SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2005 Supreme(All) 118

ALLAHABAD HIGH COURT
U.K. Dhaon and Kamal Kishore, JJ.
ARCHANA GUPTA
Versus
LUCKNOW DEVELOPMENT AUTHORITY
Decided On : 27 January 2005
Writ Petition 2949 (M/b) Of 1991

Advocates:
Abhinav N.Trivedi, Lalit Shukla, N.C.MEHROTRA, UMESH CHANDRA,

The court emphasized the importance of adhering to the rates mentioned in the Brochure and held that the rates charged should not exceed a reasonable percentage increase from the rate mentioned in the Brochure.

Headnote:

Land Allotment Dispute - Sharda Nagar Scheme - Clause (6) - [Brochure, Clause (6)] - The court discussed the Sharda Nagar Scheme and specifically Clause (6) of the Brochure, which provided for the increase of the cost of houses subject to the increase of material and labor charges, but did not contain a similar provision for the increase of the cost of land. The court found that the rates charged from the petitioner in 1990 were excessive compared to the rate mentioned in the Brochure, and directed the opposite-parties to fix the rate of the petitioner's land at a lower amount.

Fact of the Case:

The petitioner alleged that a Scheme known as 'Sharda Nagar Scheme' was launched, and a plot was allotted to the petitioner at a higher rate than mentioned in the Brochure. The petitioner sought a refund of the excess amount paid.

Finding of the Court:

The court found that the rates charged from the petitioner were excessive compared to the rate mentioned in the Brochure, and directed the opposite-parties to fix the rate of the petitioner's land at a lower amount and refund the excess amount charged.

Issues: Dispute over the increase in the cost of land compared to the rate mentioned in the Brochure, and the petitioner's claim for a refund of the excess amount paid.

Ratio Decidendi: The court held that the rates charged from the petitioner were excessive compared to the rate mentioned in the Brochure, and directed the opposite-parties to fix the rate of the petitioner's land at a lower amount and refund the excess amount charged.

Final Decision: The writ petition is partly allowed, and the opposite-parties are directed to fix the rate of the petitioner's land at a lower amount and refund the excess amount charged within two months.

( 1 ) HEARD Sri Abhinav N. Trivedi, learned Counsel for the petitioner and Sri N. C. Mehrotra, appearing on behalf of opposite-parties.

( 2 ) THE petitioner has alleged that a Scheme, known as "sharda Nagar Scheme" was launched by opposite-party No. 2 on 20th June, 1988, which was valid from 20th June, 1988 to 31st August, 1988, and the petitioner in accordance with the terms and conditions of the Brochure, deposited a sum of Rs. 20,000/- as registration fee, for purchase of a type plot on hire purchase basis. The petitioner has also alleged that in pursuance of the allotment letter, dated 22. 10. 1990, plot No. 1/109, Sector Rashmi Khand, Sharda Nagar Scheme, was allotted to the petitioner on the basis of a lottery, which was drawn on 27th July, 1990. Learned Counsel for the petitioner submits that the rate of Rs. 370/- per sq. meter was mentioned in the Brochure, but in the allotment letter, dated 22. 10. 1990, the rate was revised by the opposite-parties from Rs. 370/- per sq. meter to Rs. 530/-per sq. meter, which was legally not permissible, as no such condition was contained in the brochure that the Development Authority, will be at liberty to increase the price of the land at the time of allotment. He further submits that the opposite-parties have admitted the contents of paras 18 and 19 of the writ petition in their counter-affidavit and the petitioner has deposited the enhanced amount under protest in 12 instalments, which were fixed by the Lucknow development Authority. He further submits that till date the petitioner has deposited a sum of rs. 2,97,148/- against the initial cost of Rs. 1,99,800/ -. He further submits that in the Brochure, there is a condition in Clause (6) for the enhancement of the price of the houses, subject to increase of the material and labour charges, and there was no such condition for the increase of the price of the land and, as such, the opposite-parties may be directed to refund the excess money with interest.

( 3 ) SRI N. C. Mehrotra, learned Counsel appearing on behalf of the opposite-parties, submits that the Scheme was opened in June, 1988 and the allotment was made on 22. 10. 1990, i. e. after two years and the rate, which was prevailing at the time of allotment, was charged from the petitioner, who has deposited the same instalments fixed by the opposite-parties, and the petitioner cannot challenge the increase in the price after the deposit of the entire amount. He further submits that there was an agreement between the petitioner and the opposite-parties, and in pursuance of the agreement, the petitioner has deposited the entire amount and now she cannot claim for the refund as prayed in the instant writ petition. He further submits that the writ petition is devoid of merits and deserves to be dismissed.

( 4 ) WE have considered the arguments of the learned Counsel for the parties and have gone through the record.

( 5 ) THERE is no dispute that the Scheme known as "sharda Nagar Scheme" was launched by the opposite-party No. 2 on 20th June, 1988, in response to which, the petitioner applied for a type plot on hire purchase basis by depositing Rs. 20,000/- as registration amount. It is also not disputed that through allotment letter, dated 22. 10. 1990, an a type plot was allotted in favour of the petitioner. It is also admitted case of the parties that in pursuance of the allotment letter, dated 22. 10. 1990, the petitioner has deposited the entire amount, which was mentioned in the allotment letter. A perusal of the Brochure, a copy of which has been annexed as Annexure-1 to the writ petition, reveals that the cost of the land was fixed at the rate of Rs. 370/-per sq. meter. Clause (5) of the Brochure provides that the houses and plots will be allotted at any time in the year 1989. Clause (6) of the Brochure provides as under ;

"yadaypi bhawano ka uprokta anumanit vikraya mulya vartmaan samagri/mazdoori daron par aadharit hai tatha sambhavit mulya vridhi ka bhee pravidhaan kiya ga




Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top