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2009 (1) TMI 875 - SC - Indian Laws


Issues Involved:
1. Legality of the demand for Rs. 61,000 per gross acre towards the construction of internal community buildings.
2. Maintainability of the writ petition.
3. Interpretation of Section 3(3)(a)(iv) of the Haryana Development and Regulation of Urban Areas Act, 1975.
4. Application of waiver and acquiescence principles.

Detailed Analysis:

1. Legality of the Demand for Rs. 61,000 per Gross Acre:
The central issue in this appeal is the demand raised by the second respondent for Rs. 61,000 per gross acre, ostensibly for external development charges but actually intended for the construction of internal community buildings. The appellant challenged this demand as unlawful, arguing that it contradicted statutory provisions which only mandate the transfer of land free of cost to the Government for such buildings, without any charge to the licensee.

The Supreme Court examined the relevant provisions of the Haryana Development and Regulation of Urban Areas Act, 1975, and the associated Rules. The Court noted that Section 3(3)(a)(iv) allows the developer three options: constructing community buildings at their own cost, getting them constructed by another institution or individual, or transferring the land free of cost to the Government. The Court found that the demand for Rs. 61,000 per gross acre for internal community buildings was not supported by the statutory provisions or the license agreement. The Court concluded that such a demand was illegal and unauthorized, as it had no statutory mandate.

2. Maintainability of the Writ Petition:
The respondent argued that the writ petition was not maintainable, suggesting that the appellant should have filed a civil suit instead. The Supreme Court rejected this contention, stating that since the demand was statutory, a writ petition was an appropriate remedy. The Court emphasized that challenges to statutory demands can be raised through writ petitions, making the appellant's approach valid.

3. Interpretation of Section 3(3)(a)(iv) of the Act:
The Court analyzed Section 3(3)(a)(iv) of the Act, which outlines the developer's obligations regarding community buildings. The provision gives the developer the option to either construct the buildings, get them constructed, or transfer the land free of cost to the Government. The Court clarified that these options are independent and cannot be conflated. The Government cannot demand both the land and the construction cost from the developer. The Court stressed that the statutory language was clear and unambiguous, and it was not the Court's role to add words or interpret the provision in a way that was not intended by the legislature.

4. Application of Waiver and Acquiescence Principles:
The respondent argued that the appellant had waived their right to contest the demand by making the payment. The Court rejected this argument, noting that the appellant had protested the demand and made the payment under threat of license cancellation. The Court cited the principle that waiver requires voluntary and intentional relinquishment of a right, which was not the case here. The appellant's payment was made under duress, and therefore, the principles of waiver and acquiescence did not apply.

Conclusion:
The Supreme Court allowed the appeal, declaring the demand for Rs. 61,000 per gross acre illegal, unjustified, and unreasonable. The Court directed that any payment made by the appellant towards this demand should be adjusted against other dues. The judgment emphasized the importance of adhering to statutory provisions and the limits of governmental authority in making financial demands on developers.

 

 

 

 

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