Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Housing |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Housing Development Authority-Housing Scheme on hire purchase basis-Allotment of flats-Declaration of initial cost as probabale-Subsequent escalation of cost of fiats-Development Authority should not act in Arbitrary or erratic manner-It owes a duty to explain to the Court reasons for the high escalation-Escalation of costs on account of increase in cost of materials, area of fiats and litigation held justified.The appellant-Authority invited applications for allotment of LIG and MIG flats on hire purchase basis. The advertisement stated that the price of fats was on estimated basis and the definite price will be intimated at the time of allotment. By its letter dated 5.11.1979 the authority informed the respondent-allottees that the probable cost of MIG and LIG flats is expected to be Rs. 70,000 and Rs. 45,000 respectively. However, vide Authority's letter dated 7.10.1980 respondents were informed of the revised cost i.e. Rs. 60,000 for LIG and Rs. 95,000 for MIG flats. The respondent-allottees paid money from time to time. Though the flats were ready for allotment in 1982, possession was not given to the respondents because of a dispute pending in the Court as a result of which also there was increase in the cost of flats. Once again vide Authority's letter dated 26.1.84 the respondent-allottees were informed that on account of increase in prices of various materials and increase in the area of flats, the cost of LIG flat would be Rs. 1,16,000 while that of MIG flat would be Rs. 1,30,000. Instead of paying the balance amount the respondents challenged the increase in cost of flats before the High Court which held that (i) the appellant authority had acted in arbitrary and dictatorial manner; (ii) the escalation at different stages which amounted to 100% had not been explained to the satisfaction of Court; and (iii) the respondents be given possession of flats on the basis of letter dated 7.10.1980 i.e. MIG Oats at the rate of Rs. 95,000 and LIG flats at the rate of Rs. 60,000. The Development Authority preferred an appeal to this Court challenging the decision of the High Court. |
Judge | Hon'ble Mr. Justice N.P. Singh |
Neutral Citation | 1995 INSC 169 |
Petitioner | Indore Development Authority |
Respondent | Smt. Sadhana Agarwal And Ors. |
SCR | [1995] 2 S.C.R. 555 |
Judgement Date | 1995-03-07 |
Case Number | 2734 |
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