DINESH SHARMA Vs. JHARKHAND STATE HOUSING BOARD THROUGH MANAGING DIRECTOR, RANCHI, REVENUE OFFICER (HEAD QUARTER), JHARKHAND STATE HOUSING BOARD, RANCHI, EXECUTIVE ENGINEER

JUDGEMENT

(1.) Heard counsel appearing on behalf of the petitioner as well as counsel appearing on behalf of the Housing Board. The instant writ petition is preferred for quashing the letter No. 05/AA/170/01/286/AA dated 05.02.2008 (Annexure-4) issued by Revenue Officer, Jharkhand State Housing Board (Head Quarter) whereby the Housing Board has made a demand of Rs. 3,38,907/- till 31.03.2008 after adjustment of the amount deposited by the petitioner for the cost of the house in question to be paid in favour of the Housing Board.

(2.) The contention of the petitioner is that the demand of the respondent is altogether arbitrary, unreasonable and illegal since the petitioner has already deposited all installments way back in the year 1999 for the house allotted to him, as per the hire purchase agreement executed between the parties in the year 1989. The hire purchase agreement is annexed as Annexure-2 to the writ petition. The petitioner was required to deposit a total cost of the house which was a tentative determination of the cost, Rs. 78,500/- minus initial deposit of Rs. 15,700/-. The installments were to be paid from the beginning of May 1989 in 120 installments including the interest and the cost of the house. Petitioner started depositing Rs. 778/- per month with effect from May 1989. Possession was handed over and the entire installments were deposited till April 1999. After complete deposit of 120 installments, the petitioner approached the respondent to execute a final deed of conveyance. The Housing Board, instead of executing the deed, issued a letter through the Executive Engineer, Jharkhand State Housing Board, Jamshedpur, to the Revenue Officer. Jharkhand State Housing Board, vide Memo No. 2510 dated 15.12.2007 acknowledging the payments by the petitioner and also to calculate the final principal interest, with a further direction to forward an intimation to the petitioner. The impugned letter order was issued after adjustment of the deposits made earlier demanding a sum of Rs. 3,38,907.00 to be paid latest by 31.03.2008 and only then the deed would be executed. The petitioner has claimed that the Housing Board could not act in such arbitrary manner.

(3.) Perusal of the impugned letter, it is evident that interest on the price of the house has been imposed from the date of the allotment till the date of agreement and further interest on the same from the beginning of the first installment till payment of last installment and imposing further compound interest from the date of the last installment paid i.e. April 1999 and extending till March 2008. Thus, total amount shown outstanding is Rs. 1,76,034.10 on 31.03.2008 and this amount is build up of the interest gap between allotment and entering into the agreement between the parties. A revaluation of the house has also been done and on this score an amount of Rs. 1,62,865/- has been shown as outstanding against the petitioner purportedly under a unilateral decision of the Bihar Housing Board revaluating the cost of the house retrospectively imposing interest for more than 16 years. The amount shown in the impugned letter on account of revaluation is also not tenable as the price of the house which was said to be tentative, the same could be increased only in certain eventualities, in the instant case, none of those factors mentioned in the Hire Purchase Agreement are involved, there could be no revaluation. The construction was completed at the time of agreement and the cost etc, was known at the time of hire purchase agreement itself made on 07.04:1989 and delivery of possession was given in the following month.