High Court Jharkhand High Court

Yugeshwar Pandit vs Heavy Engineering Corpn.Ltd. on 20 November, 2008

Jharkhand High Court
Yugeshwar Pandit vs Heavy Engineering Corpn.Ltd. on 20 November, 2008
      IN THE HIGH COURT OF JHARKHAND AT RANCHI

                           WP ( C ) No. 2223 of 2006
Yugeshwar Pandit                         ....                 Petitioner

                                       Versus

 Heavy Engineering Corporation Ltd, Ranchi and ors... Respondents
Coram :             HON'BLE MR. JUSTICE D.G.R. PATNAIK.

For the petitioner/appellant (s) : M/s Manoj Pd,Chetan Krishna Nages
                                   & Shalina Parween, Advocates.
For the respondent: Mr. Rajiv Ranja, Advocate.

CAV on 21.10.2008                          Pronounced on   20/11/2008

20/11/2008

. Petitioner in this application has prayed for quashing

the order dated 30.3.2006 ( annexure 7) whereby and where-under the

claim of the petitioner for allotment of residential quarter on a long term

lease (LTL) basis has been rejected by the respondents.

2. The petitioner was an employee of the respondent HEC and

was allotted a residential quarter No. CD 18 at Sector III, Dhurwa, Ranchi.

On 14.1.2004, the respondent company issued an

advertisement vide Circular No. 2/2004 offering allotment of residential

quarters to its employees on long term lease basis. In response thereto, the

petitioner applied for allotment and on 28th May, 2004 and deposited Rs.

3,10, 200/- by way of premium payable for allotment of a ground floor

quarter.

The respondent Management offered him quarter no. CD

15/8. Though the offer of the quarter was accepted by the petitioner but

the delivery of possession of the quarter was not given by the respondents

to him. Instead, the Management allotted the quarter to the occupant who

was in forcible occupation of the said quarter. Later, on being informed

that CD 403/III at Sector III has fallen vacant after the earlier occupant had

vacated the quarter, the petitioner submitted his representation seeking
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delivery of possession of the aforesaid quarter. Though by letters dated

29.11.2005 and 30.12.2005 (Annexures 5 series) the concerned authorities

of the respondents assured the petitioner of allotment of the said quarter,

but again the assurance was not fulfilled and the quarter was allotted to

some other person. Instead, the Management offered another quarter no.

CD 559 at Sector III. It was conveyed to the petitioner by the respondent

Management that if the petitioner accepts the offer of quarter no. CD/559,

then the allotment would be given to him soon after the stay granted by

the High Court in another writ petition is vacated.

By his letter dated 29.3.2006( annexure 6) the petitioner

accepted the offer for allotment of quarter no. CD 559. Yet, instead of

allotting the quarter to the petitioner, the respondents by their impugned

order dated 30.3.2006 ( annexure 6) rejected the petitioner’s claim for

allotment of the quarter and directed him to collect his premium amount.

The grievance of the petitioner is that he having accepted the

offer of the respondent Management for allotment of a residential quarter

on LTL basis and in token of such acceptance, having deposited the

premium amount of Rs. 3,10,200/-, the contract is deemed to have

concluded by and between the petitioner and the Management and the

respondent Management is bound to offer the quarter to the petitioner, but

the respondent Company has now retracted from its obligation under the

contract on account of the fact that by reason of a revised decision of the

Management, the amount of premium has been enhanced from Rs.

3,10,200/- to Rs. 4,90,000/- and it is only to obtain unjustified financial

benefit and with malafide motives that the allotment of the quarters has

now been denied to him. Such denial of allotment of the quarter to the

petitioner is totally discriminatory, unjustifiable and smacks of an ulterior
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motive. Further, grievance of the petitioner is that ever since the date of the

deposit of the premium amount on 28.5.2004 which he had withdrawn

from his GPF account and the house rent allowance he has been suffering

loss on interest on the amount and further more, he is now being

threatened with forcible eviction of the quarter in his occupation and his

retiral dues have also been illegally withheld by the respondents.

3 Counter affidavit has been filed on behalf of the

respondent Management denying and disputing the entire claim of the

petitioner. The stand taken by the respondents is that though vide letter

dated 8. 5.2004, (annexure 2) the respondent Management had

provisionally allotted Quarter no CD No. 15 /8 on long term lease of 30

years, extendable to 90 years, in stages of 30 years each, to the petitioner,

on the terms that the petitioner should deposit the fixed premium amount

of Rs. 3,10,200/- within the stipulated date; the offer itself was conditional

and it was categorically stated in the letter that if due to “unforeseen

circumstances” and even after the deposit of the premium amount if the

quarter is not physically handed over to the petitioner, then the premium

amount will be refunded to him without interest and no alternative

quarter will be provided to him in lieu of the offered quarter. The said

quarter at the relevant time was in occupation of one S.K. Pandey. It is

further contended that even though the petitioner had deposited the

premium amount after accepting the offer of the aforesaid quarter, but

since even to the petitioner’s knowledge, the quarter was in occupation of

another person, the allotment of the quarter could not be completed in

favour of the petitioner by delivery of the possession of the same to him.

As regards the petitioner’s claim that the respondent

Management had offered Quarter no. CD 559/III, the stand of the
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respondents is that the respondents had never offered the aforesaid

quarter No. CD 559/III to the petitioner under the LTL scheme. Learned

counsel for the respondents would explain that as matter of fact, the

petitioner being an employee of the company, was allowed to occupy

quarter No. CD. 18/III on normal allotment basis. The petitioner by his

letter dated 29.11.2005 (Annexure 5 ) had expressed his physical

inconvenience for residing in the allotted quarter no. CD 18/III situated

on the top floor of the building and had requested for change of the

quarter and had desired for allotment of CD 403/III in exchange. In

response, the concerned authority of the respondents had informed the

petitioner that his request for allotment of quarter No CD. 403/III has

been rejected by the allotment committee, although the committee had

decided to allot CD 559 /III to the petitioner. Learned counsel explains

further that though in the letter ( annexure 6), the Manager (Estate) of the

respondent Company had conveyed to the petitioner that long term lease

scheme was not in operation on account of the stay order passed by the

High Court and that on vacation of the stay order, the said CD 559/III

shall be regularized to the petitioner under the LTL scheme if it is

declared under the LTL zone, but such communication was totally without

authority vested in the Manager by the Management and hence, it does

not create any right in favour of the petitioner. Learned counsel adds

further that though the stay order of the High Court has since been

vacated, but since CD 559/III did not fall under the LTL zone, the same

cannot be offered to any person much less the petitioner under the said

scheme.

4. From the rival submissions, the facts which emerge are:
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(i) In response to the advertisement issued by the

respondent Management for allotment of residential quarters to its

employees under LTL Scheme, the petitioner had submitted his

application in acceptance of the offer by fulfilling the requisite conditions

namely deposit of the premium amount of Rs. 3,10,2000/- for allotment of

a ground floor quarter on 28.4.2004.

(ii) The respondent Management had offered CD 15 /8

to the petitioner on long term lease basis. However, the possession of the

allotted quarter was not delivered to the petitioner on the ground that it

was under occupation of some other person.

(iii) Subsequently, by letter ( annexure 6), the

Management had initially offered to allot quarter No. CD 559/III to the

petitioner by way of normal allotment in exchange of the quarter which

was already in his occupation, but with the assurance that such allotment

would be regularized under long term lease if declared under LTL zone

after vacation of the stay order of the High Court.

(iv) The petitioner accepted this offer by his letter dated

29.3.2006. Subsequently, the stay imposed by the High Court in another

writ petition was vacated. Thereafter, vide a fresh advertisement dated

12.6.2006 the respondent Management had offered several quarters,

including CD 559/III, for allotment under LTL scheme and allotted the

said quarter to one P.P. Vijay on 21.7. 2006. This fact has not been denied

by the respondents.

5. During the pendency of the present application, the

petitioner had superannuated from service on 31.7.2006, while all along

waiting for the allotment of the aforesaid quarter under the LTL scheme.
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6. The above facts and circumstances clearly indicate that

there is utter lack of transparency and fairness on the part of the

respondent Management in dealing with the petitioner’s claim. When the

respondents had initially offered CD 15/8 to the petitioner under LTL

scheme, the respondent Management knew very well that the quarter

was not vacant and it was in possession of another person and yet, the said

quarter was offered for allotment to the petitioner giving him an

impression that it would be vacated and soon after eviction of the

occupant, delivery of possession of the quarter would be delivered to him

under the scheme. Instead of taking prompt and appropriate measures for

eviction of the unauthorized occupant, the respondent Management

continued to linger the matter and ultimately settled the quarter with the

unauthorized occupant instead of the petitioner. The correspondence

exchanged between the petitioner and the respondent Management

(annexure 5 and 6) would clearly indicate that in place of the original

quarter no. 15/8, the Management had offered CD 559/III to the

petitioner under the LTL scheme. The argument advanced by the learned

counsel for the respondents seeking to explain that the said offer was not

under the LTL scheme and it was only allotment by way of exchange of

the quarter which was in occupation of the petitioner under the normal

allotment procedure is not convincing at all. A plain reading of Annexures

5 and 6 would abundantly indicate that though the petitioner sought for

another quarter in exchange of the one in his occupation, his request for

the desired quarter was refused and instead, quarter no. 559/III was

offered to him, though under normal allotment basis, but with the

stipulation that the allotment of the said quarter would be regularized in

due course under LTL scheme after vacation of the stay order of the High
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Court in a pending writ petition. The obvious inference is that even if the

quarter no. 559/III was offered to the petitioner in exchange for the

quarter presently in his occupation, yet the possession of quarter no.

559/III was not promptly delivered to the petitioner and the only hitch at

the relevant time was the stay order of the High Court in the pending writ

petition. Admittedly, the stay order was vacated, but instead of completing

the process of allotment of the said quarter to the petitioner in terms of

the assurance given under annexure 6, the respondent Management

proceeded to issue a fresh advertisement fixing a higher rate of premium

and allotted the quarter to some other person ignoring the repeated

requests of petitioner for allotment of the quarter. Such allotment of the

quarter to another person instead of the petitioner was made even at the

time when the petitioner was under employment of the respondents. The

respondents have not offered any justifiable reason/ground for refusing

allotment of quarter to the petitioner even though the offered quarter was

vacant and the formalities of allotment could have been completed by

delivering possession of the quarter to the petitioner. The plea taken by the

respondents that quarter no. CD 559/III did not fall under LTL zone is

contradicted by the fact that the very same quarter was subsequently

advertisement for allotment under LTL scheme even during the pendency

of the writ petition soon after vacation of the stay order passed in a

pending writ petition.

7. In the light of the above conduct of the respondents,

the contention of the petitioner that issuance of letter (annexure 7) rejecting

the petitioner’s claim for allotment of quarter under LTL scheme is with

mala fide and oblique motives, appears to have a reasonable basis. The

petitioner’s contention that he has been arbitrarily discriminated by the
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concerned authorities of the respondent company is also not without basis.

The petitioner has been made to suffer mental agony, harassment and

denial of legitimate expectations created under the terms of the contract,

besides monetary loss on interest on the principle premium amount which

he had withdrawn from his GPF and deposited with the respondents in

May, 2004.

8. Having considered the above facts, it remains however

to be noted that the scheme for allotment of the quarter under LTL scheme

was admittedly for a stipulated limited period, and as informed by the

learned counsel for the respondents, there is no such further scheme under

offer. Furthermore, the petitioner has already retired from service in July,

2006 and therefore he being no more under employment of the respondent

company, he cannot claim entitlement for allotment of the quarter under

any LTL scheme which is exclusively meant for the existing employees of

the company. In view of these circumstances, the petitioner’s prayer for a

direction to the respondents to allot him a quarter under LTL scheme

cannot possibly be accepted. Nevertheless, considering the amount of the

wrong which the petitioner suffered on account of the irresponsible callous

conduct of the concerned authorities of the respondent Management and

in all fairness, it would be appropriate that the respondent Management

should pay a reasonable compensation to the petitioner. Accordingly, I

hereby direct that the respondent Company shall refund the entire

premium amount deposited by the petitioner, along with interest @ 12 per

cent per annum calculated from the date of receipt of the premium

amount, till the date of issuance of the impugned letter ( annexure 7)

dated 30.3.2006. The respondent shall also pay a sum of rupees fifty

thousand to the petitioner by way of compensation for the loss and
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detriment suffered by him on account of the negligent conduct of the

concerned authorities of the respondents. The respondent no. 2 is directed

to ensure that the above order for payment of the amount to the petitioner

is carried out and complied with within three months from the date of

receipt of a copy of this order.

Furthermore, the respondents shall, within the

stipulated period as mentioned above, pay the entire retiral dues of the

petitioner and till such time the payment is not made, shall allow the

petitioner to continue in occupation of the quarter presently in his

occupation on payment of the fixed monthly rent as applicable to the type

of the quarters allotted to the employees under normal allotment.

With these observations and directions, this application

is disposed of.

( D.G.R. Patnaik, J.)

Ambastha/AFR