TERI OAT ESTATES P LIMITED Vs. U T CHANDIGARH
LAWS(SC)-2003-12-58
SUPREME COURT OF INDIA (FROM: PUNJAB & HARYANA)
Decided on December 19,2003

TERI OAT ESTATES (P) LTD. Appellant
VERSUS
U.T., CHANDIGARH Respondents

JUDGEMENT

- (1.) These appeals involving common questions of law and fact were taken up for hearing together and are being disposed of by this common judgement. The short question which arises for consideration in these appeals centres round the power of resumption of land/building of the first respondent in favour of the appellants under the Capital of Punjab (Development and regulation) Act, 1952 read with the Chandigarh Lease Hold of Sites and Buildings Rules, 1973 and the Public Premises (Eviction of unauthorized Occupants) Act, 1971. background FACT :
(2.) The factual matrix of the matter is being noticed from Civil appeal No. 49 of 1999. The site bearing No. SCO 126-127, Sector 34-A, Chandigarh was purchased on lease-hold basis by the appellant in open auction held on 13.3.1988. The purchases amount was to be paid in lump sum and/or in four yearly instalments. In the event of the purchaser opting for payment in instalments, 7% interest was payable. It is not in dispute that 25% of the allotment price was required to be deposited within 30 days of auction and upon compliance of the said term, the Estate Officer, chandigarh, confirmed the lease of the said site in favour of the purchasers vide allotment letter dated 26.4.1988.7% interest, as referred to hereinafter, was leviable on the balance 75% premium as contained in the Letter of Allotment in three equal instalments together with ground rent. Clause 8-A of the said letter of allotment, however, stipulated levy of interest @12% per annum, penalty and power of resumption in the event of delayed payment of instalments upon grant of an opportunity of being heard in the following terms : "8-A.after considering the cause, if any, shown by the lessee in pursuance of the aforesaid notice, the Estate Officer may either allow payment of instalment/rent with penalty which may extend to 100% of the amount due and interest @ 12% P. A. , for the delayed period, the whole/part of the amount already paid. "
(3.) The appellant herein upon entering into possession of the purchased site, constructed, a six storied building including the basement floor. The appellant contended that despite the construction of the said building, it could not immediately be let out to the tenants as the area was under-developed and as parking and approach road had not been provided and furthermore several 'jhuggis' existed near the site.;


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