High Court Punjab-Haryana High Court

Daljit Singh And Others vs U.T.Chandigarh And Another on 3 December, 2008

Punjab-Haryana High Court
Daljit Singh And Others vs U.T.Chandigarh And Another on 3 December, 2008
CWP No. 2964-08                       1

           IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                        CHANDIGARH.

                          C.W.P.No. 2964 of 2008
                          Date of decision 3 .12.2008


Daljit Singh and others                                  ...Petitioners

                          Versus

U.T.Chandigarh and another                                  ... Respondents.

CORAM:       HON'BLE MR. JUSTICE M.M. KUMAR
             HON'BLE MR. JUSTICE JORA SINGH

Present:     Mr. Amit Jain Advocate for the petitioner.
             Mr. N.K.Gupta, Advocate for the respondents


1. Whether Reporters of local papers may be allowed to see the judgement ?
2. To be referred to the Reporter or not ?
3. Whether the judgement should be reported in the Digest ?

M.M.KUMAR, J.

The petitioner was the highest bidder in respect of Plot No.

1199, Sector 19 B, Chandigarh in the open auction held on 10.12.2004. He

deposited 25 percent of the price of the site amounting to Rs. 20 lacs and the

remaining 75 percent was to be paid within a period of 90 days from the

date of auction. On 3.1.2005, allotment letter was issued to him which

stipulated that the petitioner was bound by the Chandigarh (Sale of Sites

and Building) Rules, 1960 (for brevity ‘the Rules’). The petitioner was not

able to retain the site as they could not deposit 75 percent of the amount

within 90 days. They surrendered the site on 3.3.2005 with a written

request. The Assistant Estate Officer vide notice dated 24.3.2005

( Annexure P.2) called upon the petitioners to show cause why penalty @

2.5 percent of the premium alongwith interest be not imposed and

recovered in respect of surrendered site under Rule 7A of the Rules. It is

also pertinent to mention that the petitioner was offered possession on
CWP No. 2964-08 2

3.1.2005 ( Annexure R.1) and they actually took physical possession on

25.1.2005 ( Annexure R.2). Accordingly a sum of Rs. 2 lacs was deducted

from the earnest money of Rs. 20 lacs deposited by the petitioner and Rs. 18

lacs was refunded to them. Thereafter respondents discovered a mistake and

vide letter dated 5.11.2007 issued a show cause notice to the petitioners

requiring them to explain as to why penalty by not charged @ 5 percent as

envisaged under Rule 7A(2) of the Rules. The respondents claimed the

difference of Rs. 3,38,082/-. On the amount of Rs.2 lacs, interest has also

been added amounting to Rs. 1,38,082/- as provided by the Rule 7A of the

Rules. The petitioner contested the claim made by the respondents and also

requested for re-allotment of the plot in case they are to charge 5%.

The basic issue which requires determination in the present

case is whether respondents were entitled to charge penalty @ 5 percent on

the surrender of the site or penalty @ 2.5 percent was rightly charged. In

that regard it would be necessary to read Rule 7(A) of the Rules which reads

as under:

“7-A Surrender of site- (1) A transferee who has already paid

atleast 25% premium of the site, may, before he is offered

possession of the site by the Estate Officer, and within 180 days

of the allotment of the site, whichever is earlier, surrender the

site on payment of 2.5% of the premium as penalty. In this

event, interest at the rate prescribed in rule 10(1) shall be

chargeable on the balance premium due from the transferee for

the period from the date of allotment upto the date of surrender.

The date of surrender under these rules shall be the date when

intimation by the transferee to this effect reaches the Estate

Officer.

CWP No. 2964-08 3

(2) A transferee as mentioned in sub rule (1) above, may

surrender the site within two years of the date of the allotment

on payment of 5% of the premium as penalty. Interest shall be

chargeable from the transferee as provided in sub rule (1)

above. The Estate Officer shall be competent to decide such

cases, as also cases under sub rule (1).”

A perusal of sub rule 1 of Rule 7 A of the Rules show that if the site

is surrendered before the offer of possession and within a period of 180 days

of the allotment whichever is earlier then penalty @ 2.5 % of the premium

is charged. It is thus evident that two conditions are required to be satisfied

for application of sub rule (1). Firstly the surrender by the allottee has to be

before the offer of possession of site by the Estate Officer. Secondly, the

surrender has to be made within 180 days of the allotment of the site. Sub

Rule (1) would not be attracted to the facts of the present case because

possession to the petitioner was delivered on 22.2.2005 ( Annexure R/2)

and offer of possession was made on 3.1.2005.

According to sub rule (2) of Rule 7(A) of the Rules if a

transferee surrender the site within two years of the date of allotment then

penalty @ 5% of the premium is charged and interest would also be

chargeable from him. In the present case, site has been surrendered by

submitting an application on 3.3.2005 which is within 180 days from the

date of allotment of letter which was issued on 3.1.2005 ( Annexure P.1)

and thereafter the process of issuance of notice and personal hearing was

initiated by letter dated 24.3.2005 ( Annexure P.2). The case of the

petitioner would be covered by sub Rule (2) for the simple reason that he

has surrendered the site within a period of two years after taking possession
CWP No. 2964-08 4

and therefore no legal infirmity is discernible in the initiation of

proceedings for charging penalty @ 5 percent vide order dated 5.11.2007

( Annexure P.4).Therefore, we find that the writ petition does not merit

acceptance and is liable to be dismissed.

The claim of the petitioner for re-allotment is also without any

merit because the petitioners were not forced to surrender at any stage. It is

their volunteer act. They have undertaken to abide by the Rules and

accordingly the penalty on surrender has to be paid by them. Moreover, the

period of more than three years have passed and the re-allotment could not

be ordered as the situation has completely undergone change. Therefore, we

reject the claim made.

For the reasons mentioned above, this petition fails and the

same is dismissed.





                                            (M.M.Kumar)
                                              Judge



                                            (Jora Singh)
3 .12.2008                                   Judge

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