20 vs Mumbai Housing And Area
2011 Latest Caselaw 106 Bom

    ssp                                         1                                 WP 2626 of 1999


                  IN THE HIGH COURT OF JUDICATURE AT BOMBAY




                                                                                      
                      ORDINARY ORIGINAL CIVIL JURISDICTION

                           WRIT PETITION NO.2626 OF 1999




                                                              
    Sayeed Shamshul Hasan, 
    Adult, Indian Inhabitant, 
    Occupation Business, Residing at




                                                             
    20, SK Burhan Qamruddin Street, 
    Badrunisa Building, Shop No.5, 
    Mumbai - 400 008.                                                 .....Petitioner




                                                
             versus

    1.
                               
             Mumbai Housing and Area
             Development Board, having 
             its Office at Grihanirman Bhavan, 
                              
             Bandra (E), Mumbai - 400 051. 

    2.       The State of Maharashtra
             (Notice to be served on Addl. 
             Govt. Pleader, High Court, Mumbai)                       ..... Respondents
        


    Mr.Asif Iqbal I. Patel, for the petitioner. 
     



    Mr.G.W.Mattos, AGP, for the respondents. 

                            CORAM:  P.B.MAJMUDAR &
                                    MRS.MRIDULA BHATKAR, JJ. 

                                DATE:     25 th
                                                NOVEMBER, 2011
                                                              

ORAL JUDGMENT ( PER MRS.MRIDULA BHATKAR, J.) : -

1. The petitioner is challenging a letter issued by the

respondent No.1 dated 10-08-1999, thereby demanding an additional

amount of `68,226/- by way of interest on the price of the tenament

which was alloted to the petitioner by the respondent No.1.

ssp 2 WP 2626 of 1999

2. On December 24, 1999, this Court while admitting the

above petition, had passed the following order.

"Rule. Respondents waive service.

The petitioner has already paid the amount of `2,02,700/- towards the purchase price. There is serious dispute

whether MHADA can charge interest right from 1993 when the allotment letter itself was issued in 1997. Under the circumstances, we grant interim relief in terms of prayer clause (d) subject to depositing one third of the demand

amount within eight weeks and paying the monthly outgoing as per the rules and regulations from the date of

letter of allotment.

3. The petitioner was residing in an old residence located at 2

2/5, Jaihind Nagar, Khar (E), Mumbai. However, in the riot of December

1992 and January 1993, the aforesaid house of the petitioner was burnt.

The petitioner lost everything in the said riot. The State of Maharashtra

i.e. respondent No.2 herein, by way of a policy decision, announced a

scheme with a view to rehabilitate the riot affected persons in Mumbai.

The respondent No.2 reserved nearly 900 galas/flats/units for the riot

affected persons. The respondent No.1 after verifying the eligibility of the

petitioner, was given an allotment letter dated 06-03-1997 and it was held

that he was eligible to get tenement/gala on aggregate payment of

`2,20,700/-. It is the case of the petitioner that he has paid the entire

amount i.e. `2,20,700/-, however he could not pay the amount within the

ssp 3 WP 2626 of 1999

stipulated period and therefore, the respondent No.1 by the impugned

letter, demanded interest of `68,226/- for the delayed payment. The

learned counsel for the petitioner submits that the petitioner has paid the

entire amount and now the petitioner has been given possession of the

said tenement on 07-02-2000 and is residing in the said tenement since

then. He submits that the petitioner has deposited 1/3 of the demand

amount pursuant to the order of this Court on 24-12-1999. He submits

that the demand of `68,226/- for the delayed payment by the petitioner is

arbitrary and discriminatory. He submits that considering all these

aspects, demand of the remaining amount by the respondent No.1 may be

set aside.

4. The learned AGP for the respondents submits that the 1/3

demand amount which is deposited by the petitioner in this Court, be

returned to the respondents along with interest accrued thereon. The

learned AGP while opposing the petition contended that the respondents

have power to demand rent as per the MHADA rules.

5. It is true that the petitioner is a riot affected person, his

house was burnt in the riot, he lost his property and also some of the

family members. He was held eligible to get the tenement under the

Scheme and he has deposited entire amount of `2,20,700/- and has taken

possession of the tenement and has been residing therein since February

ssp 4 WP 2626 of 1999

2000. He however, contended that though the respondent No.1 is

entitled to charge interest on the amount which is not paid during the

stipulated period by the allottee, this Court vide an order dated

24-12-1999 has granted interim relief and directed the petitioner to

deposit 1/3 of the demand amount. Thus, an amount of `22,000/-,

which is the 1/3 amount, has been deposited by the petitioner in this

Court. In our view, considering the peculiar facts and circumstances of

the case, miserable plight of the petitioner and the fact that some portion

of the demand amount as interest is paid by the petitioner, in the interest

of justice, we are of the view that the 1/3 amount of interest deposited by

the petitioner is sufficient and demand of the rest of the interest amount

deserves to be set aside. The respondent No.1 is permitted to withdraw

the amount paid by the petitioner along with interest accrued thereon.

The writ petition is partly made absolute to the above extent.

6. It is clarified that this order passed in the peculiar facts and

circumstances of the case and should not treated as a precedent in any

other case.

( MRS.MRIDULA BHATKAR, J.) ( P.B.MAJMUDAR, J.)