JAGMOHAN SINGH Vs. STATE OF PUNJAB
LAWS(SC)-2008-4-161
SUPREME COURT OF INDIA
Decided on April 29,2008

JAGMOHAN SINGH Appellant
VERSUS
STATE OF PUNJAB Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) First respondent invited applications for allotment of 3950 free hold residential plots in Sector 76-80, SAS Nagar, Mohali. Appellant applied for allotment of a plot measuring 500 sq. yards on 13.1.2001. He deposited the requisite earnest money therefor being a sum of Rs.1,87,500/-. He was successful at the draw of lots for allotment of a plot which was held on 30.3.2001. A letter of intent was issued on the same day. Before the said draw of lots, a brochure was issued which, inter alia, contained the following clauses : "2.REFUND OF EARNEST MONEY In case applicants asks for refund before draw of lots for issuance of letter of intent, refund shall be allowed after deducting the processing fee of Rs.500/-. Unsuccessful applicants shall be refunded their earnest money after 90 days from date of draw. However, interest @ 10% per annum shall be allowed for the period beyond 181st day in case refund is made after 180 days. In case, the successful applicant refuses to accept the offer of allotment and his refusal is received after the draw of lots and within 90 days of issue of letter of intent 10% of earnest money deposited shall be forfeited and balance will be refunded to him without interest. In case refusal is received after 90 days, the entire money deposited shall be forfeited." The letter of intent contained the following terms and conditions : "You are requested to deposit 15% amount i.e. Rs.2,81,250.00 of the above price within 60 days of the date of issue of this letter. This period of 60 days can be further extended by 30 days by the undersigned on your request. This extension will be subject to payment of interest @ 2% per month (calculated on daily basis for the period of delay beyond 60 days) on the amount due. All payments should be made in the shape of crossed bank draft in favour of "Estate Officer, PUDA, SAS Nagar", payable at SAS Nagar/Chandigarh. 5. You are also requested to submit an affidavit (specimen provided along with the application form) attested by a Magistrate that you or your spouse or any minor child do not own any residential plot/house/flat (except ancestral property) in Urban Estate, SAS Nagar (Mohali). 6. In case your application is as a member of any reserved category, you will also have to submit the proof (as per brochure) of belonging to that catgegory. 7. Further, if you, including your family members, have got more than one plot at SAS Nagar (Mohali) through this scheme, you will be allowed to retain only one plot and you will have to surrender extra plot(s) within 60 days of issue of Letters of Intent. In case this intimation is received by undersigned within the specified period, the earnest money of plot surrendered shall be refunded after deducting processing fee of Rs.500/-. If you fail to inform the undersigned in this regard and the fact of multiple allotments is detected at a later stage, all Letters of Intent/Allocation Letters/Allotment Letters will be deemed to have been cancelled and the amount deposited with PUDA shall be forfeited. 8. In case you are not interested in accepting this offer of allotment, you may send your refusal to undersigned within 90 days of issue of this letter. In this case, 10% of Earnest Money deposited shall be forfeited and the balance shall be refunded to you without interest. 9. In case you neither deposit money within 90 days as per Point No.4 above nor give your refusal to accept this offer within 9 days, the entire earnest money deposited by you shall be forfeited."
(3.) The matter relating to allotment of plots admittedly is governed by Punjab Regional and Town Planning and Development Authority Act, 1995 (The Act). Section 2(m) of the Act defines "transferee" to mean 'a person including a firm or other body of individuals, whether incorporated or not, to whom a site or building is sold, leased or transferred under this Act and includes his successors and assignees'.;


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