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CHAIRMAN, TAMIL NADU HOUSING BOARD, MADRAS versus T.N. GANAPATHY

Citation: [1990] 1 S.C.R. 272 · Decided: 07-02-1990 · Supreme Court of India · Bench: L.M. SHARMA · Disposal: Dismissed

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Judgment (excerpt)

A 
CHAIRMAN, TAMIL NADU HOUSING BOARD, MADRAS 
v. 
T.N. GANAPATHY 
)...
FEBRUARY 7, 1990 
B 
[LALIT MOHAN SHARMA AND K. RAMASWAMY, JJ.] 
Code of Civil Procedure, 1908: Order I Rule 8 -Suit filed in 
representative capacity--Interest to be common or common grievance '
to be redressed-Persons need not have same cause of action. 
c 
In pursuance of a Housing Scheme the Tamil Nadn Housing 
Board, Madras had allotted residential plots over the land acquired 
ynder the Land Acquisition Act, to. different groups of applicants 
including the low-income group on terms and conditions stipulated in 
the lease deed Exh. B-3 sometime in the year 1963. Aller a lapse of more 
).
than a decade of the allotment, fresh demands were made from the 
D 
allottees in 1975. Objecting to the same, the respondent herein tiled a 
snit for self and on behalf of all the allottees of low-income group settled 
in the Colony named Ashok Nagar, praying for a permanent injunction 
restraining the Board from enforcing the demand. 
The defendant-Board questioned the very maintainability of the J
E 
snit in a representative capacity and also pleaded that it was entitled to 
finally determine the correct prices for the plots after taking into 
account the final award of the compensation for acquired land and 
until then the prices were tentative. The trial court negatived the objec-
lion to the maintainability of the snit but dismissed it on merits. The 
first appellate court confirmed the decree. On second appeal, the High 
F 
Court reversed the finding on merits. The High Court held that it was 
open to the Board to determine within a reasonable time what portion of 
~ 
the demand included the excess on account of compensation awarded by 
the courts for acquisition of the land and realize the same after serving 
fresh demand notices. But since the impugned demand included both 
the excess amount of compensation as also the additional developmental 
0 
charges injunction was granted in regard to the entire demand as the 
two amounts were not separately mentioned. Dismissing the appeal of 
the Board, this Court, 
HELD: The provisions of Order I of Rule 8 have been included in r
the Code in the public interest so as to avoid multiplicity of litigation. 
H 
Tiie condition necessary for application of the provisions is that the 
272 
HOUSING BOARD v. T.N. GANAPATHY {SHARMA, J.] 
273 
persons on whose behalf the suit is being brought must have the same 
A 
interest. In other words either the interest musi be' common or they 
must have a common grievance which they seek to get redressed. [276C-D I 
The Court, while considering whether leave under the Rule 
should be granted or not, should examine whether there is sntlicient 
community of interest to justify the adoption of the procedure provided B 
under the Rule. [276E] 
Persons who may be represented in a suit under Order I, Rule 8 
need not have the same cause of action. [277FJ 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3002 C 
of 1983. 
From the Judgment and Order dated 20.8.1982 of the Madras 
High Court in S.A. No. 83of1982. 
G. Ramaswamy (N.P.), Mrs. Anjani and K. Ramkumar for the D 
Appellant. 
P .S. Pgti and K. V. Sreekumar for the Respondent. 
The Judgment of the Court was delivered by 
SHARMA, J. This appeal by special leave arises out of a suit 
filed by the respondent in representative capacity for permanent 
injunction against the appellant Tamil Nadu Housing Board from 
demanding and collecting from the allottees any additional amount for 
settlement of lands with buildings in the colony Ashok Nagar fully 
des~ribed in the plaint. 
F 
2. In pursuance of a Housing Scheme the. appellant-Board pro-
ceeded to settle a large number of residential plots to different groups 
of applicants including one described as low-income group. A number 
of allottees, including the plaintiff-respondent, were selected and set-
tlement in their favour was made in 1963. J,.. oopy of the document G 
executed separately in respect to the plots is on the record of this case 
as Exh. B-3, setting out the terms and conditions of the lease. The 
term as mentioned in the 15th clause, which is quoted below, has been 
referred to by the parties in support of their respective cases: 
"15. The Lessor agrees to sell the property more particu-
H 
A 
B 
c 
D 
E 
F 
G 
274 
SUPREME COURT REPORTS 
[1990) 1 S.C.R. 
larly described in the schedule hereunder to the Lessee for 
such price as the Administrative Officer of the Lesso

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