Himachal Pradesh Housing And Urban Development Authority vs. Ishwar Dev Bhandari
Held
The Court held that the respondent is liable to pay watch and ward charges only for the period from September 16, 2011, to December 12, 2017, which was the period of delay in payment of the differential amount. GST on these watch and ward charges is applicable only from July 1, 2017, to December 12, 2017. The Court found that the appellant could not levy charges for non-construction by the respondent up to May 31, 2023, nor could it levy GST on watch and ward charges beyond December 12, 2017, because possession of the plot had not been delivered. The Court reasoned that without delivering possession, the appellant cannot claim charges for the respondent's alleged non-construction. The appeal was partly allowed, modifying the Single Judge's order. The respondent is directed to pay the specified watch and ward charges with applicable GST. Upon payment, the appellant must hand over possession and execute the sale deed.
Facts
The Himachal Pradesh Housing and Urban Development Authority (HPVUDA) allotted a residential plot to Ishwar Dev Bhandari in 2007. In 2011, HPVUDA offered possession subject to payment of a differential amount of Rs. 3,78,364/-. Mr. Bhandari challenged this before the District Consumer Forum, which directed him to pay the differential amount and HPVUDA to hand over possession, also ordering HPVUDA to pay interest and compensation. Mr. Bhandari paid the differential amount in 2017. HPVUDA appealed the Consumer Forum's order regarding interest and compensation, which was allowed. Subsequently, HPVUDA issued demand notices in 2020 and 2023 for watch and ward charges, GST on these charges, and charges for non-construction, totaling Rs. 8,80,000/- and Rs. 14,78,851/- respectively. Mr. Bhandari challenged these notices by filing a writ petition.
Key Issues
1. Whether the appellant (HPVUDA) is justified in levying watch and ward charges and GST thereon, as well as charges for non-construction, on the respondent (Mr. Bhandari) after the respondent had deposited the differential amount and the appellant was obligated to deliver possession of the plot? Contentions of the Petitioner (HPVUDA): The appellant argued that the respondent was liable for watch and ward charges and non-construction charges until possession was delivered, and GST was applicable on these charges. The appellant relied on Clause 20(vi) of the brochure regarding liability for such charges. Contentions of the Respondent (Mr. Bhandari): The respondent contended that once the differential amount was paid and the Consumer Forum directed possession, the appellant could not levy further charges for non-construction or watch and ward, especially since possession had not been delivered. The respondent argued that the demand notices were arbitrary and illegal.
Sections Cited
Section 20(vi)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA LPA No.176 of 2023
Decided on: 10.10.2023 Himachal Pradesh Housing and Urban Development Authority ...Appellant Versus Ishwar Dev Bhandari ...Respondent Coram The Hon'ble Mr. Justice M.S. Ramachandra Rao, Chief Justice The Hon’ble Ms. Justice Jyotsna Rewal Dua, Judge Whether approved for reporting? For the appellant: Mr. Gobind Korla, Advocate. For the respondent: Mr. Ankush Dass. Sood, Senior Advocate with Mr. Kush Sharma, Advocate. M.S. Ramachandra Rao, Chief Justice
(Oral) This LPA is preferred against the judgment dt. 10th August, 2023 passed by the learned Single Judge in CWP no.1109 of 2023. 2. The background facts are that the appellant invited applications for the allotment of the residential plots on 12.10.2006 for which the respondent applied, and allotment was made on 08.05.2007/17.07.2007 of a plot in favour of the respondent.
Thereafter, vide Annexure P-4 dt. 16th September, 2011, the appellant offered possession of the plot subject to 2 payment of certain deferential amount of Rs.3,78,364/- within 45 days and it
The judgment continues below.
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