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Kunal Anand Vs. State of Jharkhand and Ors - Court Judgment

SooperKanoon Citation
CourtJharkhand High Court
Decided On
AppellantKunal Anand
RespondentState of Jharkhand and Ors
Excerpt:
in the high court of jharkhand at ranchi w.p. (c) no. 4513 of 2011 ­­­­­­­­­ excel venture construction co. (p) ltd., through one of its director, sanjeet    …  ... petitioner versus the state of jharkhand through the  secretary, housing department, govt. of  jharkhand, ranchi and others       …  … respondents with  w.p.(c) no.4443 of 2011 niraj kumar bhattacharya …  ... petitioner versus the state of jharkhand through the secretary,    housing department,  govt. of jharkhand, ranchi & others. …  … respondents with w.p.(c) no.4444 of 2011 ­­­­­­­ kunal anand …  ... petitioner versus the state of jharkhand through the secretary,.....
Judgment:

IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P. (C) No. 4513 of 2011 ­­­­­­­­­ Excel Venture Construction Co. (P) Ltd., through one of its Director, Sanjeet    …  ... Petitioner Versus The State of Jharkhand through the  Secretary, Housing Department, Govt. of  Jharkhand, Ranchi and Others       …  … Respondents with  W.P.(C) No.4443 of 2011 Niraj Kumar Bhattacharya …  ... Petitioner Versus The State of Jharkhand through the Secretary,    Housing Department,  Govt. of Jharkhand, Ranchi & Others. …  … Respondents with W.P.(C) No.4444 of 2011 ­­­­­­­ Kunal Anand …  ... Petitioner Versus The State of Jharkhand through the Secretary, Housing Department, Govt. of Jharkhand, Ranchi & Others. …  ... Respondents with W.P.(C) No. 4618 of 2011 Modi Projects Limited, through one of its Directors Navin Modi …  … Petitioner Versus The State of Jharkhand through the Secretary, Housing Department,Govt. of Jharkhand, Ranchi & Others. …  … Respondents with W.P.(C) No. 4660 of 2011 ­­­­­­­ Modi Projects Limited, through one of its Directors Navin Modi …  … Petitioner Versus The State of Jharkhand through the Secretary,  Housing Department,Govt. of Jharkhand,  Ranchi & Others. …  … Respondents with W.P.(C) No. 4682 of 2011 2 Modi Projects Limited, through one of its Directors Navin Modi  …  ...  Petitioner Versus The State of Jharkhand through the Secretary,  Housing Department, Govt. of Jharkhand, Ranchi & Others.         …   ...  Respondents   with W.P.(C) No. 4683 of 2011 Excel Venture Construction Co. (P) Ltd. through one of its Director, Sanjeet       ...     … Petitioner Versus The State of Jharkhand through the Secretary,  Housing Department, Govt. of Jharkhand, Ranchi & Others.   … …      Respondents with W.P.(C) No. 4720 of 2011 Excel Venture Construction Co. (P) Ltd. through one of its  Director, Sanjeet        ...     … Petitioner Versus The State of Jharkhand through the Secretary,  Housing Department, Govt. of Jharkhand, Ranchi & Others.  … …      Respondents with W.P.(C) No. 4736 of 2011 Nav Nirman Builders, through its Managing Partner Dharamvir Bhadoria       ...     … Petitioner Versus The State of Jharkhand through the Secretary, Housing Department, Govt. of Jharkhand,  Ranchi & Others.  … …      Respondents with W.P.(C) No. 4766 of 2011 Simplex Infrastructures Limited, through its Senior  Executive, Shri Radha Krishna Bagri        ...     … Petitioner Versus The State of Jharkhand through the Secretary,  Housing Department, Govt. of Jharkhand, Ranchi & Others. … …      Respondents with W.P.(C) No. 5074 of 2011 3 Nav Nirman Builders through its Managing Partner Dharamvir Bhadoria       ...     … Petitioner Versus The State of Jharkhand through the Secretary, Housing Department, Govt. of Jharkhand, Ranchi & Others. … …      Respondents with W.P.(C) No. 5516 of 2011 M/s Kamla Aditya Construction Pvt. Limited  represented through its authorized representative Sri Ram Narayan Singh        ...     … Petitioner Versus The State of Jharkhand through its Chief Secretary,  Ranchi & Others … …      Respondents with W.P.(C) No. 5517 of 2011 M/s Kamla Aditya Construction Pvt. Limited represented through its authorized representative Sri Ram Narayan Singh         ...     … Petitioner Versus The State of Jharkhand through its Chief Secretary, Ranchi & Others   … …      Respondents with W.P.(C) No. 5543 of 2011 M/s Kamla Aditya Construction Pvt. Limited  represented through its authorized representative Sri Ram Narayan Singh        ...     … Petitioner Versus The State of Jharkhand through its Chief Secretary, Ranchi & Others  … …      Respondents with W.P.(C) No. 5544 of 2011 M/s Kamla Aditya Construction Pvt. Limited represented through its authorized representative Sri Ram Narayan Singh         ...     … Petitioner Versus The State of Jharkhand through its Chief Secretary, Ranchi & Others     … …      Respondents 4 with W.P.(C) No. 5787 of 2011 M/s Kamla Aditya Construction Pvt. Limited represented through its authorized representative Sri Ram Narayan Singh         ...     … Petitioner Versus The State of Jharkhand through its Chief Secretary, Ranchi & Others  … …      Respondents with W.P.(C) No. 5789 of 2011 M/s Kamla Aditya Construction Pvt. Limited represented through its authorized representative Sri Ram Narayan Singh         ...     … Petitioner Versus The State of Jharkhand through its Chief Secretary,  Ranchi & Others  … …      Respondents with W.P.(C) No. 5790 of 2011 M/s Kamla Aditya Construction Pvt. Limited represented through its authorized representative Sri Ram Narayan Singh       ...     … Petitioner Versus The State of Jharkhand through its Chief Secretary,  Ranchi & Others   … …      Respondents with W.P.(C) No. 5791 of 2011 M/s Kamla Aditya Construction Pvt. Limited represented through its authorized representative Sri Ram Narayan Singh        ...     … Petitioner Versus The State of Jharkhand through its Chief Secretary, Ranchi & Others  … …      Respondents ­­­­­­­­­­­­ For the Petitioners : M/s. Rajiv Ranjan,  Shresth Gautam, Shrey         Mishra & Piyush Chitresh, Advocates (In W.P.(C) nos.4513, 4443, 4444, 4618, 4660, 4682, 4683  & 4720 of 2011) : M/s Delip Jerath, Rajesh Lala Advocates   (In W.P.(C) no.4736 of 2011) : Mr. Indrajit Sinha, Adv.(In W.P.(C)no.4766 of 2011) : M/s A. K. Mehta, Rajesh Lala, Advocates  (In W.P.(C) no.5074 of 2011) 5 : Mr. A.K. Sahani, Adv. (In W.P.(C) nos.5516, 5517, 5543,   5544, 5787, 5789,  5790 & 5791 of 2011) For the Respondent­State: Mr. Ajit Kumar, AAG      Mr. Kumar Sundaram, J.C. to AAG For the Respondent­JSHB: Mr. Sachin Kumar, Advocate   ­­­­­­­­                 C.A. V. on:  14.11.2014     Pronounced on:  21 /11/2014 In   all   the   writ   petitions,   the   order   contained   in   letter  dated 03.08.2011 has been impugned.  In some writ petitions, order  dated 28.07.2011 has been challenged whereas, in most of the writ  petitions   order   dated   12.12.2012   has   also   been   assailed.  The   necessary   facts,   in   detail,   have   been   stated   in  W.P.(C) No. 4513 of 2011. FACTS:   M/S EXCEL VENTURE CONSTRUCTION COMPANY PVT. LTD.   W.P. (C) No. 4513 of 2011  2. The petitioner­ M/s. Excel Venture Construction Company  Pvt. Ltd. is a company incorporated under the Companies Act, 1956.  In connection with the preparation for the National Games­ 2007, a  meeting   was   held   on   24.09.2004   in   presence   of   the   then   Chief  Minister­Housing   Minister,   Development   Commissioner,   Finance  Secretary, Housing Secretary, Managing Director of Jharkhand State  Housing Board and others.  In the said meeting, a decision was taken  to develop the vacant land of the Housing Board through developers  6 and that the construction shall be completed before the start of the  National Games­ 2007, so as to provide accommodation to the sports  persons.  On 05.10.2005, a meeting was again held in presence of the  then Chief Minister­ Housing Minister for evaluation of the work of  the   Housing   Board.     In   the   said   meeting   the   Development  Commissioner,   Finance   Secretary,   Housing   Secretary,   Managing  Director   of   the   Jharkhand   State   Housing   Board   and   others   were  present.   In   the   said meeting a decision was taken  to develop the  vacant   land   of   the   Housing   Board   and   construct   multi­storied  buildings/commercial complexes through Joint Venture.  The Minutes  of   Meeting   dated   05.10.2005   was   sent   to   the   Housing   Board   vide  letter dated 27.12.2005.  3. Pursuant to Notice dated 12.11.2005 inviting  Expressions  of Interest for development of residential and commercial complexes  over   vacant   plots  of   the   Housing   Board   through   Joint  Venture,  24  companies   submitted   their   bid,   out   of   which,   15   companies   were  finally selected for financial bid.   The petitioner submitted financial  bid for six plots and finally its offer for three plots that is, plot nos. 2,  8 and 9 at Harmu, Ranchi was accepted. An agreement with respect  to Plot no. 9 was entered with the Housing Board on 18.07.2007 in  which, 34.54 percent of the residential area (HIG and MIG) was the  Housing Board's allocation.   A power of attorney was also executed  by the Housing Board in favour of the petitioner and possession was  7 handed over to the petitioner.   The petitioner engaged an architect  namely, M/s. Axis, Ranchi and the petitioner started the project with  the   projected   investment   of   around   Rs.   1400   lacs   besides,   actual  building   construction   expenses.     The   Housing   Board   issued   Memo  dated   29.03.2008   directing   the   allottees   of   the   plots   at   Harmu,  Ranchi to stop construction.  The petitioner filed writ petitions being,  W.P.(C)   No.   2173   of   2008,   W.P.(C)   No.   2179   of   2008   and W.P.(C)   No.   1812   of   2008   and   vide   order   dated   08.05.2008,   the  petitioner   and   others   were   directed   to   approach   the   Chairman,  Housing   Board.   Subsequently,   vide   order   dated   18.12.2008,   the  Chairman, Housing Board quashed order dated 29.03.2008.   In the  meantime, map for the proposed construction was sanctioned in the  name of the Housing Board.   The project was almost complete and  out   of   three   Blocks,   construction   in   Block­   A   and   Block­   A/1   is  complete   in   all   respects   and   possession   has   been   handed   over   to  allottees.   The construction in Block­ B is also almost complete.   A  total of 114 flats have been constructed out of which, 74 flats have  come in builder's allocation.  The petitioner has issued advertisement  and more than 80% of its share has already been alloted to buyers.  On 29/30.07.2011, it was reported in the newspapers that the Joint  Ventures  entered  by  the  Housing  Board  with private  builders  have  been cancelled.  Vide letter dated 03.08.2011, the petitioner has been  communicated that Agreement dated 18.07.2007 has been cancelled  8 and it was directed to handover the possession of the plots to the  Housing Board.   4.  Aggrieved by order contained in letters dated 03.08.2011  and   28.07.2011,   the   present   writ   petition   was   filed   seeking   a  declaration that the action of the respondents is illegal, arbitrary and  wholly   without   jurisdiction,   in   as   much   as,   Section   24(3)(b)   and  Section 27 of the Jharkhand State Housing Board Act, 2000 are not  applicable in the facts of the present case.  A further prayer has been  made   seeking   quashing   of   the   order   contained   in   Memo   dated  12.12.2012   whereby,   approval   for   post­facto   approval   has   been  declined.          W.P. (C) No. 4683 of 2011  5.        An agreement with respect to Plot no. 2 was entered with  the   Housing   Board   on   18.07.2007   in   which,   43.20%   of   the  commercial area (MIG) was the Housing Board's allocation.  A power  of attorney was also executed by the Housing Board in favour of the  petitioner   and  possession   was   handed  over   to  the   petitioner.    The  petitioner  engaged an architect  namely, M/s. Axis, Ranchi and the  petitioner started the project with the projected investment of around  Rs.   260   lacs   besides,   actual   building   construction   expenses.     The  Housing Board issued Memo dated 29.03.2008 directing the allottees  of the plots at Harmu, Ranchi to stop construction.   6. The   commercial   complexes   consist   of   shops,   multiplex,  9 super­market, food court, apparel anchor store.  RRDA approved the  map and plan in the name of the Housing Board vide letter dated  24.12.2010   and   the   foundation   work   has   started   for   the   project.  Many third party rights have already been created.   In view of the  encroachment over the land, the petitioner wrote several letters to  the Housing Board for removal of the encroachment.  The petitioner  was   directed   to   start   the   construction   however,   it   could   not  commence the construction.   7. Vide   letter   dated   03.08.2011,   the   petitioner   has   been  communicated that Agreement dated 18.07.2007 has been cancelled  and   it   was   directed  to   handover   the   possession   of   the   plot   to   the  Housing   Board.     Aggrieved   by   order   contained   in   letters   dated  03.08.2011   and   28.07.2011,   the   present   writ   petition   was   filed  seeking   a   declaration   that   the   action   of  the   respondents  is   illegal,  arbitrary   and   wholly   without   jurisdiction,   in   as   much   as,   Section  24(3)(b) and Section 27 of the Jharkhand State Housing Board Act,  2000 are not applicable in the facts of the present case.   A further  prayer   seeking   quashing   of   the   order   contained   in   Memo   dated  12.12.2012   whereby,   approval   for   post­facto   approval   has   been  declined, has also been made.  W.P. (C) No. 4720 of 2011    8. An agreement with respect to Plot no. 8 was entered with  the   Housing   Board   on   30.08.2007   in   which,   40.86%   of   the  10 commercial area was the Housing Board's allocation.

9. Vide   letter   dated   03.08.2011,   the   petitioner   has   been  communicated that Agreement dated 30.08.2007 has been cancelled  and   it   was   directed  to   handover   the   possession   of   the   plot   to   the  Housing   Board.     Aggrieved   by   order   contained   in   letters   dated  03.08.2011   and   28.07.2011,   the   present   writ   petition   was   filed  seeking   a   declaration   that   the   action   of  the   respondents  is   illegal,  arbitrary   and   wholly   without   jurisdiction,   in   as   much   as,   Section  24(3)(b) and Section 27 of the Jharkhand State Housing Board Act,  2000 are not applicable in the facts of the present case.   A further  prayer  has  been   made  seeking quashing  of the  order  contained in  Memo  dated  12.12.2012 whereby, approval for post­facto approval  has been declined.  M/s. MODI PROJECTS LTD. W.P. (C) No. 4618 of 2011  10. The   petitioner­   M/s.   Modi   Projects   Ltd.   is   a   company  incorporated under the Companies Act, 1956.  The National Housing  and Habitat Policy, 1998 noticed that there will be a huge shortage of  housing in the country and investment of about 1.51 lac crores would  be required for which forging strong partnership between the private,  public and cooperative sectors is required.  The National Housing and  Habitat Policy, 2007 replaced the 1998 policy with the objective to  provide affordable housing to all.  Considering the National Housing  11 and   Habitat   Policy,   2007,   the   Government   of   Jharkhand   gave  direction   to   the   Housing   Board   for   construction   of   multi­storied  apartment over vacant land of the Housing Board for providing mass  shelter for public­ private partnership.  11.  Pursuant to Notice dated 12.11.2005 inviting Expressions  of Interest for development of residential and commercial complexes  over   vacant   plots  of  the  Housing Board  through Joint  Venture,  24  companies   submitted   their   bid,   out   of   which,   15   companies   were  finally selected for financial bid.   The petitioner submitted financial  bid for six plots and finally its offer for three plots was accepted. Vide  letter dated 14.03.2007, the petitioner was informed that its bid for  Plot No.3 at Harmu, Ranchi was found highest and accordingly, an  agreement with respect to Plot No. 3 was signed on 14.11.2007 in  which, the Housing Board's allocation was 36.31% in residential and  41.25%   in   commercial   construction.   The   petitioner   engaged  architects namely, M/s. Sanjay Puri Architect Pvt. Ltd., Mumbai and  M/s. Axis, Ranchi for preparing drawings for Plot No. 3 at Harmu and  submitted   the   same   to   the   Board   on   13.02.2008.   The   petitioner  started   the   project   with   the   projected   investment   of   around Rs. 200 lacs besides, actual building construction expenses. However,  in view of the encroachment of the land, the Housing Board decided  not to approve the drawing.   In view of the disruptions created by  vested interest, the petitioner faced serious problem while erecting  12 the boundary wall.  Vide letter dated 18.03.2009 Secretary, Housing  Board   requested   the   Deputy   Commissioner,   in   view   of   the  disturbances   being   created   in   the   land,   to   provide   security   to   the  petitioner.     The   Housing   Board   issued   Memo   dated   29.03.2008  directing   the   allottees   of   the   plots   at   Harmu,   Ranchi   to   stop  construction.  The petitioner filed writ petitions which were disposed  of   vide   order   dated   08.05.2008.     The   petitioner   and   others   were  directed to approach the Chairman, Housing Board and vide order  dated   18.12.2008,   the   Chairman,   Housing   Board   quashed   order  dated 29.03.2008.

12. The petitioner received letter dated 25.11.2010 issued by  the   Executive   Engineer,   Housing   Board   directing   the   petitioner   to  stop the construction work however, the reason for the same was not  disclosed   to   the   petitioner.     After   several   representations,   the  Executive Engineer issued letter dated 30.11.2010 which referred to  a letter of the Deputy Chief Minister­cum­Minister­in­charge, Urban  Development Department.  The note dated 23.11.2010 of the Deputy  Chief   Minister   to   the   Secretary,   Housing   Board   refers   to   the   news  item   dated   23.11.2010   published   in   Prabhat   Khabar,   a   daily  newspaper with headlines “Dharmik sthal bechne ka virodh”.   The  petitioner issued legal notice dated 09.03.2011 to the Housing Board.

13.     Vide   letter  dated 03.08.2011, the  petitioner  has been  communicated that Agreement dated 14.11.2007 has been cancelled  13 and   it   was   directed  to   handover   the   possession   of   the   plot   to   the  Housing   Board.     Aggrieved   by   order   contained   in   letters   dated  03.08.2011   and   28.07.2011,   the   writ   petition   was   filed   seeking   a  declaration that the action of the respondents is illegal, arbitrary and  wholly   without   jurisdiction,   in   as   much   as,   Section   24(3)(b)   and  Section 27 of the Jharkhand State Housing Board Act, 2000 are not  applicable in the facts of the present case.  A further prayer has been  made   seeking   quashing   of   the   order   contained   in   Memo   dated  12.12.2012   whereby,   approval   for   post­facto   approval   has   been  declined.  W.P. (C) No. 4660 of 2011  14. The petitioner's bid for Plot no. 7 at Harmu, Ranchi was  accepted on 14.03.2007 and accordingly an agreement with respect  to Plot no. 7 was entered with the Housing Board on 18.07.2007 in  which,   41.01%   of   the   residential   area   was   the   Housing   Board's  allocation.   A power of attorney was also executed by the Housing  Board in favour of the petitioner and possession was handed over to  the petitioner.  The petitioner engaged architects namely, M/s. Sanjay  Puri   Architect   Pvt.   Ltd.   and   M/s.   Axis,   Ranchi   and   it   started   the  project with the projected investment of around Rs. 250 lacs besides,  actual   building   construction   expenses.     RRDA   sanctioned   the   map  and plan which was submitted vide letter dated 10.05.2010 to the  Housing Board.  Vide letter dated 03.08.2011, the petitioner has been  14 communicated that Agreement dated 18.07.2007 has been cancelled  and   it   was   directed  to   handover   the   possession   of   the   plot   to   the  Housing   Board.     Aggrieved   by   order   contained   in   letters   dated  03.08.2011   and   28.07.2011,   the   present   writ   petition   was   filed  seeking   a   declaration   that   the   action   of  the   respondents  is   illegal,  arbitrary   and   wholly   without   jurisdiction,   in   as   much   as,   Section  24(3)(b) and Section 27 of the Jharkhand State Housing Board Act,  2000 are not applicable in the facts of the present case.   A further  prayer  has  been   made  seeking quashing  of the  order  contained in  Memo  dated  12.12.2012 whereby, approval for post­facto approval  has been declined. W.P. (C) No. 4682 of 2011  15. The petitioner's bid for Plot no. 10 at Harmu, Ranchi was  accepted on 27.04.2007 and accordingly an agreement with respect  to Plot no. 10 was entered with the Housing Board on 18.07.2007 in  which,   30%   of   the   residential   area   was   the   Housing   Board's  allocation.   A power of attorney was also executed by the Housing  Board in favour of the petitioner and possession was handed over to  the   petitioner.     The   petitioner   engaged   an   architect   namely, M/s. GRIDS, Ranchi and the drawing was prepared and submitted  before the Housing Board vide letter dated 26.07.2011 however, the  same   has   not   been   approved   till   date.     The   petitioner   started   the  project with the projected investment of around Rs. 150 lacs besides,  15 actual building construction expenses. Vide letter dated 18.03.2009  Secretary,   Housing   Board   requested   the   Deputy   Commissioner,   in  view of the disturbances being created in the land, to provide security  to the  petitioner.    Vide  letter dated 03.08.2011, the petitioner has  been   communicated   that   Agreement   dated   18.07.2007   has   been  cancelled and it was directed to handover the possession of the plot  to the Housing Board.  Aggrieved by order contained in letters dated  03.08.2011   and   28.07.2011,   the   present   writ   petition   was   filed  seeking   a   declaration   that   the   action   of  the   respondents  is   illegal,  arbitrary   and   wholly   without   jurisdiction,   in   as   much   as,   Section  24(3)(b) and Section 27 of the Jharkhand State Housing Board Act,  2000 are not applicable in the facts of the present case.   A further  prayer  has  been   made  seeking quashing  of the  order  contained in  Memo  dated  12.12.2012 whereby, approval for post­facto approval  has been declined.  KAMLA ADITIYA CONSTRUCTION PRIVATE LIMITED    W.P.(C) No. 5516 of 2011   16. The   petitioner   is   a   registered   partnership   firm   which  promoted the company namely, Kamla Aditiya Construction Private  Limited which is duly incorporated under the Companies Act, 1956.  Pursuant   to   advertisement   in   various   newspapers   issued   on  12.11.2005   inviting   Expression   of   Interest   in   seal   cover   for  developing residential and commercial complexes on vacant plots of  16 different seizes at Ranchi, Jamshedpur, Dhanbad, Bokaro, Hazaribag  and Daltonganj.   The petitioner submitted its Expression of Interest  for allotment of plot no. 5 at Harmu Housing Colony, Ranchi and vide  letter date 22.03.2007, the petitioner was informed that its financial  bid   which   was   opened   on   29.06.2006,   has   been   found   highest.   A  development agreement was executed on 05.12.2007 and it is stated  in the agreement that the possession of the plot ad­measuring area of  0.3756 acres free from all encumbrances, was handed over. However,  vide   order   dated   29.03.2008   construction   at   the   plot   situated   at  Harmu,  Ranchi  was ordered to be stopped.   Some of the allottees  moved the High Court in W.P.(C) No. 2173 of 2008, W.P.(C) No. 2179  of   2008   and   W.P.(C)   1812   of   2008   challenging   order   dated  29.03.2008.   Vide   order   dated   08.05.2008,   the   petitioners   were  granted liberty to approach the Chairman. After hearing both sides,  the Chairman, Housing Board cancelled order dated 29.03.2008.  17.        Thereafter   on   07.08.2009,   the   petitioner   submitted   the  proposed map/drawing for construction of vegetables and marketing  complexes on plot no. 5 at Harmu, Ranchi. The Housing Board issued  show­cause   notice   dated   24.12.2010   directing   the   petitioner   to show­cause  as to why and under that circumstances the construction  work was not started.   The petitioner vide letter dated 27.01.2011  informed   the   Housing   Board   that   the   plot   in   question   was   under  encroachment.     The   respondent­Housing   Board   vide   letter   dated  17 07.03.2011   requested   the   Deputy   Commissioner,   Ranchi   to   depute  Magistrate   with   sufficient   police   force   for   removing   the  encroachment.     However, the  encroachment   was not  removed  and  therefore,   the   petitioner   again   requested   the   Housing   Board   vide  letter dated 12.07.2011 to hand over physical possession of the land.  18.       Before   the   possession   was   handed   over   to   the  petitioner­company, the Secretary, Housing Department, Government  of   Jharkhand   vide   letter   dated   28.07.2011   directed   the   Managing  Director, Housing Board to take steps for cancellation of development  agreement   executed   with   the   petitioner   and   other   developers.  Consequently,   vide   letter   dated   03.08.2011   the   Housing   Board  cancelled the agreement dated 05.12.2007.  Aggrieved, the petitioner  has   filed   the   present   writ   petition   challenging   the   order   dated  28.07.2011 and 03.08.2011.       W.P.(C) No. 5517 of 2011 19.          The   petitioner   submitted   its   Expression   of   Interest   for  allotment   of   plot   no.   1   at   Bariyatu,   Ranchi   and   vide   letter   date  13.11.2007, the petitioner was informed that its financial bid which  was opened on 29.06.2006, has been found highest. A development  agreement   was   executed   on   05.12.2007   and   it   is   stated   in   the  agreement that the possession of the plot ad­measuring area of 0.412  acres free from all encumbrances, was handed over.  20.          Vide letter dated 28.04.2009, the petitioner requested the  18 Housing  Board  to  take   action  for  removing  the  encroachment  and  though, the encroachment was not removed, in the meantime, the  Housing Board directed the petitioner vide letter dated 28.08.2009 to  submit the map/drawing. Vide letter dated 23.12.2009, the petitioner  again requested the Housing Board to get the actual measurement of  the   plot   so   as,   to   enable   the   petitioner   to   submit   map/drawing.  However,   on   24.12.2010   a   show­cause   notice   was   issued   to   the  petitioner directing the petitioner to show­cause as to why and under  what circumstances the construction work on the plot in question was  not   started.   The   petitioner   submitted   its   reply   on   27.01.2011   and  only   on   11.03.2011,   the   Housing   Board   directed   the   petitioner   to  contact   the   Executive   Engineer   for   demarcation   of   the   land   and  possession   of   the   same.   The   Secretary,   Housing   Department,  Government of Jharkhand vide letter dated 28.07.2011 directed the  Managing Director, Housing Board to take steps for cancellation of  development   agreement   executed   with   the   petitioner   and   other  developers. Consequently, vide letter dated 03.08.2011 the Housing  Board   cancelled   the   agreement   dated   05.12.2007.     Aggrieved,   the  petitioner   has  filed  the  present  writ  petition  challenging the  order  dated 28.07.2011 and 03.08.2011.         W.P.(C) No. 5543 of 2011 21.            The   petitioner   submitted   its   Expression   of   Interest   for  allotment of plot no. 4 at Harmu Housing Colony, Ranchi.  Vide letter  19 date 22.03.2007, the petitioner was informed that its financial bid  which   was   opened   on   29.06.2006,   has   been   found   highest.   A  development agreement was executed on 05.12.2007 and it is stated  in the agreement that the possession of the plot ad­measuring area of  1.015 acres free from all encumbrances, was handed over.  22.    The petitioner requested the Housing Board to take action  for removing the encroachment and though, the encroachment was  not removed on 24.12.2010, a show­cause notice was issued to the  petitioner directing the petitioner to show­cause as to why and under  what circumstances the construction work on the plot in question was  not started. The petitioner submitted its reply on 27.01.2011.   The  respondent­Housing   Board   vide   letter   dated   07.03.2011   requested  the   Deputy   Commissioner,   Ranchi   to   depute   a   Magistrate   with  sufficient police force for removing the encroachment.  However, the  encroachment was not removed and therefore, the petitioner again  requested the Housing Board vide letter dated 12.07.2011 to hand  over   physical   possession   of   the   land.   Before   the   possession   was  handed   over   to   the   petitioner­company,   the   Secretary,   Housing  Department, Government of Jharkhand vide letter dated 28.07.2011  directed   the   Managing   Director,   Housing   Board   to   take   steps   for  cancellation of development agreement executed with the petitioner  and other developers. Consequently, vide letter dated 03.08.2011 the  Housing   Board   cancelled   the   agreement   dated   05.12.2007.  20 Aggrieved,   the   petitioner   has   filed   the   present   writ   petition  challenging the order dated 28.07.2011 and 03.08.2011.         W.P.(C) No. 5544 of 2011 23.            The   petitioner   submitted   its   Expression   of   Interest   for  allotment   of   plot   no.  17  at  Harmu   Housing  Colony,  Ranchi.    Vide  letter date 04.12.2007, the petitioner was informed that in view of  decision of Board taken on 08.11.2007 and vide office order dated  28.11.2007 respondent Board decided to allot plot No. 17 in Harmu  Housing Colony, Ranchi to the petitioner for development under Joint  Venture. A development agreement was executed on 05.12.2007 and  it   is   stated   in   the   agreement   that   the   possession   of   the   plot ad­measuring area of 0.217 acres free from all encumbrances, was  handed over.   24.          The petitioner requested the Housing Board to take action  for removing the encroachment and though, the encroachment was  not removed on 24.12.2010, a show­cause notice was issued to the  petitioner directing the petitioner to show­cause as to why and under  what circumstances the construction work on the plot in question was  not started. The petitioner submitted its reply on 27.01.2011 and the  petitioner   submitted   the   map/drawing   for   approval   of   Board   and  RRDA on 02.02.2011. 25.       Before   the   possession   was   handed   over   to   the  petitioner­company, the Secretary, Housing Department, Government  21 of   Jharkhand   vide   letter   dated   28.07.2011   directed   the   Managing  Director, Housing Board to take steps for cancellation of development  agreement   executed   with   the   petitioner   and   other   developers.  Consequently,   vide   letter   dated   03.08.2011   the   Housing   Board  cancelled the agreement dated 05.12.2007.  Aggrieved, the petitioner  has   filed   the   present   writ   petition   challenging   the   order   dated  28.07.2011 and 03.08.2011.   W.P.(C) No. 5787 of 2011 26.             The   petitioner   submitted   its   Expression   of   Interest   for  allotment   of   plot   no.   9   at   Hirapur,   Dhanbad.     Vide   letter   date  05.06.2007, the petitioner was informed that its financial bid which  was opened on 29.06.2006, has been found highest. A development  agreement   was   executed   on   30.07.2007   and   it   is   stated   in   the  agreement   that   the   possession   of   the   plot   ad­measuring   area   of 0.711 acres free from all encumbrances, was handed over.  27.     The   petitioner   made   several   requests   to   the respondent­Board for removing the encroachment and handing over  the possession. The Executive Engineer, Housing Board requested the  Deputy Collection, Dhanbad on 08.09.2007 to deputy Magistrate and  provide   sufficient   policy   force   for   removing   encroachment.    The  Housing Board issued show­cause notice dated 24.12.2010 directing  the petitioner to show­cause as to why and under that circumstances  the   construction   work   was   not   started.  The   petitioner   vide   letter  22 dated   27.01.2011   informed   the   Housing   Board   that   the   plot   in  question was under encroachment.   28.     The   Executive   Engineer,   Housing   Board   informed   the  petitioner that the Special Leave Petition being S.L.P.(C) No. 23216 of  2009   has   been   allowed   in   favour   of   the   Housing   Board   and  accordingly,   the   petitioner   was   directed   to   submit   the   map   of   the  proposed construction.   The petitioner informed the Housing Board  that since the land in question is under illegal occupation of other  persons without measurement of the plot, map cannot be prepared. 29.      The   Secretary,   Housing   Department,   Government   of  Jharkhand   vide   letter   dated   28.07.2011   directed   the   Managing  Director, Housing Board to take steps for cancellation of development  agreement   executed   with   the   petitioner   and   other   developers.  Consequently,   vide   letter   dated   03.08.2011   the   Housing   Board  cancelled the agreement dated 05.12.2007.  Aggrieved, the petitioner  has   filed   the   present   writ   petition   challenging   the   order   dated  28.07.2011 and 03.08.2011.   W.P.(C) No. 5789 of 2011 30.        The   petitioner   submitted   its   Expression   of   Interest   for  allotment   of   plot   no.   5   at   Hirapur,   Dhanbad.     Vide   letter   date  05.06.2007, the petitioner was informed that its financial bid which  was opened on 29.06.2009, has been found highest. A development  agreement   was   executed   on   30.07.2007   and   it   is   stated   in   the  23 agreement that the possession of the plot ad­measuring area of 0.157  acres free from all encumbrances, was handed over.  31.            The   Housing   Board   issued   show­cause   notice   dated  24.12.2010   directing   the   petitioner   to   show­cause   as   to   why   and  under that circumstances the construction work was not started.  The  petitioner vide letter dated 27.01.2011 informed the Housing Board  that   the   plot   in   question   was   under   encroachment.     The  respondent­Housing   Board   vide   letter   dated   31.03.2011   requested  the   Deputy   Commissioner,   Ranchi   to   depute   a   Magistrate   with  sufficient police force for removing the encroachment.  However, the  encroachment was not removed and therefore, the petitioner again  requested the Housing Board vide letter dated 24.06.2011 to hand  over physical possession of the land. Since the possession of the land  in question was not given, the petitioner made several representation  including   letter   dated   25.03.2010   for   removing   the   encroachment  and handing over the possession.   The petitioner vide  letter dated  24.06.2011 again informed the Housing Board that the plot no. 5 at  Hirapur,   Dhanbad   is   still   under   encroachment   and   therefore,   the  encroachment should be immediately removed and the possession of  the land should be handed over to the petitioner immediately. 32.    Before   the   possession   was   handed   over   to   the  petitioner­company, the Secretary, Housing Department, Government  of   Jharkhand   vide   letter   dated   28.07.2011   directed   the   Managing  24 Director, Housing Board to take steps for cancellation of development  agreement   executed   with   the   petitioner   and   other   developers.  Consequently,   vide   letter   dated   03.08.2011   the   Housing   Board  cancelled the agreement dated 05.12.2007.  Aggrieved, the petitioner  has   filed   the   present   writ   petition   challenging   the   order   dated  28.07.2011 and 03.08.2011. W.P.(C) No. 5790 of 2011 33.              The   petitioner   submitted   its   Expression   of   Interest   for  allotment of plot no. 2A at Adityapur, Jamshedpur.   The petitioner  was informed that its financial bid which was opened on 29.06.2006,  has been found highest. A development agreement was executed on  07.03.2011 and it is stated in the agreement that the possession of  the   plot   ad­measuring   area   of   0.574   acres   free   from   all  encumbrances, was handed over.  34.     The petitioner submitted the proposed map/drawing on  25.06.2011   before   the   Board   which   was   forwarded   to   Adityapur  Industrial Area Development Authority for approval on 23.07.2011.

35. The   Secretary,   Housing   Department,   Government   of  Jharkhand   vide   letter   dated   28.07.2011   directed   the   Managing  Director, Housing Board to take steps for cancellation of development  agreement   executed   with   the   petitioner   and   other   developers.  Consequently,   vide   letter   dated   03.08.2011   the   Housing   Board  cancelled the agreement dated 05.12.2007.  Aggrieved, the petitioner  25 has filed the present writ petition challenging order dated 28.07.2011  and 03.08.2011. W.P.(C) No. 5791 of 2011 36.         The   petitioner was informed that its financial bid which  was opened on 29.06.2006, has been found highest. A development  agreement   was   executed   on   30.07.2007   and   it   is   stated   in   the  agreement that the possession of the plot ad­measuring area of 0.223  acres free from all encumbrances, was handed over.  37.      The   petitioner   on   25.03.2010   requested   the  respondent­Housing Board to remove encroachment from the land.  However,   the   Housing   Board   issued   show­cause   notice   dated  24.12.2010   directing   the   petitioner   to   show­cause   as   to   why   and  under that circumstances the construction work was not started.  The  petitioner vide letter dated 27.01.2011 informed the Housing Board  that the plot in question was under encroachment.   38. Before   the   possession   was   handed   over   to   the  petitioner­company, the Secretary, Housing Department, Government  of   Jharkhand   vide   letter   dated   28.07.2011   directed   the   Managing  Director, Housing Board to take steps for cancellation of development  agreement   executed   with   the   petitioner   and   other   developers.  Consequently,   vide   letter   dated   03.08.2011   the   Housing   Board  cancelled the agreement dated 05.12.2007.  Aggrieved, the petitioner  has   filed   the   present   writ   petition   challenging   the   order   dated  26 28.07.2011 and 03.08.2011. NAV NIRMAN BUILDERS W.P. (C) No. 4736 of 2011    39. Challenging orders dated 28.07.2011 and 03.08.2011, the  petitioner has approached this Court.  A further prayer for declaring  the   action   of   the   respondent­   State   and   the   respondent­Board   as  grossly   illegal,   arbitrary   and   wholly   without   jurisdiction,   as   the  provisions of Section 24(3)(b) and Section 27 of the Jharkhand State  Housing Board Act, 2000 are not attracted in the present case, has  also   been   made.     By   filing   an   amendment   application   which   was  allowed, the petitioner has impugned, order contained in letter dated  19.10.2012 and order dated 12.12.2012 also.

40. The   National   Housing   and   Habitat   Policy,   1998   noticed  that   there   will   be   a   huge   shortage   of   housing   in   the   country   and  investment   of   about   1.51   lac   crores  would   be   required,   for   which  forging   strong   partnership   between   the   private,   public   and  cooperative sectors, is required.   The National Housing and Habitat  Policy, 2007 replaced the 1998 policy with the objective to provide  affordable   housing   to   all.     Considering   the   National   Housing   and  Habitat Policy, 2007, the Government of Jharkhand gave direction to  the Housing Board for construction of multi­storied apartment over  vacant   land   of   the   Housing   Board   for   providing   mass   shelter   for  public­ private partnership.  27 41.  On 05.10.2005, a meeting was again held in presence of  the then Chief Minister­ Housing Minister for evaluation of the work  of  the   Housing  Board.    In  the  said  meeting also  the   Development  Commissioner,   Finance   Secretary,   Housing   Secretary,   Managing  Director   of   the   Jharkhand   State   Housing   Board   and   others   were  present.   In the said meeting a decision was taken to develop the  vacant   land   of   the   Housing   Board   and   construct   multi­storied  buildings/commercial complexes through Joint Venture.  The Minutes  of  Meeting  dated  05.10.2005 was  sent  to  the   Housing  Board  vide  letter dated 27.12.2005.  42. After the decision taken in the meeting dated 05.10.2005,  an   advertisement   was   issued   inviting   Expressions   of   Interest   for  construction of residential complex over 13 acres of vacant land at  Adityapur,   Jamshedpur   and   finally,   the   finance   bid   of   the  petitioner­Firm   for   construction   over   Plot   No.3,   at   Adityapur   was  accepted   by   the   Housing   Board.     An   agreement   dated   11.07.2007  was entered into by the Housing Board with the petitioner­ Firm for  construction   of   multi­storied   residential   complex   at   Plot   no.3,   at  Adityapur,   Jamshedpur   in   which,   32%   share   was   allocated   to   the  Housing Board.  The petitioner has completed the project by making  huge investment of fund and possession of the flats has been given to  the buyers.  A  power of attorney was also executed on 11.08.2007,  in  favour of the  petitioner.   The  plan and map was sanctioned by  28 AIADA on 19.12.2007, in the name of Jharkhand Housing Board.  On  the verbal instruction of the then Chief Minister namely, Shri Madhu  Koda, the Housing Board issued letter dated 29.03.2008 directing the  petitioner   to   stop   construction   work.       The   petitioner   has   already  constructed 170 flats in five blocks over Plot No. 3, Adityapur and the  petitioner's   share   of   68%   has   been   sold   by   the   petitioner.     The  petitioner has incurred about 18 crores in completion of the project. NAV NIRMAN BUILDERS W.P. (C) No. 5074 of 2011    43. An agreement dated 11.07.2007 was entered into by the  Housing   Board   with   the   petitioner­   Firm   for   construction   of multi­storied   residential   complex   at   Plot   no.1   at   Adityapur,  Jamshedpur   admeasuring   0.433   acres   in   which   35.25%   share   was  allocated   the   Housing   Board.     The   petitioner   deposited   a   sum   of  Rs. 30 Lacs with the Jharkhand State Housing Board, for conversion  from   residential   to   commercial.     When   the   petitioner   started  construction   work   after   the   approval   of   the   sanctioned   plan   by  AIADA, a part of the land was claimed by a private individual, who  raised serious objections and therefore, the matter was reported to  the   Housing   Board   vide   letter   dated   30.05.2011.     However,   the  Housing Board did not take any step for resolving the issue.

44. A  power of attorney was also executed on 11.08.2007 in  favour of the petitioner.  The plan and map was sanctioned by AIADA  29 on 19.12.2007 in the name of Jharkhand Housing Board.

45. Challenging orders dated 28.07.2011 and 03.08.2011, the  petitioner has approached this Court.  A further prayer for declaring  the   action   of   the   respondent­   State   and   the   respondent­Board   as  grossly   illegal,   arbitrary   and   wholly   without   jurisdiction,   as   the  provisions of Section 24(3)(b) and Section 27 of the Jharkhand State  Housing Board Act, 2000 are not attracted in the present case, has  also   been   made.     By   filing   an   amendment   application   which   was  allowed, the petitioner has impugned, order contained in letter dated  19.10.2012 and order dated 12.12.2012 also. SIMPLEX INFRASTRUCTURES LIMITED         W.P. (C) No. 4766 of 2011   46. The   petitioner   has   approached   this   Court   challenging  orders dated 03.08.2011 and 08.08.2011.

47. An agreement dated 04.07.2007 was entered into by the  Housing   Board   with   the   petitioner­   Company   for   construction   of  residential­cum­commercial complex of Plot no.11 at Harmu, Ranchi  in which, 35% share was allocated to the Housing Board.   48. After the decision taken in the meeting dated 05.10.2005,  an   advertisement   was   issued   inviting   Expressions   of   Interest   from  reputed   private   companies,   central   and   state   public   sector  undertakings.   On   22.03.2007,   Managing   Director   of   the   Board  informed the petitioner that it has been selected for construction of  30 residential/commercial   complex   at   Plot   No.   11   at   Harmu,   Ranchi.  An agreement dated 04.07.2007 was executed by the Housing Board  and thereafter, a  power of attorney was also executed on 24.09.2007  in favour of the petitioner.  On 03.12.2007 the petitioner with the aid  and   assistance   of   architects   and   consultants   prepared   conceptual  plans, building and structural layouts and the same were submitted  to  Board.     On   10.01.2008 the  plans were  approved by  Board  and  forwarded the same to the Vice­Chairman, RRDA with a copy to the  petitioner.     On   29.03.2008   the   Board   directed   stoppage   of   work  under the oral directions given by the then Hon'ble Chief Minister.

49. Challenging orders dated 28.07.2011 and 03.08.2011, the  petitioner has approached this Court.  A further prayer for declaring  the   action   of   the   respondent­   State   and   the   respondent­Board   as  grossly   illegal,   arbitrary   and   wholly   without   jurisdiction,   as   the  provisions of Section 24(3)(b) and Section 27 of the Jharkhand State  Housing Board Act, 2000 are not attracted in the present case, has  also   been   made.     By   filing   an   amendment   application   which   was  allowed, the petitioner has impugned, order contained in letter dated  19.10.2012 and order dated 12.12.2012 also. W.P. (C) No. 4443 of 2011  50. Claiming payment of a sum of Rs. 24 lacs (approx.) to  M/s. Excel Ventures Construction Pvt. Ltd. in lieu of Flat No. A­401  on Plot No. 9 at Harmu, Ranchi, the petitioner namely, Neeraj Kumar  31 Bhattacharya   has   filed   this   writ   petition.     It   is   stated   that   the  petitioner   occupied   the   said   flat   vide   Occupation   Letter   dated  26.07.2011.  The flat has been constructed strictly as per the norms  and the sanction plan.  The government cannot issue a blanket order  for   the   demolition   of   the   building.     Substantial   civil   rights   have  accrued in favour of the petitioner and the order passed by the State  Government   without   affording   an   opportunity   of   hearing   to   the  petitioner,   is   violative   of   principles   of   natural   justice.   For   the  procedural   lapse,   if   any,   the   petitioner   cannot   be   punished.     An  agreement   for  sale   has  been   executed  on  01.07.2009 between  the  petitioners and M/s. Excel Venture Construction Pvt. Ltd. W.P. (C) No. 4444 of 2011  51. Claiming payment of a sum of Rs. 24 lacs (approx.) to  M/s. Excel Ventures Construction Pvt. Ltd. in lieu of Flat No. A­703  on Plot No. 9 at Harmu, Ranchi, the petitioner namely, Kunal Anand  has filed this writ petition.   It is stated that the petitioner occupied  the said flat vide Occupation Letter dated 24.07.2011.   The flat has  been   constructed   strictly   as   per   the   norms   and   the   sanction   plan.  Substantial civil rights have accrued in favour of the petitioner and  the   order   passed   by   the   State   Government   without   affording   an  opportunity of hearing to the petitioner, is violative of principles of  natural justice. For the procedural lapse, if any, the petitioner cannot  be   punished.     An   agreement   for   sale   has   been   executed   on  32 26.08.2009   between   the   petitioners   and   M/s.   Excel   Venture  Construction Pvt. Ltd.  COUNTER­AFFIDAVIT:

52. The   respondent­State   of   Jharkhand   has   filed   a counter­affidavit stating that the provisions under Sections 24 and 27  of the Jharkhand State Housing Board Act, 2000 were not followed  by   the   Jharkhand   State   Housing   Board  while   floating   tenders  and  allotting vacant land for joint venture. It is true that the Board has  not incurred any expenditure but, the provisions of Section 24 (3) (b)  is very clear. It provides that "Administrative Approval" for schemes  involving expenditure exceeding Rs. 200 lakhs shall not be accorded  without prior approval of the State Government. The control of the  Government as envisaged under the Act includes restraint, check etc.  by the Government and if prior approval of the State Government  was not taken by the Board for executing schemes and entering into  development agreement, the entire exercise would be contrary to the  provisions of the Act. No change in the land use as indicated in the  plan is permissible without prior permission of the Government. The  Jharkhand State Housing Board has been established with an object  to provide house to the needy persons.  The Board undertakes work  on "no profit no loss". The Board is not justified to enter into joint  venture with the private builders with a motive to earn profit. The  entire exercise was against the spirit of the Jharkhand State Housing  33 Board Act, 2000.  The development agreement entered into between  the Board and the private builders is in gross violation of Regulation  9,   10(ii),   21,   23   and   25   of   the   Jharkhand   State   Housing   Board  (Management   and   Disposal   of   Housing   Estate)   Regulation,   2004  which provides the manner in which the allotment has to be made by  the   Board.   The   development   agreement   in   the   present   case   gives  unqualified right to the builders to allot the units to any person of  their choice and the choice of person/persons selected by the builder  for sale of unit falling in the builder allocation shall be binding on the  Housing Board and thus, the Housing Board cannot even enforce the  reservation policy including the allotment for handicapped persons.  The   development   agreement   for   constructing   plots/flats   and  commercial complex are against the public policy and also against the  provisions of the Act and the Rules made thereunder and therefore,  void ab­initio. The resolution, order and agreement of the housing  Board were passed/executed in excess of the power conferred in law.  A   vigilance   enquiry   has   been   instituted   for   examining   the  irregularities committed by the Jharkhand State Housing Board. The  purpose   for   which   the   land   was   acquired   was   to   construct   the  houses/flats for middle and lower income group housing scheme. The  Government has therefore, not given its consent for implementation  of the joint venture scheme and it has issued direction to the Housing  Board vide letter dated 28.07.2011 for taking steps for cancellation of  34 the Joint Venture scheme. The plea that the Housing Board does not  have   to   make   any   investment   is   mis­conceived   and   mis­leading  because,   the   vacant   plots   belonging   to   the   Housing   Board   are  valuable property.  No right under the Power of Attorney has accrued  in favour of the allottees as the Power of Attorney executed by the  Housing   Board   has   not   been   registered.     The   builders   have   no  authority to allot the flats without joining the Housing Board.  It has  been   denied   that   the   construction   is   already   complete.     The  Government is competent to issue necessary direction to the Housing  Board and the Board is bound by the direction of the Government  issued from time to time. It is denied that any third party right has  been created in accordance with law.  The principles of natural justice  is  not   required   to   be   followed  in   purely   contractual  dispute.    The  parties to the agreement are at liberty to cancel the agreement.  The  agreement entered into between the allottees and the Board has not  been approved by the Government. The question of loss and damage  cannot be raised in a writ proceeding.  53. Though,   in   its counter­affidavit, the  Housing  Board  has  tried to justify its action, it is contended that the writ petitions are  liable to be dismissed. SUBMISSIONS :

54. Mr. Rajiv Ranjan, the learned counsel appearing for the  petitioners submitted that, the reason for cancellation disclosed in the  35 impugned letters are apparently unsustainable. There is no violation  of Sections 24 (3) (b) and 27 of the Bihar State Housing Board Act,  1982   (as   adopted   by   the   State   of   Jharkhand).   The   decision   for  cancellation has been taken without even affording an opportunity of  hearing and without issuing show­cause notice to the petitioners. The  order   of   cancellation   of   allotment   of   land   for   construction   of  residential/commercial   projects   would   follow   serious   civil  consequences and therefore, an opportunity of hearing was required  to   be   given   to   the   allottees.     Under   the   Jharkhand   State   Housing  Board Act, 2000, the Government has no power to interfere with the  day to day functioning of the Housing Board. The Government has no  power   to   order   cancellation.     Pursuant   to   the   decision   taken   on  05.10.2005   in   the   meeting   of   the   Minister­in­charge,   the   Housing  Board adopted a Resolution for allotment and development of vacant  land through Joint Venture in its 17th Meeting dated 27.02.2007 and  four   years   thereafter,   a   decision   has   been   taken   to   terminate   the  agreement  which is not  justified.   A concluded contract  cannot  be  terminated in the manner it has been ordered for cancellation. The  decision taken in meeting held on 05.10.2005 was the decision of the  Government, pursuant to which, advertisement was issued and bids  were   invited.  The   highest bidders were  awarded the  contract. The  entire   tender   process   was   conducted   in   a   fair   and   transparent  manner. Several years after the right of the parties concretized, the  36 State Government took a different stand and ordered cancellation of  the agreement. 55.          Mr. Anoop Kumar Mehta, the learned counsel appearing  for   the   petitioner   in   W.P.(C)   No.   5074   of   2011  submitted  that   the  State  Government  took a policy decision  in  line with the National  Housing Policy and there is no illegality in the action of the Housing  Board   in   entering   a   Joint   Venture   with   the   private   parties   for  construction   of   residential/commercial   complexes.   If   the   grant   is  open  and  transparent and it fulfills all the legal requirements, the  scope of judicial review is minimal. The Constitution of India enjoins  upon   a   public   authority/statutory   authority   to   act   fairly   and  reasonably. The action which is unfair and unreasonable cannot be  sustained. The State is bound by its promise held out to the allottees.  Acting upon the solemn promise made by the State and the Housing  Board, the allottees altered their position and now, the State cannot  be permitted to retract/recall its own decision.  56.               Mr. Indrajit Sinha, the learned counsel appearing for the  petitioner   in   W.P.(C)   No.   4766   of   2011   contended   that   no   public  revenue was involved in the decision taken by the Housing Board and  therefore,   the   matter   was   not   required   to   be   placed   before   the  Cabinet. Referring to decision in "G.B.Mahajan and others vs. Jalgaon   Municipal   Council   and   Others",  reported   in  (1991)   3   SCC   91,   it   is  submitted   that   the   Joint   Venture   entered   into   between   Jharkhand  37 State   Housing   Board   and   the   private   builders   for   construction   of  residential/commercial complex in which the Housing Board has not  infused any money, is perfectly valid and legal. The impugned order  of  cancellation   travels  beyond the  show­cause  notice  issued to the  petitioner.  57. Mr.   A.K.   Sahani,   the   learned   counsel   appearing   for   the  petitioner­M/s Kamla Aditya Construction Pvt. Limited adopted the  submission of other counsels for the petitioners. Mr. Delip Jerath, the  learned   counsel   appearing   for   the   petitioner­Nav   Nirman   Builders  [W.P.(C)   No.   4736   of   2011]   submitted   that   the   petitioner   has   not  provided flats rather, it has provided “Home” to the homeless. They  have also reiterated the stand taken by the other writ petitioners.  58. Per   contra,   Mr.   Ajit   Kumar,   the   learned   Additional  Advocate­General   submitted   that   the   proceeding   dated   05.10.2005  does   not   reflect   the   decision   of   the   Government.   No   policy   was  framed by the Government or by the Housing Board and modalities  were   never   decided.     The   allotment   of   lands   to   the   petitioners   is  contrary to the object of the Jharkhand State Housing Board Act and  thus,   the   allotments   were   illegal.   No   right   is   conferred   upon   the  petitioners on the basis of the illegal allotments.  As a matter of fact,  the process of allotment itself has been found neither transparent nor  fair.   The   constructions   made   on   the   illegal   allotments   cannot   be  regularised and the occupants/purchasers of the illegally constructed  38 flats also cannot claim any right in law or equity. Since the allotment  itself has been found illegal, the principle of promissory estopple is  not applicable. The power of the State Government is well defined in  the  Housing Board Act itself and the State Government has power to  cancel the allotments. The petitioners were issued notices and they  were aware of the proceeding pending against them and therefore,  the   petitioners   cannot   raise   a   plea   of   violation   of   rules  of   natural  justice.  59.        Mr. Sachin Kumar, the learned counsel appearing for the  Jharkhand   State   Housing   Board,   finding   himself   in   a   difficult  situation, fairly submitted that though the Housing Board is bound to  sail   along   the   State   of   Jharkhand,   it   is   the   specific   stand   of   the  Housing Board that it acted in the matter pursuant to the decision  taken in the meeting held on 05.10.2005 and subsequently, the Board  in its 17th Meeting adopted a resolution for construction of residential  houses/commercial complexes through Joint Venture.  It is submitted  that simply because the Board functions on “no profit no loss basis”,  it does not mean that the Board cannot  earn profit.  The recent trend  all   over   the   country   is   to   construct   houses   in   Joint   Venture.     The  procedure adopted by the Housing Board was fair and transparent. In  the present Batch of cases, there are two categories of allottees. One  category is of the allottees who were issued show­cause notices prior  to the order of cancellation and the other category of allottees are  39 those whose allotments have been cancelled pursuant to direction of  the   State   Government.     In   the   first   category   of   cases,   sufficient  opportunity was granted to the allottees and therefore, they cannot  complain   of   violation   of   rules   of   natural   justice.     It   is   further  submitted that the requirement under Article 166 of the Constitution  is not applicable in case of the Board.  The Housing Board is under a  duty   to   provide   a   host   of   facilities   to   people.     Section   29   of   the  Jharkhand State  Housing Board Act, 2000 enjoins upon the Housing  Board to provide  streets, back lane, bridges, culverts and causeways,  the drainage, water supply and lighting of the streets included in the  scheme.     It   also   provides   for  the   provision  of   open   parks,   playing  fields and open spaces for the benefit of any area comprised in the  scheme or any adjoining area and the enlargement of existing parks,  playing fields, open spaces and approaches.  The land in question was  acquired in the year, 1964 and subsequently, it was transferred to the  Board and thus, the title vests in the Housing Board.  It is however,  submitted that the present writ petitions are liable to be dismissed.  The petitioners have based their case on the development agreements  but, the present proceeding is not a proceeding in a suit for specific  performance and thus, the writ petition is not the remedy.  60. In   reply,  Mr.   Rajiv   Ranjan   has  submitted  that   the   State  Government   had   knowledge   of   the   Joint   Venture   executed   by   the  Housing Board and this is not a case in which the alleged irregularity  40 has been detected subsequently. In so far as, the share of the builders  is concerned, the regulation of the Housing Board would not apply.  In the Development Agreement, there is no restriction on the Housing  Board in following its own regulations in so far as, the allocation of  the Housing Board in the joint venture is concerned.   The builders  have   invested   huge   amounts   for   construction   of   the   buildings   and  they cannot  be  compelled to sale the flats/commercial spaces at a  lower rate.   There is no cancellation Clause in the agreement and  therefore, the Housing Board cannot cancel the agreement executed  with the allottees.  The builders faced obstructions at every stage and  with great difficulties some of the projects could be completed.  Time  was not the essence of the contract.   Even if the resolution of the  Housing Board is not approved in its meeting, the State Government  has no power to order cancellation of the development agreement.  The vigilance enquiry cannot decide the rights of the parties.   The  letter of cancellation contains grounds other than the ground taken  by   the   Housing   Board   in   its   show­cause   notices   to   some   of   the  allottees.   DISCUSSION :         61.     The   facts   emerging   from   the   pleadings   in   the   writ  petitions can be summerised thus ; 62. On 05.10.2005, a meeting was held at the residence of  the then Chief Minister in which, the Housing Secretary, the Finance  41 Secretary,   the   Managing   Director   of   the   Jharkhand   State   Housing  Board and other senior officials of the Government were present.  A  decision   was   taken   to   launch   a   scheme   for   construction   of multi­storied buildings on the vacant land of the Housing Board.   It  was also decided that in future, the multi­storied residential flats and  commercial complexes would be constructed through Joint Venture.  The proceeding of the meeting dated 05.10.2005 was communicated  to the Managing Director, the Jharkhand State Housing Board vide  letter dated 27.12.2005.  Expressions of interest were invited through  advertisement   issued   on   12.11.2005   and   27.11.2005   and   the   last  date for submission of bids was 12.12.2005.   The technical bid was  opened and bidders, who qualified, were identified.  They were asked  to submit their finance bids alongwith plan and, the highest bidders  were directed to execute development agreement, which was entered  into between the petitioners and the Jharkhand State Housing Board  on different dates.   A power of attorney was also executed by the  Jharkhand State Housing Board in favour of the allottees.  Only few  months   thereafter,   vide   letter   dated   29.03.2008,   the   Secretary,  Jharkhand  State   Housing Board  communicated  M/s.  Excel  Venture  Construction   Pvt.   Ltd.,   M/s.   Modi   Construction   Project   Ltd.,   M/s.  Symfox   Infrastructure   Ltd.   and   M/s.   Kamla   Construction   Company  that   the   Managing   Director,   Jharkhand   State   Housing   Board   has  ordered   immediate   stoppage   of   construction   of   multi­storied  42 buildings   through   Joint   Venture.     A   Writ   Petition   being,   W.P.(C). No. 2173 of 2008 and batch cases filed in the High Court, which were  disposed of vide order dated 19.05.2008 permitting the petitioners to  approach   the   Chairman,   Jharkhand   State   Housing   Board   for  settlement   of   dispute   in   terms   of   Article­   X,   Clause­   10.01   of   the  Agreement.  The Chairman of the Housing Board after hearing both  the   parties,   quashed   order   no.   667   dated   29.03.2008.     The   order  dated   01.09.2008   of   the   Chairman   was   communicated   to   the  petitioners   vide   Memo   dated   19.12.2008.     In   several   cases,   the  Housing   Board   issued   show­cause   notices   to   the   allottees   for   not  commencing the construction work within the stipulated period.   In  few   cases   at   the   request   of   the   allottees,   the   Housing   Board   had  written   letter   to   the   Deputy   Commissioner   for   removing   the  encroachments  so   that   the  construction   work   can   proceed.    About  four   years   after   the   development   agreement   was   executed   by   the  Housing   Board,   the   Secretary,   Housing   Department   communicated  the   Managing   Director,   Jharkhand   State   Housing   Board   that   the  development agreements were executed in contravention of Section  24(3)(b) and 27(1), (2) & (3) of the Jharkhand State Housing Board  Act, 2000 and therefore, the State Government has taken a decision  not   to   accord   sanction   to   the   decision   of   the   Housing   Board.     A  direction   was   issued   for   taking   steps   for   cancellation   of   the  development agreements.   43 63. Challenging   communications   dated   28.07.2011   and  03.08.2011, batch of writ petitions were filed in the High Court and  vide order dated 08.08.2011, an order of “status quo” was passed by  the High Court.   Thereafter, other writ petitions were filed and vide  order   dated   24.08.2011,   the   interim   order   dated   08.08.2011   was  extended to all the writ petitions.   It was directed that the allottees  would  not   make   further  constructions and no  further  allotment   in  favour of any party shall be made by the builders.  In the proceeding  before the High Court, the Housing Board submitted that it would  move   proposal   before   the   State   Government   seeking   post­facto  approval.   A proposal dated 19.10.2012 seeking post­facto approval  of   the   decision   for   construction   of   multi­storied   residential/  commercial complexes through Joint Venture, was prepared by the  Housing Board and vide letter dated 19.10.2012, the said proposal  was   forwarded   to   the   Government   for   its   sanction   however,   on  12.12.2012,   the   proposal   of   the   Housing   Board   seeking   post­facto  approval   was   turned   down   by   the   Secretary,   Housing   Department,  Government   of   Jharkhand.   The   necessary   details   in   all   the   writ  petitions are detailed below: Case no. Residential/  Stage of Construction Investment Shares of parties Commercial 4513 of  Plot No. 9­ Harmu,  Out of Three Block  A &  1400 lacs 34.54% for Housing  2011 Ranchi A1 are complete  and in  Board (Area­ 1.357 Acres) B only finishing is due. 80% flat has been  65.46% to the  (Residential) allotted.  petitioner.  4683 of  Plot No. 2­ Harmu,  Plan approved by RRDA  260 lacs 56.80% for the  2011 Ranchi & Excavation of  petitioner (Area­ 2.46 Acres)  foundation complete 44 Commercial 43.20% for Housing  Board 4720 of  Plot No. 8­Harmu,  Building plan submitted  59.14% for the  2011 Ranchi for approval before  petitioner  (Area­ 2.687 Acres)  RRDA  Commercial 40.86% for the  Housing Board 618 of  Plot No. 3­ Harmu,  Boundary wall erected,  200 lacs 36.31% (in  2011 Ranchi survey done, map  residential) & 41.25%  (Area­ 5.415 Acres ) submitted to H.B.,   (in commercial)  for  RRDA for approval Housing Board 50% Commercial    &  50% Residential 63.69% (in  residential) & 58.75%  (in commercial) for petitioner 4660 of  Plot No. 7­ Harmu,  Survey done, plan  250 lacs 58.99% for the  2011 Ranchi  submitted to H.B. on  petitioner (Area­1.693 Acres )     11.12.2007  & approved  Commercial by RRDA & other  41.01% for the  statutory bodies Housing Board  4682 of  Plot No. 10­Harmu,  Survey done, , plan  150 lacs 70% for the petitioner  2011 Ranchi  submitted to H.B on  Area­2.6437 Acres      26.07.2011 30% for the Housing  Residential & Send to Board RRDA for approval 5516 of  Plot No. 5, Harmu,  On 07.08.2009 Earnest money­ 2,04,920/­ 64% for the petitioner  2011 Ranchi Map/drawing of the  Expenditure­   1,63,869/­ (Area – 0.3756  proposed construction  Cost of survey­   50,000/­ 36% for the Housing  Acres) of the   plot has been  Total investment­ Board Commercial submited.  4,18,789/­ 5517 of  Plot No. 1,Bariyatu,  No progress Earnest money­ 3,96,215/­ 65% for the petitioner 2011 Ranchi Expenditure­   1,79,750/­ (Area – 0.412 Acres) Cost of survey­   55,000/­ 35% for the Housing  Commercial Total investment­ Board 6,30,965/­ 5543 of  Plot No. 4, Harmu,  Earnest money­ 5,25,280/­ 65% for the petitioner 2011 Ranchi Expenditure­   4,42,830/­ (Area – 1.015 Acres) Cost of survey­   80,000/­ 35% for the Housing  Commercial Total investment­ Board 10,48,110/­ 5544 of  Plot No. 17, Harmu,  On 02.02.2011,  Earnest money­ 1,18,265/­ 70% for the petitioner 2011 Ranchi petitioner submitted  Expenditure­   94,674/­ (Area – 0.217 Acres) map/drawing to  Cost of survey­   30,000/­ 30% for the Housing  Residential Housing Board for  Total investment­ Board approval of the RRDA. 2,42,939/­ 5787 of  Plot No. 9, Hirapur,  No progress Earnest money­ 3,87,350/­ 70% for the petitioner 2011 Dhanbad Expenditure­   2,69,103/­ (Area – 0.711 Acre) Cost of survey­   75,000/­ 30% for the Housing  Commercial Total investment­ Board 7,31,453/­ 5789 of  Plot No. 5, Hirapur,  No progress Earnest money­ 98,438/­ 75% for the petitioner 2011 Dhanbad Expenditure­   54,798/­ (Area – 0.157 Acres) Cost of survey­   20,000/­ 25% for the Housing  Residential Total investment­ Board 1,73,236/­ 5790 of  Plot No. 2A,  Submitted for approval  Earnest money­   70% for the petitioner 2011 Adityapur,  of map/drawing before  5,08,488/­ 45 Jamshedpur AIADA on 23.07.2011. Expenditure­   2,00,344/­ 30% for the Housing  (Area – 0.574 Acres) Cost of survey­  55,000/­   Board Residential Total investment­ 7,63,832/­  5791 of  Plot No. 6, Hirapur,  Earnest money­ 1,21,500/­ 75% for the petitioner 2011 Dhanbad Expenditure­      77,834/­ (Area – 0.223 Acres) Cost of survey­   25,000/­ 25% for the Housing  Residential Total investment­ Board 2,24,334/­  4736 of  Plot No. 3­ Adityapur,  (I) 19.12.2007­ plan &  18 crores on account of  68% (in residential)  2011 Jamshedpur maps sanctioned by  survey, preparation of  & 67% (in  (Area – 1.614 Acres) AIADA  drawing & development of  commercial) for the  (ii) A total of 170 flats  Plot.  petitioner Residential &  have been constructed  Commercial in 5 blocks over plot no.  32% (in residential)  3, i.e. A1, A2, A3, B1 &  & 33% (in  B2 commercial) for the  (iii) petitioner's share  Housing Board 68% sold and Possession  delivered   4766 of  Plot No. 11­ (i) 03.12.2007­ Plan  No progress 65% in residential  2011 Harmu, Ranchi summitted to  ­cum­ commercial for  Area­ 1.405 Acres H.B.  the petitioner  (ii) 10.01.2008­ Plan  forwarded to RRDA35 in residential  residential  ­cum­  (iii) 03.08.2010­ RRDA  ­cum­ commercial for  commercial  sanctioned the Plan the Housing Board (iv) Boundary work  Started & Commenced  excavation for the  foundation work  5074 of  Plot No. 1­ Mouza­  03.07.2010 ­ Plan  30 Lacs deposited with  64.75% in residential  2011 Dindli, Adityapur,  approved by AIADA  Housing Board ­cum­commercial for  Jamshedpur (Ann.­10) the petitioner  Area­ 0.433 Acres & Excavation of  foundation has been  35.25% in residential  residential     ­cum­ completed ­cum­commercial for  commercial the Housing Board W.P.(C) No. 4443 of 2011 – Petitioner purchased flat no. A 401 from M/s Excel Venture              Construction Pvt. Ltd. by paying consideration amount of Rs. 24 lacs.  W.P.(C) No. 4444 of 2011 – Petitioner purchased flat no. A 703 from M/s Excel Venture                Construction Pvt. Ltd. by paying consideration amount of Rs. 24 lacs.  Article 166 of the Constitution of India:

64. Much argument has been advanced on the interpretation  of the proceeding dated 05.10.2005.  The petitioners have contended  that   the   decision   taken  in   the  meeting   held   on   05.10.2005   was   a  policy   decision   taken   by   the   Minister­in   charge,   Housing,   in  46 consultation with other higher officials of the Government including,  the Finance Secretary and the Housing Secretary, pursuant to which  the Jharkhand State Housing Board invited tenders and finally the  successful   bidders   were   allotted   vacant   plots   for   construction   of  multi­storied   residential/commercial   complexes.   It   is   further  contended   that   the   Minister­in­charge,   Housing   was   competent   to  take such decision because no revenue expenditure by the Housing  Board is involved in the Joint Venture.

65. Per   contra,   Mr.   Ajit   Kumar,   learned   Additional Advocate­General   submitted   that   meeting   held   on   05.10.2005   was  merely   a   review   meeting   in   which   an   idea   was   floated   for  construction   of   multi­storied   residential/commercial   complexes  through Joint Venture.   In the meeting held on 05.10.2005, neither  the modalities were discussed nor any scheme was framed rather, a  decision was taken that the Housing Board would frame a scheme.  The   decision   taken   in   the   meeting   held   on   05.10.2005,   the  proceeding   of   which   was   forwarded   to   the   Managing   Director,  Jharkhand State Housing Board on 27.12.2005, cannot be said to be  a policy decision of the Government of Jharkhand. Referring to Rules  X, XII and XV of the Rules of Executive Business, 1979, the learned  Additional Advocate­General has submitted that the decision taken in  the meeting dated 05.10.2005 would fall under Item Nos. 13, 16 and  19 of the  3rd Schedule and therefore, a government decision was sine  47 qua non before issuing advertisements inviting bids for Joint Venture.

66. A   perusal   of   the   proceeding   of   meeting   held   on  05.10.2005  indicates that  a decision was taken  for construction  of  multi­storied   residential/commercial   complexes   on   vacant   plots   of  the Housing Board through Joint Venture however, it also unerringly  indicates that a decision was taken to frame a scheme. Though, no  exception can be taken to the decision taken on 05.10.2005 and no  one   has   challenged   the   bonafide   of   the   decision   taken   by   the  Minister­in   charge,   Housing,  the   issue  is  whether   any  scheme  was  framed or not and whether the public at large were made aware of  the intention of the Housing Board by giving wide publicity of the  alleged   proposed   scheme.    It   is   clear  that   the   Housing   Board   was  required   to   frame   a   scheme   for   construction   of   multi­storied  residential buildings on vacant plots and the Housing Board was also  required   to   ensure   wide   publication   of   the   scheme   through  advertisements.  Mr.   Rajiv   Ranjan,   the   learned   counsel   for   the  petitioners   has   contended   that   the   Chief   Minister­cum­Minister­in­ charge, Housing was competent to take a policy decision and since  there was no financial implication, the matter was not required to be  placed   before   the   Cabinet   for   a   decision   of   the   Government.   The  learned counsel has relied on a decision in  “Bangalore Development   Authority and Others” vs. R. Hanumaiah  and Others”  (2005) 12 SCC   508 to contend that the State Government ordinarily cannot interfere  48 in the day to day  functioning of a statutory authority.  I find that the  Hon'ble Supreme Court has held in the said case that the State can  exercise   its   power   where   a   policy   matter   is   involved   and   the  Bangalore   Development   Authority   which   has   been   constituted   for  specific   purpose,   cannot   take   a   decision   which   would   defeat   such  purpose. The direction of the Chief Minister in the said case has been  held,   not   confirming   to   the   provision   of   Article   166   of   the  Constitution.   In "Jaipur Development Authority and Others vs. Vijay   Kumar Data and Another" (2011) 12 SCC 94, the recommendation of  the Committee of Ministers has not been treated as the decision of  the   State   Government   culminating   in  issuance   of  a  policy   circular.  The   Hon'ble   Supreme   Court   has   observed   that,   the   letter   merely  speaks of the discussion made by the Committee and the decision by  it. By no stretch of imagination, the same can be treated as the policy  decision of the Government within the manner of Article 166 of the  Constitution.   I   am   of   the   opinion   that   the   discussion   held   on  05.10.2005   was  not  a  policy  decision  and the  Housing  Board  was  required to frame a scheme and to seek approval of the government,  before inviting tenders.

67. The   petitioners   have   relied   on   Section   109   of   the  Jharkhand   State   Housing   Board   Act,   2000   to   contend   that   the  decision  taken  in  the meeting held on 05.10.2005 was a direction  under Section 109.   Though, I have held that the decision taken on  49 05.10.2005 was not a decision of the Government as contemplated  under Article 166 of the Constitution, even if it is assumed that it was  a direction by the Government to the Board to develop the vacant  land through Joint Venture, it is an admitted fact that no term and  condition   was approved by the Board in its 17 th  meeting and the  Board's allocation in the Joint Ventures was decided by the Housing  Board,   arbitrarily.     The   Housing   Board   acted   in   the   matter,   in   a  manner unknown to its own rules and procedure. Scheme of the Jharkhand State Housing Board Act, 2000:

68. The   learned   counsel   for   the   petitioners   submitted   that  letter dated 12.12.2012 indicates that the State Government declined  to accord sanction on the ground that the development agreements  were executed in contravention of Sections 24(3)(b) and Section 27  of   the   Jharkhand   State   Housing   Board,   2000   however,   Section 24(3)(b)   is   attracted   only   when   the   scheme   involves   expenditure  exceeding   Rs.   2   crores   whereas,   in   the   Joint   Venture   the   Housing  Board has not infused any fund and thus, the decision of the Housing  Board   cannot   be   held   contrary   to   Section   24(3)(b).     The   learned  counsel has further submitted that Section 27(2) specifically provides  that the Government may entrust to the Housing Board the framing  and execution of any Housing scheme whether provided by the Act or  not.   It is a matter of record that pursuant to decision taken in the  meeting dated 05.10.2005, the Housing Board issued advertisement  50 and selected highest bidders in a fair and transparent manner.  Even  the   Board   in   its   15th  and   17th  meeting   approved   the   proposal   for  constructing multi­storied residential buildings through Joint Venture  and thus, the Housing Board acted in consonance with the provision  under Section 27(2) and not contrary to the said provision.

69. The   learned  Additional  Advocate­General  has submitted  that  the  Jharkhand State  Housing Board being a statutory body is  under   a   duty   to   act   in   accordance   with   law   and   follow   its   own  regulations.     The   narration   of   events   which   followed   the   decision  taken   in   meeting   held   on   05.10.2005   indicates   that   the   Housing  Board   acted   with   some   oblique   motive,   in   a   haste.     The   first  advertisement   was   issued   on   12.11.2005   and   the   last   date   of  submission   of   bids   was   12.12.2005   whereas,   the   proceeding   of  meeting   held   on   05.10.2005   was   forwarded   to   the   Managing  Director, Housing Board on 27.12.2005 and thus, by the time, letter  dated   27.12.2005   was   communicated   to   the   Managing   Director   of  Housing Board, one part of the transaction was over.   Referring to  Section 53A of the Transfer of Property Act and Section 17 of the  Registration   Act,   the   learned   Additional   Advocate­General   has  submitted   that   after   2001,   all   agreements   whereby   an   immovable  property   is   transferred,   is   required   to   be   registered   compulsorily  however,   the   development   agreements   executed   between   the  allottees and the Jharkhand State Housing Board are unregistered,  51 which  indicates the hasty action of the Board.  Mr. Ajit  Kumar, the  learned   A.A.G.   has   referred   to   decision   in  “Srinivasa   Cooperative   House Building Society Ltd. vs. Madam Gurumurthy Sastry and Others”  reported   in  (1994)   4   SCC   675  to   make   a   distinction   between   “a  private   company”   and   “Government   company”.    The   learned   AAG  relied on decision in "Esha Ekta Apartments Coop. Housing Society Ltd.   vs.   Municipal   Corpn.   Of   Mumbai"  (2013)   5   SCC   357,   wherein   the  Hon'ble Supreme Court has observed thus,  56. “...............We would like to reiterate that   no authority administering municipal laws and   other   similar laws can encourage violation of   the   sanctioned   plan.   The   courts   are   also   expected   to   refrain   from   exercising   equitable   jurisdiction   for   regularisation   of   illegal   and   unauthorised   constructions   else   it   would encourage  violators of   the   planning   laws  and   destroy   the   very   idea   and   concept   of   planned   development of urban as well as rural areas.”

70. Section 2 (13) of the Jharkhand State Housing Board Act,  2000 defines “housing or improvement scheme” to mean a scheme  framed under this Act and includes, any one of the types of schemes  referred to in Section 28.     Section 3 provides that it would be the  duty   of  the   Housing  Board  to carry  out   the   provisions  of  the   Act,  subject   to   the   restrictions,   conditions   and   limitations   contained  therein.   71. Section   23   confers   supervisory   jurisdiction   upon   the  Government. It provides that the Government may stay or set­aside  52 any resolution of the Board or any order of the Managing Director or  of the Board, if the Government is of the opinion that the resolution  or order of the Housing Board or the Managing Director is in excess  of the power conferred by law or is not in consonance with the public  interest.     Thus,   it   is   apparent   that   Section   23   clothes   the   State  Government with the power to nullify any resolution or order of the  Housing Board or the Managing Director.  The power conferred upon  the State Government can be exercised in public interest and thus, if  the   Government   finds that  any order or resolution of the Housing  Board is not in consonance with the Public interest, the Government  in   exercise   of   power   under   Section   23   would   cancel   such  order/resolution.

72. Section 24 empowers the Board to enter into contracts for  carrying  out   any  of  the  purposes of  the  Act.    Section   24 (3)  puts  limitation on the power of the Board and provides that approval for  any scheme involving expenditure of Rs. 200 Lacs cannot be granted  without prior approval of the State Government.  The Board's power  in granting administrative approval for schemes is restricted to the  schemes   involving   expenditure   less   than   Rs.   200   Lacs.     Section 24(3)(b)   thus,   pre­supposes   existence   of   a   scheme   involving  expenditure over Rs. 200 Lacs.

73. It   has  been   contended   on   behalf  of   the   Housing   Board  that after the land acquired by the Government was transferred to the  53 Housing   Board,   the   Housing   Board   became   absolute   owner   of   the  land   and   it   was   free   to   take   a   decision   with   respect   to  utilisation/disposal of the land so vested in the Housing Board.  The  petitioners   have   contended   that   under   the   agreement,   it   has   been  specifically provided that the Housing Board is not required to infuse  any fund and thus, the approval of the State Government was not  required.     I   am   unable   to   accept   the   contention   raised   by   the  petitioners and the Housing Board.   Though no material has been  placed on record in support of the contention that the land vested  absolutely in the Housing Board, even if it is assumed that after the  transfer the land vested in the Housing Board, the Housing Board is  under a duty to utilise the land for carrying out any of the purposes  of the Act and not otherwise.  Technically, the Housing Board is not  required to invest money in the Joint Venture, however, it cannot be  denied that the land itself is a valuable consideration and if sold, it is  capable of fetching price.  I find no substance in the contention that  provision of Section 24(3)(b) is not attracted in the present case.   74. Section 26 provides that every contract by the Managing  Director shall be entered into in such manner and form as may be  prescribed and the contract not executed in terms of the provisions of  the Act and the Rules made thereunder, shall not be binding on the  Housing   Board.     A   perusal   of   the   development   agreement   reveals  startling  facts.   Under the contract, the allottees   have been given  54 absolute right of ownership.  There is no provision for cancellation of  contract/development agreement in case of breach of the terms of  the   agreement.     Besides   this,   a   Power   of   Attorney   has   also   been  executed in favour of the allottees.   Apparently, glaring irregularity  has been committed in formulation of the development agreement  and execution of the same.   75. Section   27 provides powers  and duties of the  Board  to  undertake the Housing Improvement Schemes.   Section 27 (1) puts a  limitation   on   the   power   of   the   Housing   Board.     The   powers   and  duties   of   the   Housing   Board   to   undertake   Housing   Improvement  Schemes   and   their   expenditure   have   been   made   subject   to   the  provisions of the Act and also the control of the Government.  Thus,  the expenditure incurred and the work undertaken by the Housing  Board are always subject to the control of the Government.

76. Section 27 (2) provides that the Government would fix  the terms and conditions and entrust to the Board the framing and  execution of any Housing or Improvement Scheme whether provided  under the Act or not.  The framing of a scheme by the Housing Board  is  thus,   subject   to   the  condition  that   the  Government   entrusts  the  responsibility of framing of a scheme on the Housing Board and the  scheme   would   be   framed   by   the   Housing   Board   on   terms   and  conditions determined by the State Government.

77. I find that Sl. No.9 in the proceeding of the 15 th meeting  55 of the Board does not refer to Joint Venture and the proceeding of the  17th Meeting held on 27.02.2007 indicates that in the supplementary  agenda, the proposal for Joint Venture was approved and thus, it is  apparent that the Board itself has accorded post­facto approval when  everything was already done.  On physical verification, as a matter of  fact, several infirmities were detected in the process of finalization of  the bids.   The financial bids were not received in sealed cover and  those   were   not   accompanied   by   the   original   documents.     In   the  proceeding   for   finalizing   the   financial   bid,   one   of   the   important  members namely, the Chief Engineer has not put his signature. The  allotments   were   made   arbitrarily,   is   evident   from   the   fact   that,  Housing Board's allocation differs in each allotment. No intelligible  criteria was fixed by the Housing Board. The development agreement  provides the lease period of 99 years which in my view could not  have been done by the Housing Board as the said stipulation clearly  converts the period of lease into a perpetual lease.   I do not find any  specific   order   of   the   Government   directing   the   Housing   Board   to  frame a scheme.  The terms and conditions of the Joint Venture were  not determined by the State Government.  I have perused the original  file   produced   by   the   Housing   Board   and   I   do   not   find   even   a  reference of a proposal containing the terms and conditions for the  scheme   or   any   communication   to   the   Government   in   this   regard.  Approval of even the Minister­in­charge, Housing was also not taken  56 by   the   Housing   Board.   The   decision   taken   in   meeting   held   on  05.10.2005 was definitely not a government decision. PRINCIPLES OF NATURAL JUSTICE:

78. In so far as, the plea of violation of rules of natural justice  is   concerned,   I   am   of   the   opinion   that   in   the   aforesaid   facts,   no  hearing was required to have been given to the allottees. The legality  of   allotment   by   the   Housing   Board   was   the   issue   before   the  government and as seen above, the allotments were definitely illegal.  If on a technical plea of violation of the rules of natural justice the  decision  of  the  government is interfered with, it would perpetuate  illegality.   In  “Raj   Kumar   Soni   and   Another   vs.   State   of   U.P.   And   Another” (2007) 10 SCC 635, in a case where the allotment was held  illegal, the Hon'ble Supreme Court observed that, “even if there was  any technical violation of the rules of Natural Justice, this is not a fit  case for interference as such interference would result incarceration  of illegal, nay void order”.   79. In  “Gadde   Venkateswara   Rao   vs.   Government   of   Andhra   Pradesh and Others”  reported in  AIR 1966 SC 828  it has been held  thus,  17. “.............If the High Court had quashed the   said order, it would have restored an illegal order­it   would   have   given   the   Health   Centre   to   a   village   contrary   to   the   valid   resolutions   passed   by   the   Panchayat Samithi......”  80. In “M. C. Mehta vs. Union of India and Others” reported in  57 (1999) 6 SCC 237, the Hon'ble Supreme Court has observed thus,  17.   “.............. The Court can under Article 32   or Article 226 refuse to exercise its discretion of   striking down the order if such striking down   will   result   in   restoration   of   another   order   passed earlier in favour of the petitioner and   against the opposite party, in violation of the   principles of natural justice or is otherwise not   in accordance with law.”    PROMISSORY ESTOPPEL :

81. The   nature,   scope   and   extent   of   the   doctrine   of  promissory   estoppel   came   up   for   consideration   before   the   Hon'ble  Supreme Court time and again.  The doctrine of promissory estoppel  was evolved   in equity, in order to prevent injustice.   It is by now  settled   that   the   doctrine   of   promissory   estoppel   can   be   applied  against the government also, where the interest of justice, morality  and fairness clearly directed such a course.  However, the promissory  estoppel   cannot   be   invoked   to   compel   the   government   or   even   a  private   party   to   do   an   act   prohibited   by   law.     In  “M/s.   Motilal   Padampat Sugar Mills Co. Ltd. vs. State of Uttar Pradesh and Ors.”,  reported in (1979) 2 SCC 409, while examining the plea that, if on a  categorical   assurance   of   the   State   Government   that   the   industry  would   be   exempted   from   payment   of   sales   tax,   Motilal   Padampat  Sugar   Mills   established   a   hydrogenic   plant   for   manufacturing   of  vanaspati, whether the State Government was bound to honour the  assurance   and   exempt   the   industry   from   sales   tax   for   a   period   of  three years, the Hon'ble Supreme Court observed as under:

58. 8.“....................The   true   principle   of   promissory estoppel, therefore, seems to be that   where one party has by his words or conduct   made   to   the   other   a   clear   and   unequivocal   promise   which   is   intended   to   create   legal   relations or affect a legal relationship to arise   in   the   future,   knowing   or   intending   that   it   would   be   acted   upon   by   the   other   party   to   whom the promise is made and it is in fact so   acted   upon   by   the   other   party,   the   promise   would be binding on the party making it and   he would not be entitled to go back upon it, if it   would   be   inequitable   to   allow   him   to   do   so   having regard to the dealings which have taken   place between the parties, and this would be so   irrespective of whether there is any pre­ existing   relationship between the parties or not.”

82. In “Kasinka Trading and Anr. vs. Union of India and Anr.”,  reported in (1995) 1 SCC 274, it has been held that, “the doctrine of  promissory   estoppel   cannot   be   invoked     in   the   abstract   and   the  Courts are bound to consider all aspects including the result sought  to be achieved and the public good at large.”  In “Amrit Banaspati Co.   Ltd. and Anr. vs. State of Punjab and Anr.”, reported in (1992) 2 SCC   411,   it   has   been   held   that   unless   the   representation   made   by   an  official on behalf of the government is established to be beyond the  scope of authority, it should be held binding on the government.  The  Hon'ble Supreme Court has held thus:

10.  “But   promissory   estoppel   being   an   extension   of   principle   of   equity,   the   basic   purpose of which is to promote justice founded   on   fairness   and   relieve   a   promisee   of   any   injustice   perpetrated   due   to   promisor’s   going   back   on   its   promise,   is   incapable   of   being   enforced in a court of law if the promise which   59 furnishes the cause of action or the agreement,   express   or   implied,   giving   rise   to   binding   contract is statutorily prohibited or is against   public   policy...…..…..........Was   such   promise   contrary   to   law   and   against   public   policy?   Could   it   be   enforced   in   a   court   of   law?.........................   Taxes   like   sales   tax   are   paid   even   by   a   poor   man   irrespective   of   his   savings with a sense of participation in growth   of   national   economy   and   development   of   the   State. Its utilization by way of refund not to the   payer but to a private person, a manufacturer,   as an inducement to set up its unit in the State   would   be   breach   of   trust   of   the   people   amounting to deception under law.”

83. In   the   present   case,   the   government   was   definitely   not  bound   by   the   action   of   the   Housing   Board.     The   decision   of   the  Housing Board to invite applications for construction of residential/  commercial   complexes   through   Joint   Venture   was   not   a   decision  taken  in  public  interest.   The decision taken in the meeting dated  05.10.2005 was not a licence to the Housing Board to flout all canons  of rule of law.  I further find that the proceeding of the meeting dated  05.10.2005 specifically refers to a direction to the Housing Board to  prepare a scheme and to publicise the scheme through newspapers.  In the garb of the alleged “direction” given by the Minister­in charge  on   05.10.2005,   the   Housing   Board   has   adopted   a   course   which  cannot be sanctioned in law.  The fallacy in the contention raised on  behalf of the petitioners lies in the fact that the government never  held   out   any   promise   to   the   allottees.     The   government   never  publicised   any   intention   to   sanction   construction   of   residential  60 flats/commercial   complex   by   the   Housing   Board   through   Joint  Venture   and   therefore,   the   government   cannot   be   compelled   to  accord sanction to the illegal actions of the Housing Board.  84. In “Monnet Ispat and Energy Limited vs. Union of India and   Ors.”, reported in  (2012) 11 SCC 1, the Hon'ble Supreme Court has  held thus:

182. 5.  “In no case, the doctrine of promissory   estoppel can be pressed into aid to compel the   Government or a public authority to carry out a   representation or promise which is contrary to   law   or   which   was   outside   the   authority   or   power of the officer of the Government or of the   public authority to make.   No promise can be   enforced   which   is   statutorily   prohibited   or   is   against public policy.”     85.  To summarize, the decision of the Housing Board to make  allotment   of   vacant   land   to   private   developers   was   illegal   and  arbitrary.  The said decision was contrary to the object for which the  Housing Board has been constituted and the decision was taken in  breach   of   provisions   of   Section   24   (3)   (b)   and   Section   27   of   the  Jharkhand   State   Housing  Board  Act,  2000.  There  was  neither   any  plan, nor any study conducted by the Housing Board. There was also  no proposal or a feasibility report prepared by the Housing Board.  The Housing board did not frame a scheme or sought approval for  allotment to private builders from the Government.   The criteria by  which the share of the Housing Board has been fixed, is completely  arbitrary.   The process of allotment to private builders was not fair  61 and   transparent.   The   decision   taken   in   the   meeting   held   on  05.10.2005   was   not   a   policy   decision   of   the   Government.   The  allottees   cannot   claim   estoppel   against   the   Government   and   the  principle of Promissory Estoppel is not applicable in their case as the  Government   had   never   made   any   promise   to   the   allottees.     The  vigilance enquiry was an eye wash, instituted only to overcome the  latches on the part of the Government authorities.      86.      In “Rajasthan Housing Board and Anr. vs. G.S. Investments and   Anr.” reported in (2007) 1 SCC 477, a case in which price fetched for  the   plots   was   much   below   the   market   rate   and   consequently,   the  State   Government   disapproved   the   auction,   it   was   found   that   the  decision of the Government was taken in larger public interest. It was  further   held   that,   even   if,   some   defect   was   found   in   the   ultimate  decision resulting in cancellation of the auction the matter did not  require interference of the Court.   The Hon’ble Supreme Court has  held thus:   “The   sale   of   plots   by   the   Rajasthan   Housing   Board by means of an auction is essentially a   commercial transaction. Even if some defect was   found   in   the   ultimate   decision   resulting   in   cancellation   of   the   auction,   the   court   should   exercise   its   discretionary   power   under   Article   226   of   the   Constitution   with   great   care   and   caution   and   should   exercise   it   only   in   furtherance of public interest. The court should   always keep the larger public interest in mind   in   order   to  decide   whether   it  should  interfere   with the decision of the authority.…..............”

6. 87.     In “M.I. Builders Private Limited vs. Radhey Shyam Sahu   and Ors.” (1999) 6 SCC 464, when it was found that there was no  proposal,   no   document,   no   plan,   no   study,   no   project   report   or  feasibility report, on the basis of which Mahapalika could have given  permission   for   construction   of   shopping   complex,   the   Hon'ble  Supreme   Court   held  that, Mahapalika had violated Section  114 of  Uttar   Pradesh   Municipal   Corporation   Adhiniyam,   1959   and   thus,  decision of Mahapalika to permit a private builder to construct under  ground shopping complex was illegal, arbitrary and unconstitutional.  88.   In “Padma vs. Hiralal Motilal Desarda and others” (2002)   7 SCC 564, though SIDCO was set­up to carry out its activity on “no  profit no loss basis” however, SIDCO resorted to bulk sale of surplus  land with a view to make substantial profits.  The Hon'ble Supreme  Court held that “the decision for bulk land sale could not be said to  have been taken in public interest”.

89. Several   decisions   were   cited   by   the   counsel   for   the  petitioners. I have gone through those judgments and I find that in  none of cases relied upon by the petitioners, the Hon'ble Supreme  Court has upheld the illegal allotments to the builders. Much reliance  has been placed on the decision in “ITC Ltd. v. State of U.P.” reported  in (2011) 7 SCC 493. I am of the opinion that the facts in the present  case are entirely different from the facts in ITC case. Any benefit of  the   decision   in   ITC case, if at  all can  be extended, it can only be  63 extended for the purpose of taking a decision whether the allotment  of the plots on which the residential buildings have been constructed,  can be granted post­facto approval by the government or not.  90.     Though,   it   is   permissible   in   law   to   cancel   the   entire  allotment, apparently the Government has not applied its mind on  the   effect   of   cancellation   in   cases   where   the   constructions   are  complete. In many cases transaction with the buyers is complete and  they have taken possession of the flats. No fault can be attributed to  them. Thus, those cases should have been segregated.  In “Benny T.D.   and Ors. vs. Registrar of Cooperative Societies and Anr.”  reported in  (1998)   5   SCC   269,   in   view   of   the   findings   of   the   Capital   Public  Enquiry   Commission   that   there   has   been   tampering   of   marks   in  respect of several candidates, the decision was taken to cancel the  entire selection.   The Hon'ble Supreme Court held that same could  not   be   done   as   the   same   would   tantamount   to   gross   violation   of  principle of natural justice.  In “Omkar Lal Bajaj & Ors. vs. Union of   India & Anr.”,  reported in  (2003) 2 SCC 673, the Hon'ble Supreme  Court observed as under :   45.    “The solution by resorting to cancellation   of  all was worse than the problem. Cure was   worse   than   the   disease.   Equal   treatment   to   unequals is nothing but inequality. To put both   the categories — tainted and the rest — on a   par   is   wholly   unjustified,   arbitrary,   unconstitutional being violative of Article 14 of   the Constitution. …………………”

6. 91. In “Amey Coop. Housing Society Ltd. vs. Public Concern for   Governance Trust and Ors.” (2007) 4 SCC 635, in a public interest  litigation, the High Court found that undue favour has been shown to  the cooperative societies and therefore, the High Court took recourse  to   drastic   measure   such   as,   forfeiture   along   with   cancellation   of  allotment.   The   Hon'ble   Supreme   Court   observed   that   a   more  pragmatic approach should have been taken by the High Court and it  would   have   taken   recourse   to   have   the   plots   revalued   by   an  independent   Government   valuer   and   to   compensate   SIDCO,   in  respect of any loss that might have been caused to it on account of  under valuation  of  the  said plot  and, necessary order should have  been   passed.     The   State   Government   was   directed   to   cause   fresh  valuation through an independent Government valuer and difference  in value was to be paid by the society to SIDCO.

92. In   “Bangalore   City   Cooperative   Housing   Society   Ltd.   vs.   State   of   Karnataka   and   Ors.”  reported   in  (2012)   3   SCC   727,   no  housing scheme was framed by Bangalore City Cooperative Housing  Society   Limited     nor   it   was   shown   that   it   had   framed   a   housing  scheme   which   was  approved  by  the  State   Government.   The   High  Court held acquisition of land not in public purpose.  Keeping in view  the fact that some of the members may have build their houses on the  site allotted to them, the Hon'ble Supreme Court gave liberty to the  appellant society to negotiate with the respondents for purchase of  65 their land at the prevailing market price.  93. In view of the fact that in W.P.(C) No. 4513 of 2011 and  W.P.(C) No. 4736 of 2011, the construction of residential building is  almost complete and the builders have sold most of the flats, though  the   findings   recorded   in   the   fore­going   paragraphs   are   equally  applicable in all the cases, a pragmatic view needs to be taken by the  Court, in so far as, W.P.(C) No. 4513 of 2011 and W.P.(C) No. 4736 of  2011, W.P.(C) No. 4443 of 2011 and W.P.(C) No. 4444 of 2011 are  concerned. It is nobody's case that the construction on the above two  plots   was   in   violation   of   the   Building   Bye­laws.   At   least,   the   flat  owners/buyers   are   not   responsible   for   the   decision   taken   by   the  Housing   Board.   In   view   of   the   aforesaid   discussions   all   the   writ  petitions except, W.P.(C) No. 4513 of 2011, W.P.(C) No. 4736 of 2011,  W.P.(C)   No.   4443   of   2011   and   W.P.(C)   No.   4444   of   2011   are,  dismissed. However, in the peculiar facts and circumstances of the  case, W.P.(C) No. 4513 of 2011 and W.P.(C) No. 4736 of 2011, W.P.(C)  No. 4443 of 2011 and W.P.(C) No. 4444 of 2011 are disposed of with  the following directions; (i)  The   respondent­State   of   Jharkhand   is   directed   to   constitute   a  Committee  consisting of the Chief Secretary, the Finance Secretary  and   the   Secretary,   Department   of   Housing.   The   Committee   would  examine   the   possibility   of   granting   post­facto   approval   for   the  allotment of Plot No. 9, Harmu, Ranchi and Plot No. 3, Adityapur,  66 Jamshedpur.  (ii)  The allottees of the above two plots would furnish documents  establishing construction of the residential buildings, as claimed by  them in the present proceeding.  (iii) The Committee would examine the genuineness of the claim that  most of the flats have been sold by the builders.  (iv)  The   Committee   would   also   ascertain   whether   the   builders  continued construction inspite of the restraint order of the Housing  Board/State/Court. (v)  In   case   of   doubt,   the   Committee   would   summon   the  representative   of   the   builders   and   may   direct   them   to   produce  evidence. (vi) If the Committee decides that it would be in the public interest to  approve the allotments in W.P.(C) No. 4513 of 2011 and W.P.(C) No.  4736 of 2011, the Committee would recommend appropriate terms  including,   payment   of   market   rate,   penal   charges   and   any   other  charges for which the builders may be liable to pay.  (vii)  The   current   market   rate   of   the   above   two   plots   would   be  ascertained by two Government valuers.  (viii) The Committee would take a decision within four months.  (ix) The recommendation of the Committee would be placed before  the Government and it is expected that the Government would accord  due weightage to the recommendation of the Committee.  67 94. All the Interlocutory Applications are dismissed. Interim  orders are vacated.  (Shree Chandrashekhar, J.) Jharkhand High Court, Ranchi Dated:   21 /11/2014 Tanuj/R.K./Amit/.A.F.R. Later on: The   original   file   of   the   Housing   Board   is   returned   to Mr.   Sachin   Kumar,   Advocate   appearing   on   behalf   of   the   Housing  Board.      (Shree Chandrashekhar, J.) Manish


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