Authority: High Court of Judicature at Patna
Order Date: 16 July 2026
Case Overview
- Petitioners: Radhey Shyam Agrawal and Subhash Kumar Agrawal, sons of Late Ram Kumar Agrawal, residents of Patna.
- Respondents: Bihar State Housing Board (BSHB) represented by its Managing Director, Revenue Officer and other officials.
- Relief sought: Writ of certiorari to quash letters dated 05.08.2014 and 30.07.2018 demanding Rs 1,04,42,938.77, and writ of mandamus directing BSHB to calculate demand using simple interest as per the Hire‑Purchase Agreement dated 13.04.1985 and to execute a lease deed upon payment.
- Background: BSHB auctioned Plot No. DS‑24D (Lohianagar, Patna) under auction dated 31.01.1984. The agreement required payment of the remaining 75% of the plot cost in six equal half‑yearly installments of Rs 58,534 each, with interest at 14% p.a. (rising to 18% on first default) and forfeiture on two consecutive defaults.
- Possession was delivered on 08.03.1989. Installment due dates were 15 Oct 1989, 15 Apr 1990, 15 Oct 1990, 15 Apr 1991, 15 Oct 1991, and 15 Apr 1992.
- Petitioners made the first payment of Rs 1,00,000 only on 09.03.1992 and a second payment of Rs 1,80,000 on 22.01.1994. Subsequent notice on 06.12.1995 demanded Rs 93,134, which was cleared on 18.12.1995.
- BSHB later issued a demand of Rs 11,61,427 on 18.06.2001 (interest calculated up to 31.07.2001). By 30.11.2009 the total due had risen to Rs 46,33,530.
- Petitioners replied on 17.11.2011 claiming only Rs 3,51,204 was due, having paid Rs 3,73,134, and asserted no outstanding amount.
- On 21.03.2014 BSHB demanded Rs 94,10,288.43 (letter dated 05.08.2014). Petitioners sought a simple‑interest calculation; BSHB rejected the request on 30.07.2018.
- The writ petition was filed in 2020; the matter was heard on 16.07.2026.
- The Court observed that BSHB failed to cancel the allotment despite defaults, applied compound interest contrary to the agreement, and delayed issuance of notices. It also noted the petitioners’ prolonged delay in making payments.
Final Outcome
- Petitioners are directed to appear before the Managing Director of BSHB on 27 July 2026 at 11 AM.
- BSHB must provide a comprehensive demand calculation chart, strictly adhering to the simple‑interest provisions of the 1985 agreement, no later than 31 August 2026.
- The calculation chart must include interest up to six months from the date it is provided.
- Petitioners must settle the demanded amount within six months of receiving the chart.
- If payment is not made within the stipulated six‑month period, BSHB is authorized to annul Plot No. DS‑24D in accordance with law, and any laxity by BSHB may be treated as contempt of Court.
- The writ petition is disposed of with these observations.
Topics: Land Allotment, Interest Calculation, Court Order