Case Note & Summary
The dispute arose from the Delhi Development Authority's (DDA) 'Registration Scheme on New Pattern - 1997', which aimed to provide affordable housing. Registration for the scheme commenced on September 1, 1979, with a projected cost of Rs. 42,000 for MIG flats. Allotments began in 1981, but due to various reasons, allotments were delayed. In December 1990, the land rates were revised significantly, leading to higher costs for the flats. Respondents, whose allotments were due in 1991, challenged the increased pricing in the Delhi High Court, arguing it exceeded the original scheme's indications. The High Court ruled in favor of the respondents, striking down the revised land rates and directing the DDA to allot flats at a price based on the original rates. This decision was contested, leading to a referral to a Full Bench of the High Court, which upheld the DDA's revised pricing, stating that judicial review in such matters was limited. The Supreme Court, upon reviewing the conflicting judgments from the High Court, sided with the Full Bench, emphasizing the need for consistency in judicial decisions and the binding nature of the law laid down by higher courts. The Supreme Court set aside the High Court's impugned judgment and disposed of the writ petitions in accordance with the Full Bench's order, affirming the legality of the revised pricing by the DDA.
Headnote
A) Constitutional Law - Judicial Review - Scope of Judicial Review - Article 226 of the Constitution of India - The court held that it cannot interfere in the pricing/costing of flats, including escalation of land cost, as the transaction is contractual and governed by the terms of the scheme. The Full Bench concluded that the revision of land cost by the Lieutenant Governor was neither arbitrary nor illegal (Paras 1-5).
Issue of Consideration
Whether the High Court could interfere in the pricing of flats and if the revision of land cost by the Lieutenant Governor was illegal and arbitrary.
Final Decision
The Supreme Court set aside the impugned judgment of the High Court and disposed of the writ petitions in accordance with the Full Bench's order, affirming the legality of the revised pricing by the DDA.
Law Points
- Judicial review
- Pricing of flats
- Article 226
- Land cost revision
- Contractual transaction
