High Court Punjab-Haryana High Court

Mrs.Tripta Arora vs Haryana Urban Dev. Authority Etc on 4 October, 2008

Punjab-Haryana High Court
Mrs.Tripta Arora vs Haryana Urban Dev. Authority Etc on 4 October, 2008
        IN THE HIGH COURT OF PUNJAB AND HARYANA AT

                             CHANDIGARH.




                                                          FAO 155 of 2007

                            DATE OF DECISION : JANUARY             18, 2008



MRS.TRIPTA ARORA                                     ....... APPELLANT(S)

                                 VERSUS

HARYANA URBAN DEV. AUTHORITY ETC.                    .... RESPONDENT(S)



CORAM : HON'BLE MR. JUSTICE AJAI LAMBA



PRESENT: Mr. PK Mutneja, Advocate, for the appellant.
         Mr. DK Jangra, Advocate, for the respondents.



AJAI LAMBA, J.

Mrs.Tripta Arora has filed this First Appeal against Order,

which is directed against the judgment dated 14.8.2006 passed by the

Additional District Judge, Panchkula.

The facts are that the appellant was the highest bidder for site

No.4, Sector 15, Panchkula, measuring 250 square meter, for a

consideration of Rs.24,60,000/-. As per the terms of auction, 10% of the

actual price was deposited with the respondents on the date of auction

itself. 15% of the amount was to be paid within 30 days from the date of

issuance of allotment letter and balance 75% of the amount was to be paid

in 8 half yearly instalments. Allotment letter was issued on 20.11.2002 and,
FAO 155 of 2007 2

therefore, as per the terms of auction known to the appellant, 15% of the

amount was to be deposited by 19.12.2002. Rather than depositing the

amount in terms of auction, the appellant filed objections with regard to

adjacent site bearing No.3, which was auctioned on the same day for a

lesser amount. The ground for non-depositing the amount in terms of

auction is that there was a fraud in auction proceedings, which was

brought to the notice of the higher authorities and a representation to that

effect was given on 19.12.2002, which was not decided. Again, a

representation was given on 18.8.2003 but no action was taken. The case

of the appellant, however, is that she was ready and willing to deposit the

amount though no such deposit was made. Admittedly, the terms of

auction were violated by the appellant. Rather, no further deposit had

been made till the filing of this appeal.

CWP 5184 of 2004 was filed which, however, was withdrawn

with liberty to avail the remedy of arbitration in terms of clause 20 of the

allotment letter. The Arbitrator announced the award on 30.12.2005

rejecting the claim of the appellant.

The award was challenged on a number of grounds including

misconduct on the part of the Arbitrator and also allegations of bias.

The contention of the learned counsel for the appellant before

this Court is that the appellant is entitled to the relief because she being a

model citizen had brought the fraud to the notice of the authorities and she

was ready and willing to make the payment of 15% amount, however, the

payment was not made because the objections were not decided.

Another issue raised is that till date, the allotment of the site
FAO 155 of 2007 3

has not been cancelled and, therefore, the appellant is entitled to the relief

claimed.

The Additional District Judge considered all the issues and

came to the conclusion that it did not lie with the Arbitrator to order that

the site be put to auction afresh. To that extent, the award has been held

to be beyond the scope of arbitration.

On facts, the award has been upheld as being legal.

Learned counsel for the appellant has admitted that the

appellant was required to make payment of 15% of the balance sale

consideration by 19.12.2002, which was not done. Even the subsequent

instalments were not paid. In my opinion, any objection made with regard

to auction of another site (in which the petitioner had not even

participated) could not be a reasonable ground for the appellant, who was

the auction purchaser, not to make the payment in terms of the auction

under which the site had been purchased. The non cancellation of

allotment letter would not give any right to the appellant to claim the site

at the rate at which it was purchased in the year 2002 in auction.

Learned counsel for the appellant has relied on a judgment of

this Court in Smt.Sandhya Jindal v. The State of Haryana and others, 1996

(3) PLR 614.

I have gone through the judgment and find that in the cited

case, after deposit of 10% of the bid amount, the allottee had been issued a

notice that the allotment made in her favour had been cancelled and 10%

amount deposited by her forfeited. Aggrieved by the cancellation, an

appeal was filed with the Administrator, Haryana Urban Development
FAO 155 of 2007 4

Authority, on the ground that she had not received formal confirmation of

allotment and there was no default on her part in making payment of the

amount. She expressed her willingness to pay 50% value of the plot with

interest, as per rules. Her appeal remained pending with the appellate

authority for about 9 months when it was dismissed. She being dis-

satisfied with the order of the appellate authority, a revision was filed,

which had not been decided by the Government. The revision was

dismissed during the pendency of the writ petition. Challenge in the writ

petition was to the cancellation of allotment letter, the orders passed by

the appellate and revisional authorities on the ground of violation of the

provisions of the Haryana Urban Development Authority Act and the

provisions of natural justice.

Primarily, the case of the petitioner in the cited case was that

the letter which was adverse to the interest of the petitioner was never

received by her and she had no knowledge of the requirement of deposit

of Rs.39,000/- up to 30.4.1992, therefore, the Estate Officer was not

justified in invoking clause-4 of the allotment letter. The jurisdiction of

the Estate Officer to pass the order was also challenged. In para-14 of the

judgment, this Court has noticed that no notice or opportunity of hearing

was afforded to the petitioner before the order of cancellation had been

passed and, therefore, the order of cancellation of allotment was void on

the ground of principles of natural justice. It has also been noticed in

para-15 of the judgment that the functionaries of HUDA had not verified

that the letter dispatched to the petitioner had been delivered to her or not.

The facts of the present case are clearly distinguishable. The
FAO 155 of 2007 5

appellant all through knew about the conditions of auction and her

liability to pay 15% of the amount within 30 days of the issuance of letter

of allotment. The amount was not paid on the premise that some other

plot had been sold for a lesser amount and, therefore, there was suspicion

of some fraud in the auction proceedings. To my mind, this ground is not

sufficient to entitle the appellant not to make the payment in terms of

conditions governing the auction proceedings. The objections themselves

were filed on the last date i.e. 19.12.2002. No deposit thereafter had been

made. The objections with regard to auction of another site would be

dehors the terms and conditions that govern the auction of the site for

which the appellant had joined.

I do not find any illegality in the arbitral award or the

impugned judgment. The reasons given in the impugned judgment do not

call for interference in appellate jurisdiction.

Some deposit had been made during the pendency of this

appeal, which has not been withdrawn by the respondents.

Accordingly, in view of the above, no ground for interference

is made out.

The petition is, accordingly, dismissed.

The appellant would be at liberty to take back the amount

deposited in this Court during the pendency of the appeal.

January 18, 2008                                          ( AJAI LAMBA )
Kang                                                              JUDGE