Chandigrah Housing Board vs Avtar Singh & Ors

2. With a view to promote private housing and optimum utilisation of the land in Chandigarh by constructing multi-storeyed structures, the Administrator, Union Territory, Chandigarh framed a scheme called "Chandigarh Allotment of Land to Co-operative House Building Societies Scheme, 1991" (for short, `the 1991 Scheme') for allotment of land to Co- operative House Building Societies (for short, `the Societies') through Chandigarh Housing Board (for short, `the Board'). The opening paragraph of the 1991 Scheme and clauses 3, 4 and 6 to 12 thereof read as under:

An applicant member may be eligible for allotment of dwelling unit in accordance with his monthly income i.e. one dwelling unit out of the dwelling units constructed per acre, as per category given below:-

(The density shall not in total exceed 40% of the covered area) 5 B. Income Group Members having monthly income of Rs.5,0001 and above "A" Members having monthly income of Rs.2,0001 to 5,000 "B" Members having monthly income upto Rs.2,000 "C"

Provided further that no individual/Society shall part with the possession of the land or dwelling unit before the expiry of atleast 5 years from the date of allotment.

7. Grouping of Society/Enrolment of new members.- If any Society has less than 50 members, these shall be grouped together so as to enable the Chandigarh Housing Board to allot atleast one acre of land to a group of Societies.

8. Refund of Earnest Money.- The earnest money shall be refunded to the Society, if any Society cancels its demand before allotment of land. Earnest money shall also be refunded to un-accommodated Societies, if any. No interest shall, however, be payable on any amount which remained deposited with the Estate Officer under this Scheme.

10. Construction of dwelling units and allotment thereof.- The Society shall be responsible for completion of building i.e. dwelling units within 3 years from the date of allotment and further allotment of these to their members by draw of lots. However, grouping can be allowed by the Society. Draw of lost shall be witnessed by the authorised officer/officials of Co- operative Department and Estate Office, Chandigarh Administration.

4. By an interim order dated 11.5.1992, the Division Bench of the High Court permitted the Societies to deposit 10% of the tentative price and also recorded the undertaking given by them that if the writ petition is dismissed, they shall deposit the balance amount with interest @ 18% per annum, if they were to accept allotment of flats under the new scheme. The relevant portion of that order is extracted below:

7. The total premium of this land works out to Rs.9,40,34,287/- @ Rs.750/- per Sq. yd.

6. After seven months, the Finance Secretary, Chandigarh Administration (hereinafter referred to as `the Finance Secretary') issued 10 memo dated 9.6.1993 and directed that if any member of the Society was to seek refund, then 10% out of 25% of the earnest money should be deducted as calculated on reduced density. The relevant clause of that memo is reproduced below:

(emphasis supplied)

26. We shall now consider whether the members of the Societies were consumer of the service rendered by the Chandigarh Administration and the Board in the matter of allotment of land to the Societies under the 1991 Scheme and the complaints filed by them were maintainable.

The refund shall be made by means of a cheque payable at the State Bank of India at Chandigarh and the applicant shall bear the collection charges for the same.

33. In the result, the appeals are dismissed. The Board is directed to refund the amount due to the complainants within a period of three months from the date of receipt/production of copy of this judgment. Within that period, the Board shall also pay litigation cost of Rs.25,000/- to each of the complainants.