{"id":123466,"date":"2008-12-19T00:00:00","date_gmt":"2008-12-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-s-g-steels-pvt-ltd-vs-haryana-urban-development-on-19-december-2008"},"modified":"2017-07-29T17:15:16","modified_gmt":"2017-07-29T11:45:16","slug":"ms-s-g-steels-pvt-ltd-vs-haryana-urban-development-on-19-december-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-s-g-steels-pvt-ltd-vs-haryana-urban-development-on-19-december-2008","title":{"rendered":"M\/S S.G. Steels Pvt. Ltd vs Haryana Urban Development … on 19 December, 2008"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
M\/S S.G. Steels Pvt. Ltd vs Haryana Urban Development … on 19 December, 2008<\/div>\n
CWP No.3689 of 1984                                       -: 1 :-\n\n\n      IN THE HIGH COURT FOR THE STATES OF PUNJAB AND\n                  HARYANA AT CHANDIGARH\n\n\n                                      CWP No.3689 of 1984\n                                      Date of decision: December 19, 2008.\n\n\nM\/s S.G. Steels Pvt. Ltd.\n                                                          ...Petitioner(s)\n\n            v.\n\nHaryana Urban Development Authority & Anr.\n\n                                                          ...Respondent(s)\n\n\nCORAM:HON'BLE MR. JUSTICE SURYA KANT\n\n\n1. Whether Reporters of local papers may be allowed to see the judgment ?\n2. Whether to be referred to the Reporters or not ?\n3. Whether the judgment should be reported in the Digest?\n\nPresent:    Shri D.S. Nehra, Senior Advocate, with\n            Shri Karan Nehra, Advocate for the petitioner.\n\n            None for the respondents.\n\n\n                                 ORDER\n<\/pre>\n
Surya Kant, J. –\n<\/p>\n
            In this civil writ petition, the petitioner-industry seeks quashing<\/p>\n
of the notices dated 6.11.1979 and 21.11.983 (Annexures P-3 & P-5) as also<\/p>\n
a restraint order against the Haryana Urban Development Authority (in short<\/p>\n
the HUDA) from recovering a sum of Rs.3,84,413\/- as an additional amount<\/p>\n
towards the sale price of plot No.6, Sector IV Industrial-cum-Housing<\/p>\n
Estate, Ballabgarh, District Faridabad. A direction for not cancelling the<\/p>\n
allotment of the aforementioned plot has also been sought.<\/p>\n
            Briefly stated, the facts are that plot No.6, Sector IV, Industrial-
\n CWP No.3689 of 1984                                      -: 2 :-<\/span><\/p>\n
cum-Housing Estate, Ballabgarh, District Faridabad was allotted to M\/s<\/p>\n
Santokh Singh Gurmukh Singh Steel Re-rolling Mills, i.e., the petitioner<\/p>\n
vide allotment letter dated 4.5.1966, followed by the Deed of Conveyance<\/p>\n
dated 15.10.1971 between the parties. The total area of the plot is 4.42<\/p>\n
acres, i.e., 21,433.33 sq. yards and it was allotted @ Rs.8\/- per square yard.<\/p>\n
In the allotment letter dated 4.5.1966 (Annexure P-1), it was specifically<\/p>\n
stipulated that the above mentioned rate was “tentative price” and as per<\/p>\n
condition No.8 of the allotment letter, “in case of enhancement of<\/p>\n
compensation by the Court”, the allottee was required to pay the additional<\/p>\n
price. Similarly, the Deed of Conveyance dated 15.10.1971 (Annexure P-<\/p>\n
2),   expressly stipulated that “vendor reserves the right to enhance the<\/p>\n
tentative price by the amount of the additional price determined in<\/p>\n
accordance with the said rules”.\n<\/p>\n
            The petitioner thereafter was served with a notice dated<\/p>\n
6.11.1979 asking payment of the enhanced compensation.             The notice<\/p>\n
stipulated that due to enhancement of compensation by the District\/High<\/p>\n
Court of the acquired land, the petitioner-allottee was liable to pay an<\/p>\n
additional amount of Rs.66.443.32, i.e., Rs.3.10 per square yard. At this<\/p>\n
stage, it may be mentioned that the allotted plot was carved out of a big<\/p>\n
chunk of land measuring 609.23 acres of villages Ballabgarh, Mujesar and<\/p>\n
Sihi which was acquired by the then Punjab Government on 23.8.1962.<\/p>\n
            The petitioner received yet another notice dated 2.3.1983<\/p>\n
whereby it was asked to pay an additional amount of Rs.3,49,467.58 on<\/p>\n
account of “payment of enhanced compensation (first and second with<\/p>\n
interest)”. Since the petitioner failed to deposit the said amount, a 10%<\/p>\n
penalty, i.e., Rs.34,946.75 was also slapped on it.     Vide an order dated
\n CWP No.3689 of 1984                                     -: 3 :-<\/span><\/p>\n
16.6.1983 (Annexure P-3 Colly), followed by the show cause notice dated<\/p>\n
13.9.1983 (Annexure P-4), the petitioner was called upon to show cause as<\/p>\n
to why the plot should not be resumed for non-payment of the additional<\/p>\n
allotment price.\n<\/p>\n
            The petitioner contested the aforesaid show cause notice and it<\/p>\n
appears that soon after it was afforded an opportunity of personal hearing on<\/p>\n
29.11.1983, the petitioner approached this Court apprehending the<\/p>\n
resumption of the plot due to non deposit of the additional amount.<\/p>\n
            When this matter came up for preliminary hearing on<\/p>\n
22.8.1984, a Division Bench of this Court stayed resumption of the plot till<\/p>\n
further orders. The writ petition was thereafter dismissed in limine on<\/p>\n
29.11.1984. Aggrieved, the petitioner approached the Hon’ble Supreme<\/p>\n
Court and their Lordships vide order dated 3.5.1993 passed in Civil Appeal<\/p>\n
No.2488 of 1993 allowed the petitioner’s appeal and remanded the case to<\/p>\n
this Court for a fresh decision. Till then, recovery of the disputed amount<\/p>\n
was also stayed.\n<\/p>\n
            It may, however, be mentioned here that the petitioner has now<\/p>\n
moved CM No.14222 of 2008 for issuance of a direction to the respondents<\/p>\n
“to permit the petitioner to deposit an amount of Rs.2,34,695\/- without<\/p>\n
prejudice to the right of the petitioner….”. The aforesaid application has<\/p>\n
also been heard along with the main case.\n<\/p>\n
            The respondents have filed their counter affidavit.       Relying<\/p>\n
upon the definition of “additional price” as contained in rule 2 (aa) of the<\/p>\n
Punjab Urban Estates (Sale of Site) Rules, 1965, their prime contention is<\/p>\n
that the petitioner has been asked to deposit the additional price as<\/p>\n
determined in accordance with the Rules. They have further referred to
\n CWP No.3689 of 1984                                       -: 4 :-<\/span><\/p>\n
Regulation 4 of the Haryana Urban Development (Disposal of Land and<\/p>\n
Buildings) Regulations, 1978 to contend that the allotment of the land on<\/p>\n
tentative price was made to the petitioner on the principle of non profit, no<\/p>\n
loss.\n<\/p>\n
            On merits, para 5 of the written statement reads as follows:-<\/p>\n
                     “5. That this very point raised in CWP No.801 of 1978 –<\/p>\n
                     Harbans Lal Taneja etc. v. State of Haryana and others<\/p>\n
                     decided on 22.7.1981. It was held that the petitioners are<\/p>\n
                     liable to pay additional price. CWP No.3999 of 1979 and<\/p>\n
                     4333 of 1979 were filed by M\/s Gurewal (India) Limited<\/p>\n
                     in this Hon’ble High Court against the demand of<\/p>\n
                     additional price. The same was dismissed by Division<\/p>\n
                     Bench of this Hon’ble High Court (copy enclosed). M\/s<\/p>\n
                     Gurewal (India) Limited filed SLP No.486-87 of 1980 in<\/p>\n
                     the Hon’ble High (Supreme) Court against the order of<\/p>\n
                     this Hon’ble High Court of Punjab and Haryana. The<\/p>\n
                     Hon’ble Supreme Court also dismissed the same on<\/p>\n
                     14.10.1981. This writ petition may also be dismissed in<\/p>\n
                     view of the judgment of M\/s Gurewal (India) Limited.”<\/p>\n<\/blockquote>\n
            I have heard Learned Counsel for the Petitioner at some length<\/p>\n
and perused the pleadings. No one, however, has put in appearaance on<\/p>\n
behalf of the respondents to assist the Court.\n<\/p>\n
            In the year 1966, when the subject plot was allotted to the<\/p>\n
petitioner, the price used to be determined in accordance with the provisions<\/p>\n
of the Punjab Urban Estates (Sale of Sites) Rules, 1965. Rule 4 thereof<\/p>\n
reads as follows:-\n<\/p>\n
 CWP No.3689 of 1984                                        -: 5 :-<\/span><\/p>\n
                   “Sale Price:- (1) In the case of sale of a site by allotment,<\/p>\n
                   the sale price shall be:-\n<\/p><\/blockquote>\n
                   (a) Where such site forms part of the land acquired by the<\/p>\n
                   State Government under the Land Acquisition Act, 1894,<\/p>\n
                   and:-\n<\/p><\/blockquote>\n
                   (i)no reference under Section 18 thereof is made against<\/p>\n
                      the award of the collector or such a reference having<\/p>\n
                      been made has failed the tentative price;<\/p>\n<\/blockquote>\n
                   (ii) on a reference made under Section 18 thereof the<\/p>\n
                      compensation awarded by the Collector is enhanced by<\/p>\n
                      the Court, the aggregate of the tentative price and the<\/p>\n
                      additional price;\n<\/p><\/blockquote>\n
                   (b) in any other case such final price as may be<\/p>\n
                   determined by the State Government from time to time.”<\/p><\/blockquote>\n
             It, thus, appears that the subject plot was allotted on “tentative<\/p>\n
price” for the reason that the acquisition being of the year 1962, the land-<\/p>\n
owners’ claims for enhancement of compensation were pending adjudication<\/p>\n
before one or the other fora. It is only after the decision of those cases that<\/p>\n
the price of the entire land of the Industrial Sector was determined taking<\/p>\n
into account the compensation of the whole land divided by the plotable<\/p>\n
area after making provisions for roads, parks and other amenities.<\/p>\n
Similarly, the respondents are entitled to include the development,<\/p>\n
establishment charges and\/or permissible unforeseen charges while<\/p>\n
determining the price of the land for the entire Sector.<\/p>\n
             The petitioner was allotted the plot on agreed terms and<\/p>\n
conditions. It is explicit in the allotment letter (Annexure P-1) as well as the
\n CWP No.3689 of 1984                                       -: 6 :-<\/span><\/p>\n
Deed of Conveyance (Annexure P-2) that in case of enhancement of<\/p>\n
compensation etc. of the acquired land, the petitioner shall be liable to pay<\/p>\n
the additional amount towards the sale price of the plot. Having accepted<\/p>\n
those terms and conditions, the petitioner cannot question the additional<\/p>\n
demand towards enhanced compensation of the plot. This, however, does<\/p>\n
not mean that the respondents can determine additional price arbitrarily or<\/p>\n
on their whims and fancies. The respondents being public authorities are<\/p>\n
obligated to act in a fair and just manner. What it appears to be is that the<\/p>\n
petitioner has been unreasonably resisting the payment of additional price<\/p>\n
which the respondents unfortunately raised without following a transparent<\/p>\n
procedure. Had the respondents briefly disclosed as to how the additional<\/p>\n
price has been calculated, may be that the petitioner would not have<\/p>\n
objected to its payment. The non-mentioning of the details in the demand<\/p>\n
notice, however, did not absolve the petitioner from its liability to pay the<\/p>\n
additional price and then to contest the mode of determination, if it felt<\/p>\n
aggrieved.\n<\/p>\n
              In the given situation, I am of the considered view that the only<\/p>\n
appropriate    recourse would be to direct the petitioner to deposit the<\/p>\n
additional price as demanded by the respondents by way of notice dated<\/p>\n
2.3.1983 (Annexure P-3) along with the interest which the HUDA has paid<\/p>\n
to the land-owners. On payment of the aforementioned amount within a<\/p>\n
period of one month from the date of receipt of a certified copy of this<\/p>\n
order, the respondent-HUDA authorities shall, within a period of two<\/p>\n
months, provide the petitioner a brief statement of account as to how the<\/p>\n
additional price has been determined. Needless to say that if the authorities<\/p>\n
fail to justify the total demand contained in their notice dated 2.3.1983
\n CWP No.3689 of 1984                                      -: 7 :-<\/span><\/p>\n
(Annexure P-3), the excess amount shall be refunded to the petitioner along<\/p>\n
with interest at the same rate as would be charged from it.<\/p>\n
            Disposed of accordingly.<\/p>\n
\n\n\nDecember 19, 2008.                                  [ Surya Kant ]\nkadyan                                                  Judge\n <\/pre>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court M\/S S.G. Steels Pvt. Ltd vs Haryana Urban Development … on 19 December, 2008 CWP No.3689 of 1984 -: 1 :- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.3689 of 1984 Date of decision: December 19, 2008. M\/s S.G. Steels Pvt. Ltd. …Petitioner(s) v. Haryana […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-123466","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nM\/S S.G. Steels Pvt. 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