MANMOHAN KUMAR GARG Vs. ASSISTANT ESTATE OFFICER

JUDGEMENT

(1.) This order shall dispose of the above mentioned four writ petitions, wherein challenge is made to the order passed by the respondents cancelling auction in favour of the petitioners and forfeiting 25% of the amount of auction price paid in terms of Rule 5 of the Chandigarh Estate Rules, 2007 (for short Rs. the Rules'). The facts in all the cases are identical, but to facilitate the decision, the facts are taken from CWP No. 23204 of 2010.

(2.) The petitioners herein participated in the auction of the residential plot No. 442, Sector 46-A, Chandigarh, held on 23.10.2008 by the Estate Office and were declared the highest bidders having offered a sum of Rs. 2.78 crores. 25% of the auction amount was paid at the time of fall of the hammer i. e. Rs. 69.50 lacs. An agreement was executed on the said date, which contemplated that the balance amount of 75% of the consideration money shall be paid in 90 days in terms of the provisions of the Chandigarh Estate Rules, 2007 and failure to deposit 75% of the consideration money shall result in cancellation of the allotment and forfeiture of the amount deposited by the purchasers.

(3.) The petitioners are said to have made a representation on 14.1.2009 i. e. within a period of 90 days requesting for extension of time to make payment in the light of the global melt down and depression, due to which fact, the Banks and the Financial Institutions were not lending any financial assistance. The respondents, without considering the request for extension, cancelled the allotment on 11.2.2009 and forfeited 25% of the payment made by the petitioners, relying upon the Rule 5 of the Rules and Clause (3) of the agreement.