On Es­ca­la­tion of Cost

Consumer Voice - - Legal Matters -

left unan­swered in 1993 were ad­dressed in 64 cases on hous­ing, all of which were de­cided to­gether in 2002. The decision of all th­ese cases was given in a lead case of Ghazi­abad De­vel­op­ment Au­thor­ity ver­sus Di­nesh Kumar. Some of th­ese cases went into fur­ther ap­peal and the fi­nal ver­dict on all is­sues, ap­pli­ca­ble to all th­ese cases, was given in 2004 in the mat­ter of Ghazi­abad De­vel­op­ment Au­thor­ity ver­sus Bal­bir Singh.

The is­sue of es­ca­la­tion of cost was also dis­cussed in all the above SC cases. The court held that a board could charge more on the ba­sis of pre­vail­ing rate at the time, if cost of ma­te­rial in­creased in the du­ra­tion of the con­struc­tion of a house.

In­ter­est­ingly, at the same time, SC also made it clear that in cir­cum­stances where al­lot­tee was not able to pay more due to his fi­nan­cial sit­u­a­tion or other con­straints, he could sur­ren­der the al­lot­ment and he would then be en­ti­tled to in­ter­est on his de­posits. This con­sumer­friendly or­der stands against a reg­u­lar clause in the prospec­tus is­sued by the hous­ing boards which says de­duc­tion will be done on the de­posited amount if the ap­pli­cant sur­ren­ders his ap­pli­ca­tion.

What­ever the case may be, courts in­ter­pret the law as spelled out in their own rules; they do not change the ba­sic struc­ture of the leg­is­la­ture.

Points to Note

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.