Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | LIG housing scheme |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Housing - LIG housing scheme - Acquisition of land by State Government - Formulation of Scheme by Housing board for development of the land and construction of houses and flats - Allotment of houses in the year 1976 - Fixation if tentative allotment price made up of cost of plot, cost of development and cost of house - Execution of lease-cum-sale agreement between the Board and the allottees - clause of the agreement contemplating the final price to be fixed within three years from the date of allotment - However,minimal price determined by the Housing Board in the year 1988- Final cost increased considerably on account of enhancement of compensation to land owners - Issuance of demand letter to allottees to pay difference in cost by the specified date, failing which interest@ 14%/13% p.a. would be charged - Challenge to, by the Society-allottees of the LIG houses - Dismissed by the State Government - Writ petition - Single Judge of the High Court quashed the demand of board towards price increase - On writ appeal, Division Bench directed the allottee to pay additional sum towards increased cost of the plot and the specified amount towards the interest with further interest@ 9% p.a. - Cross appeals - Held: Letter of allotment and lease-cum-sale agreement enabled the housing Board to determine the final price taking into account the final cost of acquisition, cost of development and amenities and cost of the building - The price indicated at the time of allotment was purely tentative - No term or provision in the contract to the effect that if the Board did not determine the final price within three years from the date of allotment, it would lose the right to determine the final price thereafter or that the tentative price would become the final price - Thus, the Board not barred from fixing the final price on the expiry of three years from the date of allotment - Compensation in regard to the land was pending as also development work could not be completed on account of encroachment of the acquired land - Therefore, while fixing the final price in the year 1988, along with land cost component out of the tentative price, the cost of development or cost of construction could be increased - It cannot be said that the Board failed to justify the increase demanded by it - Demand for increase in price on account of final cost made by the Board upheld - Interest payable on the increase should be only 9% p.a., as directed by the High Court. |
Judge | N/A |
Neutral Citation | 2011 INSC 180 |
Petitioner | Tamil Nadu Housing Board |
Respondent | The Service Society & Anr. |
SCR | [2011] 6 S.C.R. 1 |
Judgement Date | 2011-03-04 |
Case Number | 2320 |
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