STATE BANK OF INDIA Vs. CHANDIGARH ADMINISTRATION

JUDGEMENT

(1.) THIS is a petition for quashing orders dated 7.4.1982, 26.6.1984/3.8.1984 and 6.12.1989 passed by the Assistant Estate Officer, exercising the powers of Estate Officer, Union Territory, Chandigarh; Chief Administrator and Advisor to the Administrator, Union Territory, Chandigarh, respectively under the Chandigarh Lease Hold of Sites and Building Rules, 1973 (for short 'the Rules') and also for quashing notices dated 18.8.1999 and 29.5.2001 issued by the Land Acquisition Officer, exercising the powers of Estate Officer under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (for short 'the 1971 Act').

(2.) THE background facts : On the basis of the highest bid of Rs. 1,72,500/- given by respondent No. 6 Smt. Inderjit Kaur in the auction held on 28.8.1979 by Chandigarh Administration, SCO Site No. 220, Sector 37-C & D, was allotted to her subject to terms and conditions embodied in allotment letter Annexure PI dated 11.11.1979. The amount of Rs. 43,125/- deposited by her at the time of auction was adjusted towards 25% of the premium. In terms of para 5 of the allotment letter, she was required to pay the balance premium in three equated instalments of Rs. 49298.36 with annual ground rent for first 33 years at the rate of Rs. 4312.50, but after taking possession of the site and constructing building, she did not pay the first instalment which became due on 28.10.1980. This led to the initiation of action for cancellation of lease. The Assistant Estate Officer issued notice dated 16.10.1981 under Rule 12(3) of the Rules requiring respondent No. 6 to pay the instalments which had become due, but she ignored the same. Therefore, by an order dated 7.4.1982 (Annexure P6), the Assistant Estate Officer cancelled the lease and forfeited 10% of the premium with ground rent and interest. The appeal filed by respondent No. 6 under Rule 22 of the Rules was disposed of by the Chief Administrator, Union Territory, Chandigarh vide order dated 26.6.1984 by giving her an opportunity to pay the entire amount together with interest and ground rent within a period of 30 days. The operative part of the appellate order reads as under :

(3.) IN the written statement filed on behalf of respondents No. 1 to 5, it has been averred that the order cancelling the lease was passed by the Assistant Estate Officer after giving due notice and opportunity of hearing to the allottee. In paragraph 6 of the written statement it has been averred that neither the petitioner nor respondent No. 6 had informed Chandigarh Administration about leasing out of a part of the premises to the petitioner and, therefore, the cancellation of lease cannot be nullified on the ground of violation of rules of natural justice.