The Bihar State Housing Board vs Radha Ballabh Health Care And Research ...

3) The appellant published an advertisement on May 10, 2008 inviting applications for allotment of plot for health center in Lohia Nagar Housing Colony, Patna measuring 43000 sq. feet at the price of Rs.1,71,89,057/-. Rs.1,00,000/- was the earnest money. The 1 respondent applied for such plot along with the amount of earnest money. It was mentioned in the advertisement that upon receipt of more than one application, allotment shall be made by draw of lots and that the Chairman-cum-Managing Director of the appellant has the power to cancel allotment without assigning any reason. The respondent herein was the sole applicant for seeking allotment of plot advertised for health center but no such plot was allotted to the respondent, may be for the reason that the respondent being the sole applicant.

5) The respondent again filed writ petition before the High Court contending that the respondent approached the Managing Director of the appellant, who agreed to the proposal of allotment of alternative plots for construction of hospital in lieu of original plot 2 offered, though with much less area than the plot advertised earlier. The respondent submitted the technical and financial proposal also stating that the plot, which was advertised, was of an area of 43000 sq. feet for a consideration of Rs. 1,71,89,057/-, thus, there should be proportionate reduction of price on account of lesser area being offered. The respondent sought allotment on the terms and conditions of the advertisement itself. The two plots offered as alternative to the earlier plot, were plot nos. G-5 and G- 6 measuring an area of 10,000 sq. feet and 14000 sq. feet respectively situated near Rajendra Nagar Over Bridge in Patna. However, the Board took a decision to allot the aforesaid plots on the basis of Swiss Challenge Method. The said decision was communicated to the respondent on December 14, 2011.

6) The said writ petition was decided on May 10, 2013 holding that the advertisement cannot be given a go by adopting a method of allotment other than what was described in the advertisement. As such, Swiss Challenge Method cannot be applied in the case of the respondent. However, change of plot was not interfered with in view of the fact that the respondent agreed for the offered plots. The appellant was directed to consider issuing an allotment letter in favour of the respondent in terms of the advertisement but with respect to plot Nos. G-5 and G-6 in place of the original plot, as mentioned in the advertisement, on the same terms and conditions with proportionate cost reduction on account of the area of the plots having been reduced. The High Court passed the following 3 order:

13) After accepting the allotment on the price as per the communication referred to above, the respondent filed a writ petition disputing the allotment price. The learned Single Bench allowed the writ petition on the basis that proportionate price of the plot advertised in Lohia Nagar alone can be claimed by the appellant.

31) The action of the respondent to dispute the allotment price after accepting the price is neither fair nor reasonable and cannot be accepted.

32) In terms of judgment of this Court in Style (Dress Land) v. Union Territory, Chandigarh & Anr. 5, the appellant is entitled to the allotment price along with interest on the delayed payment even if there is stay by the Court. But, keeping in view the cause of allotment of plot i.e. hospital, we order, in exercise of our 5 (1999) 7 SCC 89 16 jurisdiction under Article 142 of the Constitution, that the interest for the period from the date of filing of the writ petition before the High Court till the date of order of this Court shall not be charged from the respondent provided respondent pays the entire balance sale consideration in terms of the condition of allotment within six months from today.

33) In view of the above, we find that the order of the High Court is not sustainable in law, thus, the order is set aside. The appeal is accordingly allowed.

SEPTEMBER 13, 2019.