CHIEF ADMINISTRATOR, HUDA Vs. OM AUTOMOBILES

JUDGEMENT

(1.) M /s Om Automobiles (Plaintiff) filed a suit for declaration with consequential relief of permanent injunction stating that plaintiff is allottee of commercial booth site No. 52, Sector 156-A, Part II, Faridabad, for a consideration of Rs. 9 lacs as per letter memo No. 579 dated 10.4.1996. The plaintiff deposited a sum of Rs. 90,000/- at the time of fall of hammer of the bid and Rs. 1,35,000/- was deposited later-on at the time of issuance of allotment letter. The balance amount of Rs. 6,75,000/- was to be deposited in lump-sum without interest within 60 days from the date of issue of allotment letter or in ten half yearly instalments. The possession of the shop in question was to be offered by defendants after completion of development but they failed to provide amenities and facilities like road and sewerage and pavements etc. The plaintiff still deposited the entire amount with interest @ 15% per annum on various dates total amounting to Rs. 14,52,000/-. In this manner, the plaintiff has paid Rs. 2,44,110/- more to the defendants. The plaintiff was aggrieved against the action of the defendants of demanding one more instalment of Rs. 98,339/- alongwith compound interest @ 18%. It was alleged by the plaintiff that the allotment letter does not provide any clause regarding compound interest and since the possession was not delivered by the defendants to the plaintiff of the plot in question nor their site plan was sanctioned as the Supreme Court had restrained the construction within the radius of 5 kilometers, besides the defendants failed to provide civic amenities and delayed the possession for two years, therefore, the defendants were not entitled to charge interest from the plaintiff for the said period.

(2.) THE defendant-Haryana Urban Development Authority (in short, 'HUDA') besides, taking preliminary objections averred on merits that as per condition No. 6, the possession stood offered immediately after making payment of 15% amount as demanded in condition No. 4. All facilities like road, sewerage and pavements etc. were provided at and around the booth in question. The plaintiff was delivered possession as far back as on 6.5.1996 and no communication regarding non-providing of amenities was ever sent to the office of defendant No. 2. It was denied that any excess payment has been received by the defendant from the plaintiff and alleged that the amount of instalment of Rs. 98,339/- demanded from the plaintiff, along-with interest was not illegal. It was further alleged that clause of interest @ 18% was clearly mentioned on the last page of the letter of allotment and compound interest @ 18% per annum was being charged as per HUDA Policy upto 31.8.2000 in view of the letter of Chief Administrator HUDA dated 22.9.2000 and simple interest @ 10% per annum is being charged from 1.9.2000. It was further alleged that in terms of the conditions of allotment, in case of non-payment of the amount due and payable by the plaintiff, defendant No. 2, as per HUDA Act, has the powers to resume the booth in question. Jurisdiction of the Civil Court was also challenged. On the pleadings of the parties, following issues were framed :-

(3.) BOTH the plaintiff and the defendants were aggrieved against the judgment and decree dated 17.1.2006, as such, both filed appeals before the learned first Appellate Court.