Full Judgment Text
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS.19-20 OF 2011
[Arising out of SLP(C) No.28713-28714/2009]
Commissioner, Avas Evam Vikas
Parishad, Lucknow & Anr.
.......Appellants
Versus
Laxmi Nath Misra & ORS. .....Respondents
O R D E R
Leave granted.
2. The appellants informed the first respondent by
allotment letter dated 22.3.2006 that a High Income Group
House No.6A/180 had been allotted to him through draw of
lots on 18.3.2006. This was followed by an amended letter
of allotment dated 26.5.2006. This showed that the
allotment was at a total cost of Rs.15,50,740; and that
after adjusting Rs.26,250 (that is Rs.25,000 paid as
registration deposit and interest thereon) the amount
payable was Rs.15,24,490. He was required to pay a lump sum
of Rs.7,75,390 immediately and pay the balance of
Rs.7,49,100 with interest @13% per annum in 120 equated
instalments of Rs.11,185 commencing from 1.4.2006.
He was also required to pay Rs.15,190 towards
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miscellaneous expenses and Rs.155,100 towards stamp duty.
It was further provided that if there were any delay in the
payment of any of the amount, then additional interest will
be charged at the rate of 16% per annum in regard to the
amount that had become overdue.
3. The first respondent did not make the payment but filed
a writ petition on 6.6.2006 seeking (a) a direction to the
appellants not to cancel the allotment and to accept the
amount due without any penal interest; and (b) a direction
to the appellants to remove the two electrical poles in
front of the allotted house before insisting upon the
deposit. The appellants filed a counter contending that
first respondent cannot object to the existence of electric
poles in front of the house (at a distance of 1.2 M on the
road from the boundary of the plot allotted to him). During
the pendency of the said writ petition, the appellants
cancelled the allotment on 21.4.2007, as first respondent
failed to deposit the amounts due and complete the
formalities. The High Court made an interim order on
18.5.2007 directing the appellants not to allot the said
house to anyone else subject to the first respondent
depositing a sum of Rupees five lakhs. In pursuance of it,
the first respondent deposited Rupees five lakhs on
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12.6.2007. Ultimately, the High Court disposed of the writ
petition on 4.11.2008 directing that if the first
respondent pays the entire sum of Rs.15,50,740 (less Rupees
five lakhs paid on 12.6.2007) within eight weeks, he shall
be extended the benefit of allotments and the appellant
should execute the Sale Deed in his favour. The High Court
held that as the first respondent wanted to pay the initial
deposit of Rs.7,50,000 and the entire balance in one lump
sum, he should not be burdened with any interest. In
pursuance of the final order dated 4.11.2008, the first
respondent is stated to have deposited Rs.10,50,750, on
12.12.2008.
4. Aggrieved by the direction of the High Court that
appellants should waive the interest, they filed a review
petition which was dismissed on 29.7.2009. The appellants
have challenged the orders dated 4.11.2008 and 29.7.2009 in
these appeals by special leave.
5. The allotment of the house is governed by the terms
contained in the letter of allotment. According to the letter
of allotment the total price was Rs.15,50,740. The first
respondent had the option to pay the entire allotment price
(less Rs.25,000) in a lump sum forthwith in which case he was
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not liable to pay any interest. He was also given the option
to pay the first instalment of Rs.7,75,390 and pay the balance
of Rs.7,49,100 with interest @13% per annum in 120 monthly
instalments of Rs.11,185 each. The contract also made it clear
that if there were any default, on the defaulted amount,
additional interest was payable at the rate of 16% per annum.
Thus, there were clear provisions in the contract between the
parties contained in the letter of allotment for charging of
interest on instalments and additional interest on the
defaulted dues. The initial amount of Rs.775,390 had to be
paid by 30.4.2006 and possession was offered by the appellants
on such payment and completion of registration formalities by
30.6.2006. The first respondent could not, therefore, delay
the payments due and at the same time contend that he would
not pay the interest. Even if he wanted to pay the entire
amount in one lump sum, he had to pay interest on Rs.7,75,390
from 1.5.2006 and on Rs.7,49,100 from 1.7.2006, apart from
paying the stamp duty and miscellaneous amounts as per the
letter of allotment.
6. The High Court could not have ordered waiver of interest.
In fact, this Court while directing notice had stayed the
order of the High Court subject to the condition that if the
first respondent pays interests at the rate of 13% per annum
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from 22.3.2006 till date of payment, then the appellant shall
execute the sale deed, subject to the final decision. We are
informed that the interest was not paid and therefore, the
sale deed has not been executed.
7. The appellants claimed interest in terms of the contract.
No rules or regulations to the contrary were relied on by the
first respondent. There is no reason why the appellant should
not charge interest in terms of the contract. High Court
should not, in exercise of power of judicial review, interfere
in such pure matters of contract.
8. We, therefore, allow these appeals in part and modify the
order of the High Court as under :
(a) Having regard to the fact that the entire principal
amount has been paid on 12.6.2007 and 12.12.2008, the first
respondent shall pay interest at 13% per annum on Rs.15,24,490
from 1.7.2006 (due date) to 12.6.2007 (date of payment of Rs.5
lakhs) and interest at the rate of 13% per annum on
Rs.10,24,490 from 13.6.2007 to 12.12.2008.
(b) As first respondent has paid Rs.15,50,750 instead of
Rs.15,24,490 actually due as the cost, the excess of Rs.26,260
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shall be adjusted towards miscellaneous and other dues claimed
by the appellant.
(c) If the first respondent pays the said interest within
three months from this date and also pays other dues (namely
allotment revival fee, late fee, stamp duty, and miscellaneous
charges), the appellants shall execute the Sale Deed in favour
of the first respondent. If the first respondent fails to pay
the interest due within three months from this date, the
cancellation of allotment shall stand confirmed and the
appellants will be entitled to allot the said house to anyone
else without reference to the first respondent and refund the
sum of Rs.15,50,750 (deposited in terms of the orders of High
Court) to the first respondent without any interest.
(d) Parties to bear respective costs.
.....................J.
( R.V. RAVEENDRAN )
New Delhi; ....................J.
January 03, 2011. ( A.K. PATNAIK )