SURESH JAIN AND OTHERS Vs. UNION TERRITORY, CHANDIGARH AND OTHERS
LAWS(P&H)-2016-1-502
HIGH COURT OF PUNJAB AND HARYANA
Decided on January 11,2016

Suresh Jain And Others Appellant
VERSUS
Union Territory, Chandigarh And Others Respondents

JUDGEMENT

- (1.) The petitioners seek a writ to quash an order dated 12.04.2012 by which respondent No.3-Superintendent, Estate Office, Union Territory, Chandigarh has called upon them to deposit a sum of Rs. 49,13,363/- on account of 'unearned profit' as a condition precedent to the consideration of the petitioners' request for issuance of a 'No Objection Certificate' for transfer of lease hold rights held by petitioner Nos.1 and 2 in favour of petitioner No.3 in respect of an industrial plot. The petitioners have sought the consequential relief directing the respondents to issue a 'No Objection Certificate' for transfer of lease hold rights by petitioner Nos.1 and 2 in favour of petitioner No.3. The petitioners have also sought a declaration that Rule 7(i) of the Chandigarh Estate Rules, 2007 as amended by Chandigarh Estate (Amendment) Rules, 2009 is illegal, arbitrary and discriminatory.
(2.) The case in a nutshell is this. The impugned demand for unearned profits is in accordance with Clause 4 of a lease deed dated 23.10.1974 entered into between petitioners No.1 and 2 and the respondents. This clause is challenged after over 40 years on the ground that the letter of allotment dated 19.06.1972 did not contain such a provision. We have rejected the contention on two grounds. Firstly, Clause 8 of the letter of allotment required the parties to execute a lease deed on such terms as may be directed by the Estate Officer, Chandigarh. The lease deed was executed without protest or demur. The clause is not illegal. It is not open to the petitioners to challenge this clause after over 40 years. Secondly, even assuming that the terms of the letter of allotment and not of the lease deed are applicable, it would make no difference. Clause 18 of the letter of allotment prohibits the petitioners from sub-letting the building. If the respondents agree to relax this clause, they are entitled to do so on such terms and conditions as they desire.
(3.) An industrial plot was leased out by the respondents in favour of petitioner Nos.1 and 2 for a term of 99 years on the terms and conditions contained in a letter of allotment dated 19.06.1972. Clauses 8, 13, and 18 of the letter of allotment read as under:- "8. After making payment of 25% of the premium and taking the possession of the site you will have to execute the lease deed in such manner as may be directed by the Estate Officer, Chandigarh. 13. You shall not sell or otherwise transfer your rights in the site or part thereof for a period of 15 years from the date of completion of the building. If for exceptional reasons you are allowed by the Government to transfer your rights in the site to another party, 50% of the unearned increase in the value of land at the time the plot is allowed to be transferred shall be payable to the Government before registering the transfer. 18. You cannot sublet any portion of the building erected on the said plot (on monthly lease basis) to any other party/person and the building erected on the site shall be used exclusively for the purpose it has been allotted.";


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