M/S. MERCHANTS PRIVATE LIMITED Vs. CHANDIGARH ADMINISTRATION

JUDGEMENT

(1.) The petitioner company, in an open auction held on 05.03.1999, was allotted a site, i.e., SCO No.45-46, Sector 8-C, Chandigarh, for a consideration of Rs.1,41,00,000/- on lease hold basis for 99 years, vide allotment letter dated 18.03.1999 (Annexure P2). In addition to the terms and conditions of the said allotment letter, the allotment is governed by the provisions of Capital of Punjab (Development and Regulation) Act, 1952, (hereinafter referred to as 'the 1952 Act') and the Chandigarh Lease Hold of Sites and Buildings Rules, 1973, as amended from time to time (hereinafter referred to as 'the 1973 Rules').

(2.) As per provisions contained in Rule 14(1) of the 1973 Rules, the lessee is bound to execute a lease deed after payment of 25% of the premium and, in case of failure to execute the lease deed, the lessee may attract the penalty, as per provision contained in Rule 14(2) of the 1973 Rules, which provides that if the lessee fails to execute the lease deed in accordance with the Rule 14(1) of the 1973 Rules, the Estate Officer may cancel the lease and forfeit a sum upto 25% of the premium.

(3.) It is admitted position between the parties that the petitioner- Company paid all the dues within the stipulated time, including the ground rent. But the petitioner, however, could not execute the lease deed within the time prescribed, as, according to the petitioner, it was not aware of this condition. Due to the failure to execute the lease deed, a show cause notice was issued to the petitioner, and ultimately the Estate Officer, vide order dated 18.03.2010 (Annexure P3), cancelled the lease of the petitioner on the aforesaid ground and ordered forfeiture of 25% of the premium of the said site.