Allowed

(O&M)Welfare Association Housing Board Colony v. Housing Board, Haryana and Anr.

Punjab & Haryana HC13 Oct 2009RSA/376/2004

Case brief

AI extract

What is this about?

The appellant Welfare Association challenged judgments dismissing its suit and appeal regarding enhanced tenement costs from the Housing Board Haryana. The Court modified the lower decrees upholding rights of allottees to pay principal plus 9.5% interest, binding both parties on agreed payment timelines and making the resolution part of the decree.

What did the court decide?

Modified judgments and decrees requiring deposit of principal with 9.5% interest; Housing Board to furnish dues in three months; payment in six months via three instalments.

(O&M)Welfare Association Housing… — Contract and Commercial Disputes | Punjab & Haryana HC (2009)

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R.S.A.NO. 376 of 2004

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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Civil Misc. No. 11321-C of 2009 and R.S.A.NO. 376 of 2004 Date of decision: 13th October, 2009

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Welfare Association Housing Board Colony(Regd.) Kalka District Panchkula through Shri Satpal Sethi, its President and others

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......Appellant

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Versus

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Housing Board Haryana and another

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.....Respondents

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Before: HON'BLE MR. JUCTICE RAJIVE BHALLA

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Present: Mr. Sandeep Punchhi, Advocate for the appellants.

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Mr. V.K.Vashisht, Advocate

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Mr. Balram Gupta, Senior Advocate with Ms. Anamika Negi, Advocate for the respondents.

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Rajive Bhalla, J.(Oral)

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Civil Misc. No. 11321-C of 2009

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Allowed as prayed for.

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Resolution and the affidavits of the office bearers of the Association are taken on record as Annexures P-1 to P-11.

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R.S.A.No. 376 of 2004

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The appellants challenge judgments and decrees dated 20.08.2003 and 30.10.2003, passed by the Civil Judge (Senior Division), Panchkula and the Additional District Judge, Panchkula, dismissing their suit and appeal respectively.

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The Welfare Association Housing Board Colony (Regd.) Kalka, District Panchkula is a registered association of allottees of tenements from the Housing Board, Haryana, at Kalka. The Housing Board, served demand notices, calling upon its allottees to pay enhanced cost of the tenements allotted to them. The appellant for

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R.S.A.NO. 376 of 2004

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and on behalf of its members, filed a suit for declaration praying that these notices be quashed. The trial court dismissed the suit and the first appellate court dismissed the appeal.

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Counsel for the appellants submits that a similar dispute with respect to similarly situated allottees, of the Housing Board, has been decided by order dated 4.03.2008, and the allottees have been allowed to pay the principal amount with interest @9.5% per annum w.e.f. 1.03.2000 upto 28.02.2007, within a period of one month, of the Housing Board furnishing information of the amount due from the allottees. Counsel for the appellants prays that members of the Association should also be allowed to pay the principal sum in terms of the order passed in Civil Misc. No. 3238 of 2007 in CWP No. 2805 of 1985, titled as “Pushap Raj Oberoi and others vs. State of Haryana and others”. In support of this prayer, the association has placed on record a resolution dated 11.10.2009, which reads as follows:-

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“The General body meeting of the Welfare Association Housing Board Colony Kalka (Registered) in its emergent general house meeting on 11.10.2009 has unanimously resolved to accept that the present RSA may be disposed of in terms of orders passed in CM No.3328 of 2007 in CWP No. 2805 titled as Pushap Raj Oberoi and other various State of Haryana and others. In terms of this order the members of the Association have unanimously agreed to pay the principal amount along with simple interest @9.5% per annum from 1.3.2000 till the date of payment. The Association further authorises the President of the association to make any statement in this regard in the Hon’ble High Court if

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R.S.A.NO. 376 of 2004

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need be.”

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In support of this resolution, the office bearers of the appellant Association have filed separate affidavits. A relevant extract of one of these affidavits reads as follows:-

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“1. That the deponent on his own behalf and also on behalf of the Welfare Association Housing Board colony Kalka accept that the present RSA may be disposed of in terms of orders passed in CMNo.3238 of 2007 in CWP No. 2805/85 titled as Pushp Raj Oberoi and others versus State of Haryana and others.

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That the members of the Association in its emergency general house meeting held on 11.10.2009 have also unanimously agreed that in terms of this order they are ready to pay the principal amount along with simple interest @ 9.5% per annum from 1.3.2000 till the date of payment.”

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Counsel for the respondent board states that though such a relief should not be granted to the appellants, but as the order dated 4.03.2008, has been implemented with respect to similarly situated allottees, the Housing Board has no objection, if similar relief is granted to the appellants, provided the appellants pay the principal amount with interest calculated @9.5% per annum up to the date of final payment.

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In view of the statements made by counsel for the parties, the resolution filed by the appellant society and the affidavits sworn in support thereof, the members of the appellant and the respondent board shall be bound by the following agreed terms and conditions:-

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R.S.A.NO. 376 of 2004

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(a) The allottees shall deposit the principal amount, with simple interest @9.5% per annum w.e.f.1.03.2000, up to the date of final payment. (b) The Housing Board shall calculate the principal amount with interest and furnish the amounts due from each allottee to the appellant and its members within a period of three months from the receipt of a certified copy of this order.

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(c) The members of the appellant society allottees shall deposit the amount so determined, within six months, of the receipt of calculations furnished by the Housing Board, in three equated instalments of two months each. The amount of interest shall be calculated upto the final date of payment.

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(d) The appellant and its members shall be bound by resolution dated 11.10.2009 and the affidavits dated 12.10.2009, Annexures P-1 to P-11 duly sworn by President Inder Pal Singh, Gen Secretary Sat Pal Singh, Vice President Kanwar Sain Singla, Vice President Munni Lal Sharma, Vice Joint SecretaryRamesh Jetley, Cultural Secretary A.K.Babbar, Secretary Public relation B-C Tewari, Executive Member Mukesh Sodhi, Treasure Anuj Walia, Executive Member Subhash Chander .

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(e) In case the appellants violate the terms and conditions, of this order the appeal shall be deemed to have been dismissed

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In view of the agreement between the parties, the judgments and decrees passed by the courts below are modified in the above terms and the appeal is disposed of accordingly. The terms and

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R.S.A.NO. 376 of 2004

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conditions set out hereinbefore, the resolution and the affidavits shall form a part of the decree. Decree sheet be drawn up accordingly.

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A copy of this order be handed over to counsel for the parties under signatures of the Special Secretary, of this Court.

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[RAJIVE BHALLA] JUDGE

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13th October, 2009 Shivani Kaushik