Hemant Gupta, J. - (1.) THE challenge in the present writ petition is to an order passed by the Executive Officer, Notified Area Committee, Mani Majra (U.T.) Chandigarh on 13.8.1992, whereby booth site purchased in open auction was resumed and the amount deposited forfeited.
(2.) THE petitioner was the highest bidder in the auction held on 7.1.1990 for the purchase of booth site No. 789, Motor Market and Commercial Complex, Mani Majra. The petitioner paid a sum of Rs. 76,000/ - towards 25% of the cost of the site. The balance 75% was to be deposited in three annual equated installments. However, the petitioner did not deposit any of the three equated annual installments in spite of numerous show cause notices. Subsequently, an order was passed by the Executive Officer of the Notified Area Committee, resuming booth site No. 789 and forfeited whole amount deposited in exercise of powers conferred under Clause 7 of the letter of allotment. The said relevant clauses from the letter of allotment read as under : - 1 to 6. xxxxx xxxxx xxxxx 7. In case the installment is not paid by the 10 following the month in which it falls due, a show cause notice shall be served calling upon the allottee to deposit the installment and to show cause why penal interest @ 15% P.A. on the amount of installments should not be charged from him. If he fails to comply with the terms of Show Cause Notice, the President of the Committee shall proceed to take action for resumption of plot without any further notice. However, in exceptional circumstances, the President may grant extension for payment of the installment with penal interest @ 15% P.A. for a period not exceeding six months in all. 8 to 9. xxxxx xxxxx xxxxx 10. If at any stage the transferee(s) due to certain compelling circumstances, would like to surrender the site, he/she/they shall be allowed to do so with prior permission from the President of the Committee and the surrender would be subject to forfeiture of 10% of the amount out of 25% of the cost paid at the fall of the hammer. The interest amount recovered upto the date of surrender shall not in any case be refunded. The learned counsel for the petitioner vehemently argued that in terms of condition 7, it is the President of the Notified Area Committee, which is competent to take action for resumption of plot, whereas the action has been taken by Executive Officer. It is also argued that though, there is power of resumption of booth of the site, but there is no power of forfeiture of the amount deposited. Therefore, the action of the respondents in forfeiting the entire amount deposited by the petitioner is not sustainable.
(3.) IN a short reply filed, the stand is that, vide resolution dated 10.5.1990, the powers of the Committee have been conferred upon the Executive Officer under the Punjab Municipal Act, 1911. It is also mentioned that powers have been delegated to an Executive officer as contained in Schedule I of Punjab Municipal Executive Officers Act, 1931.;