LexTAMIL NADU HOUSING BOARD versus THE SERVICE SOCIETY & ANR.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
[2011] 6 S.C.R. 1
TAMIL NADU HOUSING BOARD
v.
THE SERVICE SOCIETY & ANR.
(Civil Appeal Nos. 2320 of 2011)
MARCH 04, 2011
[R.V. RAVEENDRAN AND A.K. PATNAIK, JJ.]
A
B
Housing - LIG housing scheme - Acquisition of land by
State Government - Formulation of Scheme by Housing
"8oard for development of the land and construction of houses C
and flats - Allotment of houses in the year 1976 - Fixation
'Jf tentative allotment price made up of cost of plot, cost of
:Jevelopment and cost of house - Execution of lease-cum-
-sale agreement between the Board and the allottees -
~lause of the agreement contemplating the final price to be o
..:ixed within three years from the date of allotment - However.
lliinal price determir:i.eft_by the Housing Board in the year 1988
- Final cost increased considerably on account of
=mhancement of compensation to land owners - Issuance of
iemand letter to allottees to pay difference in cost by the
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....:;pecified date, failing which interest@ 14%113% p.a. would
Je charged - Challenge to, by the Society-allottees of !he L/G
"louses - Dismissed by the State Government - Writ petition
- Single Judge of the High Court quashed the demand of
-3oard towards price increase - On writ appeal, Division Bench F
l/irected the allottee to pay additional sum towards increased
'Ost of the plot and the specified amount towards the interest
..;ith further interest@ 9% p.a. - Cross appeals - Held: Letter
•f allotment and lease-cum-sale agreement enabled the
../ousing Board to determine the final price taking into account G
"'le final cost of acquisition, cost of development and
.menities and cost of the building - The price indicated at
1e time of allotment was purely tentative - No term or
.rovision in the contract to the effect that if the Board did not
•etermine the final price within three years from the date of
1
H
2
SUPREME COURT REPORTS
[2011] 6 S.C.R.
A 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
s development work could not be completed on account of
encroachment of the acquired land - Therefore, while fixing
the final price in the year 1988, alongwith 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
c 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.
Preeta Singh v Haryana Urban Development Authority
D 1996 (8) SCC 756 - referred to.
Case Law Reference:
1996 (8) sec 756
Referred to.
Para 21
E
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
F
2320 of 2011.
From the Judgment & Order dated 7.8.2007 of the High
Court of Judicature at Madras in W.A. No. 1566 of 1999.
WITH
C.A. No. 2321 of 2011.
Mohan Parasaran, ASG, T. Harish Kumar, V. Vasudevan,
G V.Balachandran for the Appellant
H
V. Balachandran, R. Nedumaran, S. Thananjayan for the
Respondents.
The Order of the Court was delivered by
•
TAMIL NADU HOUSING BOARD v. SERVICE
3
SOCIETY & ANR.
ORDER
A
R. V . . RAVEENDRAN J.
1. Leave granted.
2. The first respondent ('Society' for short) requested the
B
state government (second respondent) to provide a Low Income
Group housing scheme for the benefit of its members who were
the employees of Tamil Nadu Electricity Board. The state
government directed the Tamil Nadu Housing Board, the
appellant herein ('The Board' for short) to execute the said c
scheme. To meet the requirements of the employees of the
Electricity Board as also the staff of the appellant, the state
government acquired an extent of 8.38 acres of land in
Singanur Village, Coimbatore. The Board formulated a scheme
for development of the said land and construction of 145 _LIG
0
Houses and 120 LIG flats therein. In pursuance of it, in the year
1976, the Board allotted to several members of the society, LIG
Houses, each house comprising a plot measuring about 40' x
26' (1040 sq.ft.) and a proposed construction measuring 316
sq.ft. Though the standard measurement of the proposed plots
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was 1040 sq.ft, the 'actual extents of some of the plotsExcerpt shown. Read the full judgment & AI analysis in Lexace.