Uttar Pradesh Residents Employees Co-operative House Building Society and Ors. v. New Okhla Industrial Development Authority and Anr.
K.N. SAIKIA, J. A~pellant No. 1 is a registered Housing Co
operative Society registered under the U .P. Co-operative Societies
Act, bearing registration No. 2130 dated 27 .3.1973, hereafter referred
to as 'the society', and appellant Nos. 2, 3 and 4 are respectively the
President, Secretary and Treasurer of the Society. The object of the
F Society is to acquire lands for its members for constructing residential
houses for them. The members are Central and State Government
employees and public sector employees; and more than 70 acres of
land situated in villages Chhalera Bangar and Suthari were acquired by
the Society between January, 1973 and September, 1975.
G For development of certain areas in the State of U.P. into
industrial and urban township and for matters connected therewith,
the U.P. Industrial Area Development Act, 1976, hereafter referred
to as 'the Act', was enacted and thereafter the U .P. Government by a
Notification dated 17.4.1976 declared the villages named in the
schedule annexed to the Notification to be an Industrial Development
H Area within the meaning of the Act, to be called "NOIDA".
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U.P. RESIDENTS EMPLOYEES v: NOIDA [SAIKIA, J.] 67
Soon after constituting this Authority a Notification under ss. 4
and 17 (sub-s. (1) of s. 4 and sub-s. ( 4) of s. 17) of the Land Acquisition
Act was published in the U.P. Extra Ordinary Gazette dated 30.4.1976
stating that the land in village Chhalera Bangar was needed for the
planned industrial development. The land of the appellant society was
included in the Notification. In continuation of Notification dated
30.4.1976, another Notification under s. 6 dated 1.5.1976 was issued
stating that the land mentioned in the schedule (i.e. village Chhalera
Bangar) was needed for a public purpose and under s. 7 of that Act to
direct the Collector of Bulandshahar to take order for the acquisition
of the said land.
A Notification under sub-s. (1) of s. 4 of the Land Acquisition
Act was issued on 1.6.1976 notifying that the land mentioned in the
schedule (i.e. land in Suthari village etc.) was needed for a public
purpose and that the case was of urgency and as such the provisions of
sub. section (1) of s. 17 of the said Act were applicable to the land
Notification under s. 6 of that Act was issued on 16.9.1976 notifying
that the land mentioned in the schedule (i.e. Suthari village etc.) was
needed for public purpose and under s. 7 of that Act it directed the
Collector to take order for acquisition of the said land.
The appellant society and the other registered co-operative
societies demanded land in lieu of the land acquired in the NOIDA
complex and after several representations and correspondence a sub- E
committee was constituted under the chairmanship of Sri B.J.
Khadaiji, Commissioner and Secretary, Housing and Urban
Development, Government of Uttar Pradesh to look into the matter.
In a meeting held on 19.10.1979 it was decided that sites would be
given to various co-operative societies nearest to Delhi on the basis of
the NOIDA Master Plan which wa.s under consideration. It was also F
clarified in that meetillg that 35 per cent of the area offered to the
members of the Society will be plotted area out of the total acquired
area of the Society. The Executive Officer NOIDA vide his letter
dated 21.4.1980 informed that it was proposed to offer developed plots
to the bona fide members of the co-operative societies whose lands
were acquired. An approximate rate was offered at Rs.130 per square G
metre in sectors 30, 31, 34, 39 and 40. Certain conditions were also laid
down in that letter and one of the conditions was that amount equal to
30 per cent of the price of the area of developed plots computed at
Rs.130 per square metre should have to be sent in favour of NOIDA
and thereafter tripartite agreement shall have to be made between
NOIDA, Co-operative Societies and individual members after H
finalisation of lay out plan.
Alleging that arbitrary action taken by the NO IDA that far was
not acceptable to the appellant Society, it filed Civil Misc. Writ Petition
No. 6563 of 1980 on 29.7 .1980 challenging the notifications issued
under ss. 4 and 6 of the Land Acquisition Act. The writ petition was
admitted by the Allahabad High Court but stay was refused. The
Society insisted on rehabilitation of the members on the original land
B on the basis of the policy of the Government. The Chief Executive
Officer intimated the Society that the authority had finally decided to
offer lands in sectors 30, 31, 36 and 40 and that 20 per cent of the
amount had to be deposited, but the Society did not deposit the
amount by the stipulated time. The Society requested for extension of
time, but the NOIDA did not extend it and the appellant Society had
not been allotted any land. As the writ petition was filed in the year
C 1980 i.e. more than three years after publication of the notifications,
the impugned Notifications had been upheld by a Division Bench of
the Allahabad High Court by the impugned Judgment dismissing the
writ petition. The appellant-Society argued before the High Court that
the action of the Authority in not allotting land to the appellant-
D Society was ma/a fide and also that action of the Authority in not
extending the time as prayed for was arbitrary and discriminatory. It
was submitted by the respondents that offer to give developed plots to
the appellant-Society was only as a concession and not as a legal right;
the Authority was not bound to extend the time. The appellant-Society
also challenged the price fixed by the authority and the appellant's
E counsel had not been able to show that anybody was offered developed
plots for a price less than Rs.130. The High Court held that appel
lant-Society had no legal right to get a particular land and that the
Society did not avail of the concession granted by the authority.
Hence this appeal by Special Leave from the impugned
F Judgment and Order dated 6.5.1983 of the Allahabad High Court
passed in Civil Misc. Writ Petition No. 6563 of 1980.
While granting Special Leave on 30.5.1983 there was an order of
ex-parte stay of dispossession pending notice; but the execution
proceedings were allowed to go on. On 19.3.1984 in C.M.P. No. 16786
G of 1983 it was ordered that Mr. Markandeya, Advocate on behalf of
the petitioners would make a representation to the respondent New
Okhla Industrial Development Authority (NOIDA) for the allotment
of a suitable site and the representation would be considered on its
own merits and a decision taken thereon by the respondent within two
months from the date of that order. On 30.4.1984 Mr. G.L. Sanghi
H appearing for NOIDA had made a statement before the Court that
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U.P. RESIDENTS EMPLOYEES v. NOIDA (SAIKIA, J.] 69
NOIDA undertook that in the event of this appeal being allowed
NOIDA would give to the appellants such areas as this Court might
specify from sectors 40 and 41 at prices to be determined in accordance
with the Judgment of this Court. Undertaking given by Mr. G.L.
Sanghi was limited to NOIDA giving areas from sectors 40 and 41 to
the appellants and to those persons who were eligible members of the
Society on 1st May, 1976. These 'orders were said to be without
prejudice to the rights and contentions· of both the parties in this
appeal.
On 8.5.1985 the order dated 30.4.1984 was modified by this
Court directing that NO IDA would give to the appellants such areas as
this Court might specify from sectors 40, 41 as also from sector 42 at
price to be determined in accordance with the Judgment of this Court.
If any of the petitioners could not be accommodated in any of these
sectors, the NOJDA would give them sites or areas which were
contiguous to sectors 40, 41 and 42. On 18.1.1990 this appeal was
delinked from the group ofNOJDA cases.
By Judgment and Order dated 13.2.1990 the main Writ-Petition
No. 975 of 1986-Hiralal Chawla & Anr. v. State of U.P. & Ors.,
reported in [1990] 1 Judgments Today SC 194 was disposed of stating
the total number of persons entitled to allotment and sizes of the plots
to be allotted and directing that the sites be developed by NOIDA
within a period of nine months beginning from 1st of March, 1990 and E
allot them by charging the agreed price at the rate of Rs.1,000 per
square metre and paying 12 per cent interest on the amount deposited
till the actual allotment; and that the interest would be adjusted
against the price payable on the allotted land. The dates for payment
of the 1st, 2nd and 3rd instalments were also agreed. It was observed
that the Town Planning in NOIDA was said to be in accordance with F
the norms laid down by itself and the same are prescribed by the Board
of which the Chief Town and Country Planner of Uttar Pradesh was a
member. It was accordingly directed that all the norms laid down by
NOIDA in the matter of development shall be strictly followed.
Supervision of this operation should be by NOIDA and the. appel-
lants would co-operate with NO IDA in that regard. · G
When this appeal was heard on 5.4.1990 there was a consensus
that justice would be done to the parties, if this appeal is also disposed
of on similar terms as in Hiralal Chawla & Anr. v. State of U. P. &
Ors., (supra). However, the parties were allowed to file. written
submissions. Written submissions were accordingly filed by the res- H
70 SUPREME COURT REPORTS [ 1990] 3 S.C.R.
A pondents, in reply thereto by the appellants, and for the intervener.
Taking into consideration the earlier interim orders, the con
sensus arrived at the hearing and the written submissions, it is ordered
in line with Hirala/ (supra) that the interim orders dated 30 .5 .83,
fl 19.3.84, 30.4.84 and 8.5.85 will merge in this Order. The impugned
Judgment of the High Court is set aside and it is ordered: (A) That the
total number of persons entitled to allotment will be confined to those
persons who were eligible members of the Society on !st May. 1976 not
exceeding 600 (six hundred). (B) The total area to be allotted to the
members of the Society will be 28.8 acres in the form of developed
plots. This amounts to 40% of the total 72 acres of land acquired by the
Society in the villages Chhalera Bangar and Suthari between January,
1973 and September, 1975. (C) The allotment shall be made in Sectors
40, 41 and 42 and if sufficient numberof plots are not available in these
Sectors, then from the adjacent Sectors. (D) The plots to be allotted
are to be developed by NOIDA within a period of nine months ·
0 beginning from 1st May, 1990 and ending on 31st January, 1991 by
which date the plots shall be allotted to the entitled members of the
Society. (E) The NO IDA shall be permitted to charge the price of the
allotted plots at the rate of Rs.1,000 per square metre. (F) Every
member who has deposited any sum of money with NOIDA against
proposed allotment shall be entitled to 12 per cent interest on such
amount from the date of deposit till the actual allotment and such
E interest accrued in favour of the person shall be entitled to adjustment
of such interest against actual price of the land to be worked out at the
rate of Rs.1,000 per square metre. Balance amount, if any, shall have
to be paid by every eligible member of the Society as on 1.5. 76 not
exceeding 600 in all, within three months from now in three equal
F monthly instalments. The 1st instalment will be paid on or before May
31, 1990, the 2nd instalment to be paid on or before June 30, 1990 and
the 3rd instalment to be paid on or before July 31, 1990. (G) It shall be
the obligation of the Society to duly notify every member of these
directions and the time factor forthwith as failure to pay any of these
instalments within the time limit indicated above shall disqualify such
person from allotment and NOIDA will thereafter be only obliged to
G refund the money lying to the credit of the defaulter with bank rate of
interest. (H) It is stated by the parties that a Review Application in
Hirata/ Chawla's case is pending. As agreed by the parties in case that
Review is allowed, the parties herein shall be at liberty to apply for
review of this judgment to similar extent. (I) Each allottee shall
H furnish an affidavit to the effect that neither he/she or spouse,
--
'
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U.P. RESIDENTS EMPLOYEES v. NOIDA [SAIKIA, J.] 71
nor dependant children owns any other plot or house or flat within
NO IDA.
Town Planning in NOIDA is said to be in accordance with the
norms laid down by itself and the same are prescribed by the Board of
which the Chief Town and Country Planner of Uttar Pradesh is a
member. We direct that all the norms laid down by NOIDA in the
matter of development shall be strictly followed. Supervision of this
operation of course shall be by NO IDA but we hope and trust that the
Society would cooperate with NOIDA in this regard. The appeal is
disposed of with these directions without any orders as to costs.
G.N. Appeal disposed of.