A.D. Koshal, J. - (1.) THE facts giving rise to this petition under Articles 226 and 227 of the Constitution of India are not in dispute. The Government of the erstwhile State of Punjab devised a scheme in pursuance of which a sizable area in Faridabad was set apart for development as an "Industrial -cum -Housing Estate'' wherein plots were to be sold to prespective purchasers on an allotment basis. One such plot measuring 5.01 acres and bearing No. I. P. 12/FBD was allotted to the Petitioner - -a private limited concern - -for setting up a factory there -vide allotment letter, dated the 19th of February, 1964, issued by the Director. Urban Estates, Department of Town and Country Plan -riirjg Punjab, Chandigarh (Annexure "A") on terms and conditions, some of which may be stated. The price payable for the allotment was fixed at Rs. 2,13.390.22, 25 per cent of which was to be paid by the Petitioner within thirty days of the issuance of the letter of allotment, the balance being payable in three equal annual instalments along with interest at the rate of 7 per cent per annum. On payment of the said 25 per cent of the price the Petitioner was to be put into possession of the plot and was to continue to enjoy the right of possession over it so long as it fulfilled the condition regarding payment of instalments or the due dates as also the other conditions governing allotment. The Government retained a first and permanent charge over the plot for any unpaid portion of the price and the Petitioner had no right to transfer the plot till the entire price was paid and the building to be constructed on the plot was completed according to approved plans. After the price had been paid in full, a deed of conveyance was to be condected the expenses incidental to which were to be borne by the Petitioner. In case the Petitioner failed to comply with any conditions of allotment the Government had the right to resume and forfeit the plot.
(2.) THE Petitioner paid 25 per cent of the stipulated price to the Government and obtained delivery of possession of the plot. Later or... a sum of Rs. 1.450 being interest for late payment of the said 25 per cent was also remitted by the Petitioner to the Government. However, the Petitioner considered the conditions governing allotment to be onerous and from time to time represented to different officers of the Government as also to the Minister concerned that the payment of the balance of the price should be allowed to be made in instalmenth. All these representations were turned down. In June. 1964. the Punjab Urban Estates (Development and Reaction) Act. 1964 (hereinafter referred to as the Act) came into force and, by virtue of the powers vested in it by Section 3 of the Act the State Government declared the area known as Industrial -cum -Housing Estate. Faridabad to be an "urban estate" for the purposes of the Act through a notification dated the 27th of April, 1965. In the meantime the first instalment of the unpaid balance of the price of the plot allotted to the Petitioner became due for payment but remained unpaid in spite of demands made in that behalf by the Estate Officer, Urban Estates, Faridabad, Respondent No. 3, who ultimately took action under Section 10 of the Act (see paragraph No. 16 of the affidavit filed by respondend No. 2) and not only cancelled the allotment of the plot made in favour of the Petitioner but also forfeited to the Government the entire amount of Rs. 54,798 which had by then been paid to the Government by the Petitioner (Annexure "J"). The Petitioner preferred an appeal under Section 11 of the Act which was dismissed by the Chief Administrator, Urban Estates, Haryana, Respondent No. 2, (the State of Punjab having been reorganised in the meantime) on 11th of September, 1967, (Annexure "K"). However, a petition for review of the order dismissing the appeal succeeded on the 8th of November, 1968 (Annexure "L") when Respondent No. 2 restored the allotment originally made in favour of the Petitioner subject to the condition that it paid all the instalments due, along with interest at 7 per cent per annum, within thirty days of the date last mentioned. The Petitioner failed to pay the arrears and on the 31st of January, 1969, Respondent No. 3 again took action under Section 10 of the Act. cancelled the allotment of the plot made in favour of the Petitioner and forfeited the amount of Rs. 54,798 to the Government (Annexure "M").
(3.) IN the petition, as originally filed, the Petitioner challenged the orders contained in Annexures "J", "L" and "M" mainly on the following two grounds: (1) The Petitioner had become owner of the plot in dispute as soon as it paid the first instalment of 25 per cent of the price and thereafter no power of cancellation of the allotment remained with the Respondents. (2) Section 10 of the Act which provides for resumption of a plot in an "urban estate" as also for forfeiture of moneys paid by the allottee in respect thereof to the Government is ultra vires of Articles 14, 19 and 31 of the Constitution of India.;