S SHARAN PAL Vs. ADVISOR TO ADMINISTRATOR

JUDGEMENT

(1.) Challenge in the present writ petition is to the order passed by Chandigarh Housing Board on 26.9.2008 (Annexure-P.6) and the order in revision dated 4.3.2009 (Annexure-P.8), whereby 2.5% of the premium as penalty and interest at the rate of 10% on the entire balance premium due from the petitioners was deducted while making payment of the refund of the 25% bid amount deposited by the petitioner. The respondents conducted public auction in respect of commercial properties in Sector 34-A, Chandigarh. The petitioners were the highest bidder of site Nos. 172 - 174 in City Sub-Centre, Sector 34-A, Chandigarh having given bid of Rs. 16,41,00,000/-. The petitioners deposited 25% of the premium i.e. amount of Rs. 4,10,25,000/- at the time of auction. The remaining amount was payable within 90 days without interest and with interest in terms of Rule 12, sub-rule (3-A) of the Chandigarh Lease Hold of Sites and Building Rules, 1973 (hereinafter referred to as 'the Rules') thereafter.

(2.) The petitioners submitted a request for surrender of the plot on 5.5.2006, which was received in the office of the Board on 8.S.2006 i.e. 89th day. The petitioners were refunded an amount of Rs. 3,39,55,212/- after deducting a sum of Rs. 70,69,787/- as penalty @2.5% and 10% interest on the remaining 75% premium in terms of the following condition in the letter of allotment:

(3.) The petitioners disputed the said deduction before the Chairman, Chandigarh Housing Board, Chandigarh which was dismissed on 26.9.2008 and the further revision was dismissed by the Adviser to the Administrator, U.T., Chandigarh on 4.3.2009.