Full Judgment Text
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CASE NO.:
Appeal (civil) of 913-
PETITIONER:
Kanpur Development Authority
RESPONDENT:
Smt. Sheela Devi & Ors. Etc.
DATE OF JUDGMENT: 28/11/2003
BENCH:
Shivaraj V. Patil & D.M. Dharmadhikari.
JUDGMENT:
J U D G M E N T
SHIVARAJ V. PATIL J.
Kanpur Development Authority (KDA) has filed these appeals
challenging the correctness and validity of the common order dated
21.5.1997 made by the Division Bench of the High court in Writ
Petitions.
Three schemes were floated by KDA in September, 1978 with
financial support of ’HUDCO’ "on no profit no loss basis". The
three Schemes were; (1) For Economically Weaker Section; (2) For
Lower Income Group and (3) Middle Income Group. Applications were
invited in the prescribed form fixing the last date as 29.9.1978.
The applications were to be made in the prescribed form along with
the earnest money for each category. A brochure was issued
showing the cost of each house and terms and conditions of the
Schemes. In these cases, we are not concerned with the houses
constructed in two other schemes which were allotted to the
applicants on the basis of lottery on 25.10.1980 and cost
specified in the brochure and the possession of the houses was
delivered to them. However, the applicants (respondents herein)
in the Middle Income Group were not allotted the houses and their
applications were kept pending for more than 18 years for no fault
of them.
As per the terms and conditions mentioned in the brochure in
the MIG Category, the applications were to be made along with the
earnest money by 29.9.1978. The estimated cost of each house was
specified in the brochure as Rs. 48,000/-. The persons whose
income was between Rs. 601/- to Rs. 1500/- per month were eligible
for Middle Income Group Houses. The houses were to be allotted
among the valid applicants by lottery. After the lottery was
drawn and on receipt of letter of information of allotment, the
applicants had to deposit balance of the 1/4th of the cost of the
house. Thereafter, physical possession of the houses was to be
delivered to the allottees and the remaining 3/4th of the cost of
the house i.e. Rs.36,000/- was to be paid by the allottees in 48
quarterly installments in 12 years with 11.5% interest as per the
brochure. Since there were only 108 valid applications altogether
for 111 MIG houses, all the applicants could have been allotted
MIG houses when 1/4th cost of the house was deposited by the
applicants as on 31.3.1979, what remained was only to draw a
lottery among the 108 valid applicants for the specific houses to
each one of the applicants. And thereafter the possession of
specified house was to be delivered to each allottee as the
constructions of 111 MIG houses were completed in 1980.
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However, KDA chose to include names of some more applicants
after the last date i.e. 29.9.1978, which gave rise to disputes.
Some affected applicants filed suits in 1981/1982. None of these
respondents were parties in those suits.
The court finding fault with the KDA decreed the suit and
directed it to allot the houses to 108 valid applicants keeping 8
houses reserved for the persons who are plaintiffs in those two
suits. The appeals filed by the KDA against the decree passed by
the trial court were also dismissed. Instead of complying with
the decree, KDA increased the cost of each houses from Rs.
48,000/- to Rs.2,08,000/- by the notification dated 24.12.1994
stating that each applicant had to deposit a further sum of
Rs.40,000/- and in case of default the name of the applicant would
not be included in the list of lottery for allotment of houses.
In these circumstances, some of the respondents were compelled to
file writ petitions.
The writ petitions were admitted and interim orders were
issued to include the names of 85 general category applicants in
the lottery. In spite of the interim order dated 4.1.1995, KDA
again issued a notification on 10.1.1995 stating that the date of
lottery had been extended to 17.1.1995.
The lottery was drawn among the 108 valid applications,
keeping 8 houses reserved to the plaintiffs in the two suits. In
February, 1995, information of allotment was issued to all the
allottees along with demand for Rs. 24,000/- from each one of them
towards first 6th monthly installment. The High Court in the writ
petitions stayed this demand. The KDA filed the counter affidavit
in the writ petitions taking a stand that it was entitled to
escalate the price as per the brochure; the initial price fixed as
the cost of the houses, was only tentative; the delay in drawing
of lottery and allotment of house was on account of the suits
filed and because of the pendency of the cases. According to the
KDA, the action taken by it in increasing the cost of the house to
Rs. 2,08,000/- was quite justified. The Division Bench of the
High Court, after detailed consideration of the respective
contentions, allowed the writ petitions granting relief to the
respondents by quashing the order dated 24.12.1994 of the KDA
increasing the cost of the houses and directed it to deliver the
possession of the houses to the respondents on the cost fixed in
the brochure.
The learned counsel for the appellant urged that the High
Court failed to appreciate that the Vice Chairman of KDA could
determine the cost of the houses and the cost fixed by him was
reasonable and fair; the High court could not have interfered with
such determination of cost. The High Court should have taken into
consideration the position that the KDA brought out the scheme for
allotment of houses on ’no profit and no loss basis’; the cost
fixed was based on the relevant materials and it was not arbitrary
so as to interfere with the same; it was not open to the High
Court to hold that the price of the house fixed was arbitrary and
unreasonable without going into the method or the basis for
calculating the cost of the house. The delay in allotment of
houses was not deliberate or intentional; it was because of long
pending litigation in courts. The learned counsel added that KDA
constructed the houses by raising loans under the HUDCO Scheme; it
has paid enormous amount of interest on the loan raised; it had to
pay heavy compensation for acquisition of land.
On the other hand, the learned senior counsel for the
respondents argued fully justifying the impugned order. He
submitted that the delay in allotment of houses and delivering the
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possession of the same to the respondents was on account of the
appellant; the respondents complied with the every condition
contemplated in the brochure; the unreasonable stand and conduct
of the appellant was responsible for delay and no blame can be put
on the respondents in that regard. Two suits were filed in
1981/1982 by eight plaintiffs in all. Nothing prevented the
appellant from allotting the houses to the respondents keeping
aside eight houses for the eight plaintiffs as they were available
in excess of the applications. The appellant moved for vacating
the interim order in those suits filed in 1981/1982 only in 1990.
The present respondents were not parties in those suits. The
appeals filed by the KDA against the decree passed in the suits
were dismissed on 24.5.1994. The learned counsel further
contended that as per the brochure issued by the appellant,
escalation of cost of houses could not exceed 10%; cost of the
houses should be determined as on the date of completion of the
houses and not on the date of the allotment or delivering the
possession of the houses. The appellant has tried to prosecute
parallel remedies inasmuch as it filed review petitions before the
High Court and special leave petition before this Court against
the impugned order. The respondents were salaried employees
having income between Rs.601 to Rs.1500 per month; they had
arranged their financial affairs with a hope to get houses. Had
they been given the possession of the houses immediately after
their completion in 1981, they could have saved money paying by
way of rent to houses where they were staying. The learned
counsel drew our attention to I.A. Nos. 7-8 of 2003 filed by the
respondents to take action against the appellant under Section 340
read with Section 195 of the Code of Criminal Procedure by
ordering an inquiry into the offences committed by the appellant
under Sections 193, 196, 199, 200, 463, 464, 465, 467, 468, 471
read with Section 120-B of the Indian Penal Code in respect of
production of false and fabricated documents and giving false
evidence during the proceedings. In these applications it is
specifically averred that the appellant produced a translated copy
of the brochure (Annexure A-1) alleging the same to contain the
1978 Scheme for allotment of houses in Mohalla Barra Third Phase,
Kanpur. The correct copy (translated) of the brochure that was
given to the respondents at the time of application for the said
Scheme is filed as Annexure A-2. The original copy in Hindi was
placed before us during the hearing. According to the respondents
Annexure A-1 was filed before the High Court by the appellant,
which is fake, fabricated and materially different from the true
translation of the original brochure and that the said document
has been filed by the appellant with oblique motives to
thwart/alter the course of justice. It is further stated in these
I.As. that the case of the appellant before this Court is based on
the premise that "In the brochure Clause 4 relating to payment of
price, stipulated that the final price shall be determined by the
Vice Chairman of the KDA and that the said price shall be
determined by the Vice Chairman of the KDA and the price would be
binding on the applicants. The brochure for allotment of houses
under the Scheme also provided that the Vice Chairman of the KDA
is empowered to alter/change the price/shape of the houses shown
in the brochure and it shall be binding on every applicant". The
prayer is made in these I.As. to order for a preliminary inquiry
into the offences committed by the persons responsible in the
appellant authority during the course of the judicial proceedings
and after recording the findings make a complaint to the Chief
Judicial Magistrate for the prosecution of the accused persons in
accordance with law. During the course of hearing when the
original brochure in Hindi was produced on behalf of the
respondents the learned counsel for the appellant did not dispute
its correctness and authenticity.
We have carefully considered the respective submissions made
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on behalf of the parties and to appreciate them, it may be
necessary to refer to the relevant terms and conditions under
different headings contained in the brochure. In the light of the
controversy as to the translated copies of the brochures produced
by the appellant and the respondents and in view of what is stated
above in relation to them the relevant terms and conditions
contained in translated copy of the brochure (Annexure A-2) filed
along with I.A. Nos. 7-8 on comparison of the same with the
original in Hindi, reads: -
" Signature
(L.N. Tripathi) (Rubber stamp)
Head Clerk (Sales)
Kanpur Development Authority
BURRA HOUSING CONSTRUCTION SCHEME
(financially supported by HUDCO)
Third Phase
(Application Form)
KANPUR DEVELOPMENT AUTHORITY
Price Rs.5/-"
"(Application form for applicant only)
KANPUR DEVELOPMENT AUTHORITY No.____
(Without putting adverse effect)
Price Rs.5/-
BARRA HOUSING SCHEME
To:
Vice Chairman
Development Authority
Kanpur
Sir,
I/We ___________________ son/wife of
_______________ apply for a house in the
proposed houses under "Barra Grah Nirman
Yogna" of Kanpur Development Authority, the
estimated cost of which is Rs.48,000/- (which
can also exceed upto 10%).................."
"SYSTEM AND RULES OF ALLOTMENT OF HOUSES
8) The Vice-Chairman can change any rule or can
cancel and can make other rule which shall be
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acceptable to the applicant."
"KANPUR DEVELOPMENT AUTHORITY
BARRA HOUSING CONSTRUCTION SCHEME
Details of House & Rules for Payment
-------------------------------------------------------
Sl. Category Area Details Monthly Sale Adv. 31.12.78 31.12.79 Qtly
. Rate
No. of house of land of income price amount install-
of
In sq. house of family of with ments inte
rest/
mt. Not house appli- year
exceeding which cation
can
increase
upto 10%
-------------------------------------------------------
1 2 3 4 5 6 7 8 9 10 11
1. ..............
2. ..............
3. Middle 167.20 2 rooms, 1500 48000 5000 2500 4500 48 11.5
%
Income drawing
Group dining, Bath &
Toilet Room &
Lounge "
In the application form as prescribed by the KDA, it is
clearly mentioned that the estimated cost of the house in MIG
scheme is Rs.48,000/- (which can also exceed up to 10%). There
was some controversy with regard to the terms and conditions
mentioned in the brochure. It was contended on behalf of the
respondents that there was deliberate misrepresentation by KDA
before the High Court by filing incomplete and incorrect extract
of Brochure. Before us, not only translated copy but original of
Brochure in Hindi itself was produced by respondents and there was
no controversy as to the terms and conditions in relation to the
relevant clauses extracted above. As rightly contended on behalf
of the respondents there is no clause 4 in the brochure relating
to payment of price on which the appellant claimed that the Vice-
Chairman of the KDA has the right to increase the price and fix
the final price that would be binding on the applicants. This
being the position, the very foundation for increase of the price
of houses and justification thereof itself is destabilized and
knocked down. Clause 4 of the brochure is altogether different,
which reads: -
"4) House category 2 and 3, the interested
applicants to deposit full amount of the house,
will have to deposit balance of the 1/4th of cost
by 31.12.1978. The information of lottery will
be sent by registered post on the address
mentioned in the application form. The
remaining 3/4th of the cost of the house will
have to be deposited in cash or by Bank draft in
favour of Development Authority within 60 days
from the information of lottery given by
registered post, otherwise all proceedings
regarding allotment will be cancelled and the
advance money will be forfeited."
It is not in dispute that the respondents made applications within
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the time fixed, satisfied the terms and conditions for allotment
of houses and they were not the plaintiff in the suits filed in
1981/1982. The construction of houses was completed in 1980, the
cost of the house was determined as on 24.12.1994. Nothing
prevented the KDA from allotting houses to the respondents, when
the houses were ready for allotment. Particularly, when houses
available were more than the applications received before the last
date. For no fault of the respondents, they were made to wait for
more than 18 years. As per the brochure, the houses were to be
allotted through lottery system by drawing lot among the eligible
applicants, who got themselves registered through the prescribed
format within the time fixed and paid required money within time.
In the instant case in MIG scheme, 111 houses were available but
the number of applicants were less including the respondents.
Only 8 persons had filed suits in the years 1981/1982. There
should have been no difficulty in allotting the houses and
delivering the possession to the respondents immediately on their
completion in 1980. In that event, the payment of interest on
loan said to have been taken by the authority would not have
arisen. It cannot also be ignored that the respondents were/are
mostly salaried employees having monthly income of Rs.601-1500.
They must also have adjusted and arranged their finances and
affairs to make payment towards the houses. It may also be kept
in mind that the allottees were expected to pay the remaining
amount after initial deposit and first installment, in 48
installments. Even having regard to the payment of money in
installments, the estimated cost which was fixed at Rs. 48,000/-
with a clear and express understanding that increase in the cost
of the house could be up to 10% of the cost of the house. In the
brochure, it is also mentioned that the price of the houses
mentioned is totally approximate and that the final price of the
houses would be determined by the Vice Chairman, KDA, on the
completion of the houses. Prices of the houses in these cases
were determined as on 24.12.1994 as against the express clause
that the determination of the final price shall be as on the date
of completion of the construction of the houses i.e. in the year
1980. As can be seen from the prescribed form of application and
rules for payment the increase of the cost of the house can be up
to 10%. Further it is clear from the prescribed form of
application as filled by the respondents that the estimated cost
of the house is Rs. 48,000/- which could exceed up to 10%. The
argument advanced on behalf of the appellant to the effect that
the Vice Chairman has power to determine the prices of the houses
and the price determined is binding on the respondents, runs
contrary to brochure. Hence it cannot be accepted.
Further for no fault of the respondents they cannot be
penalized to pay the cost of construction as determined on
24.12.1994 when the houses were ready in 1980. As can be seen
from the impugned order, the High Court has found thus: -
"It was undesirable conduct of the authority
which gave rise to the civil litigation. There
were no restraints and constraints for the
respondents in drawing the lottery and making
the allotments to the genuine applicants even
during the pendency of the civil suit and appeal
before the District Judge. There is nothing in
the counter affidavit to demonstrate that the
respondents were under legal obligation to
refuse the allotment of the houses to the
persons or make delay in allotment of the houses
to them. So in absence of a reasonable and
sufficient justification preventing the
respondents to make allotment in 1979, we feel
that the respondents should be blamed for delay
in making the allotment."
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The High Court has further observed: -
"It may be mentioned that the petitioners
deposited the installments under the hope and
trust that they will get the houses within the
time schedule advertised at the initial stage.
Much time is elapsed between the registration of
the applications for allotment of the houses and
actual construction and delivery of possession
thereafter. It is worth mentioning that the
petitioners might be living in the rented house
since 1979 and they might have managed their
financial position in such a manner that after
the deposit of the installments they will get
the house of their own and thereafter they will
be free from payment of house rent and then they
will be shifted from the rented house to the
allotted house, but on account of inordinate
delay in delivery of possession of allotted
house, their financial calculation and
expectation stands frustrated causing various
types of financial loss to them. On the other
hand, once the authorities made offers and the
same were accepted by the allottees, with the
legitimate exception, the statutory obligation
cast upon the authorities is to complete the
same within the time schedule mentioned in the
offer and if they fail to discharge the same,
they should be held responsible for it and not
the petitioners."
The High Court finally concluded that delay in allotting and
in delivering the possession of the houses to the respondents was
caused due to the lapse on the part of the appellant, and,
therefore, in the fairness of things, the KDA should not be
allowed to determine unjust and unfair cost of the houses in an
arbitrary manner.
We have no good reason to take a different view in the light of
what is stated above. We have to note one more submission made on
behalf of the appellant that the appellant works on no loss and no
profit basis and it has raised huge loan under the HUDCO scheme for
construction of houses and it has to pay heavy interest on the
amount of loan raised. The appellant neither urged nor laid any
foundation for this argument before the High Court. No details and
particulars were given as to the amount of loan raised and the
period for which interest has been paid in respect of the houses
constructed which are to be allotted to the respondents.
Further the final price of the houses had to be determined on
the date of their completion. As found, there was delay on account
of the appellant and if that occasioned payment of interest, the
respondents cannot be held responsible, having regard to the terms
and conditions contained in the brochure. This apart, no
justifiable case is made out for escalation of price of the houses
in these cases, to say that the appellant could enhance the prices
for the unforeseen or compelling reasons beyond control of
appellants even as against the terms and conditions contained in the
brochure.
The learned counsel for the appellant cited two decisions in
Delhi Development Authority vs. Pushpendra Kumar Jain [1994 Supp.
(3) SCC 494] and Prashant Kumar Shahi vs. Ghaziabad Development
Authority [(2000) 4 SCC 120], in support of his submissions. In
our view both these decisions do not help the appellant when we
look at the facts of those cases and the views expressed therein.
In the Case of Delhi Development Authority (supra) the facts
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were that Delhi Development Authority (DDA) published a scheme
called "Registration Scheme of New Pattern, 1979 of intending
purchasers of flats to be constructed by Delhi Development
Authority" providing a procedure for allotment of flats. In the
brochure, clause (11) provided schedule of payment. Clause (14)
was to the effect that "it may please be noted that the plinth
area of the flats indicated and the estimated prices mentioned in
the brochure are illustrative and are subject to
revision/modification depending upon the exigencies of lay-out,
cost of construction etc.". The Court took notice that there
were always more applicants than the number of flats available.
The DDA had been adopting the method of draw of lots among the
registered applicants to select the allottees. The writ petition
was filed by one of the allottees because between the date on
which lots were drawn and the date on which the allotment was
communicated to the respondent, the land rates were revised by the
DDA by the circular dated 6.12.1990, as there has been substantial
enhancement of land rates in the region of about 50 to 70%. Since
the allotment was made to allottee on January 9/13, 1991, he was
called upon to remit the amount on the basis of revised land rates
as aforesaid. The Division Bench of the High Court accepted the
plea of the allottee writ petitioner. This Court, allowing the
appeal filed by the DDA, found fault with two reasons given by the
High Court: (1) Though the draw was held on 12.10.1990, the
allotment-cum-demand letter was issued to the respondent only on
January 9/13, 1991. This delay was the result of inefficiency of
the DDA, and (2) as the issue of allotment-cum-demand letter was
delayed in the office of DDA, it cannot charge the revised land
rates to the respondent inasmuch as the respondent became entitled
to get the flat on 12.10.1990; the revision of land rates
subsequent to the draw of lots cannot affect the respondent. This
Court held that there was no legal basis for holding that the
respondent obtained the vested right to allotment on the draw of
lots as the system of drawing of lots was resorted to with a view
to identify the allottee; it was not the allotment by itself.
Mere identification or selection of the allottee does not clothe
the person selected with a legal right to allotment at the price
prevailing on the date of draw of lots. The scheme did not say so
either expressly or by necessary implication. On the contrary
clause (14) made provision for modification or revision of cost of
construction, etc. On facts it was also found that there was no
unreasonable delay or inefficiency on the part of the DDA.
Further, the validity or justification of the revision of land
rates by circular dated 6.12.1990 was not questioned in the writ
petition. But in the present case the facts are entirely
different. On facts it is found that there has been unreasonable
and unjustified delay on the part of the appellant in allotting
and delivering the possession of the houses. The clause in regard
to determination of price is not similar to clause (14) in the
aforementioned case of DDA. The cost of escalation could not
exceed 10% of the tentative cost. The cost of construction of
house in these cases on hand was to be determined as on the date
of the completion of the construction of the house and not on the
date of delivering possession of the house. Unlike in the case of
DDA it was not the case of revision of land rates alone, that too
in the absence of any circular indicating revision of cost of land
before allotment or delivery of possession of houses.
The case of Prashant Kumar Shahi, aforementioned, is also of
no help to the appellant. It supports the case of the
respondents. This Court held that if the authority is found to be
responsible for the delay in delivery of the possession of the
plots in terms of the agreement arrived at or according to the
assurance given in the brochure, the allottee cannot be burdened
with the interest on the balance amount not paid by him. But on
the facts of that case fault was found with the allottee in regard
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to the delay in payment. As already recorded above, in these
appeals, with which we are concerned, delay was on account of the
appellant authority itself.
The learned counsel for the respondents in support of his
submissions cited the decision of this Court in Indore Development
Authority vs. Sadhana Agarwal (Smt) and others [(1995) 3 SCC 1].
In the facts and circumstances of that case having regard to the
reasons for the increase in the cost no interference was called
for by the High Court. Further, the High Court was justified in
saying that in such circumstances, the authority owed a duty to
explain and satisfy the court, the reasons for such high
escalation. The High Court has to be satisfied on the materials
on record that the authority has not acted in an arbitrary or
erratic manner. In the said decision reference is made to two
earlier decisions of this Court including the case of DDA
aforementioned. In paragraph 9 it is stated, thus:-
"9. This Court in the case of Bareilly
Development Authority v. Ajai Pal Singh [(1989)
2 SCC 116], had to deal with a similar situation
in connection with the Bareilly Development
Authority which had undertaken construction of
dwelling units for people belonging to different
income groups styled as "Lower Income Group",
"Middle Income Group", "Higher Income Group" and
the "Economically Weaker Sections". The
respondents to the said appeal had registered
themselves for allotment of the flats in
accordance with the terms and conditions
contained in the brochure issued by the
Authority. Subsequently, the respondents of that
appeal received notices for the Authority
intimating the revised cost of the houses/flats
and the monthly installment rates which were
almost double the cost and rate of instalments
initially stated in the General Information
Table. But taking all facts and circumstances
into consideration, this Court said that it
cannot be held that there was a misstatement or
incorrect statement or any fraudulent
concealment, in the brochure published by the
Authority. It was also said that the respondents
cannot be heard to say that the Authority had
arbitrarily and unreasonably changed the terms
and conditions of the brochure to the prejudice
of the respondents. In that connection, it was
pointed out that the most of the respondents had
accepted the changed and varied terms.
Thereafter they were not justified in seeking
any direction from the Court to allot such flats
on the original terms and conditions. Recently,
the same question has been examined in the case
of Delhi Development Authority v. Pushpendra
Kumar Jain. In respect of hike in the price of
the flats, it was said : (SCC p. 497, Para 8)
"Mere identification or selection of
the allottee does not clothe the
person selected with a legal right
to allotment at the price prevailing
on the date of draw of lots. The
scheme evolved by the appellant does
not say so either expressly or by
necessary implication. On the
contrary, clause (14) thereof says
that ’the estimated prices mentioned
in the brochure are illustrative and
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are subject to revisions/
modification depending upon the
exigencies of lay out, cost of
construction etc’."
Although this Court has from time to time,
taking the special facts and circumstances of
cases in question, has upheld the excess charged
by the development authorities over the cost
initially announced as estimated cost, but it
should not be understood that this Court has
held that such development authorities have
absolute right to hike the cost of flats,
initially announced as approximate or estimated
cost for such flats. It is well known that
persons belonging to middle and lower income
groups, before registering themselves for such
flats, have to take their financial capacity
into consideration and in some cases it results
in great hardship when the development
authorities announce an estimated or approximate
cost and deliver the same at twice or thrice of
the said amount. The final cost should be
proportionate to the approximate or estimated
cost mentioned in the offers or agreements. With
the high rate of inflation, escalation of the
prices of construction materials and labour
charges, if the scheme is not ready within the
time-frame, then it is not possible to deliver
the flats or houses in question at the cost so
announced. It will be advisable that before
offering the flats to the public such
development authorities should fix the estimated
cost of the flats taking into consideration the
escalation of the cost during the period the
scheme is to be completed. In the instant case
the estimated cost for the LIG flat was given
out at Rs. 45,000. But by the impugned
communication, the appellant informed the
respondents that the actual cost of the flat
shall be Rs. 1,16,000 i.e. the escalation is
more than 100%. The High Court was justified in
saying that in such circumstances, the Authority
owed a duty to explain and to satisfy the Court,
the reasons for such high escalation. We may add
that this does not mean that the High Court in
such disputes, while exercising the writ
jurisdiction, has to examine every detail of the
construction with reference to the cost
incurred. The High Court had to be satisfied on
the materials on record that the Authority has
not acted in an arbitrary or erratic manner. "
We are of the view that each case is to be decided in the
facts and circumstances of the case in the light of the scheme
published/framed and the terms and conditions mentioned in the
Brochure and/or in the prescribed form of application in the
matter of escalation/determination of cost of house/flat. However,
cases where there is limit for fixing the escalation of cost,
normally the price of house or flat cannot exceed the limits so
fixed. The determination of cost of house/flat or escalation of
cost cannot be arbitrary or erratic. The authority has to broadly
satisfy by placing material on record to justify the escalation of
cost of a house/flat. Whether the delay was caused by the
allottee or the authority itself is also a factor which has
bearing in determination of the cost of house/flat. The
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unforeseen cause or the reason beyond control of the authority in
a given case may be another factor to be kept in view. We may
also notice that in these cases the tentative cost of houses was
fixed at Rs.48,000/- but final cost was determined at
Rs.2,08,000/-. This increase is not mere escalation but it is a
multiplication by almost four and half times, although escalation
could not exceed 10% as is evident from the contents of the
Brochure read with prescribed form of application for allotment of
house itself. Contentions of the KDA run contrary to the contents
of its own Brochure on which the respondents acted adjusting their
financial affairs understanding that the cost of the houses would
be fixed in terms of brochure and that too not exceeding 10% of
the estimated cost fixed initially.
As to the complaint that the appellant having filed review
petition before the High Court seeking review of the impugned
judgment could not prosecute parallel remedy by filing SLP in this
Court, the learned counsel for the appellant was not in a position
to say as to what happened to the review petition filed in the
High Court. In our view it may be unnecessary to say anything
further on this aspect in the view we have taken and are disposing
of these appeals themselves on merits. As regards the prayer made
by the respondents in I.As. 7-8 we do not think it necessary to
probe further in these proceedings. Hence no orders are required
to be passed in these I.As.
Thus having regard to the facts found and in view of what is
stated above, we cannot find fault with the conclusions arrived at
by the High Court in the impugned judgment. Hence, finding no
merit in these appeals, they are dismissed but with no order as to
costs.