Bharatiya Vidya Bhavan vs. R H B And Anr

Held

The Court held that since the petitioner had sent a registered notice asserting the illegality of the demand and seeking details of its legal and arithmetical foundation, it would be appropriate to direct the Housing Commissioner of the Rajasthan Housing Board to address this notice with a reasoned order. The Court directed the Housing Commissioner to respond to the registered notice within four weeks of the presentation of a certified copy of the order. The petitioner was instructed to provide a certified copy of the order along with their registered notice dated 17.07.2017 to the Housing Commissioner. Furthermore, the Court directed that if the petitioner pays the amount demanded, it should be treated as paid under protest, subject to the outcome of the petitioner's representation and any potential proceedings in a court of competent jurisdiction. The petition was disposed of accordingly.

Facts

The petitioner, Bharatiya Vidya Bhavan, a Trust, received a demand notice dated 13.07.2017 from the Rajasthan Housing Board (RHB) for Rs. 58,13,700, which included a principal amount of Rs. 51,90,804 and GST of Rs. 6,22,896. This demand was for delayed payment of the consideration for a plot of land allotted on 17.05.2011. The petitioner claims the last installment of the consideration was deposited on 17.05.2012. The petitioner argued that the allotment letter did not stipulate any interest for delayed payment, nor was any demand for interest raised at the time. The petitioner sent a registered notice on 17.07.2017 to the Deputy Housing Commissioner seeking justification for the demand, but received no response.

Key Issues

1. Whether the demand for interest on the delayed payment of the plot consideration is legally sustainable, given the absence of a specific clause in the allotment letter and no prior demand for interest, and if not, whether the demand is arbitrary and without legal foundation? Petitioner's Arguments: - The demand for interest is arbitrary and without legal foundation because the allotment letter dated 17.05.2011 did not contain any condition for charging interest on delayed payment of consideration. - No demand for interest was raised at the time of payment, and the belated demand is an afterthought. - The RHB failed to respond to the petitioner's registered notice dated 17.07.2017, which sought the legal and arithmetical basis for the demand. Revenue/State's Arguments: - The judgment records no specific arguments presented by the respondents (Rajasthan Housing Board).