B. Sudershan Reddy, J. - (1.) On February 18, 1975 the M.P. Housing Board (for short 'the Board') and Progressive Writers and Publishers, New Delhi (hereinafter called as the 'depositor') entered into an agreement whereunder the Board agreed to construct a building called the 'Hitavada Press Complex' on the land admeasuring 33932 sq. ft. situated at T.T. Nagar, Bhopal. The terms of agreement, inter alia, provided that the Board would execute the construction of Hitavada Press Complex and charge 5% supervision charges of the actual expenditure on the project. The cost of construction was to be borne by the depositor. The depositor was required to place funds including supervision charges at the disposal of the Board in advance as agreed upon. The work was expected to be completed within 18-24 months. The possession of the land was handed over to the Board for the purposes of construction of building. In case of overrun of expenditure and funds, the revised estimates were to be submitted and the administrative approval of the depositor was required to be obtained. In the event of any dispute, the matter was required to be referred to the Secretary, Government of Madhya Pradesh for decision.
(2.) The cost of construction of the building was estimated at Rs. 28 lakhs out of which the depositor was required to deposit an amount of Rs. 14 lakhs at the outset and the balance thereafter. The initial amount of Rs. 14 lakhs was accordingly deposited by the depositor with the Board. However, the depositor failed to deposit the balance amount. In the meanwhile, the Board had paid the amounts from its own funds in order to complete the construction of the building. The depositor expressed its desire to retain only that portion of the building where the printing press was located including mezzanine floor along with two adjacent halls on the first floor and accordingly made a representation to the Board. The Board in its turn agreed to the suggestion and thereafter parties entered into the second building agreement dated May 4, 1977; under which it was expressly agreed between the parties that the depositor would transfer the total area of the land and building which was 33932 sq. ft. and the Board would in turn re-transfer 7437 sq.ft. of land along with hall having press portion constructed thereon for which the depositor would pay Rs. 3.50 lakhs to the Board in 15 equal yearly installments. The Board agreed to grant a loan of Rs. 3.50 lakhs repayable with interest against an equitable mortgage of the press building and the portion of the land thereon. Out of the said amount, Rs. 50,000/- was to be paid by the Board to Punjab and Sind Bank as per the instructions of the depositor. It was also agreed between the parties that the Board in order to acquire full ownership of the entire complex shall return the amount of Rs. 14 lakhs and for that purpose the original documents pledged by. the depositor with the Punjab and Sind Bank were to be redeemed by the Board upon payment of Rs. 13.50 lakhs to the Bank. Upon fulfilment of the said conditions, the Board was entitled to complete the construction of the building in its possession and enjoy the same as the full owner.
(3.) The Board in terms of the second building agreement had paid the agreed sum to the Bank and obtained the original title deeds of the part of the plot admeasuring 19319 sq. ft only. However, the title deeds of the residual area were not handed over to the Board. The construction was completed by the Board.;