✦ High Court of India · 29 Aug 2025

High Court · 2025

Case Details High Court of India · 29 Aug 2025

Court

High Court of India

Decided

29 Aug 2025

Bench

N. ANAND VENKATESH

Length

1,637 words

Acts & Sections

Constitution of India

Writ Petition No.22896 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED 29.08.2025CORAMTHE HONOURABLE MR. JUSTICE N. ANAND VENKATESHWrit Petition No.22896 of 2025andW.M.P.No.25727 of 2025V.Ramakrishna RaoS/o.V.Chalapathi Rao...PetitionerVs.1.The Secretary to Government of Tamil Nadu, Housing and Urban Development, Secretariat, Chennai - 600 009.2.The Managing Director, Tamil Nadu Housing Board, CMDA Complex, E&C Market Road, Koyambedu, Chennai - 600 107.3.The Executive Engineer & Administrative Officer, Besant Nagar Division, Tamil Nadu Housing Board, No.48, Dr.Muthulakshmi Salai, Adyar, Chennai - 600 020.4.The Manager, Marketing and Service, Besant Nagar Division, Tamil Nadu Housing Board, No.48, Dr.Muthulakshmi Salai, Adyar, Chennai - 600 020.... Respondents1/10 https://www.mhc.tn.gov.in/judis Writ Petition No.22896 of 2025Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying for issuance of a Writ of Certiorarified Mandamus calling for the records of the impugned proceedings of the fourth respondent in Letter No.AL5/464/2016 dated 11.07.2024 and quash the same and consequently, direct the respondents to execute the sale deed in favour of the petitioner in respect of the MIG-I flat No.13/11 in the third floor of the TNHB residential flats at Sholinganallur, Phase-II Scheme within a stipulated period fixed by this Court.For Petitioner: Mr.V.Vijayashankar for Mr.N.SaravananFor Respondents : Mr.P.Aishwarya Government Advocate [R1] Mr.D.Veerasekaran, Standing Counsel [R2, R3 & R4]*****ORDERWhen the writ petition came up for hearing on 01.08.2025, this Court passed the following order:"This writ petition has been filed challenging the impugned letter of the 4th respondent dated 11.07.2024 wherein the petitioner has been directed to pay a sum of Rs.17,88,197/- for the purpose of executing the sale deed in his favour with respect to the subject property.2. This Court heard the learned counsel for the petitioner and the learned Standing counsel appearing on behalf of the Housing Board.2/10 https://www.mhc.tn.gov.in/judis Writ Petition No.22896 of 20253. The petitioner submitted an application under the Hire purchase scheme at Sholinganallur Phase II Scheme. The 3rd respondent fixed the tentative cost at Rs.40,71,000/- for the MIG -1 flats. The petitioner paid the initial deposit of 25% to the tune of Rs.10,17,750/-. The balance cost of Rs.30,53,250/- is payable in 120 monthly instalments spread over a period of 10 years with interest at the rate of 10.50% per annum. The monthly installment works out to Rs.41,410/- per month.4. The petitioner had chosen to pay the entire balance cost in one go and accordingly, he paid a lumpsum of Rs.29,29,020/- on 10.07.2019. The petitioner having paid the entire cost was requesting the Housing Board to execute a sale deed in his favour. While so, the impugned letter came to be issued by the 4th respondent directing the petitioner to pay a further sum of Rs.17,88,197/-.5. The Counter affidavit that has been filed by the 3rd respondent states that the petitioner had opted for a lease cum sale agreement on 11.06.2019. However, the petitioner on his own paid the lumpsum amount on 10.07.2019. No specific permission was granted to the petitioner in this regard. Therefore, if any allottee wants to convert the monthly installment scheme into one lump sum payment, it is governed by a specific rule where the allottee is liable to pay interest.6. This Court on an earlier occasion directed the Housing Board to file a memo of calculation and accordingly, the same was filed before this Court. On going through the same, except a sum of Rs.5,40,000/- which is claimed as differential amount towards land cost, all the other payments are towards regular interest, penal interest, belated ID interest and maintenance charges. The moot question is when the petitioner has chosen to pay the entire amount which was received by the Housing Board, it is not known as to how the Housing Board is proposing to collect from the petitioner various amounts in the name of interest, penal interest etc., Therefore, for more clarity, the learned Standing Counsel will have to produce the relevant rule, which deals with a case where an allottee who initially agreed for a lease cum sale agreement, subsequently opts for a one time payment.3/10 https://www.mhc.tn.gov.in/judis Writ Petition No.22896 of 20257. The learned Standing counsel seeks for some time to produce the relevant rules.8. Post this writ petition under the same caption on 08.08.2025."2. Thereafter, the case was listed for hearing on 08.08.2025 and the following order came to be passed by this Court:When the matter was taken up for hearing today, the learned Standing Counsel appearing on behalf of the Housing Board produced the proceedings of the Managing Director of TNHB dated 31.7.2025 and relied upon the following Clause: FoapUg;g[ Fog[f jahuhdjw;F gpd;dh; jtiz Kiwapy; xJf;fPL bgw;wth;fs;/ jtiz Kiwapd;go xU jtiza[[k; brYj;jhky; A & B rhd;wpjH; bgw;W t';fpapnyh-epjp epWtd';fspnyh-mYtyfj;jpnyh fld; bgw;W KGj;bjhifa[k; brYj;jpapUe;jhy; mt;thW cs;s xJf;fPLjhuh;fsplkpUe;J bkhj;jf; bfhs;Kjy; Kiwapy; tl;o fzf;fpl;L bjhif bgw ntz;Lk;/2.In the considered view of this Court, the above proceedings is not an answer for the query that was posed by this Court when the earlier order was passed on 01.8.2025. The Housing Board has to necessarily produce the relevant Rule/Regulation/Guideline etc., which specifically sets out the manner in which the interest must be calculated when an allottee who comes under the installment scheme decides to pay the entire amount in one lumpsum. Once this clarification is given, final orders will be passed in this writ petition.3.As a last chance, post this writ petition at the end of the motion list on 20.8.2025.4/10 https://www.mhc.tn.gov.in/judis Writ Petition No.22896 of 20253. When the matter was taken up for hearing today, the working sheet was produced by the learned Standing Counsel appearing on behalf of the Housing Board. For proper appreciation, the same is scanned and reproduced hereunder:5/10 https://www.mhc.tn.gov.in/judis Writ Petition No.22896 of 20254. Heard Mr.V.Vijayashankar, learned counsel for petitioner, Ms.P.Aishwarya, learned Government Advocate appearing for first respondent and Mr.D.Veerasekaran, learned Standing Counsel appearing for respondents 2, 3 & 4.5. The entire controversy can now be zeroed in by virtue of the working sheet that has been placed before this Court. The first component is regarding the interest of Rs.1,09,273/-. This interest has been calculated for the period from April'2019 to July'2019 based on the EMI that was payable during this period. This is in view of the fact that the petitioner had paid lumpsum amount only during July'2019. This Court finds that there is justification for imposing interest for the period from April'2019 to July'2019.6. The next issue is with regard to the difference in land cost. There cannot be any dispute insofar as this head is concerned. Interest has been imposed against the petitioner on the difference in land cost from December 2020 to August 2025. Learned counsel for petitioner submitted that the petitioner was informed regarding the difference in land cost only when the 6/10 https://www.mhc.tn.gov.in/judis Writ Petition No.22896 of 2025present writ petition was pending and therefore, the petitioner cannot be asked to pay interest for the entire period.7. Per contra, learned Senior Counsel appearing for the Housing Board brought to the notice of this Court Paragraph No.8 of the counter affidavit filed by the Housing Board. It is stated that the difference in land cost was informed to the petitioner through a letter dated 29.10.2021. To substantiate the same, the original file was also placed before this Court where there is a seal to the effect that this letter was sent to the petitioner on 09.11.2021.8. In the considered view of this Court, the Court has to necessarily presume that intimation was given to the petitioner during November 2021. Under such circumstances, interest can be imposed against the petitioner for the difference in land cost only from November 2021 till August 2025. Hence, the interest portion has to be re-calculated and informed to the petitioner.9. The other head under which the petitioner has been asked to pay a sum of Rs.1,08,100/- is towards maintenance charges. Learned counsel for 7/10 https://www.mhc.tn.gov.in/judis Writ Petition No.22896 of 2025petitioner submitted that the property has been handed over to the petitioner in the year 2016 and from then on, the maintenance charges are regularly paid by the petitioner. If the maintenance charges are regularly paid by the petitioner, there is no reason as to why the Housing Board will impose payment of maintenance against the petitioner. Therefore, the petitioner shall submit all the receipts for payment of maintenance charges and in such an event, the same will be taken into consideration and the maintenance charges can be waived.10. In the light of the above discussion, the writ petition is disposed of in the following terms:(a)the petitioner will pay the difference in land cost and the petitioner will also pay the interest for the period from November 2021 to August 2025;(b)the petitioner will pay the regular interest of Rs.1,09,273/- for the period from April'2019 to July 2019;(c)the petitioner shall furnish all the receipts towards payment of maintenance charges and in such an event, the maintenance charges shall be waived. The penal interest imposed against the petitioner shall also be waived; and8/10 https://www.mhc.tn.gov.in/judis Writ Petition No.22896 of 2025(d)there shall be a direction to the third respondent to calculate the amount payable by the petitioner in terms of directions (a), (b) and (c) and inform the same to the petitioner and the petitioner shall settle the balance amount and in which event, the sale deed shall be executed in favour of the petitioner.No costs. Consequently, connected miscellaneous petition is closed.29.08.2025Speaking/Non-speaking orderIndex : Yes / NoNeutral Citation : Yes / Nogm9/10 https://www.mhc.tn.gov.in/judis Writ Petition No.22896 of 2025N. ANAND VENKATESH, J.gmTo1.The Secretary to Government of Tamil Nadu, Housing and Urban Development, Secretariat, Chennai - 600 009.2.The Managing Director, Tamil Nadu Housing Board, CMDA Complex, E&C Market Road, Koyambedu, Chennai - 600 107.3.The Executive Engineer & Administrative Officer, Besant Nagar Division, Tamil Nadu Housing Board, No.48, Dr.Muthulakshmi Salai, Adyar, Chennai - 600 020.4.The Manager, Marketing and Service, Besant Nagar Division, Tamil Nadu Housing Board, No.48, Dr.Muthulakshmi Salai, Adyar, Chennai - 600 020.Writ Petition No.22896 of 202529.08.202510/10

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