AVTAR SINGH SAHI Vs. STATE OF HARYANA

JUDGEMENT

(1.) When an Improvement Trust acquires land for a development scheme and proceeds thereafter to allot/sell residential plots therein, is it empowered to demand enhanced price for such plots consequent upon the increase in the compensation awarded to the owners of the acquired land in proceedings under the Land Acquisition Act? Herein lies the controversy raised in this bunch of writ petitions.

(2.) The Improvement Trust Panipat prepared a Development Scheme for a residential/ commercial complex under the relevant provisions of the Punjab Town Improvement Act, 1922 covering an area of over 68 bighas of land within the Municipal Limits of the town. The Land Acquisition Collector by his Award of 6/11/1975 (annexure P/1) assessed the market value of this land at Rs. 55,584.00 per acre. This rate works out to about Rs. 11.00 per square yard. The Improvement Trust, after taking into account also the development and other charges fixed the price of land for residential plots at Rs. 72.00 per square yard and invited applications for allotment of such plots in the prescribed form (annexure R/1). This Form contains a specific clause to the effect that the price fixed was tentative and further that the present tentative price is subject to revision and enhancement at any time due to enhancement of compensation, interest and the cost allowed or Award by any appellate court or for any other reason. Not only this, even in the letter of allotment issued to the petitioners (annexure-R/2), there is pointed mention of this Rs. 72/ - per square yard being only the tentative price.

(3.) Further, in the documents executed after the allotment of plots had been accepted on the terms and conditions referred to earlier, there is a clear stipulation to the effect that in the event of additional price being determined as payable by the transferees, such additional price shall be paid within 30 days of the demand. Reference, in this behalf, is invited to the terms of the agreement and surety bond for sale (annexure-R/3). A similar clause is also to be found in the sale-deed and affidavit executed by the petitioners. Illustrative of this being the sale deed (annexure R/5) and the affidavit (annexure-R/6).