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UTTAR PRADESH RESIDENTS EMPLOYEES CO-OPERATIVE HOUSE BUILDING SOCIETY AND ORS. versus NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY AND ANR.

Citation: [1990] 3 S.C.R. 64 · Decided: 03-05-1990 · Supreme Court of India · Bench: K.N. SAIKIA · Disposal: Disposed off

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Judgment (excerpt)

A 
B 
UITAR PRADESH RESIDENTS EMPLOYEES CO-
OPERATIVE HOUSE BUILDING SOCIETY AND ORS. 
v. 
NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY 
AND ANR. 
MAY 3, 1990 
[K.N. SAIKIA AND K. RAMASWAMY, JJ.] 
U.P. Industrial Area Development Act, 1976: NO/DA-Co-
operative Housing Societies-Land acquired under Land Acquisition 
C Act-Allotment of land in lieu thereof-Directions issued. 
The appellant, a registered Housing Co-operative Society, 
acquired about 70 acres of land during the period !973 to 1975. 
After the enactment of U.P. Industrial Area Development Act, 
D 1976, the State Government constituted an Industrial Development 
Authority called NOIDA. Soon after the constitution of the said 
authority, notifications were issued under the Land Acqusition Act 
acquiring certain lands including that of the appellant Society. 
The appellant and several other societies demanded land in lieu of 
E the land acquired. A sub-Committee was constituted and it was 
proposed to offer developed plots to the bona fide members of the 
societies whose lands were acquired. An approximate rate ofRs.130 per 
square metre was fixed. It was also stipulated that 30% of the price 
would have to be deposited before a tripartite agreement between 
NOIDA, Co-operative Societies and individual members is made after 
F 
finalisation of lay-out plan. 
The appellant society filed a Writ Petition in the High Court 
alleging that the action taken by NOIDA was arbitra_ry and challenging 
the notifications issued under Sections 4 and 6 of the Land Acquisition 
Act. Meanwhile, the authority had intimated the appellant society that 
G 
it was finally decided to offer lands, and that 20% of the amount had to 
be deposited within a stipulated time. The Society requested for 
extension of time. Time was not extended and the Society was not 
allotted the land. 
Jt was contended before the High Court that the authority acted 
H 
mala fide, and its not extending the time was arbitrary and discrimi-
64 
' 
t 
U.P. RESIDENTS EMPLOYEES v. NOIDA 
65 
natory. The land price fixed by the authority was also challenged. The 
High Court dismissed the Writ Petition, holding that the appellants 
Society had no legal right to get a particular land and that it did not 
avail the concession granted by the authority. This appeal by special 
leave is against the order of the High Court. 
Disposing of the appeal, this Court. 
HELD: 1. The interim orders of this court dated 30.5.83, 19.3.84, 
30.4.84 and 8.5.85 will merge in this Order. [70B] 
2. The Judgment of the High Court dated 6.5.83 is set aside. The 
total number of persons entitled to allotment will be confined to those 
persons who were eligible members of the Society on Isl May, 1976 not 
exceeding 600. The total area to be allotted to the members of the 
Society will be 28.8 acres in the form of developed plots. This amounts 
to 40% of the total 72 acres of land acquired by the Society in the 
villages Chhalera Bangar and Suthari between January, 1973 and 
September, 1975. The allotment shall be made in Sectors 40, 41and42 
and if sufficient number of plots are not available in these Sectors, then 
from the adjacent sectors. The plots to be allotted are to be developed 
by NOIDA witlr'" a period of nine months beginning from 1st May, 
1990 and ending on 31st January, 1991 by which date the plots shall be 
allotted to the entitled members of the Society. NO IDA shall be per-
mitted to charge the price of the allotted plots at the rate of Rs.1.000 per 
square metre. Every member who has deposited any sum of money With 
NOIDA against proposed allotment shall be entitled to 12 per cent 
interest on such amount from the date of deposit till the actual allotment 
and such interest accrued in favour of the persons shall be entitled to 
adjustment of such interest against actual price of the land to be worked 
out at the rate of Rs.1,000 per square metre. Balance amount, if any, 
shall have to be paid by every eligible member of the Society as onl.5. 76 
not exceeding 600 in all, within three months from now in three equal 
monthly instalments. The !st instalment will be paid on or before May 
31, 1\1\IU. The second instalment to be paid on or before June 30, !990 
and the third instalment to be paid on or before July 31, 1990. It shall 
be obligation of the Society to duly notify every member of these 
directions and the time factor forthwith as failure to pay any of these 
instalments within the time limit indicated above shall

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