- (1.) The petitioner seeks a writ of mandamus directing the respondents to deliver possession of a Shop-cum-Office (SCO) No.49 as per the terms of an auction held on 26.11.2012. The petitioner has challenged the respondents' demand for interest without delivering possession of the SCO. Lastly, the petitioner seeks an order directing respondent No.2 to grant a rebate of 5 per cent on the total consideration stating that he is ready to pay the entire amount in one lump-sum.
(2.) The petitioner was allotted a site, inter alia, on the following terms and conditions for auction of freehold SCO sites (Annexure P/1):- "2. Intending bidders are required to deposit Earnest Money eligibility fees @ Rs_______/-. The Earnest Money shall be paid in cash or by an account payee demand draft in favour of The Commissioner, Municipal Corporation, Ludhiana payable at Ludhiana against proper receipt issued by the LCIA, M.C. Ludhiana before the Commencement of auction. No person/Company(s) or associations(s) are eligible for participation in the auction, if the prescribed earnest money deposit is not deposited before the commencement of the auction. 3. Earnest money of the unsuccessful bidder shall be refunded at the venue. The successful bidder will be required to pay 10% of the bid amount in cash or by an account payee demand draft in favour of ther Commissioner, Municipal Corporation, Ludhiana payable at Ludhiana on the same day at the fall of hammer OR within one additional working day as the Presiding Officer may permit another 15% amount is to be deposited within 30 days from the date of auction. In case the successful bidder does not deposit the 15% (fifteen percent) amount within 30 (thirty) days to complete 25% amount from the date of auction, then the 10% (ten percent) amount already deposited by him shall be forfeited and the applicant shall have no claim in this regard. The balance 75% amount can be paid either in (06) Six equated half yearly installments within interest at the rate of 12% per annum with lump sum, without interest within 15 days from the date of issue of allotment letter. A rebate of 5% will be allowed on the balance 755 amount (sic) in case it is deposited in lump sum. In case of payment by installments, the first installment will become due immediately after six months from that date of auction. In case the installment has not been deposited in time an additional 18% interest shall be payable by the bidder as the penalty in addition to the 12% interest for the delayed period. The installment shall be accepted only by mean of account payee bank draft in favour of the Commissioner, Municipal Corporation, Ludhiana payable at Ludhiana. Payment by cheque shall not be accepted. If the two installments are not deposited within the prescribed time period then the allotment shall be cancelled and the amount already deposited shall be forfeited. .. .. .. .. 7. The Commissioner, Municipal Corporation, Ludhiana will issue the detailed allotment letter to the successful bidder after the receipt of 25% of bid amount. .. .. .. .. 12. The possession of the site will be given within 60 days from the date of issue of allotment letter. In case the allottee fails to take the possession of the site within the stipulated period, it shall be deemed to have been handed over on the due date. The allottee shall be allowed to undertake construction after the possession of the site as given subject to the approval of the Standard design in accordance with the approved layout plan Clubbing of 3 SCO's should be allowed. 13. The site is offered on "As is where is" basis."
(3.) It was contended on behalf of the petitioner that he was not obliged to pay interest for two reasons. The first is that the Commissioner did not issue the detailed allotment letter to the petitioner after the receipt of 25 per cent of the bid amount from him. The same was paid on 20.06.2013. It was further contended that the respondents had failed to deliver possession of the site within sixty days from the date of issue of the allotment letter. He contended that as the payment of 25 per cent of the bid amount had been made on 20.6.2013, the allotment letter ought to have been given on the same day and that the period of sixty days stipulated in Clause 12 starts from that date. Accordingly, the possession of the site ought to have been handed over to him by 20.08.2013.;