M/S. ARCHITECT ATELIER Vs. STATE OF PUNJAB

JUDGEMENT

(1.) BY merely depositing an amount of Rs. 10,000/- as an application money in the year 1993, the petitioner-firm has been able to prolong the controversy and successfully stall the finalisation of the allotment of a plot measuring 2.389 acres in S.A.S. Nagar, Mohali for a period of almost 13 years.

(2.) IN the year 1993, a scheme was floated by Punjab Housing Development Board for allotment of land to private entrepreneurs/joint sector entrepreneurs for construction of Group Housing in S.A.S. Nagar Mohali. Applications were invited from eligible persons, as detailed in the aforesaid proposal for allotment of the land. The petitioner, M/s. Archtech Atelier (hereinafter referred to as the "builder"), a partnership firm, applied through application dated September 14, 1993 along with an application money of Rs. 10,000/-. Proposal submitted by the petitioner, along with various other proposals, submitted by other eligible persons was examined by a high powered committee constituted for the said purpose and recommended for allotment of 2.389 acres land in Sector-17 for the construction of multi storeyed flats to the petitioner. The aforesaid decision was conveyed to the petitioner-firm on August 24, 1995. The builder was requested to complete the requisite formalities. After the completion of the aforesaid formalities, a memorandum of understanding (MOU) was formally signed between the 'builder' and Punjab Urban Planning and Development Authority (PUDA) on August 2, 1996. It was understood by the aforesaid parties that the said land shall be allotted to the builder at the rate of Rs. 2800/- per square yard. Various stipulations, terms and conditions were incorporated in the MOU. A formal agreement dated June 24, 1998 was entered between the builder and PUDA. A copy of the aforesaid agreement has been appended as Annexure P/3 with the present petition. As per the aforesaid agreement, the promoter/builder was required to deposit the amount of Rs. 80,94,282/- being 25% of the tentative price of the land on demand within 30 days of the issue of the allotment letter. It was stipulated that the aforesaid period of 30 days could be extended by another 30 days on payment of interest at 18% per annum. It was also agreed between the parties that the remaining 75% of the tentative price would be paid in accordance with the conditions as may be laid in the allotment letter. It was specifically stipulated in the aforesaid agreement that in case payment of 25% of the price is not paid within the period as stipulated in the agreement, the MOU signed between the parties would be treated to be withdrawn and cancelled. The parties also agreed that the price of the land as mentioned in the MOU is merely tentative and any enhancement of compensation on account of acquisition charges would also be payable by the promoter/builder proportionately as determined by the competent authority from time to time within 30 days of the demand. The land was to continue to vest in PUDA until entire price of the land together with the enhanced price, if any and interest and any other amount, if due to the authority, was paid or till the date of completion of the building. The promoter was free to determine the terms of the sale with the buyers of the flats to be constructed on the land but the number of flats to be built on the allotted land and their sizes were to be as specified by the Chief Administrator, PUDA. A formal allotment letter dated August 12, 1998 (Annexure P/4) was also issued in favour of the petitioner-builder.

(3.) KEEPING in view the non-payment of the aforesaid 25% amount (which was substantial amount of Rs. 80,94,282/-), PUDA addressed a show cause notice/communication dated November 25, 1998 to the petitioner builder. It was brought to the notice of the petitioner that the amount of 25% of the price of the land had not been deposited till date and that the time limit under the allotment letter had expired. PUDA maintained that instead of depositing the amount, the petitioner-builder was making unnecessary correspondence. It was also communicated to the builder that as had already been made clear, all the conditions between the parties would be in accordance with the allotment letter. In this regard, the petitioner builder was required to clear its position by December 10, 1998 as to why the payment had not been deposited by it within the prescribed period. It was specifically stipulated that in the event of non-receipt of the payment, the process of the cancellation of the site would be initiated, without affording any further opportunity to the petitioner-builder. It was reasserted that the aforesaid communication be treated as a final notice. A copy of the aforesaid show cause notice/communication dated November 25, 1998 has been appended as annexure P/6 with the present petition.