(1.) Petitioner purchased Shop -cum -Flat No. 3 (measuring 20 ft. x 80 ft.) in the New Mandi Township. Hoshiarpur, through an auction held on July 9, 1973, by the Administrator, New Mandi Township, Punjab for a sum of Rs. 16,000/ -. As per the terms and conditions of the auction, 25 per cent of the price was payable immediately while the balance amount was payable in six half yearly instalments along with interest chargeable at the rate of 6 per cent per annum. Letter of allotment dated 20.10.1973 was issued by respondent No. 2 in favour of the petitioner.
(2.) Petitioner made a representation to the respondents stating that proper amenities like pucca roads, sewerage and electricity connections have not been laid/provided, as such, the respondent shall not be entitled to charge interest or such like a levies leviable or recoverable from the allottee. However, upon payment of 25 per cent of the price, petitioner was delivered possession of the defined plot. Since the amenities had no been duly provided, the purpose of purchase of the plot could not be achieved accordingly, as such no construction could be commenced. Resultantly, the first three instalments which fell due on April 22, 1974. October 22, 1974 and April 22. 1975 were not deposited by the petitioner.
(3.) Despite the non -payment of the aforesaid instalments, the respondents did not issue any show -cause notice before initiating any penal action by way of resumption of the plot. However, the petitioner came to know that order of resumption dated 27.7.1976 (annexure P -l) had been passed. This fact came to his notice only on 28.12.1981 when he had gone to the office of respondent No. 2 for making payment of the balance amount.