RAVI NANDKEOLYAR Vs. STATE OF BIHAR

JUDGEMENT

(1.) HEARD Mrs. Sheela Prasad, learned counsel appearing for the petitioner and Mrs. I. Sen Choud -hary, learned counsel appearing for the respondent -Housing Board.

(2.) THE petitioner has challenged the notice dated 29.12.1998 as contained in Annexure 5 to the writ application whereby the respondent -Housing Board has raised a demand of Rs. 2,22,580/ -being the amount of compound interest payable in respect of allotment of MIG House.

(3.) PURSUANT to the notice issued by the Board for auction of the incomplete house at Harmoo, Ranchi, the petitioner applied and participated in the auction. He being the highest bidder, the Board decided to allot the said house at a total price of Rs. 1,17,000/ - - Letter of allotment dated 22.10.1984 was accordingly issued in favour of the petitioner. The petitioner was handed over possession of the said house in the year, 1985 on payment of 25% of the total price and an agreement to that effect was executed by and between the petitioner and the Board on 15.4.1985. In terms of the agreement thepetitioner was required to pay balance 75% of the total price of the house in six half yearly instalments together with interest at the rate of 14% per annum. Since the petitioner did not pay the entire instalments within time, the Board continuously charged interest and raised demand of Rs. 2,22,580/ -.