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2024 DIGILAW 765 (JHR)

Vijay Shankar Jha v. State of Jharkhand

2024-08-23

SANJAY KUMAR DWIVEDI

body2024
JUDGMENT : Sanjay Kumar Dwivedi, J. Since in all these writ petitions a common question of facts and law are arisen and in view of that all these writ petitions have been heard together with consent of the parties. 2. In W.P.(C) No.4790 of 2023, the prayer has been made for quashing of the letter dated 27.06.2023 issued by the respondent Jharkhand State Housing Board whereby the respondent Jharkhand State Housing Board has charged compound interest over the plot to the petitioner. 3. The further prayer has been made for direction upon the respondent Jharkhand State Housing Board not to charge interest or compound interest over the actual allotment for which the payment has already been made in the year 2011 itself. 4. In W.P.(C.) No.5058 of 2023, the prayer has been made for quashing of the letter dated 18.08.2023 issued by the respondent Jharkhand State Housing Board whereby the respondent Jharkhand State Housing Board has charged interest or compound interest over the plot allotted to the petitioner. 5. The further prayer has been made for direction upon the respondent Jharkhand State Housing Board to accept the amount as asked to deposit by the respondent authority by the letter dated 24.07.2023 contained in Annexure-13. 6. In W.P.(C.) No.2854 of 2023, the prayer has been made for quashing of the letter dated 11.03.2024 issued by the respondent Jharkhand State Housing Board whereby respondent Jharkhand State Housing Board has charged compound interest over the plot allotted to the petitioner. 7. The further prayer has been made for direction not to charge interest or compound interest over the actual allotment for which payment has already been made in the year 2011. 8. In W.P.(C.) No.3836 of 2023, the prayer has been made for quashing of the letter dated 06.10.2023 issued by the respondent Jharkhand State Housing Board whereby the petitioner has been directed to make the payment of Rs.72,81,257/- in relation to HIG plot no.HD no.50 situated at Harmu Housing Colony, Ranchi. 9. The further prayer has been made for direction upon the respondent Jharkhand State Housing Board to execute and register the conveyance deed in favour of the petitioner after granting No Objection in relation to HIG plot no.HG 50. 10. Mr. 9. The further prayer has been made for direction upon the respondent Jharkhand State Housing Board to execute and register the conveyance deed in favour of the petitioner after granting No Objection in relation to HIG plot no.HG 50. 10. Mr. Saurav Arun the learned counsel appearing on behalf of the petitioner in W.P.(C) No.4790 of 2023 submitted that the petitioner is a practicing lawyer in the High Court of Jharkhand and has applied for plot in terms of advertisement made in the year 2011 and has applied for MIG plot under general category. By letter dated 10.09.2011, the petitioner was allotted MB/2,’ 1998 sq.ft at Harmu for a total consideration of Rs.12,39,716/- contained in annexure-1. Pursuant to the said allotment letter, the petitioner has deposited 10 % amount which was amounting to Rs.1,20,000/- and thereafter 25% i.e. Rs.1,90,229/- was deposited on 28.07.2011 and 20.09.2011. The petitioner was asked to enter into an agreement on 19.12.2011 and accordingly an agreement was entered into between the petitioner and respondent Jharkhand State Housing Board on 23.12.2011 as contained in Annexure-2 and 2/1. In terms of the agreement, the petitioner has already deposited further amount of Rs.11,41,997/- and informed the same to the Executive Engineer, Jharkhand State Housing Board. He then submitted that on 21.03.2015, all of a sudden, behind the back of the petitioner, the land allotted to the petitioner on 20.08.2011 was cancelled on 20.08.2011. He further submitted that the petitioner has moved before this Court in W.P.(C) No.1346 of 2015 challenging the order dated 21.03.2015 and 12.07.2013 along with others and the said writ petition was allowed by order dated 10.12.2015 and thus, the orders were set aside contained in Annexure- 5. Thereafter, after the order of the High Court, the petitioner has made representation before the competent authority. He submitted, however, on 09.11.2016 a decision was taken by the authority that money /installment will not be accepted till further orders. On 16.11.2016 a show cause has been issued to the petitioner as to why the plot allotted to the petitioner will not be cancelled in terms of a lottery made on 20.08.2011 and 24.09.2011. The petitioner has filed his reply to the show cause on 29.11.2016 and denied the allegations made therein. On 22.04.2019, the petitioner was asked to appear on 07.05.2019 at 3.00 p.m for personal hearing in the matter. The petitioner has filed his reply to the show cause on 29.11.2016 and denied the allegations made therein. On 22.04.2019, the petitioner was asked to appear on 07.05.2019 at 3.00 p.m for personal hearing in the matter. The petitioner made a detailed reply again on 07.05.2019 as well as has appeared for personal hearing. Pursuant to the opinion sought by the learned counsel for the respondent Jharkhand State Housing Board it was decided to restore the allotment already made in the year 2011 and, accordingly, the allotment was provided to the petitioner in 2011 which was cancelled in the year 2016 and again restored on 20.12.2022. He further submitted that on 20.01.2023 the petitioner made representation for giving possession. On 25.01.2023 a general notice was also published for restoration regarding the allotment made in the year 2011 as well as restoration of lottery made on 20.08.2011 and on 27.02.2023 the possession of the plot has been given to the petitioner. On 22.03.2023 the petitioner made a representation stating that the total amount has already been paid by the petitioner and in view of that he has requested to execute the final lease deed in terms of the agreement. He submitted that the respondents have also admitted the facts of the payment as per allotment letter. He further submitted that the entire payment has been made by 06.04.2015 itself. He then submitted that without providing any opportunity of hearing and show cause, all of a sudden, the petitioner was asked by the respondents to deposit extra amount for fault of the respondents and the interest has been charged up to the year 2023 on the amount which is already paid upto the year 2015. He submitted that the said interest part has already been set at rest in view of the order passed in several writ petitions contained in Annexure-15 series. On these grounds, he submitted that the interest charged against the petitioner is arbitrary which cannot be in terms of several writ petitions decided by this Court. He submitted that the respondents are bound to act in terms of the agreement entered into on 10.09.2011 and total amount was required to be paid in 60 installments, however, the petitioner has already paid the said amount in 44 installments. He submitted that for the fault of the respondents, the allotment in question was cancelled, however, it was later on restored. He submitted that for the fault of the respondents, the allotment in question was cancelled, however, it was later on restored. He submitted that by the impugned order, the interest has been directed to be paid which is not in accordance with law and in view of that, the same may kindly be quashed. 11. Mr. Vikash Kumar, the learned counsel appearing on behalf of the petitioner in W.P.(C) No.5058 of 2023, submitted that on 29.06.2011 the advertisement was published for allotment of plots belonging to the respondent Jharkhand State Housing Board. Pursuant to that, the petitioner has applied for allotment of High Income Group (HIG) Plot and with the application form has deposited Rs.1,80,000/- on 03.08.2011. On 20.08.2011 the lottery for allotment of various plots was conducted at Haj House, Ranchi. The allotment letter was issued on 19.09.2011 and the petitioner was allotted HIG plot no.CH/41 at Bariatu Ranchi having an area of 2962 sq.ft. On the terms and condition, inter alia, (i) the tentative price of the said plot till 31.10.2011 was assessed at Rs.,18,37,858/- in terms of clause-3, (ii) the petitioner was required to deposit 25 % of said tentative price that is Rs.4,59,465/- and execute the agreement within 30 days of said allotment letter in light of clause-4 and 6. He then submitted that the petitioner has deposited Rs.1,80,000/- along with the application form and Rs.2,79,465/- on 12.10.2011 totaling to Rs.4,59,445/- within 30 days of the said allotment letter. He submitted that the remaining amount of Rs.13,78,393/- was to be paid on the EMI of Rs.31,717/- with 13.5 % compound interest till 7th of each month and Rs.33,520/- with 16% compound interest after 7th of each month as disclosed in clause-5 and in the said clause also it was made clear that the allottee can deposit the entire installments in one go and within one month the allottee was required to execute the agreement. It was also made that even if some delay is occurred in handing over the possession the amount is required to be paid regularly in light of clause-8. He submitted that on 28.11.2011 the hire purchase agreement was entered into between the petitioner and the respondent Jharkhand State Housing Board. It was also made that even if some delay is occurred in handing over the possession the amount is required to be paid regularly in light of clause-8. He submitted that on 28.11.2011 the hire purchase agreement was entered into between the petitioner and the respondent Jharkhand State Housing Board. On 09.01.2012 the petitioner made representation regarding delivery of possession of plot in question as in absence of the same the loan taken from the Bank was not being disbursed for making payment of due installment. By letter dated 21.03.2015 the Secretary, respondent Jharkhand State Housing Board cancelled the entire allotment process initiated vide lottery on 20.08.2011. The aggrieved persons challenged the same before this Court in W.P.(C) No.1346 of 2015 and by batch of cases vide order dated 10.12.2015 the High Court quashed the said impugned orders. By letter dated 09.11.2016 the Estate Officer of the respondent Jharkhand State Housing Board asked the Bank Manager, Allahabad Bank, Harmu Housing Colony, Harmu, Ranchi not to accept any installment from the allottees of the lottery. By letter dated 16.11.2016 the show cause was issued to the petitioner by the Estate Officer of respondent Jharkhand State Housing Board as to why the allotment should not be cancelled. The petitioner replied the show cause on 05.12.2016. The petitioner was asked to appear on 13.06.2019 for personal hearing and pursuant to that the petitioner appeared and by order dated 20.12.2022, the respondent Jharkhand State Housing Board has taken decision to retain the allotment in relation to the lottery held on 20.08.2011 in light of reply received from the allottees as well as the legal opinion and a general notice was issued on 25.01.2023 for restoration of the lottery made on 20.08.2011 and thereafter the petitioner made representation on 06.03.2023. On 07.07.2023 the physical possession of the plot was handed over to the petitioner. By letter dated 24.07.2023 the petitioner was asked to deposit outstanding installment of Rs.20,11,200/- against the plot in question and pursuant to that the petitioner has prepared the demand draft of Rs.20,11,200/- in favour of the respondent authorities, however, the same was not accepted. Thereafter, by impugned order dated 18.08.2023, the respondent Jharkhand State Housing Board demanded a sum of Rs.1,11,64,866/- till 31.08.2023 or Rs.1,13,03,935/- till 30.09.2023 charging compound interest @ 16% and administrative charges of Rs.10 per month since December, 2011. Thereafter, by impugned order dated 18.08.2023, the respondent Jharkhand State Housing Board demanded a sum of Rs.1,11,64,866/- till 31.08.2023 or Rs.1,13,03,935/- till 30.09.2023 charging compound interest @ 16% and administrative charges of Rs.10 per month since December, 2011. The petitioner wrote a letter on 25.08.2023 to the respondent authority and requested to direct Indian Bank Harmu Branch to deposit the amount of outstanding installment against the cost of the plot. He submitted that the petitioner has obtained home loan and repaying the installment to the respondent Jharkhand State Housing Board with the limit sanction of Rs.13,78,000/- and for the fault of the respondent Jharkhand State Housing Board the petitioner has suffered. On these grounds, he submitted that the cheque in question may kindly be directed to accept by the respondent Jharkhand State Housing Board and the compound interest may kindly be quashed. 12. Mr. Vijay Shankar Jha, the learned counsel appearing for the petitioner in W.P.(C) No.2854 of 2024 has submitted that pursuant the advertisement made on 25.06.2011, the petitioner has applied for HIG plot under reserved category with Bank Draft of Rs.1,80,000/- in terms of the advertisement. On 10.09.2011 the allotment letter was issued in favour of the petitioner and the petitioner was allowed HIG plot No.HH56/2349.5 sq.ft of land at Harmu for a total consideration price of Rs.14,57,815/-. He further submitted that Rs.1,80,000/- was also deposited thereafter 25 % i.e. Rs.1,84,754/- was deposited on 27.07.2011 and 25.09.2011 respectively. The petitioner was asked to enter into an agreement on 09.11.2011 which was executed and the remaining amount was Rs.14,57,815/-. All of a sudden, the said allotment of the petitioner was cancelled on 21.03.2015. The petitioner challenged the same in W.P.(C) No.1434 of 2015 which was allowed by the order dated 10.12.2015 and the said order was set aside. The respondent Jharkhand State Housing Board on 09.11.2016 took a decision not to accept the money/installment till further orders. A show cause notice was issued to the petitioner on 16.11.2016 as to why the plot should not be cancelled. The petitioner filed show cause reply on 06.01.2017. However, it was decided on 20.12.2022 to restore the allotment of the petitioner. The petitioner filed representation for possession of the plot in question and possession letter was provided to the petitioner on 15.04.2023. He submitted that payment has been made up to 08.03.2015 amounting to Rs.12,90,650/- out of Rs.14,57,815/-. The petitioner filed show cause reply on 06.01.2017. However, it was decided on 20.12.2022 to restore the allotment of the petitioner. The petitioner filed representation for possession of the plot in question and possession letter was provided to the petitioner on 15.04.2023. He submitted that payment has been made up to 08.03.2015 amounting to Rs.12,90,650/- out of Rs.14,57,815/-. He submitted that in view of that no interest can be charged from the petitioner so far the payment already made and only Rs.1,67,165/-was due and on that the interest can be made. However, by letter dated 11.03.2024, the petitioner was directed to pay the interest upto the year 2015 of Rs.12,90,650/- whereas only Rs.1,67,165/-was due against the petitioner. He submitted that the petitioner has submitted detailed representation on 09.04.2024. He further submitted that in the batch of writ petitions it has already been decided by the Annexure-14 series and the interest part has already been quashed in those cases. On these grounds, he submitted that no interest can be charged against the petitioner that too, penal interest and the petitioner has already paid a substantial amount. 13. Mr. Rishav Kumar, the learned counsel appearing for the petitioner in W.P.(C) No.3836 of 2024 submitted that in the year 2011 the advertisement was made and the applications were invited for allotment of the land by the respondent Jharkhand State Housing Board and the petitioner has also applied for the same and deposited Rs.1,80,000/- on 29.07.2011 along with the application and thereafter the lottery was held on 20.08.2011 and the HIG plot no.HD 50 was allotted to the petitioner by letter dated 10.09.2011 for a consideration amount of Rs.15,38,787/- and pursuant to that the hire purchase agreement was entered into on 21.11.2011 and the petitioner made payment of 25% of the consideration amount of Rs.3,86,000/- and it was agreed that the balance amount of 75 % of the consideration amount has to be paid in 60 monthly equated installments of Rs.28,065/-. Prior to the execution of the agreement the petitioner has also paid Rs.1,80,000/- on 29.07.2011, Rs.2,06,000/- on 01.10.2011 and further amount of Rs.One lac was paid on 05.03.2012. Prior to the execution of the agreement the petitioner has also paid Rs.1,80,000/- on 29.07.2011, Rs.2,06,000/- on 01.10.2011 and further amount of Rs.One lac was paid on 05.03.2012. The petitioner has not been able to pay the monthly installment amount further till 2014 however in the year 2015 when the petitioner visited the office of the respondent Jharkhand State Housing Board depositing the due amount along with the monthly installment it was informed to the petitioner that the respondent Jharkhand State Housing Board has stopped making monthly installments in relation to the plots/houses allotted to the applicants in the year 2011 and on 20.08.2011 the allotment was cancelled. A show cause was issued to the petitioner on 16.11.2016 and the petitioner has filed the reply on 30.11.2016. He submitted that the petitioner has regularly approached the respondent Jharkhand State Housing Board for accepting the payment of monthly installment amount along with outstanding dues however the respondent Jharkhand State Housing Board did not accept those installments. By the order dated 20.12.2022 The Secretary, Jharkhand State Housing Board directed to continue with the allotment of plots as held in furtherance of the lottery held on 20.08.2011 and the petitioner was put in possession and the petitioner has erected the boundary wall and he is in possession. The petitioner vide letter dated 16.03.2023 requested the Executive Engineer, Jharkhand State Housing Board to provide the details of balance of payment and pursuant to that it was informed to the petitioner that the amount of Rs.15,71,640/- is balance outstanding to be payable in relation to the HIG HG- 50 Harmu Housing Colony and pursuant to that the petitioner deposited an amount of Rs.15,71,640/- in the form of Demand Draft dated 28.07.2023 in the name of Jharkhand State Housing Board, Ranchi Division. The respondent Jharkhand State Housing Board issued No Objection to the State Bank of India, however, by the letter dated 06.10.2023 the Revenue Officer, Jharkhand State Housing Board raised demand of Rs.72,81,257/- against the outstanding amount till 30.11.2023 and the direction was issued to the petitioner to pay the same. The petitioner informed the Jharkhand State Housing Board that the amount has already been paid. He submitted that payment of Rs.20 lacs has been made by the petitioner. He submitted that the impugned demand is illegal. The petitioner informed the Jharkhand State Housing Board that the amount has already been paid. He submitted that payment of Rs.20 lacs has been made by the petitioner. He submitted that the impugned demand is illegal. On these grounds, he submitted that as the amount has already been paid and as such the impugned order is not sustainable and the same may kindly be quashed. 14. The learned counsel for the respondent State submitted that the role of the respondent Jharkhand State Housing Board is there and all the orders have been passed by the respondent Jharkhand State Housing Board. 15. Ms. Surbhi, the learned counsel appearing for the respondent Jharkhand State Housing Board submitted that the payment has not been made and in view of that, the decision has been taken to charge the interest/ compound interest and there is no illegality in the orders. She submitted that after remand by the High Court, the hearing was provided to the petitioners and thereafter the order has been passed and the said orders are sustainable and as such, these writ petitions are fit to be dismissed. 16. In view of the above, the Court has gone through the materials on record and found that admittedly the advertisement was called for allotting the plots in question and after following due processes by way of lottery the plots in question have been allotted to the petitioners. The amount in all the cases have already been paid earlier except in W.P.(C) No.5058 of 2023 and that is admitted position which has not been denied by the respondent Jharkhand State Housing Board in the counter affidavit or in course of the argument. The persons who have already deposited the amount in terms of the said agreement, have been further asked to pay the compound interest which is clear from the nature of order and it is clear that the amount demanded by the respondent Jharkhand State Housing Board is nothing but the interest calculated on the basis of compound rate of interest. In course of the argument, the learned counsel appearing on behalf of the respondent Jharkhand State Housing Board could not point out any statutory rule or any law empowering the respondent Jharkhand State Housing Board to charge the compound interest. 17. In course of the argument, the learned counsel appearing on behalf of the respondent Jharkhand State Housing Board could not point out any statutory rule or any law empowering the respondent Jharkhand State Housing Board to charge the compound interest. 17. In view of that, in the case where the amount which has already been paid earlier even interest cannot be charged whereas the compound interest has been charged in all the cases in spite of payment. If the earlier amount is not paid and certain amount is due the interest can be charged only on that amount. 18. In view of above, further demand of amount by the respondent Jharkhand State Housing Board is passed vide letter dated 27.06.2023, letter dated 18.08.2023, letter dated 11.03.2024 and the letter dated 06.10.2023 in all these writ petitions, which are, hereby, quashed. 19. The petitioners who have already paid the amount earlier they will not be charged even the interest, however, where the amount is not paid earlier and it is paid later on, simple interest per annum on the actual existing payment can be charged against the persons who have not paid the same and further the Court finds that these matters are covered in light of the judgment annexed in the writ petition being W.P.(C) No.6110 of 1999(R) and further in one of the case the amount was paid later on as the installment was directed to be stopped by the Jharkhand State Housing Board and therefore in that fact and situation the petitioners are not at fault for the act of the Jharkhand State Housing Board. 20. Accordingly, these petitions are disposed of with direction to the respondent Jharkhand State Housing Board to calculate the simple interest per annum and to raise demand for payment of the amount so calculated against the petitioners who have paid the amount later on and that too on the actual amount which has been paid later on as in one of the case only a meagre amount of Rupees one lac was due whereas rest of the amount has already been paid. 21. It is needless to say that the persons who have already paid the amount earlier, no interest can be charged. It goes without saying that the petitioners shall pay the amount so calculated by the respondent Jharkhand State Housing Board at the simple rate of interest. 21. It is needless to say that the persons who have already paid the amount earlier, no interest can be charged. It goes without saying that the petitioners shall pay the amount so calculated by the respondent Jharkhand State Housing Board at the simple rate of interest. It is needless to say that the petitioner(s) against whom the calculation will be made for payment of simple interest, they will pay. 22. In terms of receiving of the amount, the respondent Jharkhand State Housing Board will hand-over the possession to the petitioners where the possession has not been handed-over as yet.