1996 Supreme(P&H) 1789
PUNJAB & HARYANA HIGH COURT
G.S.Singhvi and M.L.Singhal JJ.
Gulmohar Estates Limited
Versus
State Of Haryana
Civil Writ Petition No. 2890 of 1995,
Decided On : DECEMBER 5, 1996
Headnote:
1975 Haryana Development and Regulation of Urban Areas Act - Section 8 - Cancellation of license - External development charges - Interest/penal interest - Usurious Loans Act, 1918 - Interest Act, 1978 - Article 14 of the Constitution of India - Writ jurisdiction under Article 226 of the Constitution of India.
Fact of the Case:
The petitioner, a public limited company, was granted a license under the 1975 Act to set up a group-housing colony. The petitioner failed to comply with the terms of the license and was issued a show cause notice. The petitioner filed a reply and an affidavit expressing willingness to pay external development charges at the revised rates. The respondent dropped the proceedings subject to the fulfillment of the conditions specified in the affidavit. The petitioner undertook construction of the group-housing colony. The respondent wrote to the petitioner requiring it to deposit the revised external development charges. The petitioner applied for a partial/provisional completion certificate, which was granted subject to the condition of payment of external development charges. The petitioner did not pay the external development charges and was issued a show cause notice. The petitioner appeared before the Director and after hearing him, the respondent passed an impugned order canceling the license of the petitioner.
Finding of the Court:
The Court held that the petitioner voluntarily agreed to pay the external development charges as determined by the respondent. The petitioner also agreed to treat the revised external development charges as part of the agreement entered into by it with the Haryana Urban Development Authority. The Court further held that the petitioner cannot challenge the terms and conditions of the contract which it had entered with the Haryana Urban Development Authority and on the basis of which it amassed wealth by developing a colony and allotting flats and other residential apartments to private individuals. The Court also held that the petitioner cannot invoke the provisions of Article 14 of the Constitution of India for the purpose of being relieved of its burden to pay the amount due to the public authority in terms of the agreement.
Issues: 1. Whether the petitioner can challenge the terms and conditions of the contract which it had entered with the Haryana Urban Development Authority? 2. Whether the petitioner can invoke the provisions of Article 14 of the Constitution of India for the purpose of being relieved of its burden to pay the amount due to the public authority in terms of the agreement? 3. Whether the petitioner can invoke jurisdiction of this Court under Article 226 of the Constitution of India to relieve itself of the burden which it had voluntarily incurred on the basis of the agreement, the license, the affidavit and the written assurance given to the officials of the Haryana Urban Development Authority?
Ratio Decidendi: 1. A person who enters into a contract with the State and its agencies cannot resile from the express obligation undertaken by him. 2. The writ jurisdiction under Article 226 of the Constitution of India cannot be allowed to be invoked in such like matters. 3. The Court cannot exercise jurisdiction under Article 226 of the Constitution of India in such like matters.
Final Decision: The writ petitions were dismissed.
G.S.Singhvi, J.
1. These two petitions are inter-related and, therefore, we are disposing them by a common order. In the petition filed by Gulmohar Estate Ltd., prayer has been made to quash order dated 20.1.1995 passed by the Director, Town and Country Planning, Haryana and also for restraining respondent No. 2 from taking any action pursuant to the impugned order. In the writ petition filed by the Garden Estate Residents Welfare Association, the petitioner has prayed for issuance of a mandamus directing respondent No. 2 to comply with the provisions of Section 8 of the Haryana Development and Regulation of Urban Areas Act, 1975 and the provisions of the Haryana Apartments Ownership Act, 1983 as well as Article 3 of the agreement entered into between respondents 2 and 3. It has also been prayed that respondent No. 2 be directed to take over the colony and to complete the external and internal works within a period of three months and to provide amenities in the colony at the cost of the residents and/or to transfer this responsibility to the petitioner association. A prayer has also been made to register the sale deeds in the names of the residents who have paid full and final consideration money.
2. Keeping in view the complex nature of the dispute raised by the petitioners, it is necessary to set out some facts from both the petitions.C.W.P. No. 2890 of 1995
3. Petitioner-Gulmohar Estates is a public limited company incorporated under the Companies Act, 1956 with one of its objects as construction and development of property. On the basis of an application made by it, the petitioner was granted a licence on 24.6.1985 under 1975 Act for setting up group-housing colony in District Gurgaon. The licence was valid upto 23.6.1987. In terms of the licence, the petitioner was required to pay the amount specified therein and also to comply with other conditions of the licence. It appears that the petitioner did not comply with the terms of the licence. Therefore, notice dated 22.8.1986 was issued to the petitioner by respondent No. 2 Under Section 8 of 1975 Act to show cause as to why the licence be not cancelled. The petitioner filed its reply to the show cause notice. At the same time an affidavit was filed by the petitioner expressing its willingness to pay external development charges at the revised rates which may be determined by the respondent No. 2 and also to pay interest for the deferred payment and penal interest to be determined by respondent No. 2. The representative of the petitioner also agreed to execute revised agreement incorporaiing the conditions mentioned in the affidavit. After considering this affidavit, the respondent No. 2 passed order dated 4.6.1987 dropping the proceedings subject to the fulfilment of the conditions specified therein.
4. After issue of the order dated 4.6.1987, the petitioner undertook construction of the group-housing colony. On 29.11.1989, respondent No. 2 wrote a letter to the petitioner squiring it to deposit the revised external development charges at the rate of Rs. 22.06 lacs per gross acre. It was also directed to execute an agreement on non-judicial stamp paper incorporating the above rate and schedule of payment within a period of 30 days. On the basis of partial completion of the colony, the petitioner applied for issue of a partial/provisional completion certificate. After considering this application, respondent No. 2 issued order dated 5.6.1991 and granted partial/provisional completion certificate subject to the conditions enumerated in that letter including the one requiring payment of external development charges. The petitioner did not pay external development charges as required by order dated 4.6.1987 read with letters dated 2.11.1989 and 5.6.1991* but wrote letter Annexure P11 to the respondent No. 2 requesting him to grant extension of time in the payment of instalments upto December, 1991. The respondent No. 2 did not feel convinced with the genuineness of th