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Lpa No. 144/2012 vs Sushil Kumar Gupta And Another
2023 Latest Caselaw 18605 HP

Citation : 2023 Latest Caselaw 18605 HP
Judgement Date : 30 November, 2023

Himachal Pradesh High Court

Lpa No. 144/2012 vs Sushil Kumar Gupta And Another on 30 November, 2023

Bench: M.S. Ramachandra Rao, Jyotsna Rewal Dua

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

LPA No. 144 of 2012 a/w connected matters Reserved on: 20.11.2023.

.

Pronounced on:30.11.2023.

1. LPA No. 144/2012 HP Housing and Urban Dev. Authority .....Appellant.

Versus Sushil Kumar Gupta and another .....Respondents.

2. LPA No. 145/2012

of HP Housing and Urban Dev. authority .....Appellant. Versus Ajay Chauhan and another .....Respondents.

rt

3. LPA No. 146/2012 HP Housing and Urban Dev. Authority .....Appellant. Versus

Partap Chand Sharma and another .....Respondents.

4. LPA No. 147/2012 HP Housing and Urban Dev. Authority .....Appellant. Versus

Prem Lata Sharma and another .....Respondents.

HP Housing and Urban Dev. Authority .....Appellant. Versus

Tarvinder Kaur Negi and another .....Respondents.

HP Housing and Urban Dev. Authority .....Appellant.

Versus Narinder Kumar Sood and another .....Respondents.

HP Housing and Urban Dev. Authority .....Appellant. Versus Dr.J.K. Sharma and another .....Respondents.

HP Housing and Urban Dev. Authority .....Appellant. Versus Gopal Krishan Goel and another .....Respondents.

.

HP Housing and Urban Dev. Authority .....Appellant.

Versus Dr. Kuldeep Maria and others .....Respondents.

HP Housing and Urban Dev. Authority .....Appellant. Versus Ashok Kumar Mahajan and another .....Respondents.

of

HP Housing and Urban Dev. Authority .....Appellant.

        Versus        rt
    Dr. Slilpi Sood and another                    .....Respondents.



    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Bhupender Pal Gupta and another                .....Respondents.



    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus




    M.L Gupta and another                          .....Respondents.






    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus





    Anil Gupta   and another                       .....Respondents.


    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Sarwan Singh and another                       .....Respondents.







    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Manjuna and another                            .....Respondents.





                                                               .
    HP Housing and Urban Dev. Authority            .....Appellant.





        Versus
    Arvind Kumar Sood and another                  .....Respondents.






    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus




                                          of
    Mangal Sain and another                        .....Respondents.

    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus        rt
    Hira Mani Sharma and another                   .....Respondents.



    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Surjit Kaur and another                        .....Respondents.



    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus




    Tarsem Lal and another                         .....Respondents.






    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus





    R.K. Khanna and another                        .....Respondents.

    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Satish Kumar Sharma and another                .....Respondents.

    HP Housing and Urban Dev. Authority             .....Appellant.
        Versus
    Ashok Chauhan and another                      .....Respondents.







    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Dr. Gian Chauhan and another                   .....Respondents.




                                                               .






    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Ravi Kant Dogra and another                    .....Respondents.






    HP Housing and Urban Dev. Authority            .....Appellant.




                                          of
        Versus
    R.S. Kochhar and another                       .....Respondents.

    HP Housing and Urban Dev. Authority
                      rt                           .....Appellant.
        Versus
    Meena Sood and another                         .....Respondents.


    HP Housing and Urban Dev. Authority             .....Appellant.
        Versus
    Dr. Randhir Chauhan and another                .....Respondents.



    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    V.K. Vashisht and another                      .....Respondents.





    HP Housing and Urban Dev. Authority             .....Appellant.





        Versus
    Anita Vaidya and another                       .....Respondents.






    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    O.P. Bhatta and another                        .....Respondents.


    HP Housing and Urban Dev. Authority            .....Appellant.
       Versus
    Lakh Pal Singh Dhaulta and another             .....Respondents.









    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus




                                                               .
    Harish Chandra Joshi and others                .....Respondents.






    HP Housing and Urban Dev. Authority            .....Appellant.





        Versus
    Suneel Kumar Angra and another                 .....Respondents.





                                          of
    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Ashwani Kumar Arora and another                .....Respondents.

                      rt
    HP Housing and Urban Dev. Authority             .....Appellant.
        Versus
    Brahm Dutt Kashyap and another                 .....Respondents.


    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus


    Arun Kumar Katara and another                  .....Respondents.






    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus





    Kamaljit Singh Jaswal and another              .....Respondents.







    HP Housing and Urban Dev. Authority             .....Appellant.
        Versus
    Kameshwar Kant Gupta and another               .....Respondents.

    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Dr. Ajay Sood and and another                  .....Respondents.







    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Surinder Chauhan and another                   .....Respondents.





                                                               .
    HP Housing and Urban Dev. Authority            .....Appellant.





        Versus
    Reeta Chauhan and another                      .....Respondents.






    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus




                                          of
    O.P. Aggarwal and another                      .....Respondents.

    HP Housing and Urban Dev. Authority             .....Appellant.
        Versus        rt
    Vikas Bhushan Lalit and another                .....Respondents.

    HP Housing and Urban Dev. Authority             .....Appellant.

        Versus
    Manohar Lal Bhagra and another                 .....Respondents.




    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Bidi Chand Pardesi and another                 .....Respondents.










    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    N.K. Kashyap and another                       .....Respondents.






    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Naresh Kumar Kashyap and another               .....Respondents.

    HP Housing and Urban Dev. Authority            .....Appellant.
        Versus
    Arun Kumar Pandey and another                  .....Respondents.








    HP Housing and Urban Dev. Authority               .....Appellant.
        Versus
    Kamlender Kanga and another                       .....Respondents.




                                                                  .


    HP Housing and Urban Dev. Authority               .....Appellant.
        Versus





    Neera Walia and another                           .....Respondents.






                                          of
    HP Housing and Urban Dev. Authority               .....Appellant.
        Versus
    Krishan Pal Thakur and another                    .....Respondents.
                       rt

    HP Housing and Urban Dev. Authority               .....Appellant.
        Versus

    Ashok Dwivedi and another                         .....Respondents.


    HP Housing and Urban Dev. Authority               .....Appellant.


        Versus
    O.P. Sood and another                             .....Respondents.





    HP Housing and Urban Dev. Authority               .....Appellant.
        Versus





    Sudhir Chander Sharma and another                 .....Respondents.







    HP Housing and Urban Dev. Authority               .....Appellant.
        Versus
    Shashi Chauhan and another                        .....Respondents.

    Er. M.S. Chauhan                                  .....Appellant.
        Versus
    HP Housing and Urban Dev. Authority & ors.        .....Respondents.







    Jawahar Kaul                                       .....Appellant.
        Versus
    HP Housing and Urban Dev. Authority
    & another.                                         .....Respondents.




                                                                   .






    Vandana Thakur                                       .....Appellant.
        Versus

HP Housing and Urban Dev. Authority &

another. .....Respondents.

of Ashwani Kumar Arora .....Appellant.

Versus HP Housing and Urban Dev. Authority & ors. .....Respondents.

Prem Lata Sharma rt

.....Appellant.

Versus

HP Housing and Urban Dev. Authority & ors.

.....Respondents.

    Dr. Ranja Rao                                      .....Appellant.
        Versus

HP Housing and Urban Dev. Authority & ors.

.....Respondents.

Coram:

The Hon'ble Mr. Justice M.S. Ramachandra Rao, Chief Justice. The Hon'ble Ms. Justice Jyotsna Rewal Dua, Judge.

Whether approved for reporting?

For the petitioner(s)/ Appellant(s): Mr. Bhupender Gupta & Mr. Neeraj Gupta, Sr. Advocates with Ms. Rinki Kashmiri, Advocate, Mr. Vinay Kuthiala, Sr. Advocate, with Ms. Vandana Kuthiala, Advocate, Mr. S.C. Sharma, Sr. Advocate with Mr. Arvind Negi, Advocate, Mr. Dinesh Thakur and Mr. Amit Singh

Chandel, Advocates, for the respective appellant(s)/ petitioner(s) in the respective petitions and LPAs. For the respondents: Mr. Anup Rattan, Advocate General with Mr. Pranay Pratap Singh, Additional Advocate Generals; Mr. Arsh

.

Rattan & Mr. Sidharth Jalta, Deputy Advocate Generals,

for the respondent(s)/State in the respective LPAs/ CWPs. Mr. Vinay Kuthiala, Sr. Advocate with Ms. Vandana Kuthiala and Mr. Diwan Singh Negi, Advocates, Mr. Neel

Kamal Sood, Sr. Advocate with Mr. Vasu Sood, Advocate and Mr. Dinesh Thakur, Advocate, for the respective private respondents, in the respective petitions and LPAs.

of M.S. Ramachandra Rao, Chief Justice

In this batch of cases, the issue which arises for consideration is:

rt "whether the H.P. Housing and Urban Development Authority (in short "the

Authority") is entitled to claim from the respondents in LPAs / Writ Petitioners in respect of plots/houses which were allotted to them in 1989 under the 5th Partially Self Financing Scheme and 6th Self financing Scheme certain

additional amounts towards notional interest which it would have earned had it invested the payments received from such allottees in FDRs earning interest /opportunity cost or not?".

Background facts

2) The said Authority is a statutory Authority created under the

Himachal Pradesh Housing & Urban Development Authority Act, 2004,

and its predecessors, were the Himachal Pradesh Housing Board,

constituted under the H.P. Housing Board Act, 1972, constituted on

09.11.2000, and prior thereto, the Himachal Pradesh Nagar Vikas

Pradhikaran, and before it, the Shimla Development Authority,

constituted by the State of Himachal Pradesh under Section 42-A of the

.

H.P. Town & Country Planning Act, 1977.In 1989, the Shimla

Development Authority announced the 5th Partially Self Financing

Scheme and 6th Self Finance Scheme for construction and offer for

allotment flats, residential houses and developed plots of different

of sizes/types on 99 years lease hold basis with renewal after 33 years in

Shimla and issued a Brochure Annexure P-1.

rt

3) Applications were invited from General Public, which were to be

submitted on or before 30th November, 1989.

4) The respondents in the LPAs/petitioners in the CWPs are either

original allottees or transferees therefrom submitted applications and

flats/houses/plots were allotted to them in 1990. For convenience, these

persons would be referred to as "allottees".

5) The brochure provided that 20% of the earnest money was to be paid

before draw of plots, 50% before issuance of letter of possession, and

100% of earnest money after issuance of letter for taking over

possession.

6) It is not in dispute that Foot Note No.2 of the Annexure attached at the

end of the Brochure issued by the Shimla development Authority

.

contained the following condition:

"Shimla Development Authority reserves the right to change the cost depending

upon actual cost of construction, escalation in cost of land or material and

labour etc."

of

7) Under the terms of the brochure as well as the allotment letter, the

price of the land was fixed at Rs.800/- per sq.m which was to be paid in rt accordance with the schedule given by the Shimla Development

Authority which was subsequently revised from time to time. Some of

the allottees were also permitted to transfer the plots to others.

CWP no.3206 of 2011

8) For the purpose of consideration, we shall refer to the facts in

CWP no.3206 of 2011, out of which, LPA no.144 of 2012 arises.

9) In that Writ petition, the petitioner is a transferee from an original

allottee of a plot for which the permission was accorded on 28.01.1991

by Shimla Development Authority.

10) Later, vide a letter dt. 10.01.1994, the allottee was informed that due

to increase in cost of land, there would be increase in cost of the plot of

not less than 70% and thus, revised tentative cost of the plot would be

almost doubled. He was further informed that the plot was likely to be

.

completed by the end of 1995 and the increase in price would be

recovered in 30 installments of Rs.2,430/- per month.

11) The allottee made payments in accordance with the terms of the

Brochure/ Scheme and as per the schedule fixed from time to time by

of the predecessor of the Authority.

12) Through another letter dt. 29.12.1993, the allottees of the plots under rt the 6th Self Financial Scheme, were also reminded of Foot Note No.2 of

the Annexure attached to the brochure that the Shimla Development

Authority reserves the right to change the cost depending upon actual

cost of construction, escalation in cost of land or material and labour

etc. The allotees were also informed in this letter that the scheme could

only be completed after the participants discharge their contractual

obligations by making payment of full cost of their Units, since the said

Authority works on "no profit no loss basis" and does not have funds of

its own.

13) After the allottee made payment of the balance amount as demanded, a

lease-deed was executed on 11.04.1996 in favour of the allottee by the

H.P. Nagar Vikas Pradhikaran, the successor of the Shimla

Development Authority and the predecessor of the Himachal Urban

.

Development Authority.

14) After being handed-over possession, the allottee constructed his house

on the plot.

15) According to the allottees, the successors of the Shimla Development

of Authority anticipated increase in cost of the land on account of

enhancement of compensation payable for the acquired land since rt proceedings for enhancement of compensation were pending

adjudication in the Courts under the provisions of the Land Acquisition

Act, 1894.

16) It is not in dispute that the compensation amount was in fact enhanced

by the Reference Court on 28.08.1995 and later by the High Court of

Himachal Pradesh in 2007.

17) In addition to the proportionate increase in the enhanced

compensation, what is called 'notional interest'/opportunity cost was

demanded by the Himachal Urban Development Authority from the

allottees on the pretext that the said Authority had invested the monies

received from the allottees in the development/construction of the

scheme; and because it did not park the said money in interest bearing

Fixed Deposit Receipts, such interest which it would have earned, had it

.

parked the money in some interest bearing Fixed Deposit Receipts, it

should be paid by the allottes.

18) We may point out at the outset that none of the allottees or the

transferees from allottes have disputed their liability to pay to the

of Authority any amount due on account of enhancement of compensation

either by the Reference Court or by the High Court.

rt The First round of litigation between the parties i.e., CWP No.2177 of 2010 and

batch dt.15.6.2010 and decision therein

19) The allottees approached this Court by filing CWP No.2177 of 2010

and batch with regard to fixation of land value in respect of the land

acquired for the Schemes and given to them.

20) A Division Bench of this Court followed passed orders on 15.6.010

and disposed them off following it's previous order dt.19.5.2010 in a

similar case wherein it had held that the Authority did not have any

commercial motive in the transaction; what is the total cost of land

involved in the acquisition, development and transfer, was a simple

question of calculation; all administrative expenses in the process will

have to be included under the head 'cost of land'; that the Authority is

seeking to recover from the allottees only the portion of land value as

enhanced by the superior Courts; and the land value is to be fixed in

.

respect of the entire area acquired for the purpose of transfer adding the

development charges, the charges borne by the Authority for the

amenities, administrative expenses etc.

It directed the Authority to make a proper fixation of actual land

of value, making it clear that its objective was to function on 'no profit no

loss basis' and in case in the process any of the allottees are to bear any rt more liability, the same can be recovered from them.

It further held that being a matter of computation, since neither

the allottees nor the Authority were possessed with the wherewithal in

the process, it would be open to the allottees to nominate two Chartered

Accountants for the purpose of such computation, and those Chartered

Accountants would sit with the Accountants nominated by the Authority

or the Chief Executive Officers and make an endeavour to settle the

accounts.

It also clarified that while fixing the land value in terms of the

judgment, the amounts already paid would have to be duly adjusted.

21) After the said order was passed in CWP No.2177 of 2010 and batch on

15.6.2010, a meeting took place between the team of Chartered

.

Accountants of the allottees and those appointed by the Authority.

22) On 14.09.2010, the Authority supplied copy of the final costing of

Sectors 3 & 4 of New Shimla to the Chartered Accountants of allottees,

who responded to the same by filing objections dt. 17.09.2010, but in

of terms of a letter dt. 15.01.2011, the objections were rejected.

23) The allottees were required to deposit the entire amount as demanded rt by the Authority in terms of letter dt. 10.06.2008 at Rs.613/- per sq.m extra.

The judgment dt.09.01.2012 of the learned Single Judge in CWP No.3206 of 2011 and batch

24) This prompted the allottees to approach this Court by filing CWP

no.3206 of 2011 and the batch out of which, these LPAs also arise.

25) The learned Single Judge adverted to Note-2 in the Brochure, which

stated that the Shimla Development Authority reserves the right to

change cost depending upon actual cost of construction, escalation in

cost of land, material, labour or for any other unforeseen reasons, and

concluded that the allottees by contractual obligation, would have to

clear the dues before the due dates, and if not, pay interest @ 18% per

annum.

He also noted that only after full recovery of cost of the property,

including interest, would possession be handed over under the lease-

.

deed executed in favour of the allottees.

The learned Single Judge then went on to hold that it is not the

case of the Authority that any one of the conditions, stipulated in the

of brochure, was breached by the allottees, and that if any such dues are

there, it would be open to the Authority to take appropriate action in

that regard.

rt The learned Single Judge also recorded that the allottees do not

dispute that there was an overrun of the cost in the acquisition and

development of land and they were ready and willing to pay the actual

cost incurred by the Authority.

He also considered that the Authority, as against the initial cost

of Rs.800/- per square meter, had already recovered Rs.1,415/- per sq.m

as price of land, and is demanding a further amount of Rs.613/- per

sq.m as per the calculation furnished by the Authority in para 39 of his

judgment.

He also noted that the allottees are only disputing the claim for

component of interest towards cost of land amounting to

.

Rs.2,26,34,054/- computed by the Authority @ 16.5% from April 1991

up to March 1996 for a period of nine years, and interest on the cost of

development amounting to Rs.2,87,00,397/- @ 16.5% for a period of

three years, amounting to total of Rs.5,13,34,451/-.

of The learned Single Judge then held that development of common

area, such as parks, roads and common amenities, such as sewerage, rt water & electricity by the Authority would be with respect to the entire

area of the Project; enhanced compensation for the acquired land is not

restricted to the plotted area and it is qua the entire acquired land, and

so, there is no justification for recovering the enhanced cost only from

the allottees of the plots.

He also noted that the Authority and its predecessor had sold the

built up area by computing entire cost of land, including cost of

amenities and escalations, and it was not their case that such enhanced

compensation was not being recovered from such allottees.

He then considered the claim of the Authority for the amount of

Rs.5,13,34,451/-, which it claimed to be opportunity cost, i.e. part of

direct cost and its plea that even in 'no profit no loss' Projects, it has to

be included in the Project as per the accepted norms of costing.

.

He held that such a demand is totally illegal because it was not

contemplated in the scheme/brochure/lease-deed nor there was any

statutory obligation in this regard. He observed as under:-

"44. Be that as it may be, according to HIMUDA Rs.5,13,34,451/-

of (Rs.2,26,34,054 plus 2,87,00397) is being recovered as an "opportunity cost" which is "part of direct cost and even in no profit no loss project it has to be included in the project as per the accepted rt norms of costing". Now this is totally illegal. It is neither contemplated in the scheme/ brochure/ lease deed nor is there any statutory

regulation in this regard. "Actual cost of construction, escalation in cost of land, material, labour or for any other unforeseen reasons" - "escalations" - "Contingencies stipulated under Regulation 26.5" do

not envisage levy of such interest. Neither did HIMUDA inform the petitioners/allottees of the same nor did they accept such

representations. There was neither any offer nor any acceptance. This unilateral imposition of interest is illegal, unconstitutional, unethical

and unconscionable. What is the Authority contractual or statutory to impose such demand has not been disclosed. In fact it is also not in the

spirit of the judgment passed by the Division Bench of this Court wherein it has been specifically directed that amounts to be calculated is on no profit no loss basis.

45. Most importantly books maintained by HIMUDA also do not reflect that a sum of Rs.5,13,34,451/- was actually paid by them as interest to third parties. Significantly interest paid by HIMUDA towards cost of

the land and development has been specifically charged from the allottees about which there is no dispute. Consequently I find that HIMUDA has failed to explain as to how a sum of Rs.5,13,34,451/- can

.

be recovered by them from any of the allottees, including the plot

holders some of whom are before this Court as petitioners.

46. It is argued by Mr. Bhupinder Gupta, Senior Advocate, learned

Counsel for HIMUDA that notional interest is to generate money for administrative charges for unforeseen circumstances. It is not an imaginary cost but incidental in nature. I am afraid contention merits

of rejection. Administrative charges to the extent of 10% already stand calculated about which there is no dispute. It is further argued that rt since such amounts had not crystallized and recovered from the allottees, they could not be reflected in the books of accounts.

Submission is self defeating. It only shows that no money was actually paid or cost incurred by HIMUDA yet the same is now sought to be recovered. It would be worthwhile noticing that all payments stood

paid by the allottees between the years 1989 and 1996-97 and as per Statement Annexure-PX, on amounts recovered by HIMUDA from the allottees, which were invested somewhere else, interest to the extent of

12.38 crores has accrued, which benefit has not been passed over to

the allottees."

( emphasis supplied)

26) Thus, the learned Single had categorically held that the claim of this

amount towards alleged opportunity cost or notional interest, was a

unilateral imposition on the allottees without having any basis in either

contract or statute or in the scheme/brochure/lease-deed, and is illegal

for it to make such a demand while professing to be doing business on

'no profit no loss basis'. More so, when its Books of Accounts do not

.

reflect the sum and it was an expenditure not incurred by them as they

did not pay any interest to any 3rd party; and the interest paid by it

towards cost of land and development was specifically charged from the

allottees for which there is no dispute.

of

27) The learned Single Judge specifically noted that all payments stood

paid by the allottees between 1989 and 1996-97, and as per a statement rt Annexure-PX, on amounts recovered by the Authority from the

allottees, which had been invested elsewhere, an interest of Rs.12.38

crores had accrued, which benefit had also not been passed on to the

allottees.

28) He also observed that the allottees had never been informed that the

component of notional interest would be charged from them either at the

time of allotment or at the time of execution of the lease/handing over

of possession.

29) The learned Single Judge further held that the Himachal Urban

Development Authority is a 'State' and not a private developer, and

having made a promise to allot land on 'no profit no loss basis' under

the Self Financing Scheme, it cannot be permitted to act as an

unscrupulous Real Estate Developer and cheat people by raising illegal

.

demands in a clandestine manner.

30) He also held that it cannot be permitted to modify the scheme midway

and increase the total saleable area, though it did and this altered the

character of the scheme and commercially benefited it; he ruled that

of "entire administrative expenses" would not take in its sweep

component of "notional interest", since the Authority had separately rt calculated interest payable towards the cost of land and development

and also charged administrative charges to the extent of 10% on the

entire cost of acquisition of land and development thereof.

31) The learned Single, therefore, quashed the additional demands made

by the Authority towards the claim of notional interest and granted

relief to the allottees.

32) Assailing the same, these Letters Patent Appeals are filed.

Consideration by the Court

33) Standing Counsel for the Authority contended that the common order

passed by the learned Single Judge is erroneous and that the Authority

is entitled to the opportunity cost.

34) While computing the cost of the land, the Authority has included an

amount of Rs.2,26,34,054/- on account of notional interest @ 16.5%

.

from April 1991 to March 1996; and further the notional interest of

Rs.2,87,00,397/- @ 16.5% for 3 years on account of notional interest.

35) Thus, a total amount of Rs.5,13,36,451/- has been included in the cost

of the land on account of notional interest.

of

36) Counsel for the allottees contended that the allottees had never agreed

to this claim anywhere; that it is the admitted case that no such interest rt on capital investment has ever been paid by the Authority to any third

party, and on the contrary they have retained excess amount received

from the petitioner in 1997 till 2007, in which year enhanced

compensation was paid to the land owners whose lands had been

acquired for the Scheme / project. They pointed out that it has not even

been entered in its books of accounts.

37) We agree with the said contention of the counsel for the allottees.

38) None of the learned Counsel appearing for the Authority could

support the said claim either on the basis of a contract to which the

allottees or their transferees were parties, or on the basis of any statute,

or any term of the brochure or lease-deed .

39) We are of the view that such a claim is being made unilaterally

without any legal basis.

.

40) For an organization like the Authority which is a "State" within the

meaning of Art.12 of the Constitution of India, and which claims to run

business on a 'no profit no loss basis' , to contend that it is entitled to

such a claim which has no legal basis, is impermissible in law.

of

41) While its demand from the allottees amounts towards the cost

incurred on account of enhancement of compensation under the Land rt Acquisition Act, is perfectly justifiable, the Authority cannot be

permitted to unjustly enrich itself by making claims which do not have

any legal basis.

42) As held by the Supreme Court in Delhi Development Authority &

Another vs. Joint Action Committee & Others1, a person would be

bound by the terms of the contract subject of course to its validity; a

contract in certain situations may also be avoided; with a view to make

novation of a contract binding and in particular some of the terms and

conditions thereof, the offeree must be made known thereabout.

(2008) 2 SCC 672

The Supreme Court declared that a party to the contract

cannot, at a later stage, while the contract was being performed, impose

.

terms and conditions which were not part of the offer and which were

based upon unilateral issuance of office orders, but not communicated

to the other party to the contract.

It also held that terms and conditions of a contract, though

of capable of alteration or modification, such alteration or modification

cannot be done unilaterally, unless there exists any provision either in rt contract itself or in law; and new terms of contract cannot be thrust

upon the other party to the contract unilaterally.

43) This judgment has been rightly followed by the learned Single Judge

in the impugned judgment while granting relief to the

allottees/transferees from them.

44) The reasoning of the learned Single Judge is unexceptionable and we

completely endorse it.

45) None of the counsel for the Authority were able to point out any flaw

in the same.

46) For all these reasons, these Letters Patent Appeals filed by the

Authority, are dismissed and the Writ petitions filed by the

allottees/transferees from them, are allowed; and the Authority is held

disentitled to claim any notional interest/opportunity cost from them.

.

No costs.

47) Pending miscellaneous application(s), if any, shall also stand disposed

of.


                                    (M.S. Ramachandra Rao)




                                        of
                                         Chief Justice


                      rt             (Jyotsna Rewal Dua)
    November 30, 2023                          Judge
     (Yashwant)










 

 
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