IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN FRIDAY, THE 9TH JULY 2010 / 18TH ASHADHA 1932 WP(C).No. 18346 of 2009(K) -------------------------- PETITIONER(S): --------------- 1. THE LIC HOUSING SCHEME ALLOTTEES ASSN., "PRATHEEKSHA",KRA-A5(A),KURAVANKONAM,KOWDIAR P.O., TRIVANDRUM-695003,REP.BY ITS GENERAL SECRETARY, P.DAMODARAN NAIR,S/O.N.PARAMESWARAN PILLAI,AGED 66 YEARS,RESIDING AT VIYYAT KAUSTHUBHAM,KARIAVATTOM, TRIVANDRUM 695581. 2. R.SUNDARESAN,"RAMAKRISHNA",TC.6-1569, THURUVIKKAL P.O.,AKKULAM,TRIVANDRUM-695031. 3. P.T.SURESH KUMAR,"RADHA VIHAR", ANIYAN LANE,AMBALAM JUNCTION,KOWDIAR P.O., TRIVANDRUM-695003. 4. JAMES.M.MANI,T.C.5/1960,KAWDIAR P.O., TRIVANDRUM-695003. 5. JANCY JOJO,"PRATHEEKSHA", HOUSE NO.KRA-A5(A),KURAVANKONAM,KOWDIAR P.O., TRIVANDRUM-695003. BY ADV. SRI.K.JAJU BABU SMT.M.U.VIJAYALAKSHMI SRI.BRIJESH MOHAN SRI.T.S.SHYAM PRASANTH RESPONDENT(S): --------------- 1. THE LIFE INSURANCE CORPORATION OF INDIA, CENTRAL OFFICE,LOGAKSHEMA JEEVAN BIMA MARG, MUMBAI-400 021,REP.BY ITS CHAIRMAN. 2. THE CHAIRMAN, THE LIFE INSURANCE CORPORATION OF INDIA, CENTRAL OFFICE,LOGAKSHEMA JEEVAN BIMA MARG, MUMBAI-400 021. ADV. SRI.S.EASWARAN FOR R1,2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN W.P.(C) No.18346/2009 EXT.P1 TRUE COPY OF BROCHURE ISSUED BY THE FIRST RESPONDENT TOWARS CONSTRUCTION OF MULTI STORIED RESIDENTIAL APARTMENTS AT PATTOM, TRIVANDRUM. EXT.P2 TRUE COPY OF LETTER DATED 9.4.2007 ISSUED BY THE 1ST RESPONDENT TO THE 3RD PETITIONER. EXT.P3 TRUE COPY OF LETTER DATED 23.4.07 ISSUED BY THE FIRST RESPONDENT TO THE 3RD PETITIONER. EXT.P4 TRUE COPY OF LETTER DATED 17.4.2008 ISSUED BY THE FIRST RESPONDENT TO THE 3RD PETITIONER. EXT.P5 TRUE COPY OF LETTER DATED 11.7.2008 ISSUED BY THE INFORMATION OFFICER, LIC ISSUED TO SRI.P.GOPINATH MENON, ADVOCATE. EXT.P6 TRUE COPY OF REPRESENTATION SUBMITTED BY FIRST PETITIONER ASSOCIATION TO THE CHAIRMAN , LIC. EXT.P7 TRUE COPY OF JUDGMENT DATED 3.11.08 IN W.P.(C) NO.29575/08 OF THIS HON'BLE COURT. EXT.P8 TRUE COPY OF PROCEEDINGS OF THE HEARING ON 12.2.08 ISSUED BY THE LIC. EXT.P9 TRUE COPY OF ORDER DATED 28.2.2009 ISSUED BY THE 2ND RESPONDENT COMMUNICTED AS PER COVERING LETTER DATED 5.3.2009. EXT.P10 TRUE COPY OF NEWS REPORT WHICH APPEARED IN INDIAN EXPRESS DAILY DATED 30.3.2007. EXT.P11 TRUE COPY OF SUGGESTION LETTER ISSUED TO ONE OF THE ALLOTTEES BY LIC HOUSING FINANCE LTD. A SUBSIDIARY OF THE FIRST RESPONDENT. EXT.P12 TRUE COPY OF AGREEMENT EXECUTED BETWEEN THE ALLOTTEE, 1ST RESPONDENT AND LIC HOUSING FINANCE LTD. EXT.P13 TRUE COPY OF PROCEEDINGS DATED 16.4.2008 ISSUED BY THE FIRST RESPONDENT. EXT.P14 TRUE COPY OF LETTER DATED 21.4.2008 ISSUED BY THE REGIONAL MANAGER OF LIC TO ONE SREELATHA.S. //TRUE COPY// P.A. TO JUDGE. P.N.RAVINDRAN, J. ------------------------------- W.P.(C) No.18346 of 2009 ------------------------------- Dated this the 9th day of July, 2010 J U D G M E N T The first petitioner is an association registered under the provisions of the Travancore Cochin Literary Scientific and Charitable Societies Registration Act, 1955. The other petitioners are the members of the said association. The grievance voiced by the petitioners in this writ petition is that though the Life Insurance Corporation of India had announced a scheme for the construction of a multi-storied residential apartment complex at Pattom, Thiruvananthapuram, and flats were alloted to the members of the first petitioner association by draw of lots, the scheme was later abandoned. In the writ petition, the petitioners challenge the decision taken by the Life Insurance Corporation of India to cancel the project. They also seek a direction to the Life Insurance Corporation of India to execute the project. 2. The respondents have filed a counter affidavit, wherein it is stated that the Life Insurance Corporation of India decided to cancel the project mainly for the reason that the cost of construction had escalated to Rs.1785/- per square feet excluding the cost of the W.P.(C) No.18346/2009 2 land and the proposal was to sell the apartments at the rate of Rs.1600/- per square feet onwards with car parking. In view of the huge escalation in the cost of construction itself, the Corporation could not have, in my opinion, ventured to complete the project and allot the apartments as proposed. The decision taken by the Corporation cannot therefore be said to be arbitrary or irrational. It is certainly a prudent decision arrived at, having regard to the larger public interest. Though the petitioners have filed a reply affidavit offering to pay Rs.2000/- per square feet for the apartments, this Court cannot compel the Corporation to take up and complete the project. The mere fact that the petitioners have offered to pay more cannot be a good ground to compel the Life Insurance Corporation of India to put up the apartments. I accordingly hold that there is no merit in the writ petition. The writ petition fails and is accordingly dismissed. P.N.RAVINDRAN, Judge. nj.