RAJEEV RANA Vs. CHANDIGARH ADMINISTRATION

JUDGEMENT

(1.) The petitioners (Rajeev Rana and Sunil Kumar Rana) pray for the issuance of a writ of certiorari/mandamus declaring the action of the respondent-authorities in charging extension fee as a condition precedent for sanctioning the building plans with respect to residential site No.1436, Sector 40-B, Chandigarh as illegal and arbitrary and for quashing the impugned letter/order dtd. 16/1/2014 (Annexure P-11) vide which the request for sanction of building plans was rejected.

(2.) The case set out by the petitioners is that the petitioners and respondent No.4 (Deepak Kumar) purchased residential site No.1436, Sector 40-B, Chandigarh (hereinafter referred to as 'the disputed site') in an open auction held on 23/10/2008 for a consideration of Rs.1,98,00,000.00. On acceptance of the highest bid, a sum of Rs.49,50,000.00 was deposited towards 25% of the total premium/price. An agreement was also executed wherein it was agreed that the balance 75% of the premium would be deposited within 90 days. Accordingly, the balance premium of Rs.1,48,50,000.00 was also deposited. In view thereof, letter of allotment dtd. 23/1/2009 (Annexure P-2) was issued.

(3.) As per condition No.10 of the allotment letter, a conveyance deed had to be executed within 30 days from the issuance thereof. Further, as per condition No.11, possession of the disputed site was to be handed over within a period of 15 days from the date of execution and registration of the conveyance deed. As per Clause 14, the construction of the building had to be completed within 03 years from the date of delivery of possession, failing which, an allottee would have 05 more years to complete the construction on payment of extension fee as specified in the allotment letter.