DILRAJ SINGH GILL Vs. THE STATE OF PUNJAB

JUDGEMENT

(1.) Mr. Dilraj Singh, Assistant Design Engineer, Ranjit Sagar Dam Design Organisation, Irrigation Department, Punjab, Chandigarh has challenged the validity of the Government circular contained in No. FD-Loans- 88-SOI/1838, dated Feb. 18, 1988, issued by Joint Secretary, Finance (M), Government of Punjab, Department of Finance (Loan Cell) requiring the Government employees asking for loan for the purchase of built up houses to furnish an undertaking form the concerned agency such as Housing Board for the execution of conveyance Deed at the time of making full payment in favour of the Government and an undertaking from the employee to pay penal interest in case the execution of the conveyance deed and the mortgage deed is delayed beyond the prescribed period, in this petition under Articles 226/227 of the Constitution of India. Facts first:-

(2.) The Chairman, Chandigarh Housing Board vide memo No. Board-DO-DAI- 86/4091 dated June 30, 1986 intimated the petitioner that as a result of draw of lots held on June 7, 1986, he had been allocated ground floor of a dwelling limit under the Housing Scheme for HIG-U.T. employees. He was asked to pay Rs. 7,500.00 within 30 days from the date of issue of the letter Rs. 15,000.00 before Dec. 30, 1986 and another sum of Rs. 15,000.00 before June 30,1987 The petitioner paid the said amounts and was allotted dwelling unit No. 460 in Sector 44-A, Chandigarh vide allotment letter No. RDO(DA)AA/2700, dated Feb. 5, 1988, for a total consideration of Rs. 1.98 lacs. He was required to deposit Rs 90,273.00 and out of this amount, he had already paid Rs. 42,500.00. Thus, he was required to deposit a sum of Rs. 47,773.00, which was deposited by him on Feb. 19, 1988. The balance consideration amount was to be paid in monthly instalments of Rs. 1560.00 each for a period of 12 years. He had paid 4 monthly instalments before the filing of this writ petition.

(3.) The petitioner being employee of the Punjab Government is entitled to raise loan from the Government for the construction/purchase of the house as per the provisions contained in the Punjab Financial Rules, Volume 1. Although he is entitled to a loan of Rs. 1.25 lacs for purchase of the dwelling unit, but he applied for loan of Rs. 1.00 lac only. He fulfilled the requirements laid down under the Punjab Financial Rules, Vol. I. Chief Engineer, Irrigation Works, Punjab, forwarded the petitioner's application for loan to the State Government on May 20, 1988. The application was returned by respondent No. 1 vide Memo No. 5994-FDLoans-88/6173, dated June 7,1986, with the remarks that the petitioner be asked to get an unconditional undertaking from the Chandigarh Housing Board that they would execute the conveyance deed after getting full payment of cost of the dwelling unit and that he would make full payment of the cost of the house along with the loan amount and penal interest in case the conveyance deed/mortgage deed is delayed beyond the period prescribed under the Rules.