JUDGMENT

R. C. LAHOTI, C.J.I. — The Friends Colony Development Commit¬tee, the appellant before us, is a society registered in the year 1982 under the Societies Registration Act, 1860. One of its objects is to over-see development of the residential area known as ‘Friends Colony’ in Cuttack city. M/s. Modern Mechatech Hous¬ing Ltd., the respondent No.2, is a company incorporated under the Companies Act, and engaged in building activity. Pratap Kumar Biswal, respondent No.3, is its Managing Director. The other parties impleaded in this appeal are—the State of Orissa through the Commissioner-cum-Secretary, Housing and Urban Development Department and Cuttack Development Authority (hereinafter the ‘Authority’ for short). The property involved in this litigation is a six storeyed apartment situated in Friends Colony and known as ‘Kalyani Apartment’.

2. The background facts leading to the present appeal are briefly stated hereinafter. The property belonged to one Abhiram Panda. He gave a power of attorney to the builder (respondent Nos.2 and 3) for construction of a multi-storeyed apartment on the said land. On an application made by the builder, the Author¬ity accorded sanction on 3.3.