R ANBUMANI Vs. SECRETARY TO GOVERNMENT, HOUSING AND URBAN DEVELOPMENT; DISTRICT COLLECTOR, EXECUTIVE ENGINEER CUM ADMINISTRATIVE OFFICER, TAMIL NADU HOUSING BOARD, THANJAVUR DIVISION

JUDGEMENT

(1.) The petitioner herein is a Government servant sought for an allotment of Government house in the Annal Agraharam Street at Kumbakonam and also sought to avail the loan from the Government for paying the amount to the Tamil Nadu Housing Board for such allotment. The petitioner was allotted the house bearing Door No. A.61 on the basis of the Government loan scheme and that the loan would be sanctioned within a period of six months. It was also made clear that the sanctioned loan amount would be directly paid to the Tamil Nadu Housing Board and whereas as per the terms and conditions of the hire purchase agreement entered into between the petitioner and the Housing Board the third respondent herein, the petitioner is liable to pay 1/3 amount of the total cost of the house within a period of 21 days from the date of receipt of the order. The allotment letter was issued by the Housing Board vide letter No. R4/987/98 dated 30.04.1999. The Tamil Nadu Housing Board also directed the petitioner to pay the interest for the total cost of the house i.e. Rs. 5,00,000/- for a period of six months in advance and pursuant to that the petitioner also had paid a sum of Rs. 26,602/- being interest for six months on 19.05.1999, whereas the total cost of the house was Rs. 5,03,700/-.

(2.) It is the contention of the petitioner that under law the Government ought to have granted the loan in six months time and the petitioner herein also paid interest for six months on the value of the house. But, unfortunately, the Government have not taken any steps to pay the amount to the Tamil Nadu Housing Board within a period of six months, whereas they have paid the entire amount of full value of the property, namely, Rs. 5,00,000/- by cheque only on 02.04.2002 and this was also directly paid to the Tamil Nadu Housing Board and the Tamil Nadu Housing Board further directed the petitioner to pay another sum of Rs. 10,000/- towards the interest which was also paid by the petitioner on 13.03.2002.

(3.) The petitioner would now contend that to the petitioner's shock and surprise he received a notice from the third respondent namely the impugned notice dated 23.02.2005 calling upon the petitioner to pay a sum of Rs. 1,79,115/- being interest due on the actual payment due to the Tamil Nadu Housing Board from the date of sanction or allotment of the house till the date of payment from the Government and also a further sum of Rs. 39,167/- being the penal interest payable on the above said sum. According to the petitioner, the notice is illegal, invalid and non est in the eye of law. As the petitioner was sanctioned the loan by the Government only, then the allotment was made and hence he has been paid the six months interest in advance taking into consideration the period required for sanctioning the loan by the Government. If there is any delay in the payment, the petitioner would not in any way be liable to pay any interest much less the penal interest on such delayed payment.