JUDGMENT V.M. Sahai and Shiv Charan, JJ.
1. The Kanpur Development Authority, Kanpur (in brief the Authority) in the year 1975 launched a scheme known as Halwa Khanda Scheme for construction of some flats for persons belonging to economically weaker sections. It was also mentioned in the scheme that the cost of flats including the land had been fixed by the Authority to Rs. 5675/- and allotment would be made by lottery. It was proposed in the scheme to construct 380 flats out of which 228 flats were to be allotted to general category, 76 flats were reserved and 76 flats were to be auctioned. It was also provided in the Scheme that subsidy of Rs. 1000/- would be provided by the Authority towards each house/land which would be recovered by it from auction of commercial plots. The petitioners who were poor persons and belonged to economically weaker sections of society applied for allotment of one flat each under the aforesaid Halwa Khanda Scheme. Some of the petitioners had applied for allotment in the year 1980. The construction of the flats in Halwa Khanda scheme was completed in the year 1980 and 115 flats were allotted to different persons in the year 1980 at the price of Rs. 6000/- for each flat. The remaining flats could not be allotted because immediately after completion of the flats they were occupied by unauthorised persons and anti social elements. However, these flats were got vacated by the Authority in the year 1985. Since the petitioners had already applied for allotment of flats, they moved an application for allotment of flats without any further delay. The flats were allotted to the petitioners in the year 1985 and in the allotment letter it was mentioned that now cost of each flat would be 12,200/- instead of Rs. 6000/- for each flat. Further, the respondents demanded interest from the petitioners and total amount of Rs. 23825/- demanded by letter dated 31.5.1995 was Rs. 6220/- towards the balance cost of the flat and Rs. 17,525/- towards interest. The petitioners have filed this writ petition challenging the enhanced cost of the flats and demand of Interest by the respondents.
2. We have heard Sri Sanjay Kumar Om, learned Counsel for the petitioners. Sri Pankaj Bhatia learned Counsel for the respondents has filed counter affidavit on behalf of the respondents. Neither Sri Pankaj Bhatia nor Sri J.N. Sharma appeared though the matter has been taken up in the revised list.
3. In the counter affidavit it has not been disputed by the Authority that under the Halwa Khanda Scheme for weaker sections of the society the flats were to be allotted at the price of Rs. 5675/- and 115 flats were allotted for a sum of Rs. 6000/- each in the year 1980. It has also not been disputed that other flats could not be allotted to the petitioners as they were in illegal occupation of unauthorised persons and the flats were got vacated in the year 1985 and thereafter they had been allotted to the petitioners. It is also not disputed in the counter affidavit that the Vice Chairman of the Authority had appointed an assessment committee for assessing the cost of the flats on 23.3.1985. The assessment committee found that earlier the cost of the flat was Rs. 5675/- which was estimated price of each flat. Each flat consists of one room, verandah, kitchen, back courtyard flush latrine and bathroom and thus final cost of each flat comes to Rs. 6098/-. The committee also found that finishing works, such as construction of railing, plaster of walls, fittings of doors, window panes and toilet seats etc had not been done which also involved expenditure of an amount equal to 20% to 25% of the total cost of each flat which is to be done in the flats. If the cost of finishing expenditure is calculated and deducted from the cost of each flat then final cost of each flat would come to Rs. 4880/- The committee further found that the area on which the flats were constructed had not been properly developed as water and electricity supply was not available in the colony and it worked out the cost of Rs. 8918/- of each flat on which the flat could be allotted and sold. This report has not been disputed in the counter affidavit. In paragraph 12 of the counter affidavit only this much has been stated that the Authority in its Board meeting No. 41-43 held on 10.10.1984 decided to sell the flats at the then increased price by way of lottery at the rate of Rs. 12,200/- per flat. The petitioners were allotted the flats under the aforesaid scheme in the year 1985 after depositing Rs. 6000/-, the amount on which the other flats had been sold by the authorities in the year 1980. The petitioners are in possession of the flats and they have got the unfinished works in the flats completed and are now residing in these flats.
4. Only two questions are to be decided in this writ petition. The first question is-as to what price the petitioners should pay for each flat and whether the authority can demand enhanced price and interest from the petitioners. It is on the record that all the flats were semi-finished and the construction work had been completed in the year 1980 after which 115 flats were allotted in the year 1980 and most of the remaining flats could not be allotted to the applicants including petitioners who had applied for allotment as the flats were illegally occupied by the unauthorised persons and the authority could remove unauthorised occupation of these flats some times in the year 1984-85 and thereafter the flats had been allotted to the petitioners and other persons by lottery. Thus there was no delay on the part of the petitioners either in paying the cost of the flats or in taking possession of the flats. The allotment letter had been issued to the petitioners in the year 1985 and thereafter they deposited the entire amount and took possession of the flats. The brochure did not provide for any enhancement of price of the flats constructed in Halwa Khanda Scheme or for charging any interest. As a matter of fact, subsidy of Rs. 1000/- was given by the Authority because the flats under the scheme were to be allotted to the persons belonging to weaker sections of the society and the subsidy amount Rs. 1000/- was to be recovered by the Authority from the sale of commercial plots. The scheme which has been filed as Annexure-1 and 2 to this writ petition does not provide for any escalation in the price or for charging any interest. The scheme also does not authorise the Vice Chairman of the Authority to escalate the price of the flats under the scheme. There was no delay on the part of the petitioners and the delay was on the part of the Authority in removing the unauthorised persons who had illegally occupied the flats. Therefore, in our opinion the Authority was not justified in enhancing the price of the flats from Rs. 5675/- to Rs. 12,200/- and further demanding interest on the enhanced price of the flats Rs. 6200/- which comes to Rs. 17525/- till 31.5.1995. Since the brochure did not authorise the Authority either to enhance the price of the flats under the Halwa Khanda scheme which was for weaker sections of the society nor the scheme authorises the Authority to charge any Interest, the demand of enhanced price and the interest thereon made by the Authority cannot be upheld. Since all the petitioners have deposited Rs. 6000/- towards price of the flats which was fixed at the time of allotment, they are not required to pay any further amount to the Authority.
5. In the result, the writ petition succeeds and is allowed. The demand of enhanced price of Rs. 12,200/- made by the Authority from the petitioners as well as demand of interest, Rs. 6200/- towards price and Rs. 17525/- towards interest is quashed. Since all the petitioners have deposited Rs. 6000/- with the Authority towards cost of the flats allotted to them, we direct the Authority to execute the lease deed/sale deed as mentioned in the brochure filed as Annexures-1 and 2 to this writ petition within a period of three months from the date of production of a certified copy of this order before the Vice Chairman, Kanpur Development Authority, Kanpur.
Parties shall bear their own costs.