Case Note & Summary
The present writ appeal was filed under Clause 15 of the Letters Patent against the order dated 07.06.2023 passed by a single judge of the Madras High Court in W.P. No.20063 of 2019. The dispute arose from an allotment of a flat by the Tamil Nadu Housing Board to the appellant. Pursuant to an application, the appellant was allotted Flat No.4, HIG flat, 14th Floor at SAF Games Village, Koyambedu, Chennai, vide an allotment letter dated 31.12.2015. The tentative cost of the flat was fixed at Rs.1,26,44,000/-. One of the conditions of the allotment empowered the Housing Board to demand a final cost, which would be informed later. The appellant accepted the allotment and paid installments, though some payments were made belatedly, attracting interest as per the terms and conditions. The appellant challenged the proceedings dated 21.05.2019 by which the Housing Board declined the request to clarify the final cost and interest, and sought a direction for execution of the sale deed. The writ court, in order to give quietus to the issue, directed the appellant to pay a sum of Rs.25,00,000/- to the Housing Board within eight weeks, and upon receipt, the Housing Board was to execute the sale deed. Not satisfied with this order, the appellant filed the intra-court appeal, primarily contending that the learned single judge fixed the sum of Rs.25,00,000/- without any basis. Before the division bench, the counsel for the appellant argued that the Housing Board was charging exorbitant interest, and placed reliance on a judgment of the Supreme Court in Civil Appeal No.12238 of 2018 dated 02.04.2019, wherein it was held that interest must be charged reasonably and the Apex Court set aside the charging of exorbitant interest. It was further contended that the present cost of the flat is lesser than the cost fixed. The judgment text is incomplete and does not record any final decision or reasoning of the division bench. The appeal remains pending with arguments heard, and the court has yet to pronounce its verdict.
Headnote
A) Housing Board Allotment - Final Cost and Interest - Challenge to Demand - Tamil Nadu Housing Board proceedings - The appellant challenged the proceedings declining to clarify final cost and interest and sought execution of sale deed; the writ court directed payment of Rs.25,00,000/- as a quietus; the appellant contends the amount was fixed arbitrarily and the Housing Board charges exorbitant interest relying on Supreme Court judgment; (Paras 2-5).
Issue of Consideration
Whether the writ court was justified in directing payment of Rs.25,00,000/- without any basis, and whether the Housing Board's demand of exorbitant interest is valid in light of the Supreme Court judgment in Civil Appeal No.12238 of 2018.
Law Points
- The writ court directed payment of Rs.25
- 00
- 000/- as a quietus to the dispute
- but the appellant challenges the lack of basis for that amount
- the appellant relies on Supreme Court judgment in Civil Appeal No.12238 of 2018 to argue that exorbitant interest is impermissible.
