DALJIT SINGH Vs. UNION TERRITORY CHANDIGARH

JUDGEMENT

(1.) Leave granted.

(2.) Feeling aggrieved by order dated 3.12.2008 passed by the Division Bench of Punjab and Haryana High Court refusing to quash the proceedings initiated by the Chandigarh Administration under Rule 7-A(2) of the Chandigarh (Sale of Sites and Buildings) Rules, 1960 (for short, 'the Rules') for recovery of Rs.3,38,082/- in lieu of the surrender of residential plot sold to them, the appellants have preferred this appeal.

(3.) On the basis of highest bid of Rs.80 lacs given by them in the open auction conducted by the Chandigarh Administration, residential site No.1199, Sector 19-B was sold to the appellants subject to the conditions enumerated in letter dated 3.1.2005 issued by the Estate Officer, Union Territory, Chandigarh (respondent No.2). The appellants deposited Rs.20 lacs representing 25% of the bid money. They took physical possession of the site on 25.1.2005 (in the impugned order, the date of delivery of possession has been mentioned as 22.2.2005) but surrendered the same on 3.3.2005 by stating that due to unavoidable reasons they were not in a position to retain the site. Upon receipt of the appellants' request for surrender, respondent No.2 issued letter dated 24.3.2005 and called upon them to show cause as to why penalty @ 2.5% of premium may not be imposed and recovered under Rule7-A of the Rules. The appellants did not contest the notice. Rather, appellant No.1 appeared before respondent No.2 and pleaded that the request for surrender be accepted subject to the condition specified in the notice. Thereupon, respondent No.2 passed order dated 20.4.2005 whereby he accepted the surrender of the site and imposed penalty in terms of the show cause notice.