http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 5  

PETITIONER: HIRALAL CHAWLA & ANR.

       Vs.

RESPONDENT: STATE OF  U.P. & ORS.

DATE OF JUDGMENT13/02/1990

BENCH: MISRA RANGNATH BENCH: MISRA RANGNATH PUNCHHI, M.M. AGRAWAL, S.C. (J)

CITATION:  1990 SCR  (1) 325        1990 SCC  (2) 149  JT 1990 (1)   194        1990 SCALE  (1)161

ACT:     Land  Acquisition Act,  1894: Section  4(1)--NOIDA--Land acquired by cooperative housing societies prior to notifica- tion in favour of Development Authority--Validity of.

HEADNOTE:     Certain cooperative housing societies comprising of  the petitioners  and  others had acquired lands  in  the  trans- Jamuna area of Uttar Pradesh prior to the setting up of  the New Okhla Industrial Development Authority in 1976. When the said lands came to be notified for the Development Authority writ  petitions were filed in 1983 under Article 32  of  the Constitution  for  quashing the acquisition.  In  its  order dated January 14, 1985 the Court had directed the  Authority to  hand  over actual possession of plots to  allottees  in- volved in the dispute. Since a dispute had arisen as to  the eligibility  of a large number of applicants who had  failed to  keep to the time schedule in the matter of  payment  the Court  in  its  interim order dated September  2,  1983  had directed  the  Authority  to reserve 269 acres  of  land  in addition  to the land already allotted. The  petitioners  in the instant case belong to this category.     The  total number of persons entitled to  allotment  has been  determined  at 2,380. The Authority’s scheme  for  the petitioners  had stipulated four sizes of plots  viz.  112.5 sq.  metres,  162 sq. metres, 202.5 sq. metres and  250  sq. metres. They, therefore, claimed an area of 130 acres out of the  269 acres set apart for them. The  Authority,  however, sought to reduce this area to 90 acres and the plot area  to 77.73, 112.3, 140.45 and 173.53 sq. metres respectively. Disposing of the petitions, the Court.     HELD: If the scaling down from 130 acres to 90 acres  is to be done the plots are bound to be of odd sizes and  work- ing out may be difficult. Therefore, instead of 90 acres  of land the total area to be released on that account should be 96.29 acres and the different sizes of plots as provided  in the scheme shall stand reduced to 100 sq. metres, 326 130  sq. metres, 150 sq. metres and 180 sq.  metres  respec- tively. 71 decimals of land should also be set apart for the other applicants being dealt with separately. The plots  are

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 5  

to  be  developed by the Authority in  accordance  with  the norms laid down, and allotted within a period of nine months beginning from 1st of March, 1990. [329H-330F, 331F]     Prices have gone up in every sphere. To bind the Author- ity  by the terms of its scheme at this point of time  would not at all be fair. These 2,380 persons have already  depos- ited  huge amounts of money said to be about five crores  of rupees  with  the Authority and the money has been  held  on account  without utilisation, as no final decision had  been taken. The current rate per square metre is Rs.1,200. Taking into consideration the fact that the members have waited too long  for allotment of their plots, the Authority should  be permitted to charge Rs.1,O00 per square metre. Every  member who  has  deposited  any sum of  money  with  the  Authority against proposed allotment shall ble entitled to 12%  inter- est on such amount from the date of deposit till the  actual allotment and such interest accrued in favour of the  person shall be entitled to adjustment against actual price of land to  be  worked  out @ Rs. 1,000 per  square  metre.  Balance amount, if any, shah have to be paid by every person includ- ed in the figure or 2,380 within three months from the  date of  the order in monthly instalments. Failure to pay any  of the  instalments within the time limit indicated shall  dis- qualify  such person from allotment. The terms in regard  to allotment  for the remaining few persons shall also  be  the same. [330G-331E]

JUDGMENT: ORIGINAL JURISDICTION: Writ Petition No. 975 of 1986. (Under Article 32 of the Constitution of India).     D.D.  Thakur,  V.C. Mahajan, S.  Markandaya,  G.S.  Rao, Sreepal Singh and Ms. Kusum Chowdhary for the Petitioners.     R  N. Trivedi, S.C. Batra and Raju Ramachandran for  the Respondents. The Judgment of the Court was delivered by     RANGANATH  MISRA, J. The dispute in this group  of  writ petitions  under Article 32 of the Constitution  relates  to allotment  of  land for residential purposes  by  New  Okhla Industrial Development Authority (shortly known as ’NOIDA’). NOIDA is a trans-Jamuna housing project set up by the  Uttar Pradesh Government in the year 327 1976.  Prior  to the setting up of the  NOIDA,  the  Defence Services  Cooperative Housing Society Ltd. and other  socie- ties had acquired lands in the area for purposes of  housing of  their members and when the same came to be notified  for acquisition  for NOIDA, writ petition No. 9034 of  1983  was filed challenging the acquisition; the federation also filed a separate writ petition being 1588 of 1984. Some other writ petitions by the different parties were also filed. On  14th January,  1985, after hearing parties a Bench of this  Court inter alia made the following directions: "Both sides presented a fair and nearly accurate picture  of the present situation. Spirit of re-conciliation rather than confrontation  prevailed  all  throughout.  All   reasonable suggestions  emanating  from both sides either  accepted  or seriously considered by both sides with a view to implement- ing  the scheme under which plots were to be allotted.  Only three points remain which necessitated court’s intervention. Having examined them we direct: (1) NOIDA shall hand over actual possession of plots to each allottee of each society involved in the dispute. To identi- fy  them a list setting out their names has to  be  supplied

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 5  

within six weeks from today. (2)  Mr. G.L. Sanghi, learned counsel urged that NOIDA  will be entitled to escalation charges for the year 1981 and 1982 which  works out at the rate of Rs.20 per square  metre.  He repeatedly  pointed out that the NOIDA would be entitled  to the same under the scheme. May be there was substance in the submission. However, having regard to the fact that a sum of Rs.5.50  crores has already been deposited by the  allottees with the NOIDA for some time and as the scheme had not  been implemented  as  per time schedule provided  in  the  scheme itself,  to meet possession of plot to each allottee had  to be  handed  over some where in 1982 and which would  be  now done in 1985 pursuant to the directions yet without  setting a precedent and having regard to the facts of this case  and special circumstances pointed out to this Court with  regard to  the  present position, we are of the  opinion  that  the NOIDA  is  not entitled to escalation charges for  the  year 1981 and 1982. (3) The third point of a minor difference was that a special 328 charge has to be paid by all allottees whose plots are  said to  be situated at a comparable advantageous position,  such as,  corner plots, plots abutting to the main road  or  both etc.  There may be advantage in taking the corner plot or  a plot abutting on the road, but that is fortuitous and not be one’s  volitional  selection. Having regard to  the  special facts  of  this case and the element of luck  in  getting  a particular plot we direct that the NOIDA would not be  enti- tled  to collect special charge or anything extra  for  such plots. We order accordingly.           It  was further pointed out that there  were  some applicants who applied for the plots but who failed to  keep to the time schedule in the matter of payment. If the number of such applicants had not been very large, the Court  would have  examined each case. But the number of such  applicants appears to be quite big.           Mr.  Soli Sorabjee, learned counsel, in this  con- nection  pointed  out that under the interim order  of  this Court  dated  September 3, 1988, amongst  others  NOIDA  was directed  to reserve 269 acres of land in sectors 41 and  42 or  in  adjoining sectors in addition to  the  land  already allotted to the petitioners. Therefore, their cases  deserve consideration as requisite area of land is available.           At  the suggestion of the Court Mr.  G.L.  Sanghi, learned  counsel  agrees  to appoint Shri  Z.H.  Kazmi,  Law Assistant Registrar (Housing), Lucknow who would be specifi- cally directed to look into the case of each such  applicant and  decide  whether  any one  deserves  allotment  avoiding technical  approach and by approaching the matter  from  the angle  of social justice with broad vision. If there is  any dispute  which  cannot  be resolved  liberty  to  move  this Court  ..........  " On 16th December, 1985, the following order was made: "The  parties are agreed that the dispute in regard to  pay- ment of interest and the eligibility for allotment of  plots may be decided by Shri D.A. Desai, Chairman, Law Commission, as  mediator and not as Arbitrator. The parties  agree  that whatever decision is given by Shri D.A. Desai 329 will  be  accepted by them as binding and there will  be  no question  of  challenging  it in any  form  whatsoever.  The parties  also agree that simultaneous with the execution  of documents possession of the plots shall be forthwith  handed over to those who are admitted as eligible for allotment and interest shall be paid by them at the rate of 15% per  annum

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 5  

from  the  date  of the order made by  this  Court,  namely, 2.4.1985, subject to adjustment one way or the other accord- ing to the decision which may be given by Shri D.A. Desai."     The  decision  contemplated by the December  order  took some time to be given and the report furnished to this Court came  to be hotly debated. More than three years  have  been taken  on that account. It is unnecessary to deal  with  the different  problems  which arose in the  proceedings  before this  Court after submission of the report till  the  matter has been heard in the third week of January this year.     We  suggested to Mr. Thakur, learned  counsel  appearing for the Federation of Co-operative Housing Societies and Mr. Trivedi,  learned Additional Advocate General of Uttar  Pra- desh  appearing  for  NOIDA and counsel  appearing  for  the different  parties to sit across the table and work  out  an acceptable  modality  by  which the problem  could  be  best answered  and we are happy to note that their  efforts  have been  to a large extent successful and the scope of what  at one  time  appeared to be an unending dispute had  now  been substantially  reduced and confined to certain issues  which require to be dealt with by this order of ours.     It  is agreed that the total number of persons  who  are entitled to allotment is 2,380 and the Federation represent- ing  the  various  cooperative societies has  drawn  up  the particulars  of  these  2,380 applicants.  At  the  hearing, counsel and NOIDA authorities present in Court had agreed to allotment of 90 acres out of the 269 acres set apart by this Court’s  earlier order. In a written note submitted  by  Mr. Thakur  it  has  been brought to our notice  that  if  their initial  requirement of 130 acres is reduced to 90 acres,  a plot  of 112.5 square metres will have to be scaled down  to 77.73; similarly a plot of 162 square metres will have to be reduced  to  112.3  square metres; a plot  of  202.5  square metres will have to be reduced to 140.45 square metres;  and a  plot  of  250 square metres will have to  be  reduced  to 173.59 square metres. It has not been disputed that the four categories  of plots were stipulated in the scheme. If  this scaling down is to be done the plots are 330 bound  to be of odd sizes and working out may be  difficult. We have, therefore, decided that instead of 90 acres of land the  total  area to be released on that  account  should  be 96.29 acres in all and different sizes of plots as  provided in  the  scheme shall stand reduced to the  sizes  indicated below: S. No. As per scheme         Plots now to be allotted          (Sq. metres}        (Sq. metres) 1.           112.5                        100 2.           162                          130 3.           202                          150 4.           250                          180     Apart  from 2,380 eligible allottees there are  separate applications  which  are before the Court  already  and  are being dealt with separately. To meet their claims we are  of the  view that 71 decimals should also be set apart and  the same would be subject to such orders as the Court may  ulti- mately  make in these cases. In the event of any area  being unallotted the same would revert back to NOIDA.     The  plots to be allotted are to be developed by  NOIDA. While the federation and the other petitioners wanted that a three  months’ limit should be fixed it has been pleaded  on behalf of the NOIDA that the time limit should be two years. There is a limit to waiting and human patience and the  span of the life of the applicants is not available to be extend- ed  by  NOIDA. Taking an overall picture of  the  matter  we

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 5  

direct  that a period of nine months beginning from  1st  of March, 1990, is the limit within which developed plots shall be allotted to the 2,380 entitled persons now represented by the Federation and such other persons as referred to above.     The next relevant point for consideration is what should be the price to be paid. We have already indicated that this Court in its order dated 14th January, 1985, had not  agreed for any escalation charges. More than five years have  since been  rolled  by.  Turn of events  have  taken  an  unwieldy course.  Prices have gone up in every sphere and  the  rupee has  lost  its value over the years. To bind  NOIDA  by  the terms  of its scheme at this point of time would not at  all be fair. We may point 331 out  at  this stage that these 2,380  persons  have  already deposited huge amounts of money said to be about five crores of rupees with NOIDA and the money has been held on  account without  utilisation, as no final decision had  been  taken. Undoubtedly this money must be fetching interest. Mr.  Rama- chandran  learned counsel appearing for NOIDA has  indicated that current rate per square metre is Rs. 1,200. Taking into consideration the fact that these 2,380 members have  waited too  long for allotment of their plots, we are of  the  view that  NOIDA  should be permitted to charge @ Rs.  1,000  per square  metre.  Every member who has deposited  any  sum  of money  with NOIDA against proposed allotment shall be  enti- tled to 12% interest on such amount from the date of deposit till  the  actual  allotment and such  interest  accrued  in favour of the person shall be entitled to adjustment of such interest against actual price of land to be worked out @ Rs. 1,000  per square metre. Balance amount, if any, shall  have to  be paid by every person included in the figure of  2,380 within three months from now in monthly instalments. The 1st instalment is to be paid on or before 31st March, 1990;  the 2nd instalment to be paid on or before 30th April, 1990; and the  3rd instalment to be paid on or before 31st May,  1990. It shall be the obligation of the Federation to duly  notify every member of the direction and the time factor  forthwith as  failure to pay any of these instalments within the  time limit  indicated  above shall disqualify  such  person  from allotment  and  NOIDA would thereafter be  only  obliged  to refund  the money lying to the credit of the defaulter  with bank rate of interest. The terms in regard to allotment  for the remaining few persons as stated above shall also be  the same.     Town planning in NOIDA is said to be in accordance  with the norms laid down by itself and the same are prescribed by the  Board  of which the Chief Town and Country  Planner  of Uttar Pradesh is a member. We direct that all the norms laid down by NOIDA in the matter of development shall be strictly followed.  Supervision of this operation of course shall  be by  NOIDA but we hope and trust that the federation  of  the different  societies  would  cooperate with  NOIDA  in  this regard.     The  order reserving 269 acres of land is vacated,  sub- ject  to  the  allotments indicated. The  writ  petition  is disposed  of with these directions. There shall be no  order as to costs. P.S.S.                                             Petitions disposed of. 332