( 1 ) THIS is a defendants appeal filed against the Judgment of the III Additional Civil Judge, Agra, dt. Sept. , 16, 1988, restraining the defendant Uttar Pradesh Avas Evam Vikas Parishad, Lucknow (hereinafter referred to as the Parishad) from realising unpaid instalments claimed from the plaintiff-respondents towards the hire purchase agreements under which the ownership of the flats constructed by the Parishad had been agreed to be transferred.

( 2 ) THE plaintiff-respondents filed Civil Suit No. 464 of 1988 Dr. N. Rajgopalan v. Uttar Pradesh Ayas Evam Vikas Parishad for the following reliefs : (A) That it be declared that the defendants are not entitled to charge any amount of price or value/instalment/hire or interest or any other amount of each flat exceeding Rs. 55,000/- and they are liable to refund the amount received in excee thereto. (B) Consequently the defendants be restrained by a permanent injunction from recovering, demanding or charging any amount towards the price/value/instalments or in any other manner whatsoever and through whomsoever. (C) Costs of the suit be awarded to the plaintiffs against the defendants. (D) Any other and further relief which may be deemed fit in the circumstances of the case, may also be awarded to the plaintiffs against the defendants.

( 3 ) THEY alleged that the State Government exercising, power under S. 3 of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965 established the Parishad to execute housing and improvement schemes, other projects and to co-ordinate various housing activities in the State and to ensure expeditious and efficient implementation of housing scheme in the State. The Parishad was not a profit earning body, but had been exerted to provide houses to the persons, who do not own or possess residences for themselves. In the course of implementation of its object the Parishad invited applications for registration of plots and for higher income group (HIG) flats thereon under the scheme styled as neeharika which were to be constructed in Kamla Nagar, Agra. In pursuance of the advertisement the plaintiff respondents applied for registration with the Parishad by depositing an amount of Rs. 5,000/- each as registration fee. In 1982 the Parishad again issued an advertisement that the persons, who were already registered with it and were desirous of obtaining HIG flats could again apply for allotment in triple storeyed complex in Kamla Nagar by making a further deposit of Rs. 7,000/- besides Rs. 5,000/- already deposited under the neeharika Scheme.

( 4 ) ULTIMATELY the Parishad fixed the price floor at Rs. 95,000/- and Rs. 1,00,000/- for the second floor. It was given out that in case cash amount was made of the said prices the flats will be preferentially allotted to them. The plaintiff-respondents were given possession of the flats constructed in between the years 1982-84 on payment of some of the instalments.

( 5 ) IT was alleged by the plaintiff-respondents that the flats given to them were not properly constructed and there were several defects in the same, as a result whereof the defects were first brought to the notices of the authorities. But as no heed was paid by them, the plaintiff-respondents filed Writ Petition No. 9819 of 1987 in this Court challenging the demand of the balance of instalments by the plaintiff-respondent 1. The writ petition was dismissed and thereafter the present Suit No. 464 of 1988 for the aforesaid reliefs was filed.

( 6 ) ONE of the main contentions raised in the suit was that the defendants Parishad was not entitled to charge the price of the flats in excess of Rs. 55,000/- as the total costs brone by if in constructing the flats was the same. It was contended that the Parishad is not a profiteering body and, as such, the plaintiffs were entitled to the reliefs abovementioned. Along with the suit the plaintiffs moved an application for temporary injunction directing the Parishad not to realise the unpaid inst