
Decided On : 09-03-2023

Advocates appeared:
For the Petitioner:P. Jagadeeswaran, Advocate. For the Respondents: D. Veerasekaran, Standing Counsel For TNHB

The main legal point established in the judgment is the authority's power to cancel allotment in case of default and the requirement for the petitioner to rectify the default within the specified time frame.

Headnote:

Default - Allotment of Plot - Tamil Nadu Housing Board Act, 1997 - Section 5, Section 6, Section 7, Section 8 - The court discussed the provisions of the Tamil Nadu Housing Board Act, 1997, particularly focusing on the conditions for allotment, payment of monthly installments, and the consequences of default. The court emphasized the authority's power to cancel allotment in case of default and the opportunities provided to the petitioner to rectify the default. The legal provisions influenced the court's decision to dismiss the writ petition.

Fact of the Case:

The petitioner was allotted a housing plot but defaulted on monthly installments. The allotment was canceled multiple times, and the petitioner challenged the final cancellation order in the writ petition.

Finding of the Court:

The court found that the petitioner had defaulted on payments despite multiple opportunities provided by the authorities to rectify the default. The court also noted that the dispute regarding calculation errors in installment amounts could not be adjudicated in writ proceedings.

Issues: Default on monthly installments, cancellation of allotment, calculation errors in installment amounts, authority's power to cancel allotment

Ratio Decidendi: The court held that the authorities had the power to cancel the allotment in case of default, and the petitioner had failed to rectify the default despite multiple opportunities. The court also emphasized that disputed facts regarding installment amounts should be resolved through the competent forum.

Final Decision: The writ petition was dismissed, and the petitioner was given 15 days to pay the arrears dues for restoration of the allotment. Failure to do so would empower the authorities to proceed with auctioning the property.

JUDGMENT

(Prayer:Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus, calling for the records pertaining to the communication issued by the 3rdrespondent dated 07.10.2013 in Letter No.JJA5/177/2007 demanding payment of sum of Rs.7,03,296/- with fine of Rs.1000/- and quash the same and consequently direct the respondents to receive the sale consideration as per reconciled accounts and execute sale deed as per the allotment order dated 05.02.1998 in Letter No.177/1997.)

1. The order impugned dated 07.10.2013 asking the petitioner to pay the arrears of Plot cost within a period of 15 days and confirming the allotment is under challenge in the present writ petition.

2. The writ petitioner appearing in person articulated his case by stating that he had complied to the respondents for allotment of LIG housing Plot at Ambattur Scheme Phase-III in Application No.150138 dated 21.08.1997. Admittedly, a Plot No.177 LIG was allotted to the writ petitioner measuring 60 Square Meter. The Plot cost was fixed as Rs.1,04,640/- by deducting the initial amount of Rs.10,464/- the balance amount of Rs.94,176/- is to be paid in 240 equal monthly instalments of Rs.1037/- per month.

3. The petitioner in person states the he has paid 74 monthly instalments and on account of certain personal problems, he was unable to continue his instalments. Admittedly, the petitioner committed default in payment of monthly instalments as per the terms and conditions of the allotment. The respondents / Tamil Nadu Housing Board issued show cause notice to the writ petitioner in proceedings dated 02.03.2000 and thereafter, the allotment was cancelled. The petitioner states that he has not received the cancellation order. However, the petitioner states the he was changing his address on account of personal reasons and he has not received any communication regarding the cancellation order. The petitioner further states that subsequently he made payments to the Tamil Nadu Housing Board, which all were not accounted properly. There was a calculation error on the part of the Tamil Nadu Housing Board in determining the instalment already paid and without even correcting those mistakes, the Tamil Nadu Housing Board cancelled the allotments and therefore, the order impugned is to be set aside.

4. The learned Standing Counsel appearing on behalf of the respondents / the Tamil Nadu Housing Board raised an objection by stating that the provisional allotment order was issued on 03.12.1997 for the Plot No.177 LIG I at Ambattur Phase-III. Based on the request, the petitioner paid the initial amount of Rs.10,464/-. Regular allotment order was issued in proceedings dated 05.02.1998 and the following facts were mentioned in the allotment order: 

  1.Extent of the Plot60 Sq. Mtr.,
  2.Cost of the PlotRs.1,04,640/-
  3.Initial DepositRs.10,464/-
  4.Balance to be paidRs.94,176/-
  5.Monthly instalmentsRs.1037/-
  6.M.I. CommencementOctober 1997
  7.Repayment Period20 years
  8.Rate of Interest

5. As per the conditions, the monthly instalments should be paid on or before 15th of every month. The penal interest at the rate of 18% will be charged for the belated payment of the monthly instalment. In the event of default, the allotment will be cancelled. It was informed that the lease cum sale agreement should have been executed by affixing the family photo in the presence of the competent authority.

6. In the present case, the petitioner states that the lease cum sale agreement was executed in favour of the petitioner. However, the learned Standing Counsel for the respondents reiterated that the petitioner committed default in payment of monthly instalments and a show cause notice was issued on 02.03.2000, providing an opportunity to the petitioner to re-pay the arrears of instalment. Since the default continued, the allotment was cancelled on 23.08.2000. Even thereafter, an opportunity was provided to the wri

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