K V KRISHNAN Vs. CHAIRMAN AND MANAGING DIRECTOR

JUDGEMENT

(1.) The appellant is the allottee of a ready built house. He was allotted the house in the middle income group M-117, Phase II, Santhosh Niwas, New Housing Colony, Perumalpuram, Tirunelveli 7, by the Tamil Nadu Housing Board. The letter of allotment is dated 12.07.1988. The cost of house as mentioned in that letter, described as "tentative cost" of house and building is Rs.80,000/-. The appellant, being a Government servant, was permitted to pay only the interest for some time and to pay the full cost of Rs.80,000/- after he secured a loan from the Government. He secured the loan and paid the sum of Rs.80,000/- to the Housing Board on 15.04.1990.

(2.) Between 03.08.1988 and 14.03.1991 he had also paid to the housing board a sum of Rs.14,960/- as interest, Rs.560/- as maintenance charges and Rs.36.35 as penal interest. On 12.6.91 the Board refunded to the allottee the sum of Rs. 7,862/- being the amount excess paid towards interest.

(3.) The lease cum sale agreement which was executed between the parties on 25.10.1988 permitted the appellant to secure a sale deed for that property on payment of the conclusive fixation of the cost of the property. The appellant waited till he completed the repayment of the loan of Rs.80,000/- that he had obtained from the Government and after discharging that loan, he applied to the housing board for his sale deed. That was in the year 1998. The appellant was informed in February 2000 that he should pay a further sum of Rs.29,360/-. The appellant not having paid that sum, a further letter of demand was sent to him on 11.05.2000 demanding a sum of Rs.35,750/- inclusive of penal interest.