IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.587 of 2007 Ram Chandra Prasad Srivastava Versus The Bihar State Housing Board & Ors ----------- 2 4.7.2011 The petitioner is one of the various allottees of plot in the Digha area of Patna town by the Board. In light of the allotment made, a Hire Purchase Agreement was executed by and between the petitioner and the Board on 25.7.1996 (Annexure-1). In terms of the aforesaid agreement the petitioner was to pay a total sum of Rs.1,34,435 for allotment of Plot No.2H/68 and earnest money to the tune of Rs.40,800/- was to be deposited immediately followed by 60 monthly equal instalments of Rs.2288.45. The case of the petitioner is that he deposited the entire scheduled 60 installments and thereafter he made a request for execution of registered deed and delivery of possession. The petitioner states that instead he was served with a demand notice dated 25.8.2005 (Annexure-2) stating therein that after adjusting the amount deposited by him, a balance of sum of Rs.4,77,798/- up to 31.8.2005 has to be deposited by him. Learned counsel for the petitioner submits that the additional demand was contrary to the terms of allotment and Hire Purchase agreement. He submits that on an enquiry the petitioner came to learn that the plot in question has been encroached upon and the Housing Board is not in a position to 2 deliver the possession of not only the petitioner’s plot but many plots of other allottees. He further submits that in spite of various approaches made by the petitioner the Housing Board is not able to make the aforesaid plot of land free from encroachment. The petitioner submits the State and the Housing Board was conscious that many of the allotted plots had been encroached upon and construction has been made thereon by various unauthorized persons. The Legislature in the circumstances decided to refund the payment with interest at a higher rate i.e. compound interest @ 8% per annum. The State legislature having appreciated the magnitude of the problem. enacted Digha Acquired Land Settlement Act, 2010 (Bihar Act 14 of 2010) which has been published in the Bihar Gazette (Extra Ordinary) No.291 dated 26th April, 2010, in terms whereof the allottees, who have not been allowed possession of the allotted land, are to be allowed refund of the amount deposited by the allottees with the Board with compound interest @ 8% per annum from the date of deposit until the date of refund. In terms of sub-section (2) of Section 1 of the Act, the State Government has to notify the date in the official gazette from which the Act shall come into force. The State Government should act in terms of sub-section (2) of Section 1 of the Act so that aggrieved persons who have made to run for so many years are able to get their refund of the money with aforesaid rate of interest. I, accordingly, direct the State Government/Housing Board to refund the amount deposited by the petitioner with 3 KHAN compound interest @ 8% per annum from the date of deposit until the date of refund. In case the aforesaid amount is not paid within four months from the date of receipt/production of a copy of this order, the petitioner will be entitled to a sum of Rs.5,000/- by way of compensation. (S.P.Singh,J)