STATE OF PUNJAB Vs. SIMLA RANIW OBHAGWANDASS
LAWS(SC)-1995-3-80
SUPREME COURT OF INDIA (FROM: PUNJAB & HARYANA)
Decided on March 27,1995

STATE OF PUNJAB Appellant
VERSUS
Simla Raniw Obhagwandass Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) This appeal by special leave arises from the order of the High court of Punjab and Haryana dated 26/4/1994 made in CWP No. 2950 of 1994. At an open auction conducted by the appellant the respondent, admittedly, was the highest bidder for a sum of Rs. 1,16,000. 00. He entered into an agreement on 24/11/1981 and got allotment of Booth No. 28 situated in Phase I, Urban Estate, Sahibjada, Ast and penalty was Rs. 1,63,456. 00. By his letter dated 1/12/1993 the respondent admitted the liability and asked 20 days' time for payment and also sought for reduction of rate of interest and penalty. Yet he did not pay even the principal amount. Instead he went to the High court and filed the writ petition challenging the notice. The High court in the impugned order while holding that appellant has discretion, directed to adjust the amount of Rs. 75,000. 00 deposited from time to time as per the orders of the court and the balance of Rs. 26,000. 00 was directed to be received. Feeling aggrieved, against that order this appeal has been filed.
(3.) It is contended by the learned counsel for the appellant that under Rule 13 of the Punjab Urban Estate (Sales of Sites) Rules, 1965 made pursuant to the Punjab Urban Estates (Development and Regulation) Act, 1964 (for short "the Act") , the Estate Officer has been given discretion. It reads thus: "13.Procedure in the case of default. [sections 23 (2 (a) and 3 (2. I In case an instalment is not paid by the transferee by the 10th of the month following the month in which it falls due, a notice shall be served on the transferee calling upon him to pay the instalment within a month together with a sum not exceeding such amount as may be determined by the Estate Officer, by way of penalty. If the payment is not made within the said period or such extended period as may be allowed by the Estate Officer, not exceeding three months in all from the date on which the instalment was originally due, the Estate Officer may proceed to have the same recovered as an arrear of land revenue or to take action under Section 10. ";


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