INDORE DEVELOPMENT AUTHORITY Vs. SADHANA AGARWAL

JUDGEMENT

(1.) THE Appellant, Indore Development Authority (hereinafter referred to as the 'Development Authority') has been constituted under the provisions of the M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973 (hereinafter referred to as 'the Act'). The writ -petitioners/respondents (hereinafter referred to as 'the respondents') are the intended, allottes of flats in the Navlakha Housing Complex Scheme No. 31 in the town of Indort., on hire purchase basis.

(2.) IT appears that in the year 1977, an advertisement was issued by the Development Authority, inviting applications from the persons interested in purchase of flats in multi -storeyed buildings on hire -purchase basis. As per the said advertisement, a deposit of Rs.l,000/ - for Lower Income Group (hereinafter referred to as 'the LIG') residential flat and a deposit of Rs. 2,000/ - for Middle Income Group (hereinafter referred to as 'the MIG') residential flat was to be made. It was also said that the plinth area for the MIG Flat shall be 805 sq. ft. and that of the LIG flat shall be 500 sq. ft. It was further said that at the time of the allotment of the flat a deposit of Rs. 11,000/ - was to be made by the hire -purchaser for the MIG flat and Rs. 7,500/ - for the LIG flat. The rest of the amount was to be paid in instalments. Details of such instalments were mentioned. At the foot, it was said that the cost of the flats aforesaid was based on estimate and that the definite cost would be intimated at the time of allotment. The estimated period for completion of the said scheme was mentioned as two years.

(3.) ONCE again by letters dated 7.10.1980 and 25.10.1980 the respondents were intimated that due to the increase in the prices of the materials the estimated cost of LIG flats shall be Rs. 60,000/ - instead of Rs. 45,000/ - and that of the MIG flats shall be Rs. 95,000/ - instead of Rs. 70,000/ -. It was said in the communication that the revision had been made on basis of the prevailing market rates of the construction materials. According to the respondents, they had no option but to concede to the aforesaid arbitrary and unilateral demand made by the Development Authority. By letters dated 26.1.1984 and 26.12.1984, the Development Authority again intimated to the respondents a further hike in the cost of the flats. It was said that the cost of UG flat had been raised to Rs. 1,16,000/ - and the cost of MIG flat had been raised to Rs. 1,30,000/ -. In the letter aforesaid dated 26.1.1984, respondents were informed that the area of the UG flat which had already been constructed was 714.94 sq. ft. in place of 500 sq. ft. as initially intimated in the year 1977. From the records, it appears that the construction of the building had been completed in the year 1982 and the flats were ready for allotment. But possession could not be delivered to the respondents because of a writ petition filed in respect of alleged irregular allotments of 56 flats.