CHAIRMAN TAMIL NADU HOUSING BOARD MADRAS Vs. T N GANAPATHY
LAWS(SC)-1990-2-54
SUPREME COURT OF INDIA (FROM: MADRAS)
Decided on February 07,1990

CHAIRMAN,TAMIL NADU HOUSING BOARD,MADRAS Appellant
VERSUS
T.N.GANAPATHY Respondents

JUDGEMENT

Sharma, J. - (1.) This appeal by special leave arises out of a suit filed by the respondent in representative capacity for permanent injunction against the appellant Tamil Nadu Housing Board from demanding and collecting from the allottees any additional amount for settlement of lands with buildings in the colony Ashok Nagar fully described in the plaint.
(2.) In pursuance of a Housing Scheme the appellant-Board proceeded to settle a large number of residential plots to different groups of applicants including one described as low-income group. A number of allottees, including the plaintiff-respondent, were selected and settlement in their favour was made in 1963. A copy of the document executed separately in respect to the plots is on the record of this case as Exht. B-3, setting out the terms and conditions of the lease. The term as mentioned in the 15th clause, which quoted below, has been referred to by the parties in support of their respective cases: "15. The lessor agrees to sell the property more particularly described in the schedule hereunder to the lessee for such price as the Administrative Officer of the lessor may at any time in his sole discretion fix, and at which time the Administrative Officer of the lessor is entitled to consider details regarding development charges, cost of amenities, cost of buildings, etc., and whether the price of the land acquired under the Land Acquisition Act together with suitable modifications thereto by the local laws has become final by a conclusive adjudication thereon by the concerned Tribunals and Courts. The final decision of the Administrative Officer of the lessor as to the final price of the property as determined under these presents is conclusive and binding on the lessee and the lessee agrees to purchase the property from the lessor at the said price on the terms and conditions hereinafter mentioned. Excepting the fixation of price with reference to the claim or compensation adjudicated or awarded by Courts finally and conclusively with regard to the lands acquired under the scheme, the lesor shall fix the price of the property after taking into consideration the development charges, cost of amenities and buildings etc., within a period of three years from the date of allotment and which price is subject only to a revision on account of excess compensation if any awarded by Courts for the lands as aforesaid." Tentative price for the property was fixed, subject to a final determination within a stipulated period under the agreement and the allottees occupied the properties on that basis. After a lapse of more than a decade fresh demands were made in 1975 threatening dispossession in case on non-payment, which led to the filing of the suit. It is stated in the plaint that the cases of all the allottees in low-income group of Ashok Nagar made under the lease deeds are identical and the plaintiff was representing them in asking for permanent injunction restraining the Board from enforcing the belated supplementary demands.
(3.) Besides, objecting to the maintainability of the suit, the defendant-Board pleaded that it was entitled in law to finally determine the correct price for the settlement of the properties even belatedly, and the challenged demands were perfectly valid. It was stated that the land for the scheme had been acquired under the provisions of the Land Acquisition Act, and until the final award of the compensation for the acquired lands was made, the value of the lands was made capable of being ascertained. The trial Court overruled the technical pleas, but, dismissed the suit on merits. The first appellate Court confirmed the decree.;


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