PRIYA NANDAN SAHAY Vs. JHARKHAND STATE HOUSING BOARD

JUDGEMENT

(1.) CHALLENGE in this Writ Application is to the demand made by the Respondent Housing Board vide letter dated 10th November, 2006 (Annexure -7), whereby the Petitioner has been called upon to pay a sum of Rs. 6,41,523/ - towards price of the house allotted to him. The Petitioner has also challenged the calculation chart. (Annexure -7/1), annexed to the demand letter, as being erroneous, arbitrary and illegal.

(2.) THE main question raised by the Petitioner in this Writ Application is, whether in the facts and circumstances of the case, the Respondent Housing Board can calculate and charge compound interest and capitalisation value on the balance amount, by adding such compound interest towards the price of the house allotted?

(3.) UPON receipt of the letter of allotment, the Petitioner forwarded his Draft Agreement on 13th May, 1977 on Non -Judicial Stamp Paper along with the initial deposit of Rs. 8,975/ - as per Clause - IV of the allotment letter, to the Housing Board. Upon receiving the Draft Agreement, the Executive Engineer of Jamshedpur was directed by the Estate Manager -cum -Secretary, Bihar State Housing Board, Patna to hand over the possession of the allotted house to the Petitioner even without formal execution of the proposed agreement. It was explained that the execution of the agreement may take time in view of the coming into force of the Urban Land (Ceiling and Regulation) Act, 1976. It was also declared in the letter of allotment that the recovery of the price of the house shall commence from the date of handing over of the actual physical possession of the house.