MAHABIR PARSHAD Vs. CHANDIGARH HOUSING BOARD

JUDGEMENT

(1.) This shall dispose of Civil Writ Petitions No. 9605 and 7691 of 1994 and 6335, 8944, 10916, 13836, 15958, 14807, 7686, 7391, 7747, 7756, 7757, 7813, 8512, 8975, 96%, 12172, 12497. 12928 and 16287 of 1993.

(2.) In these petitions, petitioners are challenging the action of the Chandigarh Housing Board, Chandigarh (in short the Board) in issuing letters of allotment dated 19th May, 1993 vide which the price of the flats under Hire-Purchase Scheme has been enhanced being illegal, arbitrary and unjust.

(3.) In the year 1989, the Board published an advertisement in the daily newspaper offering 1392 flats for general public in an exclusive residential complex at Manimajra, U.T. Chandigarh in four categories. Categories 1 and II are covered under the Self-financing Scheme whereas categories III and IV come under the Hire-Purchase scheme on easy instalments. Petitioners in the present petitions are claiming allotment and possession of flats of category-IV under the Hire-purchase scheme. In category-IV the price of the flat was fixed at Rs. 1150 lacs and the persons applying for the same were required to deposit an initial amount of Rs. 7500.00. Pursuant to the advertisement, the petitioners applied and deposited the initial amount of Rs. 7500.00. They also submitted affidavits that they or any member of their family dependent upon them have not acquired any unit/residential plot anywhere in India and the income from all sources is Rs. 2500.00 per month. After the submission of the applications, a draw of the eligible persons was held and accordingly the petitioners who were eligible for allotment of flats in question were issued acceptance-cum-demand letters under the Hire-purchase Housing Scheme, 1989. As per this letter, besides the additional amount deposited by the petitioners alongwith applications in the year 1989 the petitioners were asked to deposit Rs. 7500.00 within 30 days from the date of issuance of acceptance-cum-demand letter and thereafter they were required to deposit three half yearly instalments of Rs. 10,000.00 each and thereafter all the time of giving possession of the flats the petitioners were to deposit Rs. 15,000.00 and the mode of payment of remaining amount was by way of 144 monthly instalments including interest at the rate of 13.5% per annum of Rs. 1271/-. The full and final amount to be deposited by the petitioners comes to Rs. 2.43 lacs. Petitioners have averred that in the advertisement it was specifically mentioned that the flats under category-IV would be ready by April, 1991. Petitioners were eagerly waiting for the possession of flats ant they had also made arrangements to make payment of Rs. 15,000.00 each at the time of giving possession of the flats in question. However, to the surprise of the petitioners the Board in the month of May, 1993 issued allotment letters to some of the petitioners whereby the whole concept of allotment of flats to the petitioners who belong to Low Income Group has been changed. Petitioners who were to deposit Rs. 15,000.00 at the time of taking possession of the flats in question have been directed to deposit Rs. 45,000.00 i.e. three times more than the amount which was required to be given at the time of taking possession. Not only this, even the total amount mentioned in the advertisement has been enhanced from Rs. 1,50,000.00 to Rs. 2,25,000.00 and further the instalment which was to be paid by the petitioners at the rale of Rs. 1271/- per month in 144 equal instalments with interest at the rate of 13.5% per annum has been enhanced to Rs. 2168.00 in 144 equal instalments with interest at the rate of 16.5% per annum. According to the counsel for the petitioners, if the total amount mentioned in the letter now served is calculated the same would come to Rs. 4,02,192.00 against Rs. 2,43,000.00 which was actually fixed by the Board in the month of Dec., 1990. It has further been averred that petitioners have also been directed to deposit the payment within a period of 30 days from the date of letter and have been given maximum period of four months to make payment subject to payment of some penalty in case they make the payment after 30 days, and after the expiry of 120 days the allotment in favour of the petitioners would stand cancelled. In this regard, petitioners have stated that this condition is practically impossible for them to comply with. The increase in price of the flats is being impugned by the petitioners on the ground that the basic price initially fixed in the year 1989 at the time of advertisement has been increased to 50 percent of the basis price thereby making it impossible for the petitioners who belong to Low Income Group to pay instalment of Rs. 2168.00per month as mentioned in the demand/allotment letter. Enhancement in price has been said to be unjustified, illegal and arbitrary.