VINOD KUMAR Vs. STATE OF PUNJAB

JUDGEMENT

(1.) The grievance made by the petitioner is that charge of interest at the rate of 36% is totally unjust and arbitrary. Learned counsel contends that the rate of interest chargeable under the terms and conditions of the allotment is only 15%. Learned counsel for the petitioner also refers to the interim order dated January 15,2004 passed by this Court to contend that the petitioner has already deposited a sum of Rs.5,00,000/- in terms of the aforesaid order.

(2.) After hearing the learned counsel for the parties at some length and taking into consideration the facts and circumstances of the case, we find that the petitioner has been rather negligent and persistent defaulter in making the payment of the allotment price. However, at the same time we also find that charging of interest at the rate of 36% is absolutely uncalled for and is rather contrary and oppressive. Consequently, we find it appropriate that petitioner should pay the entire amount of outstanding dues against him. The respondent-Trust shall be entitled to charge interest at the rate of 15%.

(3.) The petitioner shall also be required to pay a penalty of Rs,1,00,000/- over and above the interest payable by him. The Improvement Trust shall also calculate the outstanding dues against the petitioner on the aforesaid basis and after deducting the amount of Rs.5,00,000/- as deposited by the petitioner on direction of this court, and communicate to the petitioner if there is any amount payable. On receipt of any such communication from the Trust, the petitioner shall deposit all the outstanding dues within a period of two months from the day of receipt of the aforesaid communication. It is clarified that in case the petitioner fails to deposit the aforesaid amount, as communicated by the Trust, then the present petition filed by the petitioner shall be deemed to have been dismissed. The present order is being passed in view of the peculiar facts and circumstances of the case and shall not be treated as a precedent by either of the parties.