MADHYA PRADESH HOUSING AND INFRASTRUCTURE DEVELOPMENT BOARD & ORS. versus B. S. S. PARIHAR & ORS.

Citation: [2015] 6 S.C.R. 841 · Decided: 21-07-2015 · Supreme Court of India · Bench: V. GOPALA GOWDA · Disposal: Case Partly allowed

Judgment (excerpt)

[2015) 6 S.C.R. 841 
MADHYA PRADESH HOUSING AND 
A 
INFRASTRUCTURE DEVELOPMENT BOARD & ORS. 
v. 
B. S. S. PARIHAR & ORS. 
(Civil Appeal No.1801 of 2015) 
JULY 21, 2015 
B 
[V. GOPALA GOWDA AND R. BANUMATHI, JJ.] 
Housing - Housing Scheme - By State Housing and c 
Infrastructure Development Board- Cost of developed plots 
initially fixed at Rs. 16, 5001- per sq. mfr. as per Rules of the 
Board - Final demand by the Board from the allottees after 
fixing the sale price at Rs. 30, 0001- per sq. mtr. - Final demand 
at enhanced rate challenged - Single Judge and Division D 
Bench of High Court quashed the enhanced/final demand -
On appeal, held: The advertisement of the housing scheme 
in the newspaper specifically stated that the price was 
provisional - The final sale price was fixed in accordance 
with the provisions of Griha Nirman Manda/ Adhiniyam and E 
Housing Board Accounts Rules - Hence the Board was not 
debarred from raising the cost of construction or claiming 
enhanced prices for the land - However, the said 
enhancement is arbitrary, unreasonable, unfair and without 
applying the principle of the doctrine of proportionality and F 
thus violative of Art. 14 of the Constitution - The determination 
of final cost of the land should have been in consonance 
with the doctrine of proportionality and not on the basis of 
the market price - It would be just and proper to take into 
consideration the cost of developed plots at Rs. 16, 5001- per G 
sq. mtr. and take escalation@10% for every year from 2007 
to 2011 and ask the allottees to pay simple interest thereon 
- Constitution of India, 1950 - Art. 14 - Madhya Pradesh 
Griha Nirman Manda/ Adhiniyam, 1972 - s.50 - Madhya H 
841 
842 
SUPREME COURT REPORTS 
[2015) 6 S.C.R. 
A Pradesh Housing Board Accounts Rules, 1991- Stamp Act, 
1899-s.47(a)-Madhya Pradesh Preparation and Revision 
of Market Value guidelines Rules, 2000- Rules 4(2) and 75. 
Precedent -: Precedential value of a judgment - Any 
B declaration or conclusion arrived at without application of 
mind or preceded without any reason cannot be deemed to 
be declaration of law of a general nature and cannot be 
deemed as a precedent. 
c 
Partly allowing the appeals, the Court. 
HELD: 1.1 
It is not correct to say that once the 
appellant-Board has made the allotment of the said plot 
of land, it is debarred from raising the cost of 
0 
construction or claiming enhanced prices for the said 
land, in view of the clauses contained in the 
advertisement published in the newspaper which read 
that the cost of the houses shown in this advertisement 
are totally provisional and the final fixation of the price 
E will be done after the completion of the Scheme. 
Therefore, the allottees will have to pay the difference 
between the tentative cost and the final sale price of the 
land which is based on the fixation of the final cost of 
the land, within the stipulated time. [para 21)(855-H; 856-
F A-C] 
1.2 Further, the said clause is also traceable to 
Section 50 of the Madhya Pradesh Griha Nirman Mandal 
Adhiniyam, 1972, wherein the appellant-Board is 
G empowered to retain, lease, sell, exchange or otherwise 
dispose of any land, building or other property vesting 
with it, situated in the area comprised in any housing 
Scheme or in any adjoining area. [para 22] [856-E-F] 
1.3 Thus, the final sale price which is fixed and 
H intimated to the allottees is in accordance with the 
M. P. HOUSING & INFRASTRUCTURE DEV. BOARD v. 843 
B. S. S. PARIHAR 
provisions of the 1972 Act, Madhya Pradesh Housing A 
Board Accounts Rules, 1991 and the clause of the 
advertisement which is binding on the respondent 
allottees. Therefore, the High Court has committed an 
error in law by quashing the demand notice of the 
appellant-Board for the payment of the final sale price. 
B 
(para 23) (858-A-B] 
1.4 The provisos issued by the Central Valuation 
Board vide letter No. 713/Ga.La./2011 Bhopal dated 
29.03.2011 for the implementation of the rates of plots C 
of land, buildings and agricultural land in Rule 3(2) of 
the Rules, 2000 and the after approval of the rate of the 
market price proposed by District Valuation Committee 
Guiding Principles (Guidelines) for the year 2011-2012 
for reckoning the market price of the immovable property D 
(plots of land, building and agricultural land) situated in 
District Bhopal under Rule 4(2)(c) of the Rules, 2000, 
are forwarded by the Sub-Registrar of the Districts for 
the purpose of issuing 

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