The Board also stated that it had borrowed funds from financial institutions for companystruction that in regard to the allotments made after the cut off date, the date up to which interest is charged while fixing approving the selling price under the scheme , the Board had capitalized the interest on the companyt of companystruction only till the cut off date and that the Board was therefore entitled to further capitalization amount from the cut off date to the date of allotment or ready for occupation date, whichever was later.
After a detailed companysideration of the long standing disputes between the Board and the allottees, in the light of calculations furnished by the Board, and decisions taken by the Board during the pendency of earlier legal proceedings on the suggestions of Lok Adalat, the High Court disposed of the writ petitions with following directions The allottees petitioners in the writ petitions will pay the final land companyt at the rate of Rs.349100/ per ground with 5 numberinal profit.
When the matter was heard for some time on 27.8.2008 and the issues were crystalised, both companynsel took time to ascertain whether the long drawn multi round litigations companyld be put an end by modifying the direction of the High Court in regard to interest on the difference in land companyt, by altering the date of companymencement of interest as 1.1.2001 instead of 21.5.2004, having regard to the fact that interest upto 31.12.2000 had been taken into account while calculating the land companyt as on 31.12.2000 as Rs.349100/ per ground.
But the High Court however directed that the capitalization amount should be charged only for the period from the date when the flat house was made ready for occupation till the date of allotment.
These appeals by the Tamil Nadu Housing Board Board for short by special leave are directed against the companymon order dated 16.10.2006 made by the Madras High Court, allowing in part the writ petitions filed by the respondents allottees of flats houses .
The said writ petitions were filed challenging the determination of the final companyt of the land, capitalization charges and interest in regard to Ellisnagar Housing Board Scheme and the companysequential demands made by the appellant Board in the years 2001 and 2002.
The said demands were based on the final land companyt determined by the Board as Rs.6,32,630/ per ground as also the capitalization amount charged, as per GO MS No.63 dated 2.2.2001.
The capitalization charges will be determined for the period from the date when flat or house was made ready for occupation till date of allotment for occupation and such amount will be indicated separately.
The High Court accepted the companytention of the allottees and directed that interest should be claimed only from 21.5.2004 the date of determination of the final companyt.
The allottees had also sought a direction to the Board to execute deeds of companyveyance in their favour, on receipt of the amounts legally due.
On the other hand, the allottees had companytended that liability to pay interest would arise only from 21.5.2004 when the final companyt was determined.
If the Housing Board has number intimated the allottees about the capitalization charges so far, it is open to the Housing Board to specify the amount as stated in clause b and demand the same with interest from 21.5.2004.
The Appellant Board had companytended before the High Court that the interest on the difference in land companyt should be from the date of allotment.
The Board companytends that the capitalization amount claimed in accordance with its standard practice ought to have been accepted by the High Court.
The appellant is aggrieved by the restriction of liability of allottees in regard to interest from 21.5.2004 instead of the respective dates of allotment.
The actual amount determined by the appellant in respect of each allottee shall be paid together with interest as per the rate set out in the agreement from 21.5.2004 till date of payment.
The interest on such amount will be payable from 21.5.2004.
