TAMIL NADU HOUSING BOARD Vs. SERVICE SOCIETY

JUDGEMENT

(1.) Leave granted.

(2.) The first Respondent (Society for short) requested the state government (second Respondent) to provide a Low Income Group housing scheme for the benefit of its members who were the employees of Tamil Nadu Electricity Board. The state government directed the Tamil Nadu Housing Board, the Appellant herein (The Board for short) to execute the said scheme. To meet the requirements of the employees of the Electricity Board as also the staff of the Appellant, the state government acquired an extent of 8.38 acres of land in Singanur Village, Coimbatore. The Board formulated a scheme for development of the said land and construction of 145 LIG Houses and 120 LIG flats therein. In pursuance of it, in the year 1976, the Board allotted to several members of the society, LIG Houses, each house comprising a plot measuring about 40 x 26 (1040 sq.ft.) and a proposed construction measuring 316 sq.ft. Though the standard measurement of the proposed plots was 1040 sq.ft, the actual extents of some of the plots were different, that is 1000 sq.ft, 1021 sq.ft, 1150 sq.ft, 1235 sq.ft etc. For convenience we will refer to the facts relating to the allottee of LIG House No. 49 which comprised a plot measuring 1000 sq.ft. and a house measuring 316 sq.ft.

(3.) The tentative allotment price was fixed by the Board as Rs. 18,000/- (made up of cost of plot, cost of development and cost of house) and each allottee was required to make an initial deposit of Rs. 3000/- and pay the balance in agreed monthly instalments. The Board also entered into a lease-cum-sale agreement in November 1977 with the allottee containing the terms and conditions of lease and the option for sale. Clause 17 of the said agreement providing for sale of the LIG House to the allottee is extracted below: