TaxTMI 
TaxTMI 
1989 (2) TMI 400
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....nsive and the facts alleged therein may be taken as representative in character, the facts relating to this appeal are briefly stated. The Bareilly Development Authority (hereinafter referred. as 'BDA'), the first appellant was constituted under Section 4 of the U.P. Urban Planning and Development Act, 1973 by the State Government for the purposes of development in the District of Bareilly., With a view to casing the acute housing problem in the said District, the BDA has undertaken construction of dwelling units for people belonging to different income groups styled as 'Lower Income Group', 'Middle Income Group', 'High Income Group' and the 'Economically Weaker Sections' (hereinafter referred as LIG, MIG, HIG and EWS respectively). The BDA issued' an advertisement offering to register names of intending applicants desirous of purchasing dwelling houses/flats in any one of the different income groups intended to be constructed by the BDA. In this appeal i.e. Civil Appeal No. 2809/86, the respondents 1 to 17 and 20 got themselves registered for allotment of flats in MIG scheme and respondents 18 and 19 in HIG scheme with the BDA in accordance with the terms and conditions contain....
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....t. Hence their names were included in the draw and on being lucky in the draw, the respondents barring the above 4 were allotted their respective houses. After allotment, they were asked to complete the other formalities and make down payments in accordance with the notice. dated 19/20.1.1984, by a further notice dated 3.2.1984 (Annexure 'F'). Similar notices were issued to all the registered allottees for all types of houses and the respondents were also intimated that in case any of the registered persons does not want to purchase the house, his name would not be included in the draw but he would have his choice later on. At this stage, all the respondents in these appeals approached the High Court under Article 226 of the Constitution of India challenging the revised terms and conditions of the BDA on the ground that the petitioners were estopped from changing the conditions subject to which the respondents- applicants had applied for registration and deposited the initial payment in the year 1980; that the enhancement of cost of the house/flat amounting almost double of the estimated cost as shown in the brochure while inviting the applications and the increase of the monthl....
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....sfied that the contesting opposite party has succeeded in establishing its demand of double the estimated cost by facts and figures. The end of justice demands that the authority should refix the cost of the petitioner's flats after hearing their grievance." The High Court answered the objections taken by the petitioners herein that the respondents have consented for the changed terms and conditions observing, "We think that the consent obtained from the petitioners was also not reasonable act on the part of the contesting opposite parties (appellants herein)". Finally, the High Court adopting the above reasoning in respect of the cases of other respondents also falling under various categories directed the appellants herein in all the writ petitions "to re-determine the cost of the petitioners' (respondents herein) flats and installments payable by them after heating their grievances." Being aggrieved by the impugned judgment the appellants have filed these appeals by special leave. Shri Rajinder Sachher, St. Adv. after taking us through the relevant documents and the additional affidavit filed by the second respondent and the reply affidavit assailed the reasonings given....
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....ble documentary evidence namely Annexures 'A', 'D', 'E' and 'F'. Now, we shall reproduce some of the relevant conditions of the brochure as well as the changed conditions contained in the letter dated 19/20.1.1984. Clauses 12 and 13 of the brochure issued by the BDA and the notes 1 and 2 of the General Information Table thereto read thus: Clause 12 For allotment by lottery all the above-mentioned terms and rules given in the booklet would ordinarily be followed but the Development Authority will have the right to change, enhance or amend any of the terms and/or condition as and when it thinks necessary and at its discretion. Clause 13 The decision of the Development Authority in regard to any matter in relation to the registration application will be final. It would have the right to relax any of the conditions at its discretion. The fight to sell by auction the Middle Income Group and Higher Income Group plots/houses or any portion thereof, of the various schemes, will also vest in the Development Authority. General Information Table Note: (1) The cost shown in the column 4 is only estimated cost. It will increase or decrease according to the rise or fall in t....
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.... the brochure was only estimated cost subject to increase or decrease according to the rise or fail in the price at the time of completion of the property. This is not only the case of the applicants of MIG scheme but also of the other applicants falling under the other categories i.e. HIG, LIG and EWS. So it cannot be said that there was a mis-statemennt or incorrect statement or an fraudulent concealment in the information supplied in the brochure published by the BDA on the strength of which all the applicants falling under the various categories applied and got their names registered. In such a circumstance the respondents cannot be heard to say that the BDA has arbitrarily and unreasonably changed the terms and conditions of the brochure to the prejudice of the respondents. More so, the respondents barring respondent Nos. 13, 17, 18 and 20 after having given their written consent accepting the changed and varied terms and conditions as shown in the letter dated 19/20.1.84 are not justified in contending that the BDA has gone back on its original terms' and conditions and has substituted new conditions to their detriment. It is quite un-understandable that the persons like t....
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....elevance. Where an authority appears acting unreasonably this Court is not powerless and a writ of mandamus can be issued for performing its duty free from arbitrariness or unreasonableness." This finding, in our view, is not correct in the light of the facts and circumstances of this case because in Ramana Dayaram Shetty case there was no concluded contract as in this case. Even conceding that the BDA has the trappings of a State or would be comprehended in 'other authority' for the purpose of Article 12 of the Constitution, while determining price of the houses/flats constructed by it and the rate of monthly installments to be paid, the 'authority' or its agent after entering into the field of ordinary contract acts purely in its executive capacity. Thereafter the relations are no longer governed by the constitutional provisions but by the legally valid contract which determines the rights and obligations of the parties inter-se. In this sphere, they can only claim rights conferred upon them by the contract in the absence of any statutory obligations on the part of the authority (i.e. B.D.A. in this case) in the said contractual field. There is a line of decisions where the....