The housing board cannot penalize the petitioner for delayed payments when it also delayed the completion of the construction, justifying the execution of the sale deed.

ORDER :

This Writ Petition is filed for a mandamus directing the respondents to execute and register the sale deed in respect of the Apartment bearing No.M39, 7th floor, 60, MIG TNHB flats, Indira Nagar, Adyar, Chennai - 600 020.

2. The case of the petitioner is that the petitioner was allotted above flat and thereafter, with no objection from the respondent board, the petitioner availed bank loan from the Indian Bank, Gandhi Nagar, Adyar branch. From thereon, the said bank has been releasing the amounts as per the stage of construction and the bank had released a sum of Rs.35,06,400/- as on 16.12.2017 considering the stage of construction and thereafter, the final installment was released on 05.10.2019 and the possession was also handed over on 26.11.2019. However, the respondents have not executed the sale deed and hence the Writ Petition.

3. The Writ Petition is resisted by the second respondent board. The transaction is admitted. However, it is stated that in the allotment letter itself, while 10% was paid upfront, the schedule for balance payment is categorically mentioned. The same is there in the advertisement inviting the application itself. That does not relate to the stage of construction and they have to pay the appropriate percentage of costs on the relevant dates. Accordingly, while the petitioner made the first two payments i.e., the initial upfront payment of 10% within the due dates, thereafter, the next 20% of the cost was paid with a delay of more than 40 days. The second transaction of 20% was paid with a delay of three days. Thereafter, the further 10% of the cost, that had to be paid on 30.11.2016, the further 10% on 28.02.2017, the further 10% on 31.05.2017, the further 50% on 31.08.2017 were all not paid and when the further 5% became due on 30.11.2017, in all amounting to 40%, the entire amount was paid in one lumpsum only on 16.12.2017, amounting to Rs.35,06,400/-. Therefore, the same was made with a delay. The final 10% amount was also to be paid at the rate of 5% each on 28.02.2018 and 31.05.2018. However, it was belatedly paid in one lumpsum on 05.10.2019. Therefore, the interest, at the applicable rate, has to be paid for the belated payment. Therefore, as per the calculation that is made, as on 13.05.2024, the petitioner has to pay another balance outstanding of Rs.5,17,332/- with subsequent interest. If the petitioner pays the entire interest amount, which is upto the interest till date, the first respondent board will immediately execute the sale deed.

4. Heard Mr.D.S.Rajasekar, learned Counsel for the petitioner and Mr.D.Veerasekaran, learned Standing Counsel for the respondent board, who reiterated the respective contentions.

5. I have considered the same and perused the material records of the case.

6. It is essential to quote the relevant payment schedule as per the advertisement which reads as follows:-

"Balance 90% payment to be remitted as detailed below:

1) 20% of cost of the flat, on commencement of work.

2) 20% of cost of the flat with in next 3 months.

3) 10% of cost of the flat with in next 3 months.

4) 10% of cost of the flat with in next 3 months.

5) 10% of cost of the flat with in next 3 months.

6) 5% of cost of the flat with in next 3 months.

7) 5% of cost of the flat with in next 3 months.

8) 5% of cost of the flat with in next 3 months.

9) 5% of cost of the flat will be collected at the time of handing over."

Therefore, it is true that the payment of the installments was not made depending upon the stage of construction. Therefore, the agreement that is made by the petitioner, along with his bank, or the norms of the bank will not bind the respondent board and they will bound by the advertisement.

7. As a matter of fact, the payments that are made with the amount due and the delayed time etc., are all tabulated by the respondent board in paragraph No.4 of the counter-affidavit and the tabular column is extracted hereunder:-