{"id":98658,"date":"2009-11-26T00:00:00","date_gmt":"2009-11-25T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/barmalt-india-pvt-ltd-vs-state-of-haryana-and-others-on-26-november-2009"},"modified":"2017-07-22T05:17:18","modified_gmt":"2017-07-21T23:47:18","slug":"barmalt-india-pvt-ltd-vs-state-of-haryana-and-others-on-26-november-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/barmalt-india-pvt-ltd-vs-state-of-haryana-and-others-on-26-november-2009","title":{"rendered":"Barmalt (India) Pvt. Ltd vs State Of Haryana And Others on 26 November, 2009"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
Barmalt (India) Pvt. Ltd vs State Of Haryana And Others on 26 November, 2009<\/div>\n
CWP No.2805 of 2008                                            [1]\n\nIN THE HIGH COURT OF PUNJAB                      AND HARYANA AT\n                CHANDIGARH.\n\n\n\n                              C. W. P. No. 2805 of 2008\n\n                              Date of Decision: 26 - 11 - 2009\n\n\n\nBarmalt (India) Pvt. Ltd.                              ....Petitioner\n\n\n                              v.\n\nState of Haryana and others                            ....Respondents\n\n\n\nCORAM: HON'BLE MR.JUSTICE KANWALJIT SINGH AHLUWALIA\n\n                              ***\n\nPresent:    Mr.Arun Jain, Sr. Advocate with\n            Mr.Vishal Goyal, Advocate\n            for the petitioner.\n\n            Mr.Sunil Nehra, AAG, Haryana\n            for respondent No.1.\n\n            Mr.Raman Gaur, Advocate\n            for respondents No.2 and 3.\n\n                              ***\n\nKANWALJIT SINGH AHLUWALIA, J. (ORAL)\n<\/pre>\n
            Petitioner-company has filed the present writ petition assailing<\/p>\n
the impugned demand of Rs.2,81,46,805\/- on account of external<\/p>\n
development charges.    These external development charges have been<\/p>\n
raised vide demand notices dated 3.12.2007 and 6.2.2008, Annexures P12<\/p>\n
and P14 respectively.\n<\/p>\n
            Since the controversy is under narrow compass, therefore, facts<\/p>\n
which are necessary are stated. The land on which the petitioner-company
\n CWP No.2805 of 2008                                                 [2]<\/p>\n
is having its factory, was notified for acquisition under Section 4 of the<\/p>\n
Land Acquisition Act, 1894 (hereinafter to be referred as, `the Act’).<\/p>\n
Petitioner-company had filed objections under Section 5 of the Act and the<\/p>\n
Government agreed to release land of the petitioner-company on 17.1.1985.<\/p>\n
Clause 2(a) of the agreement executed on 5.12.1984 read as under:-<\/p>\n
             “(a) That the Promisee shall pay proportionate development<\/p>\n
                   charges which shall be a first charge on the said land as<\/p>\n
                   and when required and as determined by the Director in<\/p>\n
                   respect of the external development works which may be<\/p>\n
                   carried out in the area for the benefit of the said land.”<\/p><\/blockquote>\n
             During the pendency of writ petition, Government of Haryana<\/p>\n
issued another policy on 8.7.2002 (hereinafter to be referred as `2002<\/p>\n
Policy’). It is not disputed that case of the petitioner fall under para 3 of the<\/p>\n
policy. Para 3 of 2002 Policy read as under:-\n<\/p>\n
             “3.    Review of development charges in respect of released<\/p>\n
             land only:-\n<\/p><\/blockquote>\n
             In the case of released land it has been decided that full<\/p>\n
             development charges as intimated vide office letter No.22860-<\/p>\n
             72 dated 14.08.96, may not be charged. In such cases it has<\/p>\n
             been decided that internal development charges (I.D.C.) may<\/p>\n
             not be charged and external development charges may be<\/p>\n
             recovered at the following rates:-\n<\/p><\/blockquote>\n
      S.No. Size of land               Zones                 Rates of E.D.C.\n\n      1.     Upto 75 sq. yd. In all three zones         Rs.100\/- per S. yd.\n\n      2.     From 75 sq. yd. High potential zone        Rs.150\/- \"\n             To 500 sq. yd. Medium potential            Rs.125\/- \"\n                             Zone,\n                             Low potential Zone          Rs.100\/- ''\n CWP No.2805 of 2008                                               [3]\n\n\n      3.    More than 500 High potential zone           Rs.200\/- \"\n            sq. yd.       Medium potential              Rs.175\/- \"\n                          Zone,\n                          Low potential Zone            Rs.150\/- ''\n\n<\/pre>\n
            These development charges will be recovered as follows:-<\/p>\n<\/blockquote>\n
            (i)    25% before the land is released.\n<\/p><\/blockquote>\n
            (ii)   75% in six annual installments along with 10% interest<\/p>\n
            per annum.\n<\/p><\/blockquote>\n
            These facilities will also be given to the old cases where<\/p>\n
            beneficiaries have not paid the development charges or have<\/p>\n
            partly paid the development charges which will be adjusted<\/p>\n
            against the amount recoverable as per the above said rates.<\/p>\n
            These development charges will be valid upto 31.12.2002 after<\/p>\n
            which simple interest @ 10% will be added per annum.”<\/p>\n<\/blockquote>\n
On the last date of hearing, Accounts Officer, Estate Office-II, HUDA,<\/p>\n
Gurgaon submitted a calculation chart regarding the amount payable by the<\/p>\n
petitioner-company. For facility of reference calculations furnished to this<\/p>\n
Court are reproduced below:-\n<\/p>\n
           Total (EDC) cost                  Rs.1,29,89,350.00\n           As on 31.12.02 (As per HUDA\n           policy dt. 08.07.02)\n           Paid 13.10.1997 =Rs.601991.00    Rs.31,01,991.00\n           Paid 06.02.2001 =Rs.2500000.00\n                                            Rs.98,87,359.00\n<\/pre>\n
           Delay interest @ 14% from Rs.41,52,691.00
\n           01.01.03 to 31.12.2005 on
\n           Rs.98,87,359.00 (3 years)
\n           Delay interest @ 12% from Rs.38,56,070.00
\n           01.01.06    to    31.3.09   on
\n           Rs.98,87,359.00 (39 Months)
\n           Delay interest @ 15% from 11,12,328.00
\n           01.04.09    to    31.12.09 on
\n           Rs.98,87,359.00 (9 Months)
\n           Total recoverable                1,90,08,448.00
\n CWP No.2805 of 2008                                             [4]<\/p>\n
                  Mr.Arun Jain. Senior Advocate appearing for the<\/p>\n
     petitioner-company state that as per para 3 of 2002 Policy, after<\/p>\n
     Rs.200\/- per square yards are paid as external development charges,<\/p>\n
     only 10 per cent simple interest can be added per annum. Therefore,<\/p>\n
     as per calculation charge an error has been committed by the<\/p>\n
     respondents to charge 14 per cent, 12 per cent and 15 per cent interest<\/p>\n
     for different periods. To controvert this, Mr.Raman Gaur has stated<\/p>\n
     that 2002 Policy is to be read along with policy dated 14.8.1996<\/p>\n
     (hereinafter to be referred as, `1996 Policy’) which has been attached<\/p>\n
     as Annexure R3\/1 with the written statement. 1996 Policy regarding<\/p>\n
     old cases read as under:-\n<\/p>\n
           “Old Cases<\/p>\n<\/blockquote>\n
           i)     25% within 30 days from the date of communication.<\/p>\n<\/blockquote>\n
           ii)    Balance 75% in lump-sum within 120 days of the date of<\/p>\n
                  communication without interest.\n<\/p><\/blockquote>\n
                                     Or<\/p>\n
            In 4 equal annual instalments along with interest @ of 15% p.a.<\/p>\n
            or such higher rate as may be decided by the State Govt.\/<\/p>\n
            Authority from time to time. In case the payment is not made in<\/p>\n
            time penal interest @ 18% p.a. Shall be leviable as per the<\/p>\n
            policy of the Authority or such higher rate of interest as may be<\/p>\n
            decided by the State Govt.\/Authority from time to time.<\/p>\n<\/blockquote>\n
                  You are, therefore, requested to take necessary action<\/p>\n
            recover the development charges from the released land and the<\/p>\n
            cases of change of land use in the fresh cases as well as old<\/p>\n
            cases according to the above decision of the Authority.\n<\/p><\/blockquote>\n
 CWP No.2805 of 2008                                                [5]<\/p>\n
                   You are also requested to send the statement of old cases<\/p>\n
             in the placed below Performa within one month where lands<\/p>\n
             has been released and the change of land use has been allowed<\/p>\n
             so that the development charges are worked out according to<\/p>\n
             the decision of the Authority and intimated to you for its<\/p>\n
             recovery from beneficiaries.”<\/p><\/blockquote>\n
            Mr.Jain has stated that if 10 per cent interest is applied to the<\/p>\n
calculation chart furnished by the Accounts Officer, then the amount which<\/p>\n
is to be paid as on 31.12.2009 comes to Rs.1,68,08,510\/-. He submitted that<\/p>\n
this amount shall be paid on or before 31.12.2009 by the petitioner-<\/p>\n
company. Regarding the remaining amount which comes to Rs.22 lacs,<\/p>\n
there is a dispute between the parties regarding the rate of interest to be<\/p>\n
applied.\n<\/p>\n
            Counsel for the parties are in agreement that for determination<\/p>\n
of the amount due, the matter can be referred to the Arbitrator.<\/p>\n
            In Civil     Writ   Petition   No.8685    of   2008,    the   Chief<\/p>\n
Administrator, Haryana Urban Development Authority appeared before this<\/p>\n
Court and made a statement regarding amicable resolution of the dispute<\/p>\n
where HUDA is a party. It will be apposite here to reproduce a portion of<\/p>\n
the statement made by the Chief Administrator:-<\/p>\n
                   “It is further submitted that where there is delay in<\/p>\n
            payment, according to Schedule, and in case the allottees are<\/p>\n
            ready to make the payment, to facilitate the same, Haryana<\/p>\n
            Urban Development Authority has adopted a policy that after<\/p>\n
            April 2000 simple interest will be charged earlier thereto<\/p>\n
            compound interest is liable to be paid. Mr.Gupta states that
\n CWP No.2805 of 2008                                              [6]<\/p>\n
            necessary policy will be formulated qua the interest which is to<\/p>\n
            be calculated and charged before 2000 so that Permanent Lok<\/p>\n
            Adalat is able to arrive at amicable resolution of the dispute.<\/p>\n<\/blockquote>\n
                  Mr.Gupta has further stated that in those cases where<\/p>\n
            recovery of the amount has been stayed by this Court and cases<\/p>\n
            are pending for last more than three years, the concerned officer<\/p>\n
            of the Haryana Urban Development Authority will be<\/p>\n
            authorisied to waive off penal\/compound interest and<\/p>\n
            allottee\/housing society will be provided an opportunity to pay<\/p>\n
            the amount in instalments. He has further submitted that in all<\/p>\n
            other cases where plots have been resumed taking into<\/p>\n
            consideration that dispute ought to be resolved Haryana Urban<\/p>\n
            Development Authority will adopt a positive approach.”<\/p><\/blockquote>\n
            Copy of the order dated 16.11.2009 passed in Civil Writ<\/p>\n
Petition No.8685 of 2008 is taken on record.         The parties are also in<\/p>\n
agreement that any retired Judge of this Court who is a member of<\/p>\n
Permanent Lok Adalat may be appointed as Arbitrator. Accordingly, the<\/p>\n
Senior Most Presiding Judge of the Lok Adalat may himself act as an<\/p>\n
Arbitrator or assign the matter to any other Judge who is a member of<\/p>\n
Permanent Lok Adalat. The Arbitrator shall fix his own remuneration. The<\/p>\n
remuneration of the Arbitrator shall be paid by the petitioner-company. The<\/p>\n
Arbitrator shall take into consideration Annexure P16, 2002 Policy and<\/p>\n
Annexure R3\/1, 1996 Policy along with order dated 16.11.2009 passed by<\/p>\n
this Court in Civil Writ Petition No.8685 of 2008. The Arbitrator shall<\/p>\n
decide the matter within two months from the date of receipt of certified<\/p>\n
copy of this order. The parties are also in agreement that decision of the
\n CWP No.2805 of 2008                                           [7]<\/p>\n
Arbitrator shall be binding upon them. With these observations, the present<\/p>\n
writ petition is disposed of.\n<\/p>\n<\/p>\n
                                ( KANWALJIT SINGH AHLUWALIA )
\nNovember 26, 2009.                        JUDGE
\nRC\n <\/p>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court Barmalt (India) Pvt. Ltd vs State Of Haryana And Others on 26 November, 2009 CWP No.2805 of 2008 [1] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C. W. P. No. 2805 of 2008 Date of Decision: 26 – 11 – 2009 Barmalt (India) Pvt. Ltd. ….Petitioner v. State of […]<\/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-98658","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nBarmalt (India) Pvt. 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