O R D E R

(Order of the Court was delivered by P.B.BALAJI, J.)

The instant writ appeal has been filed by the Tamil Nadu Housing Board challenging the common order dated 24.9.2012 in W.P.No.21472 of 2011.

2. The short question involved in the instant appeal is as to the correctness of the order passed by the learned Single Judge, directing the appellant Board to collect interest on the final land cost, from the date indicated in the demand notice issued by the appellant Board.

3. The learned Single Judge has taken into account the Circular issued by the Tamil Nadu Housing Board dated 20.6.1988. Clause 7( c ) of the Circular reads as follows:

''The collection of interest should be only from the date of intimation of difference in cost. For this purpose, such intimation should be sent only by Regd. Post with Ack. Due in future. In all old cases, the date of despatch of the intimation of difference in cost, may be taken for the purpose of calculation of interest.''

4. The case of the writ petitioner is only with regard to levy of interest on the final cost determined and calling upon him to pay the difference between the final cost and tentative land cost, together with interest, from the date of the original allotment. According to the counsel appearing for the writ petitioner/first respondent, the interest for the difference in the tentative land cost and final land cost could be levied only from the date of finalizastion of the final land cost, whereas in the instant case, for the difference in the land cost, interest has been levied from the date of allotment, which is unjust and improper on the appellant board's part.

5 Heard Mr.D.Veerasekaran, Standing Counsel appearing for the appellant Board, Mr.R.Kannan, counsel appearing for the writ petitioner/first respondent and Special Government Pleader appearing for the second respondent and perused the materials available on record.

6 The learned Standing counsel appearing for the appellant board invites our attention to the Circular issued by the Tamil Nadu Housing Board in Memo No.CA.I/33871/88 dated 20.6.1988 wherein the issue of difference in cost between the tentative and final cost is dealt with. It reads as follows:

a) While arriving at the final cost, the following procedure should be followed. The cost as per completion report should be arrived at first and capitalisation of interest and collection charges should be added to the completion report cost. The cost so arrived at only should be compared with the tentative cost already intimated to the allottees and whichever is higher of these two months should be taken as final cost and difference between the final cost thus arrived at and the tentative cost already intimated should be collected.

b) The allottee should be given month month time for the payment of difference in cost in one lumpsum without interest or in instalments as per instructions issued in proceedings No.61457/CA.I-a/75/ dated 17.5.1976 with interest (copy enclosed).

c) The collection of interest should be only from the date of intimation of difference in cost. For this purpose, such intimation should be sent only by Registered Post with ack. due in future. In all old cases, the date of dispatch of the intimation of difference in cost, date of dispatch of the intimation of difference in cost, date of dispatch of the intimation of difference in cost may be taken for the purpose of calculation of interest.

d) Working sheets should be prepared separately for additional cost and tentative cost.''

7. Relying upon the aforesaid clause, the learned Standing counsel appearing for the appellant would content that the final cost itself has been computed taking into account capitalisation of interest and therefore, the impugned order directing the appellant Board not to collect interest from the date of allotment is erroneous and the same is liable to be set aside.

8. Per contra, the learned counsel appearing for the first respondent/writ petitioner would submit that Clause (c