KAMLA RANI Vs. PUNJAB HOUSING DEVELOPMENT BOARD CHANDIGARH

JUDGEMENT

(1.) The petitioner is aggrieved by the order dated 24/02/1988, by which an amount of Rs. 2,000.00 deposited by her as earnest money for the allotment of a dwelling unit has been ordered to be forfeited. A copy of this order is at Annexure P.5. A few facts relevant for the decision of the case may be noticed.

(2.) In the year 1981 the petitioner submitted an application to the Punjab Housing Development Board (hereinafter referred to as 'the Board') for the allotment of a dwelling unit. Along with the application she deposited an amount of Rs. 2000.00 as earnest money. After six long years, the petitioner was informed vide letter dated 17/03/1987 that a dwelling unit of MIG category had been allotted to her in Phase XI SAS Nagar. A copy of the order of allotment is at Annexure P1 with the writ petition. Vide letter dated 14/04/1987 (Annexure P.2), the petitioner requested the Housing Commissioner of the Board to allot the unit on the ground floor as on account of medical reasons it was not possible for her to climb stairs. A medical certificate was enclosed with the application. In response to this letter, the petitioner was called upon to deposit the due amount first and further informed that her request for allotment of a ground floor house will be "considered afterwards". A copy of this letter is at Annexure R/1/2 with the written statement. The petitioner did not deposit the amount, but vide her letter dated 17/10/1987, she requested the Housing Commissioner to refund the earnest money deposited by her. In response to this letter, she was informed vide letter dated No 11/11/1987, (Annexure P.4) that since she had failed to complete the initial formalities mentioned in the allotment letter within the stipulated period, the "allotment in her favour is cancelled." She was further informed that "You may seek refund of earnest money deposited by you by surrendering original receipt(s). Also furnish pre-receipt (copy enclosed) duly completed and signed by you on revenue stamp of 20 paise but leaving the amount column blank, which shall be filled in by the Accounts Wing before the cheque is issued." Thereafter vide letter dated 24/02/1988, she was informed that the earnest money "is liable to be forfeited to the extent of 20 per cent and you are also liable to pay interest @ 18 per cent on the price of the house from the date of allotment till the date of cancellation. Thus in all a sum of Rs. 400.00 on account of earnest money and Rs. 7329.30 ps. on account of interest are liable to be recovered from you. You have, however, deposited only a sum of Rs. 2,000.00 as earnest money. In the circumstances of this case, it has been decided to forfeit the amount deposited by you as earnest money i.e. Rs. 2000.00 only." The validity of this order has been questioned in this petition.

(3.) In the written statement filed on behalf of the respondent the impugned order has been justified with reference to Clause 17 of the terms and conditions of allotment. The said clause reads as under :-