RAM SINGH Vs. STATE OF HARYANA

JUDGEMENT

(1.) In an open auction, held on 25.11.1990, for allotment of a shop site, the petitioner was the highest bidder in respect of shop site No. 17 measuring 10 feet X 85 feet in Anaj Mandi, Nathusari Chopta, District Sirsa, (for short as 'the shop site') at Rs. 7,00,000/-. The petitioner deposited 1/4th of the auction money, i.e., Rs. 1,75,000/-, at the time of the auction and was issued a letter of allotment dated 19.03.1991 (Annexure P-1). As per Clause 5 of the allotment letter, petitioner was required to deposit remaining amount of Rs. 5,25,000/- either in one lumpsum without interest within 30 days of the receipt of the letter of allotment or in six half yearly instalments together with interest @ 12% per annum. However, owing to financial constraints, the petitioner found himself unable to deposit the balance amount of sale consideration in respect of shop site and, accordingly, vide application dated 24.08.1991 (Annexure P-2), he requested the respondents to cancel the allotment and to refund to him the amount of Rs. 1,75,000/- deposited by him at the time of the auction, after deducting 10% of the sale consideration. Respondent No. 2, vide communication dated 30.09.1991 (Annexure P-3), conveyed to the petitioner that allotment of the shop site could not be cancelled and conditions of allotment have to be strictly adhered to. The communication dated 30.09.1991 was followed by another communication dated 13.08.1992 (Annexure P-4), whereby respondent No. 2 asked the petitioner to pay due instalments within 15 days or face resumption of the site in question. Faced with the situation, petitioner has approached this Court by way of the instant Civil Writ Petition, under Articles 226/227 of the Constitution of India, with a prayer for issuance of a writ of mandamus to direct the respondents to accept surrender of the shop site and refund to him the amount of Rs. 1,75,000/- deposited by him at the time of the auction, after deducting 10% of the sale consideration under Section 46A sub-section 8 of the Punjab Agricultural Produce Markets (Haryana Amendment) Act, 1989 (hereinafter referred to as 'the 1989 Act').

(2.) Respondents have filed a counter, wherein it has been admitted that the petitioner had made a request for cancellation of allotment and refund of the amount of 25% deposited by him at the time of auction but refund of this amount is not permissible in terms of condition No. 18 of the letter of allotment (Annexure P-1).

(3.) We have heard learned counsel for the parties and have perused the record.