Case Brief: Sumangalam Coop. Housing Society Ltd v. Suo Motu, High Court of Gujarat & Ors.

Deciding Authority: Supreme Court of India
Name of the Judges: Dr. Arijit Pasayat & Lokeshwar Singh Panta
Date of Judgment: 03 January, 2007
Facts of the Case: This was an appeal against the judgment of the High Court which suo moto registered a writ petition. It was alleged that there were several irregularities and illegalities in connection with the allotment of land to Sumangalam Co-operative Housing Society Ltd. During the valuation of the property allotted, an approved valuer was asked to determine the market value of the properties in question as on the date of allotment i.e. on 1.3.1990. It appears that High Court found that one Mr. H.K. Khan has disposed of a plot for Rs.22,00,000/-. According to the High Court same was the market price at which the plot in question could have been transferred by Ahmedabad Urban Development Authority (AUDA) by applying the principle of 10% appreciation in market value. Calculated on that basis the High Court came to the conclusion that on the basis of the price of land allotted to Mr. H.K. Khan the allotment was made at an unreasonable rate.
Judgment: The issues addressed by the High Court in the impugned judgment was that the identities between Respondent No.2 and Respondent No.4 was mixed-up and Impersonation by the office bearers of Respondent No.2 as those of Respondent No. 4. The land had been allotted by AUDA to Respondent No.2 and not to Respondent No.4. It may be noted that Respondent No.2 was called Sumangalam Cooperative Housing Society, Gandhi Nagar bearing registration No.9675 which was cancelled on 9.12.1996. Respondent No.3 was called New Sumangal Cooperative Housing Society Ltd. Taluka Daskroy bearing registration No.13338 which also cancelled on 9.12.1996. Respondent No.4 is called Sumangalam Cooperative Housing Society, Bodakdev and bears registration No.1492.
On 16.07.1987 Respondent No.2 made an application for the allotment of land and requested to fix the rate of the land at Rs.300/- per sq. mtrs. and indicated that T.P. Plot 695 is designated for neighborhood garden, playground, library etc. and further requested that they may be granted 4000 sq. mts. of this land on condition that part of this land will be used for purposes within the meaning of “neighborhood center” and assured AUDA that he was prepared to purchase land at the price indicated by AUDA. Respondent No.2 paid Rs.6,65,000/-. Then by resolution No. 50 (89-90), AUDA resolved to refund the amount deposited by the Respondent
No.2 and to dispose of the lands by public auction. Then Respondent No.2 claimed the right to land and also states that he has paid more than Rs.6 lakhs and therefore, they have preferential right over the land. Then, AUDA reconsidered its earlier decision and decided to allot Plot to Respondent No.2 Society. Respondent No.2 paid Rs.1,03,85,000 to AUDA by Cheque and took the possession of the land. Then Respondent No.4 came into being under Registration No.14292. AUDA passed a resolution in its 123rd meeting allotting 3923 sq. mtrs of land possession whereof was taken by Respondent no.4 after payment of price of Rs.26,70,600.  Respondent No.4 also took possession of 16571 sq. mtrs of land, possession of which had been given to Respondent No.2 and price of Rs.6,65,000 and Rs.1,03,85,000 had been paid by Respondent no.2. From the above events the High Court in its impugned judgment has concluded that Respondent No.4 and its officers are guilty of having practiced fraud on AUDA. Respondent No.4 has impersonated as Respondent No.2 and obtained possession of land on the basis of such impersonation from AUDA and for the price which had been paid by Respondent No.2 at the price prevailing the year 1987 much before Respondent No.4 was born. Respondent No.4 suppressed this fact in earlier proceedings before the High Court resulting in the judgment dated 24.09.1991 and thus secured the judgment by practising fraud on the court.
Decision: The appeals are, therefore, allowed. The observations made against various officials are uncalled for and have to be treated to have been deleted.
By, Surbhi Agrawal, BB.A., LL,B (3rd year), University of Petroleum & Energy Studies.

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