1996 (11) TMI 486

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....of the land. In 1967, another letter of allotment of the land. In 1967, another letter of allotment was issued stipulating the very same rate. As required by the said letter, the Sabha deposited an amount of Rs. 7,185/- on 8th July, 1967. The physical possession of the land could not, however, be delivered to Sabha on account of existence of certain structures which could not be vacated or removed. Sabha continued to press for allotment. A question was also raised in the Parliament on 27th February, 1978 in this behalf, to which a reply was given by the government that an alternate plot of 2.15 acres would be allotted to the appellant-petitioner. This change in the extent to be allotted was the consequence of change in policy. Sometime after 1967, it appears, the relevant rules were amended according to which no school can be established in a plot of land less than two acres in extent. Be that as it may, possession of the alternate land was also not given to the Sabha. Correspondence went on between the parties. On 14th October, 1986, the L&D.O. informed the Sabha that an extent of 2.15 acres is being allotted to the Sabha for running the school @ Rupees eight lakhs per acre. Sabha....

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....pened. [Indeed, the rate in respect of this extent is not in issue between the parties.] The dispute pertains only to the rate chargeable for the additional extent of 0.787 acres. So far as this additional extent is concerned, the government had agreed to allot the same @ Rupees eight lakhs per acre through its letter dated October 14, 1986 which was unreasonably enhanced to Rupees thirty eight lakhs per acre under a subsequent letter dated 18th July, 1990. This enhancement is unreasonable and arbitrary. The government cannot charge anything more than Rupees eight lakhs for this additional extent. 6. For a proper appreciation of the controversy, it is necessary to first determine the correct state of facts. 7. By its letter dated June 3, 1967, the Deputy Land and Development Officer, New Delhi informed Sabha that "the President is pleased to... sanction allotment of another plot of land measuring 1.363 acres in Edward Square, New Delhi..., for the construction of a building for the Jain Happy School... subject to conditions specified therein. The rate prescribed was Rupees five thousand per acre plus the annual ground rent @ five percent thereon. It was further stipulated th....

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....t authority and shall follow the provisions of Delhi School Education Act/Rules, 1973 and other instructions issued from time to time". It was also stipulated that "the Jain Happy School shall not refuse admission to the resident of the locality". This offer was stated to be valid for one month and if acceptable to the Sabha, it was required to community its acceptance and remit the consideration amount. Pursuant to this letter, the Sabha wrote to the L&D.O. on 17th August, 1990 as follows: No. JAS/Land/1 Dated 17.8.1990 The Land & Development Officer, Government of India, Nirman Bhavan New Delhi-1 Sub: Allotment of land for Jain Happy School Ref: Your letter No. LV-4(162)/90/300 dt. 18.7.1990. Dear Sir, With reference to you above cited letter, which was received by us on 23.7.1990 and in continuation to our letter of even No. dated 13.8.90, we are enclosing herewith a Pay Order No. 001670 dated 16.8.90 for Rs. 10 lakhs on Central Bank of India, Gole Market, New Delhi -1 as a part payment for the above subjected land. Since the fee structure of the school is such that it runs on 'No Profit & No Loss' basis and since the amount to be depos....

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....roposed to be allotted at a uniform rate of Rupees eight lakhs per acre. This offer was later revised in the respondents' letter dated 18th July, 1990, as stated above. The Sabha accepted the same and deposited the sum of Rupees ten lakhs towards part consideration. It only changed its stance two months later when it came to know of the judgment of the Delhi High Court in Lala Amarnath and on that basis demanded that the rate to be charged for the additional land should be @ Rupees eight lakhs per acre only and not @ Rupees thirty eight lakhs per acre. We have pointed out that the said judgment was in no way relevant to the facts of this case and, therefore, it is clear that the reversal of its stand by the Sabha was neither justified as a fact nor justified in law. Even assuming that the said judgment was relevant in some manner, the Sabha could only request for revision of price but could not claim such revision as a matter of right, in view of its acceptance of the terms of letter of allotment dated July 18, 1990. It is not - and it cannot be - the case of the Sabha that its acceptance aforesaid is vitiated by the later judgment of the High Court between third parties and th....