BARELLLY DEVELOPMENT AUTHORITY versus VRINDA GUJARATI AND ORS.

BARELLLY DEVELOPMENT AUTHORITY versus VRINDA GUJARATI AND ORS.

Respondents, having undertaken in affidavits to pay enhanced price and taken possession, are bound to pay the enhanced price as per contract and brochure. Enhancement was based on actual increased cost and agreed terms. Delay was not inordinate and did not warrant 18% interest to respondents. Enhanced price to be paid in six monthly instalments with 9% simple interest.

Parties
Appellant: Bareilly Development Authority; Respondents: Vrinda Gujarati and Ors.
Jurisdiction
India
Judgment Date
26 February 2004
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal From High Court
Outcome
Appeal allowed; High Court judgment set aside.
Legal Topics
Allotment of Flats, Self Financing Housing Scheme, Recovery Proceedings, Enhancement of Price, Interest on Delayed Payment
Contract Law Administrative Law Property Law Allotment of Flats Self Financing Housing Scheme Recovery Proceedings Enhancement of Price Interest on Delayed Payment

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Parties

Bareilly Development Authority

Appellant

Vrinda Gujarati and Ors.

Respondents

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal From High Court

Legal Issues

  1. 1 Whether respondents are liable to pay enhanced price for allotted flats under Self Financing Scheme
  2. 2 Whether the enhancement in cost was valid as per terms of brochure and allotment letter
  3. 3 Whether delay in allotment justifies award of interest to respondents

Ratio Decidendi

Respondents, having undertaken in affidavits to pay enhanced price and taken possession, are bound to pay the enhanced price as per contract and brochure. Enhancement was based on actual increased cost and agreed terms. Delay was not inordinate and did not warrant 18% interest to respondents. Enhanced price to be paid in six monthly instalments with 9% simple interest.

Court Disposition

Appeal allowed; High Court judgment set aside.

Orders

  • Respondents to pay enhanced price of flats in six equal monthly instalments with 9% simple interest on diminishing balance.
  • If respondents commit two instalment defaults, 18% interest is recoverable by BDA.