DILBAG SINGH Vs. STATE OF PUNJAB & OTHERS

JUDGEMENT

(1.) The petitioner participated in an auction conducted by Respondent No.2/Corporation on 20.4.2010 for sale of commercial site/single storey shops in Industrial Area, Phase 8, Sector 72, Mohali for general purposes. Being the highest bidder he was allotted a shop for a total consideration of Rs. 1,12,58,000/-. He deposited 10% of the aforesaid amount promptly and was required to pay another Rs. 16,88,700/- within 30 days thereafter, which he did so on 24.5.2010. The possession of the site was thereafter, delivered to him. The balance amount of Rs. 84,43,500/- was payable in four equal annual instalments of Rs. 21,10,875/- each along with interest at the rate of 12 % per annum. As per the terms of Allotment, he was required to complete the construction of his building at the site within two years. He claims to have completed the construction after spending an amount of Rs. 20 lacs for such purpose and informed the respondent No.2 accordingly. He also claims to have kept on depositing money with the respondent/Corporation and the total amount so deposited till the filing of the Writ Petition was Rs. 49,05,500/-. However, the respondent/Corporation issued a notice dated 4.10.2012 to him for his failure to deposit the instalments in time. It was also alleged in the notice that he had not constructed the building as per the approved building plans and had thereby committed breach of Clause 11 of the Allotment Letter. He was therefore, given time to remove the violations committed by him by way of deviation from the standard plan/building bye-laws of the Corporation. The time for this purpose was subsequently extended upto 10.11.2012 vide a subsequent letter dated 26.10.2012.

(2.) Thereafter on 7.12012, the respondent/Corporation cancelled the allotment of the shop by its order, which is Annexure P-7 to the Writ Petition.

(3.) He thereafter filed CWP No.26041 of 2012 challenging such cancellation. A Coordinate Bench of this Court did not issue any formal notice on the petition, but allowed the petitioner to pay the entire amount due towards him along with interest/penal interest within two months, in which case, the respondent/Corporation would ostensibly restore the site back to him. He however, failed to comply with the undertaking in this regard given by him before the Court. His aforesaid Writ Petition was finally dismissed on 19.7.201 Yet the Court granted him liberty to make a representation for refund of the amount deposited by him, a part of which had been forfeited. He accordingly submitted such representation vide letter dated 28.2013 which was however, rejected by the respondent/Corporation vide its letter dated 10.9.2013 and out of the total amount of Rs. 49,05,500/- deposited by him, the respondent/Corporation forfeited an amount of Rs. 39,66,589/-. The concerned rejection order is Annexure P-11 to the Writ Petition. The petitioner thereafter submitted another representation dated 10.2013 reiterating his request for reducing the amount of forfeiture to not more than 10% of the total consideration price. But no action was taken upon the same by the respondent/Corporation on account of which he filed this Writ Petition praying for issuance of an appropriate writ, order or direction in the nature of certiorari to quash the impugned letter dated 10.9.2013 (Annexure P-11) passed by the respondent/Corporation, apart from a direction in the nature of mandamus upon the Corporation for not forfeiting any amount exceeding 10% of the total sale consideration including interest/penal interest and other payable dues.